A review of the Inflation Reduction Act, two years on.

BROWNSVILLE, Texas – Two years ago, Nathan Burkhart, vice president, entrepreneurship and innovation for the Brownsville Community Improvement Corporation, predicted the Inflation Reduction Act would be great for South Texas.

In a guest column for the Rio Grande Guardian, Burkhart wrote: 

“The Inflation Reduction Act of 2022 will deliver exactly what South Texas needs: new investment in a clean and advanced energy economy, healthier communities with lower costs for prescription medications, and significant progress on climate change which threatens our lives, livelihoods, and coastal tourism industry. 

“The Inflation Reduction Act’s $369 billion in clean energy investments makes it the most ambitious piece of climate legislation in U.S. history. And importantly, it’s also an ambitious jobs bill. It’s going to mean job creation in wind turbine, solar panel, and electric vehicle production – all industries where South Texas is poised to lead.”

In a recent guest column for the Guardian, Texas AFL-CIO President Rick Levy said the Inflation Reduction Act is driving Texas’ clean energy boom, creating jobs, improving the power grid, and positioning the state as a leader in solar energy. He says the legislation ensures Texas workers are central to the clean energy transition.

“Thanks to IRA funds, the International Brotherhood of Electrical Workers (IBEW) Local 20 has trained over 400 apprentice electricians to install solar panels and batteries in North Texas, setting them up for stable, well-paying careers,” Levy wrote. 

Levy said one of the IRA’s standout features is its commitment to creating good, family-supporting jobs and aggressive incentives tied directly to labor standards. 

“Developers looking to build a new utility-scale wind or solar farm will receive a 30% tax credit by paying workers the federal prevailing rate for wages and benefits and employing a certain number of apprentices. This will lift the pay and quality of clean energy jobs while expanding career pathways so people can enter union careers in the clean energy economy,” Levy wrote.

“By providing tax credits to projects that employ registered apprentices and adhere to prevailing wage guidelines, we can build a highly trained workforce and enhance the quality and reliability of the projects. These initiatives ensure our workforce is prepared for the demands of the clean energy sector, offering pathways for young workers and those transitioning from traditional energy industries.”

Levy added: 

“The Inflation Reduction Act is a game-changer for Texas’ booming clean energy sector. It’s a bold step towards improving racial and economic equity, uplifting Texas workers, protecting our environment, and leading the nation in clean energy deployment. The IRA will reshape our economy for decades, and this Made in America clean energy boom is just getting started.

Click here to read Levy’s column.

U.S. Rep. Joaquin Castro says he is in no doubt the landmark legislation is having a positive impact.

The San Antonio Democrat issued these bullet points on how the Inflation Reduction Act is “delivering” for Texans:

● 4.4 million seniors and other Medicare beneficiaries in Texas will save money on prescription drug costs because of President Biden’s caps on out-of-pocket prescription drug and insulin costs, free vaccines, inflation rebates, and drug price negotiation program.

● In 2021, there were already 238,884 Texas workers employed in clean energy jobs. The Inflation Reduction Act is expanding those job opportunities, bringing an estimated $66.5 billion of investment in large-scale clean power generation and storage to Texas between now and 2030.

● Hardworking Texas families will receive $690 million in home energy rebates to help cut their energy costs by weatherizing their homes and replacing old appliances with more efficient models.

● Manufacturers employ 873,500 workers in Texas, and the Inflation Reduction Act will help us make the technologies of the future at home — supporting local economies and strengthening supply chains.

● Texas is home to 3 million small businesses, representing 99.8% of all businesses in the state, and the Inflation Reduction Act will help them save money through tax credits to support energy efficiency improvements that deliver lower utility bills.

● The Inflation Reduction Act will make it easier and cheaper for Texans to purchase an electric vehicle, with upfront discounts for new and used EVs, helping middle-class Americans skip the gas pump and save on fuel costs.

● The Inflation Reduction Act will significantly reduce pollution, helping Texas not only avoid costly climate impacts from more extreme weather, but also improve local air quality.

● The Inflation Reduction Act supports climate-smart agriculture practices, which will help Texas’ 247,000 farms lead on climate solutions and reward their stewardship.

● The Inflation Reduction Act will upgrade affordable housing, helping thousands of Texans boost resilience in the face of intensifying extreme weather.

Castro pointed out that the Inflation Reduction Act of 2022 met fierce resistance as it progressed through Congress. He noted that the bill endured unified opposition from the entire Texas Republican Congressional Delegation and ultra-rich lobbyists and corporate interests that fund their political campaigns.

However, he said President Biden, Vice President Harris, and Democratic leadership in Congress have kept their promises to bring new jobs to Texas, lower prescription drug costs for millions of Texas’ seniors, tackle the climate crisis, and lower home energy costs. 

“I was proud to join Texas Democrats to vote for this historic investment in good jobs, affordable health care, and a better future,” Castro said.

“The Inflation Reduction Act is helping more Texans earn a living wage and make ends meet. In my district, 54,000 folks signed up for a Marketplace health care plan this year with the help of new premium subsidies that save them nearly $600 annually, and the insulin price cap is helping 2,600 of my senior constituents save an average of $420 a year on the care they need to stay alive.”

Castro added: “The Inflation Reduction Act means more money in the pockets of working families to keep the air conditioning on, put food on the table, buy new school supplies, and so much more. Texans are humble, hard-working people who do their jobs and don’t ask a lot from the government — and the Inflation Reduction Act is changing a lot of their lives.”

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