• 5 MIN READ

House Passes Inflation Reduction Act

The Industrial Innovation Initiative (I3) released the following statement today regarding the passage of the Inflation Reduction Act of 2022. This statement may be attributed to Gabrielle Habeeb, Project Manager for the Industrial Innovation Initiative: 

“Today’s passage of the Inflation Reduction Act of 2022 by Congress marks a monumental investment in the solutions necessary to achieve U.S. climate goals. This package will set the stage for private investment, protect energy communities, support family-sustaining jobs, and spur emissions reductions from the vital, yet challenging, industrial sector.  The industrial sector is essential to jobs and prosperity, producing the materials necessary for our everyday lives, from transportation infrastructure to the buildings in which we live and work. Policies and incentives within the Inflation Reduction Act of 2022 will help mitigate both industry’s climate-warming emissions and the pollutants that adversely impact communities.

Key provisions for industrial decarbonization include:  

The Clean Hydrogen Production Tax Credit: To incentivize clean hydrogen production, this credit is scaled such that the lower the carbon intensity of the hydrogen produced, the greater the credit value. Clean hydrogen produced with a carbon intensity of less than 0.45kg CO2e/ 1kg H2 are eligible for the full credit value, while hydrogen produced with a carbon intensity greater than 4kg CO2e/1kg H2 is not eligible for the credit. Hydrogen produced with a carbon intensity within that range are scaled according to the applicable percentage. The valuation is technology and production method agnostic, awarding credit based on greenhouse gas lifecycle assessments. This “all of the above” approach will help spur clean hydrogen production and provide a critical boost to this nascent economy.  Critical enhancements to the 45Q Carbon Oxide Sequestration Tax Credit: The 45Q tax credit is a key financial driver for carbon management solutions. Enhancements to this credit include (but are not limited to) enhanced credit values for storage and utilization of industrial CO2; direct payments to domestic manufacturing projects for the first 5 years after carbon capture equipment is placed in service; and significantly lower capture thresholds, allowing for greater participation across facilities. For more information on the carbon management provisions of this bill, see the Carbon Capture Coalition’s fact sheet.

Expanded eligibility for the 48C Advanced Manufacturing Tax Credit: The bill provides $10 billion in additional 48C credit allocations, including an extension of the Advanced Energy Project Credit to include industrial applications beyond clean energy system production. The new definition includes applications that retrofit industrial or manufacturing facilities with low- or zero-carbon process heat systems; carbon capture, utilization, and storage; energy efficiency and waste reduction; energy storage systems; and any other technology designed to reduce greenhouse gas emissions.   

The Advanced Industrial Facilities Deployment Program: $5.812 billion is allocated to the Office of Clean Energy Demonstrations, covering financial assistance for projects to purchase, install, or implement advanced technology designed to accelerate greenhouse gas emissions reductions at an eligible facility; retrofit, upgrade, or make operational improvements; and conduct engineering studies and other work needed to prepare for such advancements to net-zero emissions. This financing (with a 50% cost share) will help lower the financial hurdle to decarbonizing industrial processes.  

These are just a few of the exciting programs within the final budget reconciliation text. The industrial sector is critical to the U.S. economy and workforce. These provisions will help ensure this sector remains competitive while investing in a safe and livable climate. The work to see these provisions implemented to their greatest potential begins now.”  

For more information, see the Industrial Innovation Initiative’s fact sheet detailing the industrial provisions of the Inflation Reduction Act of 2022. 

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The Industrial Innovation Initiative (I3) is an ambitious coalition that aims to drive emissions reductions through policy change, supporting quality jobs and investment in key US industrial sectors. I3 builds on years of stakeholder engagement and work with state officials in the Midcontinent region, as well as extensive work advancing decarbonization solutions important to the industrial sector.

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Labor Engagement Manager for Industrial Innovation and Carbon Management, GPI

Alejandro comes to GPI from Labor Union SEIU-United Service Workers West. He represented union workers from downtown Los Angeles and LA’s westside corridor of Century City, Westwood, and Beverly Hills. Alejandro enforced various collective bargaining agreements for union workers, ensuring annual wage increases, health insurance, and other benefits and protections. In addition, he worked with union leaders and outside stakeholders, such as community partners, public agencies, politicians, and industry experts, to develop and execute union campaigns. Alejandro was also part of the Los Angeles-Justice for Janitors 2021 union contract campaign—he helped execute and coordinate large-scale actions across LA’s metropolitan area. Previously, he served as the Nevada state canvassing director at For Our Future Action Fund. He holds a BA in international studies and Italian from the University of Kansas.

Senior Program Coordinator for Industrial Innovation and Carbon Management, GPI

Carrie Danner joined the Great Plains Institute in 2023 and serves as the operations coordinator for the Industrial Innovation and Carbon Management team. In her work, she supports all projects within the program to elevate operations, particularly in grant-making and event planning. Carrie earned a bachelor’s degree from Knox College in environmental studies. Prior to joining GPI, she supported programs at the Conservation Corps of Minnesota & Iowa as their member experience administrator.

Industry Program Coordinator, GPI

Alana joined GPI in 2024 as a program associate on the Industrial Innovation and Carbon Management team, specifically supporting the Industrial Innovation Initiative, where she helps to advance industrial decarbonization through GPI’s consensus-building approach. Alana previously worked as an account executive at Jamf, where she helped current K-12 education customers improve and scale the management and security of their Apple device deployments. Alana has spent most of her professional years working with Minnesota nonprofits, including two years as an AmeriCorps member with Twin Cities Habitat for Humanity. She holds a bachelor’s degree in community environmental studies from the University of Wisconsin-Eau Claire.

Zachary Byrum, Research Analyst, WRI

Zachary Byrum is a Research Analyst in WRI's U.S. Climate Program, where he provides technology and policy analysis for carbon removal and deep decarbonization. His work focuses on pathways to reduce industrial emissions as well as bolstering technological carbon removal. Prior to WRI, Zach was a research assistant in the Carbon Management Research Initiative at the Center on Global Energy Policy. In the preceding years, he served as White House Intern in the National Economic Council under the Obama Administration and then an assistant analyst at the Congressional Budget Office. Zach holds a Master of Public Administration in Environmental Science and Policy from the School of International and Public Affairs at Columbia University and a B.A. in Economics and Political Science from Goucher College.

Senior Advisor of Industrial Innovation, WRI United States

Angela Anderson is the Director of Industrial Innovation and Carbon Removal in the Climate Program. She leads WRI's growing portfolio of work in industrial decarbonization and carbon removal and aims to change narratives around “hard-to-abate” sectors and promote the natural and technological interventions required to achieve net-zero targets. Prior to joining WRI, Angela worked as a program director, coalition builder, international advocate, and campaign strategist. She led the Climate and Energy Program at the Union of Concerned Scientists for ten years; facilitated US-NGO engagement in the international climate negotiations while at US Climate Action Network and at the Pew Environmental Trust; and founded Clear the Air, a national coalition to reduce pollution from power plants. Angela holds a B.A. in political science from Colorado State University.

Vice President of Industrial Innovation and Carbon Management, GPI

Patrice Lahlum is the Vice President of the Industrial Innovation and Carbon Management program at the Great Plains Institute. The Institute, headquartered in Minneapolis, MN, works with diverse stakeholders and communities across the country to transform the energy system to benefit people, the economy, and the environment. We strive to combine our unique consensus-building approach, expert knowledge and analysis, and local action to promote solutions that strengthen communities, shore up the nation’s industrial base, and enhance domestic energy independence, all while eliminating carbon emissions. Patrice oversees several initiatives, including the Carbon Capture Coalition, Industrial Innovation Initiative, Carbon Action Alliance, and the Regional Carbon Capture Deployment Initiative.

Senior Content Specialist for Industrial Innovation and Carbon Management, GPI

Kate Sullivan joined the Great Plains Institute in 2019. As Senior Content Specialist, Kate uses her analytical and design skills to provide research, writing, and logistical support across the Industrial Innovation and Carbon Management team. Prior to joining GPI, Kate worked as an Energy Counselor in the Center for Energy and Environment’s residential department, assisting homeowners with their energy needs and providing resources for efficiency upgrades. Kate earned her BA in Biology from St. Olaf College with an emphasis in Environmental Studies.

Senior Program Manager for Industrial Innovation and Carbon Management, GPI

Jill Syvrud joined the Great Plains Institute in 2017 and serves as the program manager for the Industrial Innovation and Carbon Management Program. In addition to overseeing the overall program, Jill directly supports the Industrial Innovation Initiative, a coalition advancing decarbonization solutions for the Midcontinent region’s most important industrial sectors. Jill earned a bachelor of science in biology from the University of Wisconsin–Eau Claire and a master of science degree in science technology and environmental policy from the University of Minnesota’s Humphrey School of Public Affairs. Jill’s past experience includes multiple graduate research assistantships concentrating on technology innovation and sustainable megacities, as well as a previous position as an administrative and outreach coordination intern with the Midwest Renewable Energy Association.