Executive Summary

Following discussions at the October 21, 2022 Solar Congress (a meeting of constituencies in Northern New Mexico supported by Remy’s Good Day Fund (RGDF) grants, as well as other individuals promoting clean energy), Nicholas Pyne Johnson was retained by RGDF to investigate ways in which The Inflation Reduction Act of 2022 (IRA) can be utilized to help New Mexicans. The IRA offers billions of dollars in benefits to indigenous and rural communities in New Mexico. These benefits come in the form of grants, tax cuts, rebates, and other miscellaneous funding. What is noted below is just a segment of programs the IRA has to offer and is in line with Remy's mission.  Along with reducing inflation, the IRA is designed to assist Tribes, Cities, States, Businesses, Non-Profits, Homeowners, and other entities to implement environmentally sustainable practices.

The IRA provides a massive opportunity for New Mexicans to gain access to clean energy. This report has identified several key IRA programs that should be taken advantage of that include, but are not limited to,

• Improving Energy Efficiency or Water Efficiency

• Climate Resilience of Affordable Housing Grant Program

• the High Efficiency Electric Home Rebate Act (HEEHRA)

• the Home Energy Performance/House Rebate Program (HOMES)

• the Energy Credit

• the Green Bank (Greenhouse Gas Reduction Fund)

• Climate Pollution Reduction Grants

• Environmental and Climate Justice Block Grants

This report has also identified ways that New Mexicans can gain access to IRA benefits. While some information on accessing funding is not yet available, there are plenty of things New Mexicans can do now to take advantage of what the IRA provides.                   

Introduction

The Inflation Reduction Act of 2022 (IRA), signed into law by President Biden on August 16, 2022, raises $738 Billion with the goal of reducing inflation. Inflation, which, as 12/2022, sits at 6.5%, has caused much hardship throughout the United States, with families having to drastically cut back spending. $391 Billion is directed towards combating climate change through incentives for clean energy production and the implementation of energy efficient practices.

As mentioned in the summary above, after discussions at the Solar Congress held by Remy’s Good Day Fund relating to the Inflation Reduction Act on October 21, 2022, this report seeks to investigate the various benefits the IRA provides and how Tribes and other constituencies in New Mexico can take advantage of these benefits.  

Brief History

Historically, inflation in the United States has mostly been triggered by international events, including, but not limited to, the repercussions of World War II, the Korean War, the Organization of Arab Petroleum Exporting Countries (OPEC) Oil Embargo, the Iranian Revolution, and the Gulf War. These events resulted in supply chain disruptions, primarily oil production, leading to massive price surges.  

Areas of Focus 
 

• Voluntary Conservation Measures

• Forestry, Rural Energy Development

• Greenhouse Gas Reduction

• Climate Pollution and Port Air Reduction Pollution

• Vehicle Pollution Reduction

• Methane Emissions Reduction

• Drought Response and Water Funding

• Environmental Justice

• Hydrofluorocarbons

• Wind/Solar/Oil/Gas on Federal Lands

• Offshore Wind Production

• Land Conservation

• Future Permitting Legislation

• Upgrading Consumer Home Energy

• Tax Credits and Royalty Rates for Energy Production

• Building Code Adoption.   

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Navigation Tips

These are some tips as you navigate the chart and appendices below. These tips are a general overview and its best to click the text in the left hand corner in the chart to get more specifics on the funding program as you do your research. Know that as updated info from the federal government becomes available we will update our website.

If you are applying for a grant you will need to:

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1. Create a SAM (System for Award Management) account. It is required to do business with the US Government.  If you don’t currently have a SAM account or you haven’t updated it annually (required) you will need the documents on this list to get started. With that account you’ll be able to research grants and check your eligibility. SAM centralizes information about grant recipients and also provides a central location for grant recipients to change organizational information.

2. As of 2/13/2023 the IRA grants don’t have a start date so a search for them is not viable right now.

3. Once they do have a start date you can search for grants at grants.gov using IRA as a filter. Remy’s will monitor the IRA and update our website with start dates once they become available and provide a link to the grant from the grants.gov website where info about how to apply will be provided.

4. Applying for an IRA grant will, most likely, need the expertise of a grant writer. That being said, a writer within your entity who can follow the grant’s instructions for required information may suffice. Don’t let not having a professional grant writer be an obstacle in applying.

5. It is also advisable that grant seekers request “Letters of Support” from their Members of Congress for their grant proposals. Please consult the house.gov website (upper right corner search tool) to get in touch with your Federal Elected Officials and their staff on this matter. You’ll want to find the one that serves your area as they will only write letters for their constituency.

If you are applying for a rebate:
 

1. The rebates from the IRA are being offered through the Department of Energy. They begin in August 2023 though as of February 13, 2023 allocation of the $225M to specific tribal nations has not yet been determined. The federal government has promised more info on this allocation in the coming months.

2. Rebates will be applied to eligible purchases at point of sale, though that may require filling out a form, including the receipt, and mailing those documents to a specific address before you receive the rebate.

3. Currently you can sign up to be notified as to when these rebates become available by visiting Whitehouse.gov.

4. Visit the Department of Energy (DOE) website to get more info and once the rebate programs are available the DOE page will offer that info.

5. We will update our website as new info is announced.

If you are applying for a tax credit:
 

1. Some of the IRA programs with a tax credit have not started so their guidelines have not yet been published. Some have so check those out now.

2. Those that have started will have a specific tax form that will need to be completed and submitted when you submit your annual federal taxes.

3. It’s best to read all of the requirements for the specific program before you start any purchasing or install to be sure you meet the requirements, knowing that you will need to outlay the funds beforehand and wait until you file taxes before you are able to get a credit.

4. When program starts are announced, most likely later this year (2023), we will update on this website.

If you are applying for miscellaneous funds:
 

1. Some of the programs using miscellaneous funds are partnerships with another agency and that agency will assist with the completion of the paperwork necessary to gain the funding. These programs don’t have a start date yet. The listing does have a link to the partner site so entities can get started connecting with the partner at this time.

2. Some of the programs using these funds are grant based with a start date later in 2023. Application details have not been announced. We will update our website when that info has been announced.