Two years after President Joe Biden's Inflation Control Act (IRA) went into effect, its consequences have included soaring prices, distortions in energy markets and huge payouts to left-wing activist groups.

Biden Signed He signed the IRA into law on August 16, 2022, praising the massive legislative package as transformative legislation that would usher in a new green energy-fueled economy and create hundreds of thousands of jobs in the process. Two years later, the bill's costs have risen, industries the IRA supported, like offshore wind, have struggled, energy markets have been distorted, and activist organizations and groups dominated by Democratic insiders have been enriched with taxpayer money thanks to the law.

Despite its title, Biden said in August 2023 that IRAs actually have “nothing to do with inflation” and that the bill's massive green energy subsidies are the real focus of the legislation, the White House said in a statement on Friday. Biden Vice President Kamala Harris Harris celebrated the anniversary of the bill's passage and said she was “proud to cast the runoff vote” to get it through the Senate. (Related article: Electricity prices rising seven times faster under Biden than under Trump)

Janet Yellen: “The essence of the Inflation Control Act is to transform the climate crisis into an economic opportunity.”

Sounds great. What would the Inflation Control Act do to control inflation? pic.twitter.com/btsHoG3qd0

— Daily Caller (@DailyCaller) April 4, 2023

Initial Estimate Goldman Sachs predicted the IRA would include $400 billion worth of tax credits for energy, but the final total cost could be much larger. Project In April 2023, the Congressional Budget Office (CBO) projected that the actual cost of these credits could reach about $1.2 trillion over 10 years. Increased It estimates that the cost of the IRA energy reserve will increase by $428 billion through fiscal year 2033.

“The bill that passed the Senate with VP Harris' tie-breaking vote will be one of the most costly wastes in history, and it's all based on the false premise that Americans are too stupid to decide how to heat their homes, work, cook, or even drive their cars,” Dan Kish, a senior fellow at the Energy Institute, told DCNF. “It was never about the climate, it was about strengthening Washington's power over American industry and the American people.” (Related story: Solar executives donate millions to Democrats, help push Biden's signature climate bill. Now they're drowning in cash.)

Jean-Pierre: “The Inflation Control Act is very historic when it comes to the fight against climate change, because it is the biggest contribution to the fight against climate change.”

What would the Inflation Control Act do to fight inflation? pic.twitter.com/jga7ftZWqM

— Daily Caller (@DailyCaller) March 30, 2023

Green Headwinds

Along with solar power and onshore wind power, offshore wind power is a green industry that some people are paying attention to. Supporters The hope is that the IRA and its subsidies will provide a boost: Offshore wind projects can qualify for tax credits of up to 30 percent if construction on the project begins early enough and developers meet additional union support and procurement requirements. According to To S&P Global.

But the industry has struggled greatly recently as inflation, high borrowing costs and logistical problems have eroded projected profit margins. Despite government efforts to push through ambitious leasing schedules and offer generous subsidies, major developers have pulled the plug on projects and are seeking to renegotiate power purchase agreements with states.

The IRA's electric vehicle (EV) fund has also struggled to encourage Americans to make the wholesale switch from internal combustion engine models. The IRA created a $7,500 consumer tax credit that buyers of eligible models can claim, but consumer demand for EVs has not grown as quickly as IRA supporters had hoped.

The IRA also included grants to encourage the construction of EV charging stations in “low-income” and “non-urban” areas, which tend to have much less existing infrastructure than the more densely populated coastal areas of the U.S. But the DCNF has not yet provided any funding for the construction of EV charging stations in parts of Nantucket and Fishers IslandThese areas of New York state met the administration's definition of “low-income” or “non-metropolitan” areas.

In addition, I.R.A. Billions Tax money that automakers can use to prepare manufacturing facilities for EV production accounts for more than half of the funding for EV production. But major automakers are losing money on their EV product lines, executives are backing away from some of their EV production goals, and EV prices are falling as automakers work to prepare their manufacturing facilities for EV production. bring the action For hesitant consumers. (Related article: Biden's 'Stop Inflation' Act Did Nothing to Curb Inflation, Economists Agree)

John Podesta: “To prevent these disasters from getting worse, we need to cut the carbon pollution that's driving the climate crisis.”

And that is the purpose of the Inflation Control Act.”

Will the Inflation Control Act be effective in controlling inflation? pic.twitter.com/vBVNQhzPsP

— Daily Caller (@DailyCaller) August 16, 2023

Before the IRA became law, it was almost universally opposed by conservative and pro-fossil fuel groups, but now that it is in place, many groups that initially opposed it have come to support the tax credit provisions, including the American Petroleum Institute (API), a major oil and gas industry interest group. Before the bill became law, the API had Explained He views the IRA tax and spending rules as “the wrong policy made at the wrong time.”

“We oppose the IRA and the natural gas tax should be repealed to avoid higher costs for consumers,” an API spokesperson told DCNF. “We will continue to work with policymakers to [carbon capture and sequestration] “Hydrogen incentives that spur innovation and benefit from bipartisan support.”

Clear Path, a free-market advocacy group that advocates for innovative energy solutions to reduce pollution, has never supported the IRA, but the group believes some of the law's deductions hold promise if implemented “correctly.”

“Tax incentives have been worthwhile investments in U.S. energy for decades, including the Production Tax Credit, which helped make hydraulic fracturing technology commercially viable from the 1980s through 2002,” Clearpath CEO Jeremy Harrell said in a statement shared with DCNF. “Implemented properly, incentives help scale up the technology and rapidly reduce costs. This combination will ensure the U.S. remains a global leader in energy production.”

“The Biden-Harris Administration's reluctance to accept guidance from the IRA on implementing incentives,” Harrell continued. “Combined with the United States' broken permitting system, the Administration risks undoing the investments it has so highly praised.”

The law contains or enables provisions that effectively disincentivize oil and gas activity, such as a methane fee and a $5 per acre application fee for expressing interest in oil and gas leasing on public lands, Kathleen Sugama, president of the Western Energy Alliance, told DCNF. Sugama said the increased costs imposed by these provisions on producers would be passed on to consumers, contradicting Biden's claims that the law will lower energy costs.

“As we've seen across the economy, the anti-inflation bill has actually been the 'accelerating inflation bill,'” Sugama said. “And that's certainly true with energy. When energy development and production costs go up, those costs get passed on to consumers. When you restrict supply, prices go up. That's basic economics.”

Sugama believes the IRA's wind and solar subsidies are “woefully ineffective and costly to taxpayers,” but adds that they are not enough to distort the market to the detriment of consumers.

The possibility of abolishing the IRA is likely to be a topic of discussion in Washington if Republicans retake the White House and win elections in Congress in November. Former President Donald Trump has been a fierce critic of the IRA's green energy spending. to ridicule He has called the flagship provision a “fraud” and has pledged to repeal it immediately if elected.

But Republicans, who want to repeal the entire bill and restore as much funding as possible, will have to face off against powerful lobbying groups like API and the Chamber of Commerce, which are trying to block the repeal of some provisions of the bill.

Republicans in Congress are currently unable to agree on how to deal with the IRA. The bill passed without debate, but single Republican Following the vote, 18 House Republicans recently wrote Speaker of the House Mike Johnson urging him to consider preserving some of the law's energy credits while repealing others. (Related article: High-income Americans benefit from green housing subsidies under Biden administration)

Biden: “The Inflation Control Act is the most transformative investment ever made in our climate.” pic.twitter.com/iQR1PSxqDm

— Daily Caller (@DailyCaller) March 28, 2023

One such organization is the Climate Justice Alliance (CJA), which the Environmental Protection Agency (EPA) Announced Awarded $50 million to distribute to other organizations as part of an IRA-backed “environmental justice” program. CJA explain Its strategy is to “build a just transition away from exploitative systems of production, consumption and political oppression” I believe “The road to climate justice passes through a free Palestine,” the group proclaims, and its website includes messages in support of cutting police budgets and other content. Depict Convicted cop killer Assata Shakur.

Other groups in the coalition cashing in “environmental justice” funds from the EPA's IRA include the New Jersey Immigrant Justice Alliance and the New York Immigration Coalition, two anti-immigration enforcement groups that don't seem to have much to do with environmental activism. The NDN Collective, a coalition partner of the CJA, Advocate Calling for the release of convicted police killer Leonard Pelletier,Also support Racial reparations.

Another IRA-funded EPA program also sends up to millions of dollars to the Ella Baker Center for Human Rights and partner organizations for a project that will engage “up to 1,350 people in California’s prison and reentry communities to learn more about the unique environmental and climate justice challenges these communities face.” Another IRA-founded EPA program has awarded billions of dollars to coalitions that fund green projects, many of which include Democratic insiders and organizational allies.

“The IRA is handing out billions of dollars to corporations to do government bidding, as well as funding left-wing environmental groups for their election campaigns this fall,” Kish told the DCNF. “The more money you give them, the more supporters you get. This is how third world countries operate.”

The White House did not respond to a request for comment.

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