Investing in American Energy: Significant Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Energy Economy and Emissions Reductions

The Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL) are revitalizing the U.S. energy system by investing in American energy supply chains, clean energy job creation, emissions reduction, and consumer energy savings.

DOE’s latest report “Investing in American Energy: Significant Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Energy Economy and Emissions Reductions” describes the key results from new analysis on the impacts of IRA and BIL in OP-NEMS, a customized version of the National Energy Modeling System (NEMS). By the end of this decade, President Biden's Investing in America agenda is positioned to: 

• Save American families up to $38 billion on electricity bills
• Reduce U.S. net greenhouse gas emissions 40% below 2005 levels by 2030
• Strengthen U.S. energy security by reducing net crude oil imports by nearly 60%
• Reduce industrial and manufacturing emissions up to 40% below 2005 levels
• Double the share of American electricity generated by clean sources to 80%
• Accelerate the electrification of the American vehicle fleet, with share of zero-emission light-duty vehicle sales reaching up to 65%

While there are many pathways to reach climate targets, three of the key pillars to achieve net-zero are to increase energy efficiency, decarbonize electricity, and electrify end uses and switch to other clean fuels all while ensuring benefits and costs of the transition are equitably distributed. This new analysis highlights how IRA and BIL leverage these pathways to make significant progress.

The “Investing in American Energy: Significant Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Energy Economy and Emissions Reductions” report was developed through extensive analysis and a combination of modeling. Read the full report here.