Playing Yo-Yo With the IRA Funds For Critical Climate Action Programs In Colorado Face Cuts And Uncertainties 

This opinion piece was originally published in The Greater Park Hill News, where the author is a monthly columnist. Previous columns can be found here: http://greaterparkhill.org/?s=tracey+macdermott

The Inflation Reduction Act (IRA) — one of President Biden’s signature achievements — was signed into law in August, 2022. Since then, its positive impacts have been far-reaching. With more than $369 billion planned for climate action and to develop renewable energy, it also prioritized environmental justice initiatives with a $60 billion commitment.

It is important to remember the people who suffer the most from the climate crisis and will continue to suffer if this funding is slashed or eliminated. That’s the risk we are facing.

Historical inequities have led to environmental racism, leaving communities of color disproportionately located near polluted areas. So, when such a monumental bill such as the IRA passed, it also provided an opportunity to end these injustices and begin to heal centuries of harm.

It should be our nation’s priority to right these wrongs. The IRA prioritizes over 50 percent of its investments to disadvantaged communities, for electrification upgrades, climate resilience, transportation equity and reducing air pollution.

As highlighted on Sen. John Hickenlooper’s congressional website, the IRA, as it was written, will bring $1.7 billion to Colorado. These funds, directed to projects for clean energy manufacturing, would create more than 4,900 jobs and would address environmental health disparities.

Part of that includes a $199 million package, awarded to the Denver Regional Council of Governments (DRCOG), to improve air quality.

This program is focused on decarbonizing buildings by electrifying and transitioning away from natural gas. The DRCOG grant included decarbonizing homes in low-income communities, which included free home retrofits and upgrade services. The program also has an eye towards equity by supporting recruitment of low-income youth and previously incarcerated individuals for job training.

Now, under the Trump administration, the program may be threatened. Others have been cut entirely; it is unclear how many are at risk of elimination.

The “Solar for All” program, for example, is designed to lower utility bills for low-income households and disadvantaged communities. The money was to enable Colorado to increase the number of communities that could take advantage of distributed solar investments (think solar farms and large-scale utility plants). That would increase the number of communities who could benefit from clean and affordable solar energy.

Unfortunately, in February the Trump administration froze those funds.

In Southern Colorado, Pueblo was granted $200 million to expand manufacturing facilities for wind, while creating 800 jobs. Under Trump, funds for this program were frozen — and then unfrozen.

Meanwhile, the city of Brighton was awarded $250 million for a facility to manufacture solar photovoltaic modules. The facility is projected to create over 900 new jobs. It does not appear that funding has been stopped for this project, but the current trend of freezing and revoking funds could put it at risk.

The threat of eliminating the Advanced Energy Project Credits could lead to a billion-dollar gap for energy projects. That would ultimately lead to higher electrical costs for business and households. Losing these credits puts our state’s energy goals at risk, slowing down the work we can do and delaying the solution to the climate crisis.

Two of Colorado’s Republican congressmen, Jeff Hurd and Gabe Evans, have signed a letter to the Ways and Means Committee requesting restraint in cuts to the IRA, further expressing concern about “disruptive changes to our nation’s energy tax structure.” Gutting the IRA would greatly impact both representative’s districts.

This month, I encourage everyone in Colorado to call on Hurd and Evans and let them know you also support the IRA and the funding their districts received. Let them know you appreciate them standing up for their districts and these important provisions of the law.

While you’re at it, call Colorado’s other members of Congress. Thank them for supporting the IRA. And if they don’t, ask them to reconsider. This law is not just about the climate — it’s about equity and environmental justice.

Please note while this article is written for a Colorado focus, no matter where you live, please contact your US Congressperson and Senators and ask for them to defend the Inflation Reduction Act.

Tracey MacDermott is an at-large board member of Greater Park Hill Community, Inc. She was trained as a Climate Reality Leader in 2017. She chairs the Sustainability Committee for the Business and Professional Women of Colorado and the National Federation for Business and Professional Women. Email her at traceymacdermott@gmail.com

Tracey MacDermott
NFBPWC Environment and Sustainable Development Committee Chair
2024-2026