Blink and you’ll miss what may have been the two most important words in the sprawling climate, health and tax provisions in the Inflation Reduction Act: "direct pay." This means that publicly owned utility companies or co-ops, which are exempt from taxes, can still qualify for the benefits of greening their energy mix by getting a "direct pay" grant from the government.
This has the potential to accelerate the green revolution, by allowing the power companies that generate about one-quarter of American electricity in on the action. But will it really spur green power solutions? Managing editor Ryan Cooper took a look at this in our latest story about implementing the Biden agenda.
Cooper found a need for simplicity in how benefits are administered and help with transmission upgrades so that it spreads across the greatest number of homes. One barrier is that the biggest public power agency in the country, the Tennessee Valley Authority, is planning to replace its coal-fired electric power with natural gas. Cooper goes into that fight, and where it might land.
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