What you need to know: California today commemorates two years of President Biden’s Inflation Reduction Act (IRA), which has provided record investments furthering the state’s ambitious climate action goals and historic infrastructure agenda. 

SACRAMENTO - In the two years since President Biden signed the Inflation Reduction Act into law, California has received billions of dollars for climate and clean energy projects — creating thousands of good paying jobs.

Combined with the Bipartisan Infrastructure Law and historic state investments, the Biden-Harris Administration is helping remake California’s infrastructure – from new clean energy and power grid improvements to transit and high-speed rail.

California is tracking many of these projects on build.ca.gov, which now features a new checklist to help projects build with equity in mind.

“Over the past two years, California has experienced countless climate extremes – going from record drought to record rains in a matter of weeks, historic heat waves, and massive wildfires. The Inflation Reduction Act couldn’t have come at a more pivotal time, bringing billions of dollars in investments to California, creating thousands of green jobs and cutting costs for Californians. The Biden-Harris Administration is helping California build more, faster – and we’re already seeing the benefits in our communities.” - Governor Gavin Newsom

Beyond supporting record climate investments for California, the IRA has significantly reduced inflation. In August 2022, when the IRA was signed into law, inflation was 8.4%. As of yesterday, inflation in the U.S. is now below 3%.

Here’s how California has benefited from the Inflation Reduction Act:

- Over $1.6 billion in tax breaks to boost energy efficiency in homes in 2023 alone
- Nearly $600 million to provide clean and efficient energy upgrades to low and moderate income households.
- Over $500 million from the US EPA to reinforce California’s fight against the climate crisis and to eliminate greenhouse gas emissions and other harmful air pollution
- Up to $450 million for the state’s green banks to deliver accessible financing to clean energy projects throughout California, mobilize private capital, and deploy key climate solutions in low-income and disadvantaged communities
- Over $249 million from the US Environmental Protection Agency for low-income solar programs
- Nearly $200 million from the US Environmental Protection Agency for environmental and climate justice efforts to increase underserved community capacity and resilience
- Over $168 million to add 2,600 electric vehicle charging stations in rural and disadvantaged areas across the state, and over $63 million to upgrade existing EV charging infrastructure
- $103 million from the USDA for maintaining urban trees, forests, and green spaces
- Over $92 million from the USDA to support agricultural producers and rural small businesses in implementing renewable energy systems or to make energy efficiency improvements
- Over $88 million to help California school districts purchase clean school buses
- $70 million available to help California accelerate restoration of the Salton Sea
- Nearly $60 million from the USDA to invest in on-the-ground conservation activities implemented by farmers, ranchers and forest landowners
- $21 million from the US DOI and US DOE to bolster tribal climate resilience and home electrification
- Up to $24,500 for Californians to purchase a Zero Emission Vehicle, in combination with state investments
- 14,000 jobs created through investments in Caltrain and California’s High Speed Rail
- Tax credits for small business owners for energy efficient upgrades