Producing the concrete and asphalt needed to build the country’s bridges and highways is a dirty business. The companies that manufacture these materials produce large amounts of emissions that heat the planet.
But if the Inflation Reduction Act provisions work as intended, soon some of that infrastructure could be rebuilt and refurbished with greener materials.
The sweeping legislation President Biden signed into law last month builds on investments in last year’s $1 trillion infrastructure bill and includes programs to reduce carbon emissions in America’s factories.
“These investments are game-changing for building roads and bridges,” said Ben Beechey, vice president of manufacturing and industrial policy at BlueGreen Alliance, a partnership of unions and environmental groups.
The Inflation Reduction Act aims to increase the supply of sustainable materials used in infrastructure projects through a combination of tax credits and direct financing, including about $6 billion to help reduce emissions at manufacturing plants. I’m here.
The package also seeks to create demand for cleaner products by allocating more than $5 billion to federal agencies to purchase low-carbon materials for projects. Proponents believe these programs will encourage manufacturers to cut emissions and make their products available for purchase.
Taken together, these and other provisions of the law aim to persuade manufacturers who are reducing their emissions to maintain their policies and encourage other manufacturers to join low-carbon programs.
“This is the industrial revolution,” said Sara Baldwin, policy director for the think tank’s Energy Innovation.
But success will depend on how the new program’s rules are created and deployed, experts say.
A focus on heavy industry is crucial if the United States is to meet Mr. Biden’s goal of halving emissions from 2005 levels by 2005.
Contents of the Inflation Control Law
Contents of the Inflation Control Law
substantive law. The $370 billion climate, tax and healthcare package signed by President Biden on August 16 could have far-reaching environmental and economic impacts. Here are some of the key provisions:
The industrial sector is about one-third of U.S. emissionsthe industrial emissions are expected to risethe sector is becoming the largest producer of greenhouse gases within ten yearsaccording to modeling by Rhodium Group, a research and consulting firm.
But retrofitting plants to reduce emissions can be costly, and the concrete, steel and asphalt industries could be slow to change, industry experts say.
These industries have made some progress in reducing emissions. Concrete companies have worked to reduce the amount of cement in their recipes, the largest contaminant in the mixture. Asphalt companies are reducing binders, which are residues of oil refining, and increasing their use of recycled asphalt. Also, most steelmakers have installed electric furnaces.
But the Inflation Reduction Act, which puts $370 billion into climate change and clean energy programs, is pushing them to do more.
The bill’s $5.8 billion for the Advanced Manufacturing Fund is intended to help accelerate decarbonization in industrial plants. The law singles out energy-intensive industries such as steel and concrete as potential beneficiaries.
Funds to be distributed by the Department of Energy’s new Office of Clean Energy demonstration include grants and loans, with industry members eyeing the pot of funds.
Jay Hansen, executive vice president of advocacy for the National Asphalt Paving Association, said:
For example, a concrete plant might use the funds to set up silos to store recycled glass pieces that can be added to the mix to reduce the amount of cement needed. Lionel Lemay, who heads the structure and sustainability division of the National Ready Mixed Concrete Association, said the cost of the silo could range from $100,000 to $150,000.
Eco Material Technologies, which sells fly ash, a by-product of coal-fired plants, to concrete manufacturers as a substitute for some of the cement in their mixes, has added funding to a plant that produces green cement on its wish list. said Grant Quasha. Its CEO. He added that building the plant could cost him $30 million to $50 million.
The Inflation Reduction Act also expands tax credit eligibility for installing emission reduction equipment in factories. One program provides credits for decarbonization projects that reduce emissions by at least 20%. The other is a technology that captures carbon dioxide before it is released into the atmosphere. For cement, in addition to burning fossil fuels to provide power and heat, carbon dioxide is also emitted from the chemical process that turns limestone into a component known as clinker.
Randolph Kirchain, co-director of the Concrete Sustainability Hub, an industry-funded group at the Massachusetts Institute of Technology, said:
On the demand side, the law allocates about $5.5 billion across federal agencies (including $2 billion to the Federal Highway Administration) to procure low-carbon materials for transportation and other projects.
The funding is in line with the “Bikelean” strategy adopted by the Biden administration.
Some states, such as California, already have “bi-clean” requirements that include limits on emissions in the manufacture of materials for public sector projects. But the Biden administration has sought to tap into the vast purchasing power of the federal government, which spends more than $650 billion on goods and services each year.
The Environmental Quality Council and the White House Office of Domestic Climate Policy “Purchase the Clean Task Force” We will announce administrative measures in early autumn, followed by policy guidelines.
Some federal agencies have already started setting their own emissions standards. issued by the General Services Administration in March New requirements for concrete and asphalt For future improvements to land ports of entry along the northern and southern borders.
The Inflation Reduction Act assists manufacturers with the paperwork necessary to qualify for such projects. The law allocates his $250 million to the Environmental Protection Agency to help manufacturers produce environmental product declarations (third-party certification documents that summarize the environmental impact of materials, including emissions). assigned to the program.
Declarations are becoming more popular in real estate projects as developers and architects seek to reduce the carbon footprint of their buildings. New federal programs could help public sector infrastructure projects catch up There is a nature.
“This is the beginning of a transformation across the market,” said Sasha Stashwick, director of the Natural Resources Defense Council’s Industrial Policy, Climate and Clean Energy Program.
The new law Reduce industrial emissions from 3% to 16% by 2030, according to the rhodium group calculations. The Advanced Manufacturing Fund alone is estimated to save about 70 million tons of climate pollution annually, according to BlueGreen Alliance analysis. According to an Environmental Protection Agency analysis.
Still, hauling cleaner materials in concrete mixers and flatbed trucks takes time. Relatively quick and easy fixes can reduce energy use and reduce emissions in factories, but more radical changes can take years or decades and new legislation It depends on how the provisions of
“The funding is great, the law is great,” said Sean O’Neill, senior vice president of government affairs at the Portland Cement Institute. , further measures must be taken.”