Client Alert: What's Changing in Climate Change?
The Inflation Reduction Act (IRA) signed into law this week is garnering headlines for its climate change measures – but it’s not the only legislation that’s going to have an impact on energy and environmental policies and programs, as well as ESG efforts.
The IRA is historic legislation that pushes $369B towards climate change solutions and creates unprecedented incentives and tax benefits to accelerate the transition to low and zero-carbon energy. And what’s been relatively overlooked in recent coverage of the law is how it works in tandem with two other laws: the Creating Helpful Incentives to Produce Semiconductors (“CHIPS”) for America Act and the Infrastructure Investment and Jobs Act (IIJA).
CHIPS authorizes up to $71B for the Departments of Commerce and Energy and the National Institute of Standards and Technology to institute a variety of programs, including the Regional Clean Energy Innovation Partnership, and award grants to public-private consortia that include industry or firms involved in technology, innovation, or manufacturing to “accelerate the pace of innovation of diverse clean energy technologies”. The Department of Energy is authorized to support research, development, and the demonstration of renewable power, electric grid modernization and security, nuclear energy, alternative fuels, and carbon removal.
The Infrastructure Investment and Jobs Act includes more than $70B for research, development, and deployment of innovative clean energy technologies, building new and more resilient transmission infrastructure to increase delivery of renewables and cleaner energy to the grid, and more EV charging networks.
Taken together, these laws are aimed at accelerating the energy transition and addressing climate change, with benefits related to critical technology development and scientific and technical research and services. The impact of these laws is hard to overstate, effecting change in every step of the energy generation, transmission, and consumption chain.
Jenner & Block lawyers from several practices – including Energy, Transitions in Energy and Climate Solutions (TECS), Environmental, and Tax – are evaluating the three laws for client-oriented synergies, with a particular focus on the IRA.
Some of the key elements are:
TAX CREDITS: In an unprecedented move, the IRA allows eligible taxpayers to transfer all or part of certain tax credits to an unrelated taxpayer for cash. The applicable credits include the production tax credit (45), the carbon sequestration credit (45Q), the investment tax credit (48), clean hydrogen production credit (45V), and zero-emission nuclear power production credit (45U). Our lawyers are evaluating how these credits translate to supporting projects to develop green hydrogen, such as through combined solar and storage projects and nuclear production of green hydrogen.
FINANCIAL SUPPORT: The IRA appropriated $5B to create $250B in loan guarantee authority for the Department of Energy to accelerate the decommissioning of fossil generation, increase carbon sequestration, and improve pollution controls. The law gave USDA’s Rural Utility Service broad financial authority and $9.7B of funding to assist rural cooperatives in transitioning to cleaner sources of energy.
COMMUNITY ASSISTANCE AND EMPOWERMENT: The law establishes Environmental and Climate Meet Our Team Justice Block Grants and provides EPA $2.8B to support:
- Community-led air and other pollution monitoring, prevention, and remediation;
- Efforts that mitigate climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfires;
- Climate resiliency and adaptation;
- Reduction of indoor toxins and indoor air pollution; and
- Engaging disadvantaged communities in state and federal advisory groups, workshops, rulemakings, and other public processes.
And while we seek to understand these three laws, even more change could be on the horizon. Jenner & Block is closely monitoring proposed federal permitting legislation for energy infrastructure and its likely ramifications for electric transmission and natural gas pipelines – and possibly hydrogen pipelines.
These laws create a host of opportunities and promise a bevy of new credits, incentives, and major programs. The challenge, now, is to focus on the context in which these credits and various programs fit together to produce real projects, real value, and real change in climate change.
The Infrastructure Investment and Jobs Act includes more than $70B for research, development, and deployment of innovative clean energy technologies, building new and more resilient transmission infrastructure to increase delivery of renewables and cleaner energy to the grid, and more EV charging networks.
Taken together, these laws are aimed at accelerating the energy transition and addressing climate change, with benefits related to critical technology development and scientific and technical research and services. The impact of these laws is hard to overstate, effecting change in every step of the energy generation, transmission, and consumption chain.
Jenner & Block lawyers from several practices – including Energy, Transitions in Energy and Climate Solutions (TECS), Environmental, and Tax – are evaluating the three laws for client-oriented synergies, with a particular focus on the IRA.
Some of the key elements are:
TAX CREDITS: In an unprecedented move, the IRA allows eligible taxpayers to transfer all or part of certain tax credits to an unrelated taxpayer for cash. The applicable credits include the production tax credit (45), the carbon sequestration credit (45Q), the investment tax credit (48), clean hydrogen production credit (45V), and zero-emission nuclear power production credit (45U). Our lawyers are evaluating how these credits translate to supporting projects to develop green hydrogen, such as through combined solar and storage projects and nuclear production of green hydrogen.
FINANCIAL SUPPORT: The IRA appropriated $5B to create $250B in loan guarantee authority for the Department of Energy to accelerate the decommissioning of fossil generation, increase carbon sequestration, and improve pollution controls. The law gave USDA’s Rural Utility Service broad financial authority and $9.7B of funding to assist rural cooperatives in transitioning to cleaner sources of energy.
COMMUNITY ASSISTANCE AND EMPOWERMENT: The law establishes Environmental and Climate Meet Our Team Justice Block Grants and provides EPA $2.8B to support:
- Community-led air and other pollution monitoring, prevention, and remediation;
- Efforts that mitigate climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfires;
- Climate resiliency and adaptation;
- Reduction of indoor toxins and indoor air pollution; and
- Engaging disadvantaged communities in state and federal advisory groups, workshops, rulemakings, and other public processes.
And while we seek to understand these three laws, even more change could be on the horizon. Jenner & Block is closely monitoring proposed federal permitting legislation for energy infrastructure and its likely ramifications for electric transmission and natural gas pipelines – and possibly hydrogen pipelines.
These laws create a host of opportunities and promise a bevy of new credits, incentives, and major programs. The challenge, now, is to focus on the context in which these credits and various programs fit together to produce real projects, real value, and real change in climate change.
Related Lawyers
Related Locations
© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.
The Inflation Reduction Act (IRA) signed into law this week is garnering headlines for its climate change measures – but it’s not the only legislation that’s going to have an impact on energy and environmental policies and programs, as well as ESG efforts.
The IRA is historic legislation that pushes $369B towards climate change solutions and creates unprecedented incentives and tax benefits to accelerate the transition to low and zero-carbon energy. And what’s been relatively overlooked in recent coverage of the law is how it works in tandem with two other laws: the Creating Helpful Incentives to Produce Semiconductors (“CHIPS”) for America Act and the Infrastructure Investment and Jobs Act (IIJA).
CHIPS authorizes up to $71B for the Departments of Commerce and Energy and the National Institute of Standards and Technology to institute a variety of programs, including the Regional Clean Energy Innovation Partnership, and award grants to public-private consortia that include industry or firms involved in technology, innovation, or manufacturing to “accelerate the pace of innovation of diverse clean energy technologies”. The Department of Energy is authorized to support research, development, and the demonstration of renewable power, electric grid modernization and security, nuclear energy, alternative fuels, and carbon removal.
The Infrastructure Investment and Jobs Act includes more than $70B for research, development, and deployment of innovative clean energy technologies, building new and more resilient transmission infrastructure to increase delivery of renewables and cleaner energy to the grid, and more EV charging networks.
Taken together, these laws are aimed at accelerating the energy transition and addressing climate change, with benefits related to critical technology development and scientific and technical research and services. The impact of these laws is hard to overstate, effecting change in every step of the energy generation, transmission, and consumption chain.
Jenner & Block lawyers from several practices – including Energy, Transitions in Energy and Climate Solutions (TECS), Environmental, and Tax – are evaluating the three laws for client-oriented synergies, with a particular focus on the IRA.
Some of the key elements are:
TAX CREDITS: In an unprecedented move, the IRA allows eligible taxpayers to transfer all or part of certain tax credits to an unrelated taxpayer for cash. The applicable credits include the production tax credit (45), the carbon sequestration credit (45Q), the investment tax credit (48), clean hydrogen production credit (45V), and zero-emission nuclear power production credit (45U). Our lawyers are evaluating how these credits translate to supporting projects to develop green hydrogen, such as through combined solar and storage projects and nuclear production of green hydrogen.
FINANCIAL SUPPORT: The IRA appropriated $5B to create $250B in loan guarantee authority for the Department of Energy to accelerate the decommissioning of fossil generation, increase carbon sequestration, and improve pollution controls. The law gave USDA’s Rural Utility Service broad financial authority and $9.7B of funding to assist rural cooperatives in transitioning to cleaner sources of energy.
COMMUNITY ASSISTANCE AND EMPOWERMENT: The law establishes Environmental and Climate Meet Our Team Justice Block Grants and provides EPA $2.8B to support:
- Community-led air and other pollution monitoring, prevention, and remediation;
- Efforts that mitigate climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfires;
- Climate resiliency and adaptation;
- Reduction of indoor toxins and indoor air pollution; and
- Engaging disadvantaged communities in state and federal advisory groups, workshops, rulemakings, and other public processes.
And while we seek to understand these three laws, even more change could be on the horizon. Jenner & Block is closely monitoring proposed federal permitting legislation for energy infrastructure and its likely ramifications for electric transmission and natural gas pipelines – and possibly hydrogen pipelines.
These laws create a host of opportunities and promise a bevy of new credits, incentives, and major programs. The challenge, now, is to focus on the context in which these credits and various programs fit together to produce real projects, real value, and real change in climate change.
The Infrastructure Investment and Jobs Act includes more than $70B for research, development, and deployment of innovative clean energy technologies, building new and more resilient transmission infrastructure to increase delivery of renewables and cleaner energy to the grid, and more EV charging networks.
Taken together, these laws are aimed at accelerating the energy transition and addressing climate change, with benefits related to critical technology development and scientific and technical research and services. The impact of these laws is hard to overstate, effecting change in every step of the energy generation, transmission, and consumption chain.
Jenner & Block lawyers from several practices – including Energy, Transitions in Energy and Climate Solutions (TECS), Environmental, and Tax – are evaluating the three laws for client-oriented synergies, with a particular focus on the IRA.
Some of the key elements are:
TAX CREDITS: In an unprecedented move, the IRA allows eligible taxpayers to transfer all or part of certain tax credits to an unrelated taxpayer for cash. The applicable credits include the production tax credit (45), the carbon sequestration credit (45Q), the investment tax credit (48), clean hydrogen production credit (45V), and zero-emission nuclear power production credit (45U). Our lawyers are evaluating how these credits translate to supporting projects to develop green hydrogen, such as through combined solar and storage projects and nuclear production of green hydrogen.
FINANCIAL SUPPORT: The IRA appropriated $5B to create $250B in loan guarantee authority for the Department of Energy to accelerate the decommissioning of fossil generation, increase carbon sequestration, and improve pollution controls. The law gave USDA’s Rural Utility Service broad financial authority and $9.7B of funding to assist rural cooperatives in transitioning to cleaner sources of energy.
COMMUNITY ASSISTANCE AND EMPOWERMENT: The law establishes Environmental and Climate Meet Our Team Justice Block Grants and provides EPA $2.8B to support:
- Community-led air and other pollution monitoring, prevention, and remediation;
- Efforts that mitigate climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfires;
- Climate resiliency and adaptation;
- Reduction of indoor toxins and indoor air pollution; and
- Engaging disadvantaged communities in state and federal advisory groups, workshops, rulemakings, and other public processes.
And while we seek to understand these three laws, even more change could be on the horizon. Jenner & Block is closely monitoring proposed federal permitting legislation for energy infrastructure and its likely ramifications for electric transmission and natural gas pipelines – and possibly hydrogen pipelines.
These laws create a host of opportunities and promise a bevy of new credits, incentives, and major programs. The challenge, now, is to focus on the context in which these credits and various programs fit together to produce real projects, real value, and real change in climate change.
Related Lawyers
Related Locations
© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.
News and Insights
Event
Partner Terri Mascherin to Speak at Illinois State Bar Association Seminar on Negotiation Ethics
On November 11, Partner Terri Mascherin will join a faculty panel for the Illinois State Bar Association (ISBA) continuing legal education (CLE) seminar “Negotiation Ethics: Winning Without Selling Your Soul.”
November 11, 2026
Publications
In Politico, Partner Emily Loeb Discusses How Companies Are Preparing for Congressional Oversight
Partner Emily Loeb was spoke with Politico for a story examining how companies are preparing for heightened congressional oversight, particularly those that could become the focus of investigations centered on affordability and accountability.
October 29, 2026
Recognition
Partner Katie Wynbrandt Named a 2026 Rising Star by The National Law Journal
Partner Katie Wynbrandt has been named a 2026 DC Rising Star in the appellate category by The National Law Journal at its DC Legal Awards.
October 26, 2026
Recognition
Jenner & Block Named Justice Impact Partner at MacArthur Justice Center’s 40th Anniversary Gala
Jenner & Block received the Justice Impact Partner Award at the MacArthur Justice Center’s 40th Anniversary Gala on October 14 in Chicago.
October 23, 2026
Recognition
Partner Adam Unikowsky Named 2026 Appellate Attorney of the Year by The National Law Journal
Partner Adam Unikowsky has been named Appellate Attorney of the Year at The National Law Journal’s 2026 DC Legal Awards.
October 23, 2026
Publications
EPA’s Power Plant Rule Adds to a Predictably Volatile Landscape, Bloomberg Law
Partner Amanda Shafer Berman and Meghan Greenfield authored an article for Bloomberg Law on the Environmental Protection Agency’s recent repeal of most Biden-era greenhouse gas standards for power plants and the litigation that followed.
October 21, 2026
