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 Attorneys
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 Attorneys
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
Publications
"DC Circuit Undercuts Congress's Subpoena Power: Important New Authority for Targets of Congressional Investigations," National Law Journal
In the National Law Journal, Congressional Investigations Co-Chair Emily Loeb, Special Counsel David Manners-Weber, and Associate Kate Mather examine a recent DC Circuit decision that gives fresh weight to 2020 Supreme Court dicta on common-law privileges in congressional investigations.
July 30, 2026
Publications
Meghan Greenfield Discusses Top Environmental Policies to Watch in Law360
Partner Meghan Greenfield spoke to for an article highlighting the key environmental regulatory developments expected in the second half of 2026. Meghan discussed the legal reasoning the agency may rely on as it considers further rulemaking addressing greenhouse gas pollution, and hurdles the agency may face.
July 22, 2026
Publications
Partner Meghan Greenfield Quoted in The Associated Press on Offshore Wind and National Security
Partner Meghan Greenfield spoke with The Associated Press for an article examining the Trump Administration's use of national security justifications to halt offshore wind development.
July 21, 2026
Podcasts
Partner Laurel Loomis Rimon Discusses Fintech Enforcement, Debanking, and Regulatory Risk on Fintech Layer Cake Podcast
Partner Laurel Loomis Rimon was featured on the Fintech Layer Cake podcast, where she discussed how fintech enforcement and prosecution actually work in practice, and what exposes fintechs and banks to regulatory risk.
July 15, 2026
Event
Partner Suedeen Kelly to Speak at ABA SEER's 34th Fall Conference
On Thursday, October 15, Partner Suedeen Kelly will speak on a panel at the American Bar Association's Section of Environment, Energy, and Resources (ABA SEER) 34th Fall Conference in Albuquerque, New Mexico.
October 15, 2026
