Overview of the Bipartisan Infrastructure Law and the Inflation Reduction Act

The federal Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), was signed into law on November 15, 2021. According to the U.S. Department of Transportation, the BIL authorized an investment of $1.2 trillion for transportation and infrastructure spending across the United States, with $550.0 billion of that amount dedicated to “new” investments and projects from federal fiscal years 2022 to 2026.

The BIL also makes new investments in water infrastructure, resilience, and broadband.

Inflation Reduction Act

The federal Inflation Reduction Act (IRA) was signed into law on August 16, 2022, with the goal of a federal government budget deficit reduction, prescription drug pricing reform, and energy security. The Congressional Budget Office estimates IRA spending and tax breaks to total $485.0 billion from 2022 to 2031. Of that amount, $386.0 billion is for energy and climate and $98.0 billion is for health care.

This article will focus on federal BIL and IRA funds received by the Kansas Corporation Commission (KCC) for energy and environmental remediation programs.

Kansas Corporation Commission Programs

The KCC indicates having received, or estimates to receive, new funding or additional funding for four program areas through the BIL and two program areas through the IRA.

Kansas BIL Programs

A description of each program supported by the BIL and estimated funding in Kansas is discussed below.

Grid Resilience Formula Grant

The objective of the Grid Resilience Formula Grant program is to improve electricity delivery and reliability by maintaining and investing in critical generation facilities to ensure resource adequacy and improving transmission and distribution systems to ensure all communities have access to reliable, affordable electricity.

The KCC indicates that $13.3 million was received in FY 2024 and estimates receiving an additional $6.5 million for FY 2025.

Energy Efficiency and Conservation

The Energy Efficiency and Conservation Block Grant program provides financial and technical assistance to assist state and local governments in creating and implementing a variety of energy efficiency and conservation projects.

Federal funding for this program was originally issued as part of the American Recovery and Reinvestment Act of 2009 and is now being made available under the BIL.

The KCC indicates that $1.9 million was received in FY 2024 and estimates receiving no additional funding for FY 2025.

Energy Efficiency Revolving Loan Fund

The Energy Efficiency Revolving Loan Fund is designed to increase market transformation of energy efficiency and renewable energy technologies through policies, strategies, and public-private partnerships. The Fund also facilitates state-based activities, such as:

• Financing mechanisms for institutional retrofit programs;
• Loan program and management;
• Energy savings performance contracting;
• Comprehensive residential programs for homeowners;
• Transportation programs that accelerate use of alternative fuels; and
• Renewable programs that remove barriers and support supply-side and distributed renewable energy.

The KCC indicates that no funding was received in FY 2024 and estimates receiving $6.7 million for FY 2025.

Orphaned Well Program

The objective of the Orphaned Well Program is to reduce methane and other greenhouse gas emissions, assist with cleanup of water contamination, restore native habitat, create jobs, and benefit disproportionately impacted communities through grants to plug, remediate, and reclaim orphaned oil and gas well sites.

The KCC indicates that $25.0 million has been received so far through phase one of the initiative and estimates an additional $33.0 million in federal funding for phase two of the initiative.

Kansas IRA Programs

The IRA supports two Home Energy Rebates programs in Kansas. These programs allow the Kansas Energy Office to offer discounts to single-family and multi-family households for efficiency upgrades on items such as home appliances and equipment.

High-efficiency Electric Home Rebates

For High-efficiency Electric Home Rebates, also known as Home Electrification and Appliance Rebates, the KCC indicates that $1.3 million was received in FY 2024 and estimates receiving $51.3 million for FY 2025.

Home Energy Efficiency Rebates

For Home Energy Efficiency Rebates, the KCC indicates that $1.3 million was received in FY 2024 and estimates receiving $51.5 million for FY 2025.