HIDDEN VALLEY LAKE – With the midterm election looming and Democratic leaders eager to promote the Biden administrations’ legislative wins, Rep. Mike Thompson (D-St. Helena) held a press conference Monday at the Hidden Lake Valley Community Services District (CSD) Solar Array Project site to highlight the historic climate action included in the Inflation Reduction Act that is taken from provisions authored by Rep. Thompson in the GREEN Act.
“The climate crisis is one of the biggest issues that our community faces, and if we do not combat this crisis and secure our planet for future generations, everything else will be for naught,” said Thompson. “That is why the Inflation Reduction Act is vital. This law represents the most significant climate action signed into law in the history of our country, and these investments are largely pulled from my GREEN Act. Lake County knows well the devastation that climate change can cause on our community, and I was proud to stand with Lake County leaders to discuss this historic law and what it means for Lake, our state, and our nation.”
Thompson, as Chair of the House Ways and Means Subcommittee on Select Revenue Measures introduced the Growing Renewable Energy and Efficiency Now (GREEN) Act earlier this Congress to use the tax code to combat the threat of climate change by boldly expanding the use of renewable energy to help reduce greenhouse gas emissions. President Biden made the GREEN Act the basis of his climate policy which was ultimately included in the Inflation Reduction Act and signed into law earlier this month.
Rep. Thompson was joined by Lake County Supervisors Eddie Crandell and Moke Simon, Lake County Superintendent Brock Falkenberg, President of Hidden Valley Lake CSD Gary Graves, Trane Company Advance Energy Program Development Lead Michael Day, and Chair of the Redwood Empire Division Sierra Club Victoria Brandon.
“This is a very important piece of legislation on everything from health care to drug prices to the insulin cap, to reducing our deficit, but we’re here to talk about today is that part that is important to our environment,” said Thompson, with a solar array as backdrop.
“I think it’s pretty safe to say that as we speak today, a third of our country is on fire, a third of our country is under water, and a third of our country is in serious drought. This bill uses the tax code to influence measures that will bring about clean energy, create jobs, and make our planet more sustainable,” said Thompson adding that this bill will address the issue of climate change.
“There are tax provisions in this measure, that will make it easier and more affordable to purchase energy efficient appliances to weatherize your home to buy heat pumps, to install rooftop solar, to buy energy efficient stoves, ovens and dryers and to transition us to cleaner energy. It means lower cost for home owners, lower costs for businesses and it creates manufacturing jobs right here in the United States of America,” said Thompson.
What’s in the bill?
According to a recent breakdown by Forbes Advisor the big provisions in the bill include:
- Creation of a 15% corporate minimum tax rate: Corporations with at least $1 billion in income will have a new tax rate of 15%. Taxes on individuals and households won’t be increased. Stock buybacks by corporations will face a 1% excise tax.
- Prescription drug price reform: One of the most significant provisions of the Inflation Reduction Act will allow Medicare to negotiate the price of certain prescription drugs, bringing down the price beneficiaries will pay for their medications. Medicare recipients will have a $2,000 cap on annual out-of-pocket prescription drug costs, starting in 2025.
- IRS tax enforcement: The IRS has been sounding the alarm for years about being underfunded and being unable to deliver on its duties. The bill invests $80 billion in the nation’s tax agency over the next 10 years.
- Affordable Care Act (ACA) subsidy extension: Currently, medical insurance premiums under the ACA are subsidized by the federal government to lower premiums. These subsidies, which were scheduled to expire at the end of this year, will be extended through 2025. Approximately 3 million Americans could lose their health insurance if these subsidies weren’t extended, according to the U.S. Department of Health and Human Services.
- Energy security and climate change investments: The bill includes numerous investments in climate protection, including tax credits for households to offset energy costs, investments in clean energy production and tax credits aimed at reducing carbon emissions.
“This represents a significant part of what has become a tremendous investment this year in rural America. If you consider this bill, the IRA, the bipartisan infrastructure bill and the American Rescue Act,” said Thompson. “Congress has appropriated over $100 billion dollars into rural America. So often we talk about the need to invest in rural America, sometimes sadly, rural America gets overlooked, this year over $100 billion investment in rural America alone.”
Graves noted that the County’s solar array project was completed in 2012 as part of a Gree Initiative. It provides enough power to run the county’s Wastewater operation in addition to three potable wells. It also reduces carbon footprint and lowers electricity costs. It has produced over 4000 Mwh of electricity (enough to charge a cellphone 742 million times.)
Third District Supervisor Eddie Crandell said, “In Lake County there are many disadvantaged communities that will benefit from this funding. I also appreciate the highlight of tribal communities obtaining opportunity to benefit from this funding as well, as we obtain seven federally recognized tribes in the county.”
Crandell added humans sometimes forget the importance of taking care of the land we inhabit. “It’s time we heal those pasts and move forward in a more balanced approach onto how our communities can progress,” he said.
“Today is great to talk about the future that we have to take care of Mother Earth,” said District 1 Supervisor Moke Simon. “This bill will allow us to not only do it in a financially responsible way, but it will also allow us to achieve the goals of solar wind and other energies that are going to help us move forward to protect Mother Earth as we grown.” Simon called the legislation a huge step forward for the community and the country “As we really move forward and become leaders in the world on how you take care of your environment.”
