NEFI’s take on Inflation Reduction Act of 2022

Written on: August 3, 2022 by ICM

The National Energy & Fuels Institute (NEFI) recently reviewed the U.S. Senate’s proposed bill—Inflation Reduction Act of 2022—which includes $369 billion in energy and climate policies. Here is the organization’s view on the proposed actions:


  • A provision that may result in 600 million acres of federal waters for new oil & gas production—more than four times the entire Gulf of Mexico outer-continental shelf
  • $500 million for downstream biofuel infrastructure grants
  • Two-year extension of the biodiesel blender tax credit, cellulosic biofuel producer credit, and propane autogas credit


  • Creation of a new rebate program for electric heat pumps, albeit at a much smaller funding amount than initially proposed
  • Replacement of the biodiesel blender tax credit in 2025 with a new producer credit for “clean transportation fuels”
  • Creation of a sustainable aviation fuel (SAF) tax credit that may result in increased competition for biofuels

Mixed Bag

  • $600 tax credits for oil boilers and furnaces that meet 2021 Energy Star criteria and are rated by the OEM for use with at least 20% biofuel blends
  • $4.3 billion for performance-based energy efficiency rebates, including up to $4,000 for proven energy savings of 20%—34%