April 4 (UPI) -- Communities with a history of coal development could be eligible for billions of dollars in incentives to focus more on clean energy projects, the U.S. government said Tuesday.
The U.S. Treasury Department and the Internal Revenue Service released guidance allowing those seeking to develop clean energy products and facilities to access "billions" in bonuses available in last year's bipartisan Inflation Reduction Act, the White House said on Tuesday.
"These bonuses will incentivize more clean energy investment in energy communities, particularly coal communities," the Treasury Department explained.
The Energy Department expects coal will account for 17% of total electricity generation this year, down from 20% for 2022. Coal production declined by 14% in February, relative to January 2022. Production is expected to decline even further in the coming years.
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That decline is a response to the ongoing retirement of coal-fired power plants.
Treasury Secretary Janet Yellen said elements of the IRA make sure communities with a legacy in coal can find new jobs in a clean-energy economy.
"Coal communities have the knowledge and resources to play a leading role in the growth of the clean energy economy, and additional public investment will jumpstart the process," she said.
More than $450 million is available to advance clean energy projects on current and former mines. Repurposing the estimated 1.5 million acres of mining land could in theory lead to the development of 90 gigawatts of clean energy, the government said, which is enough to meet the demand of 30 million average homes.
The federal government has already taken steps to clean up abandoned coal mines, with the Interior Department announcing more than $24.6 million for the state of Indiana in February.
The Interior Department said the funding will enable states to remediate mines found to be leaking methane, noting that millions of people throughout the United States live within "less than a mile" of an abandoned coal mine.
"Reclaiming and restoring these sites will create jobs, revitalize economic activity, and advance outdoor recreation. I am so excited about what we can do with these new resources, today and for future generations," said Interior Secretary Deb Haaland.
Nevertheless, the International Energy Agency finds the continued use of fossil fuels like coal puts the global environment on an unsustainable trajectory.
Energy-related emissions of CO2, a potent greenhouse gas, increased by 0.9% year-on-year in 2022 to reach a new high of more than 36.8 billion tons.
