Javier Sierra
I propose a historic solution to a chronic problem for Latino families across the country.
Let’s start with the problem. According to the US Energy Information Administration, almost a third of the country’s households struggle to pay their electricity bills. Fourteen percent of them have received disconnection notices and 10 percent keep the temperature of their homes at unsafe levels to reduce costs. In general, out of that third, 40 percent are Latino.
The energy burden—the percentage of a household’s income dedicated to paying its energy bills—is much heavier for the Latino community. An Indiana University study revealed that two out of five Latinos could not pay for an electricity bill and 18 percent of Latino customers had their electricity cut off. In short, the energy burden of Latino families is 20 percent higher than that of non-Hispanic white families.
This burden also weighs on the health of Latino families. According to multiple studies, including one by the California Air Resources Board, the use of fossil fuels to cook, heat water and air, and dry laundry contributes to asthma, emphysema, heart disease and even premature death. And communities of color, including Latinos, disproportionately suffer the impacts of this indoor pollution. According to a study by Stanford University, gas stove pollution causes some 200,000 pediatric asthma cases a year, and Latino households are 20 percent more exposed to this pollution than the national average.
The solution lies in electrifying everything, and for that purpose, the historic Inflation Reduction Act (IRA) features hundreds of billions of dollars for the country’s consumers to acquire cleaner, more efficient appliances; undertake improvements to make their homes more efficient; buy new or used, or lease electric vehicles; protect their health, and benefit from the creation of millions of good, clean jobs.
How do you explore all these IRA rebates, discounts, tax credits? Rewiring America—a nonprofit, focused on electrifying our homes, businesses, and communities—offers a bilingual calculator for consumers to find out how much money they can save by undertaking improvements inside and outside their homes.
Forty percent of the IRA’s investment is dedicated to low-income, disadvantaged communities, who are also the ones most impacted by fossil fuel pollution and the climate crisis it triggers.
For example, to buy a new heat pump to cool or heat up a home, the IRA offers 30 percent in tax credits on the price of the appliance. And once it starts running, that family will save hundreds of dollars a year because this technology is 2-3 times more efficient than a gas-fired furnace.
To weatherize your home with new super-efficient windows and doors, the law covers 30 percent of the costs through tax credits. Add to that hundreds of dollars in savings every year because of the reduced use of electricity. In general, those families who take advantage of the IRA’s tax credits can save more than $1,000 annually.
The law also offers up to a $7,500 discount in the acquisition of a new electric vehicle and up to $4,000 for a used one. And since EVs are much more efficient than conventional vehicles, you will also save hundreds of dollars every year in fuel and maintenance costs.
The four Cs summarize the great advantages of electrifying our lives:
– Comfort: living in healthier more efficient homes
– Costs: reduced through home improvements
– Communities: cleaner and healthier
– Climate: safer by eliminating fossil fuels
It’s the energy we all so urgently need.
Javier Sierra is a Rewiring America spokesperson.
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