In the last few years, major components of Swarthmore’s “To Zero By Thirty-Five” plan, such as the Dining and Community Commons with its geoexchange plant in the basement, have been completed. The plan, formerly known as “Roadmap to Zero Carbon,” involves connecting all campus buildings to a geoexchange system that takes heat from the summer and stores it to be used in the winter. The system is powered by renewable energy, and together with other renewable energy projects and efficiency improvements across campus, is supposed to set the college up to reach carbon neutrality by 2035.
While the Board of Managers approved funding for the plan in 2019, funding sources for these projects have evolved since then, based on factors such as college fundraising and inflation. As The Phoenix reported in February, an important element of the college’s financing for these projects since its passing in 2022 has been the Inflation Reduction Act (IRA).
The IRA is a broad legislative package of economic and taxation policies passed by congressional Democrats and signed into law by President Biden in 2022. In addition to measures to lower prescription drug prices, raise taxes on corporations, and extend Medicare expansions for three years, the law seeks to encourage the transition to sustainable energy through subsidization of both private and public renewable energy endeavors. Through the policy’s provisions, Swarthmore will receive some compensation from the government for its renewable energy and energy efficiency projects.
“The IRA provides for direct reimbursement to the College of a percentage of the qualifying costs of the College’s transition to carbon-free geoexchange, and we are in the process of filing for the first reimbursement with the support of our tax processor and advisor,” wrote Andrew Feick, associate vice president for sustainable facilities operation and capital planning, in an email to The Phoenix.
Feick shared that while the college is still determining how much the IRA will offset, Swarthmore now believes it will receive compensation for between 30-40% of costs to convert to renewable energy that qualify under the law. Given the massive nature of these capital projects, this compensation will likely amount to millions of dollars.
Still, Feick was quick to add that the college’s renewable energy project predated the federal law. “We completed the energy transition study, the Roadmap to Zero (carbon) in 2019 and the Board of Managers endorsed the plan in 2020. The Inflation Reduction Act was passed in 2022. Although the IRA will help the College pay for the transition, our careful study and Roadmap determined that our best course was to replace the failing combustion steam plant with high efficiency district geoexchange to position the College, energy-wise, for the next century and not reinvest in last century’s reliable, but inefficient & carbon-intensive combustion steam system,” he said.
Now, just 27 days from the presidential election, this funding source is worth reexamining, given former President Donald Trump’s promise to do what he can to stop the IRA. Even without congressional majorities, the president’s power over the executive agencies that distribute the funding and enforce the new regulations would allow a reinstated President Trump to largely kill the IRA’s remaining impact. And, if Republican majorities in the House and Senate are elected, a second Trump administration could fully repeal the IRA.
Because of the college’s decision to fully convert to renewable energy independent of the IRA, Feick does not see the college changing course from that overall goal no matter who wins the election. But, a Trump administration could certainly impact the ease and timing of Swarthmore and other institutions’ achieving that goal.
“We are well into the conversion now and the new central plant is being commissioned for start-up next month. We are planning the next ten years worth of work to completely convert the campus and (nearly) all of the buildings. I do not see the College changing course, whatever the election outcome. However, if a potential Trump administration kills the IRA, it may affect our pace,” Feick clarified.
Feick also added that federal weakening of the IRA would impact the financial approach the college took towards these projects. “If the IRA is reversed, it’s hard to say conclusively what impact that would have. The elimination of the program would certainly affect available capital investment money for the College so if that comes to pass, we would need to reassess our capital program goals holistically,” he said.
Furthermore, changes to the IRA could impact decisions the college makes about other clean energy projects considered for the future. “Part of our energy plan involves maximizing on-site solar generation, like we did on the new Dining and Community Commons, and adding a battery array to help us control our peak electrical load. Both of these efforts will occur when the economics align and the IRA will help with that. So if the IRA goes away we may experience some delays for on-site solar and batteries.”
Throughout the interview, Feick was confident that a weakened or reversed IRA wouldn’t stop the college from transitioning to renewable energy. But, given the impacts it still could have on Swarthmore, it is relevant to consider what role the prospect could have on renewable energy transitions at colleges like Swarthmore all around the country, and especially on institutions in a less stable financial situation.
