Senator Joe Manchin (D-WV) leaves the United States Capitol after a vote, on Capitol Hill in Washington, February 9, 2022.
Tom Brenner | Reuters
Senate Majority Leader Chuck Schumer, DN.Y. and Senator Joe Manchin, DW.V., on Wednesday announced a long-awaited settlement package that will invest hundreds of billions of dollars to fight climate change and advance energy programs clean.
The piece of legislation is 725 pages long, called “The Inflation Reduction Act of 2022“provides $369 billion in clean energy and climate provisions, the most aggressive climate investment Congress has ever made. The bill’s climate provisions (summary here) will cut the country’s carbon emissions by about 40% by 2030, according to the summary of the agreement.
The abrupt announcement of the deal comes less than two weeks after Manchin, a key center holding a rotating vote in the 50-50 Senate, said he would not support any provision on the deal. climate until he has a better understanding of the July inflation figures. .
If passed and signed into law, the legislation would include funding for the following:
Producing clean energy products, includes a $10 billion investment tax credit for facilities that make things like electric vehicles, wind turbines, and solar panels, and $30 billion in additional manufacturing tax credits to accelerated domestic production of solar panels, wind turbines, batteries and processing of important minerals. It will also include loans of up to $20 billion to build new clean vehicle production facilities across the United States and $2 billion to renovate existing auto plants to produce clean vehicles.
Cut emissions, including $20 billion for the agricultural sector and $3 billion to reduce air pollution at ports. It also includes unspecified funding for a program to reduce methane emissions, which is often created as a by-product of oil and gas production, and is 80 times more effective than carbon dioxide in warming the atmosphere. In addition, the act allocates $9 billion to the federal government to purchase U.S.-made clean technologies, including $3 billion to the U.S. Postal Service to purchase zero-emission vehicles.
Research and developmentincluding a $27 billion clean energy technology accelerator to support the deployment of emission-restricting technologies and $2 billion for groundbreaking energy research in government laboratories.
Conserve and support natural resourcesincluding $5 billion in funding to support healthy forests, forest conservation and urban tree planting, and $2.6 billion in funding to conserve and restore coastal habitats.
Support for states, includes about $30 billion in grants and loans to states and utilities to accelerate the clean energy transition.
environmental justice initiatives, more than $60 billion to address the unequal effects of pollution on low-income and communities of color.
For individuals, a $7,500 tax credit to buy a new electric vehicle, and a $4,000 credit to buy a new one. Both credits will be available only to lower and middle income consumers.
“I support a plan that will advance a realistic energy and climate policy that lowers today’s prices and strategically invests in the long-term game,” Manchin said. said in a statement on Wednesday. “This act ensures that the market will lead, rather than ambitious political agendas or unrealistic goals, in the ongoing energy transition in our country.”
The Senate will vote on the proposed legislation next week, after which it will move to the Democratic-controlled House of Representatives.
President Joe Biden on Wednesday said the tax credits and investments in energy projects in the deal would create thousands of new jobs and help reduce energy costs, and urged the Senate to proceed. law as soon as possible.
The President has commitment to limit U.S. greenhouse gas emissions 50% to 52% reduction from 2005 levels by 2030 and net zero emissions by mid-century. Without the reconciliation bill, the country is on track to miss that goal, according to a recent analysis by independent research firm Rhodium Group.
“This is the action the American people have been waiting for,” the president said said in a statement on Wednesday. “This addresses the problems of today – high health care costs and overall inflation – as well as investments in our energy security for the future.”