Thanks to an unexpected U-turn from Senator Joe Manchin, Senate Democrats have reached an agreement on a new reconciliation bill that, if passed, will offer the most funding in history to curb carbon emissions and protect energy security. Will do it is designed as inflation reduction act, as it raises wealth by raising taxes on the wealthy, and aligns the US with the global minimum corporate tax rate of 15%. But it also finances initiatives that reduce the cost of health care and climate change.
The climate aspect is the most important: $369 billion in total. Senator Chuck Schumer announced the act, saying, “By a wide margin, this law will be the largest pro-climate law ever passed by Congress.” Legislators suggest it would reduce emissions to 40% of 2005 levels by 2030, the highest for Biden’s target of 50%.
here are some Major Provisions in the Bill,
- More than $60 billion for companies bringing clean energy manufacturing to the US from abroad, including a $30 billion production tax credit for wind turbines, solar panels and batteries.
- Tax credits for allowing consumers to invest in clean energy to make homes more energy efficient by switching to electrical appliances, electric HVAC and rooftop solar. The credit will last for ten years, replacing the prior two-year expiration period.
- Tax credit for low-income car buyers: $7,500 for a new electric vehicle, or $4,000 for a used one.
- $60 billion for environmental justice, to address the burden of issues such as pollution on low-income communities and communities of color, and to provide equitable transportation services and economic investment in clean technologies.
- Tax credits to reduce emissions across industry sectors, from transportation to manufacturing
- $20 billion to support climate-smart farming practices
- $5 billion in grants to support fire-resistant forests, and to increase forest protection and urban plantings, and $2.6 billion to restore coastal habitats.
It is worth noting that there is also some support for fossil fuels Further down the text of the bill, including mandates for new lease sales for oil and gas drilling in the Gulf of Mexico and Alaska, are provisions that appeared to help influence Manchin. “It really is all of the above, which means this bill does not arbitrarily discontinue our abundant fossil fuels,” the West Virginia senator said in a statement. The bill would still have to pass the Senate—where some Democrats still haven’t signed it—and then the House before it becomes law, so many provisions could still change.