Senator Joe Manchin (D-WV) leaves the U.S. Capitol following a vote on Capitol Hill on February 9, 2022 in Washington.
Tom Brenner | Reuters
Senate Majority Leader Chuck Schumer, DN.Y. And Sen. Joe Manchin, DW.V. They unveiled a long-awaited compromise package Wednesday that would invest hundreds of billions of dollars to fight climate change and advance clean energy projects.
The 725-page law, “Inflation Reduction Act 2022,” provides $369 billion for climate and clean energy appropriations, the most aggressive climate investment undertaken by Congress. The bill’s climate provisions (Here is a summary) will reduce the country’s carbon emissions by about 40% by 2030, according to a summary of the agreement.
The sudden announcement of the deal came less than two weeks after Manchin, a key centrist who holds a 50-50 swing vote in the Senate, said he would not support any climate rules until he had a better understanding of inflation figures for July. .
If enacted and signed into law, this legislation would include funding for:
Production of clean energy products, Including a $10 billion investment tax credit for manufacturing facilities such as electric vehicles, wind turbines and solar panels, and $30 billion in additional production tax incentives to accelerate domestic production of solar panels, wind turbines, batteries and critical minerals processing. It includes up to $20 billion in loans to build new clean vehicle manufacturing facilities across the U.S. and $2 billion to renovate existing auto plants to produce cleaner vehicles.
Reducing emissions, including $20 billion for the agriculture sector and $3 billion to reduce air pollution at ports. It also includes unspecified funding for a program to reduce methane emissions, which are often produced as a byproduct of oil and gas production and are 80 times more potent than carbon dioxide at warming the atmosphere. In addition, the act allocates $9 billion to the federal government to purchase American-made clean technologies, including $3 billion to purchase zero-emission vehicles for the U.S. Postal Service.
Research and developmentA $27 billion Clean Energy Technology Accelerator to support the deployment of emission control technologies and $2 billion for breakthrough energy research at government laboratories.
Conservation and protection of natural resourcesincluding $5 billion in grants to support healthy forests, forest conservation and urban tree planting, and $2.6 billion in grants to protect and restore coastal habitats.
Support to States, Including about $30 billion in grant and loan programs for states and electric utilities to advance the clean energy transition.
environmental justice initiatives, More than $60 billion to address the disproportionate effects of pollution on low-income communities and communities of color.
For individuals, a $7,500 tax credit toward the purchase of new electric vehicles, and a $4,000 credit toward the purchase of a new one. Both credits are available only to low and middle income consumers.
“I support a plan to advance realistic energy and climate policy that lowers prices today and invests strategically in the long game,” Manchin said. said in a statement on Wednesday. “This legislation ensures that the market will take the lead in our nation’s ongoing energy transition, rather than ambitious political agendas or unrealistic goals.”
The Senate is scheduled to vote on the proposed legislation next week, after which it will go to the Democratic-controlled House of Representatives.
President Joe Biden said Wednesday that the tax credits and investments for energy projects in the deal would create thousands of new jobs and help lower energy costs, and urged the Senate to move the legislation quickly.
The President has He pledged to curb US greenhouse gas emissions from 2005 to 50% to 52% in 2030 and reaching net zero emissions by mid-century. With no reconciliation bill in place, the country is on track to miss that target, 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. “It addresses today’s problems — high health care costs and overall inflation — as well as investments in our energy security for the future.”
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