Surprise U.S. Senate Deal Set for $370B Climate Bill
By Ayla Kanber, Earth Forward Group
On July 28, 2022, the White House announced a surprise deal between U.S. Senator Joe Manchin and Democratic Senate Majority Leader Chuck Schumer to unlock nearly $370 billion in investments for renewable energy, energy security, and climate-focused initiatives. The climate provisions are part of the Inflation Reduction Act of 2022, which also addresses deficit reduction, corporate tax and pharmaceutical price reduction measures.
Specifically, the investments would allocate over $60 billion for environmental justice priorities in disadvantaged communities, over $60 billion to accelerate domestic manufacturing of clean energy and transportation technologies, $30 billion in grant and loan programs for states and electric utilities for clean energy transition, $27 billion in clean energy technology accelerator for reduced emissions, over $20 billion for climate-smart agriculture practices, and $9 billion in consumer home energy rebate programs to electrify home appliances and more.
Over the next ten years, the Inflation Reduction Act would:
- Enact historic deficit reduction to fight inflation;
- Lower energy costs, increase cleaner production, and reduce carbon emissions by ~40% by 2030;
- Allow Medicare to negotiate drug prices and caps out-of-pocket costs to $2,000
- Lower ACA health care premiums for millions of Americans;
- Make the biggest corporations and ultra-wealthy pay their fair share;
- Not impose new taxes on families making $400,000 or less and no taxes on small businesses — closing tax loopholes and enforcing the tax code.
Recently, President Biden called climate change an emergency and has even considered using his executive powers to take action by declaring a national climate change emergency. The Biden administration has been addressing and focusing on issues of climate change since taking office, with a series of climate-focused executive actions, attempts to boost offshore wind capacity and direct air carbon capture programs, increasing domestic battery production, mandating a shift to net zero by 2050, and using part of the Bipartisan Infrastructure Law to allocate billions of dollars into energy transition-focused activities.
Despite these efforts, the Biden administration has experienced several setbacks to their ambitious climate agenda, including the Supreme Court’s EPA ruling that will hinder U.S. action to combat climate change.
Now, let me be clear: This bill would be the most significant legislation in history to tackle the climate crisis and improve our energy security right away. And it’ll give us a tool to meet the climate goals that are set — that we’ve agreed to — by cutting emissions and accelerating clean energy. A huge step forward.
—Remark from President Joe Biden on the Inflation Reduction Act of 2022
In the coming weeks, the Inflation Reduction Act of 2022 will unfold along with any other executive actions to combat climate change by the Biden administration. The pressure to address climate issues continues to grow for valid reasons, and it is time that all levels of government take action to make significant changes.
