James Dinneen is a writer.
Funding for environmental initiatives is contained in the inflation reduction act.
Bryan Dozier is a photographer.
In an about-face, the US Senate passed the largest climate spending package in US history as part of a bill on Sunday. The legislation will be passed by the House by the end of the week and will be signed by the president. There are some things in the legislation that could potentially affect climate change.
The aim of the Inflation Reduction Act is to reduce the cost of energy. It is expected to raise an estimated $790 billion in revenue and savings from a new corporate minimum tax, according to the Congressional Budget Office. Energy and climate change priorities are marked for $369 billion.
The bill aims to reduce greenhouse gas emissions by energing things that run on fossil fuels and generating more electricity from renewable and clean energy sources.
The bill includes a $4000 tax credit for used electric vehicles and a $7500 credit for new electric vehicles, as well as tax credits for low-carbon renovations to homes, like installing heat pumps. Reducing emissions from industries that are hard to decarbonise is $6 billion. The Postal Service gets $3 billion to buy zero emission vehicles.
The bill contains $30 billion in grants and establishes tax credits for states and electric utilities to adopt clean energy and energy storage, which is important for maintaining the stability of the grid with higher levels of intermittent renewable sources. New tax credits to keep nuclear power plants running are included. $60 billion will be used to support clean energy manufacturing in order to accelerate production of solar panels, wind turbine, electric vehicles and heat pumps.
The bill establishes a program to reduce methane leaks from natural gas production by fining companies for every ton they emit.
The Rhodium Group estimated that the bill would reduce US greenhouse gas emissions by up to 44 per cent by the year 2030. The US is on track to reduce emissions by up to 35 per cent if the bill is not passed. The expected reductions still fall short of the Biden administration's target of a 50 percent reduction by 2030.
Environmental groups pilloried the bill for its support of fossil fuel development.
The bill states that approval for renewable energy development on federal lands is contingent on the sale of oil and gas leases. The Department of the Interior is required to sell oil and gas drilling rights in the Gulf of Mexico and off the coast of Alaska. The bill is a hostage situation according to Jean Su at the Center for Biological Diversity. There are lots of renewable energy investments in this bill, but there are also lots of fossil fuel handouts.
Senate Majority Leader Chuck Schumer of New York and Senator Joe Manchin of West Virginia brokered the draft bill. In a surprise announcement on July 27th, Manchin said that the senators had reached a deal and that he wouldn't support similar legislation.
The passage of a separate bill meant to speed up the permitting process for new energy projects was a condition of Manchins support. Su says speedier permitting could be a boon for renewable energy projects and transmission lines, but it could also hurt the environment by leaving out communities and threatening wildlife.
The Democrats have enough votes to pass the bill through a process called budget reconciliation, which allows the bill to pass with 50% of the vote.
The Senate passed the bill by a vote of 51-50 with Vice President Harris breaking the tie. Republicans didn't vote for the bill.
The bill puts $27 billion towards a "green bank" to invest in public-private partnerships that cut emissions. There is $2 billion for basic research within national laboratories for fusion and high-energy physics.
11 percent of US greenhouse gas emissions in 2020 were accounted for by agriculture. Reducing methane emissions and building up soil carbon are some of the climate-smart agricultural practices that will be funded by the bill. Infrastructure for sustainable more jet fuel is supported by grants and credits. $5 billion will be spent on making forests more resistant to wildfire and another $2 billion will be spent on protecting coastal communities and habitats.
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