Two people with knowledge of the latest draft of the bill say that a provision to permanently ban new offshore drilling off the Atlantic and Pacific coasts has been stripped from the bill.
The draft legislation that Mr. Manchin has raised concerns about still contains a provision that would block future oil and gas drilling in the wildlife refuge, according to those familiar with the draft.
A spokeswoman for Mr. Manchin didn't respond to a request for comment.
The offshore drilling ban drew some support from coastal Republicans who were concerned about the potential for oil spills to damage their tourism and fishing industries.
The climate provisions in the spending package were excised because of objections from Mr. Manchin. He holds a swing vote in a Senate that is evenly split, and he has single-handedly set the limits for the president's climate agenda.
The Center for Biological Diversity's government affairs director said that this was a tragic milestone in the dismantling of the Build Back Better Act. It shows how out of touch Senator Manchin is with the public's support for ending offshore drilling when he wants to poison our coasts while living in a state that is good for him.
The House passed a bill last month that would permanently ban new oil and gas drilling along the Atlantic and Pacific coasts. It wouldn't have stopped existing offshore drilling.
The House version revoked the program that allowed drilling in one of the last remaining wilderness areas in the country, after Congress voted to allow drilling in the Arctic National Wildlife refuge. The refuge could hold as much as 11 billion barrels of oil. Democrats and Republicans have been at odds over whether to allow drilling there for more than four decades.
Mr. Manchin is the chairman of the Senate Energy and Natural Resources committee.
A person who was briefed on Mr. Manchin's thinking said that he retained the drilling ban in the northern part of the planet.
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The senator from Vermont said that allowing continued oil and gas drilling in the oceans endangers the planet. He said that we need to be aggressive in transforming our energy system.
In May, the world's leading energy agency warned that governments around the globe must stop approving fossil fuel projects now if they want to prevent the pollution they produce from driving average global temperatures more than 2 degrees Celsius above preindustrial levels. Scientists say that the Earth will experience irreversible damage.
Mr. Manchin profits from investments in a family coal broker and has resisted the urge of his Senate colleagues to support provisions in the bill that would wean the country from coal, gas and oil.
The clean electricity program that would have rewarded power plants that switched from burning fossil fuels to solar, wind and other clean sources was rejected by Mr. Manchin. He pushed to remove a provision that would impose a fee on emissions of methane, a powerful planet-warming pollutant that leaks from oil and gas wells. He objected to a provision that would give tax credits to consumers who purchase electric vehicles produced by union labor.