WASHINGTON—The $369 billion climate and tax package crafted in a surprise deal by Senate Democrats on Wednesday will be the most ambitious move ever taken by the U.S. to stop the planet from overheating catastrophically. I guess.
The deal, which Senate Democrats hope to pass as early as next week, shocked Some have been involved in intense negotiations over climate change legislation over the past year. The deal’s announcement after many activists gave up hope almost immediately reset the U.S. role in the global effort to combat climate change.
And it was delivered by Senator Joe Manchin III of West Virginia, who was criticized earlier this month by environmentalists and some of his own colleagues after saying he could not support the climate bill because of inflation concerns. had been denounced.
In announcing the deal with Manchin, Democratic Majority Leader Chuck Schumer said, “This bill will be, by a wide margin, the largest climate protection bill ever passed by Congress.” would,’ he said.
The bill would use billions of dollars in tax incentives to boost the wind, solar, geothermal, battery and other clean energy industries over the next decade to tackle global warming. purpose. Companies receive financial incentives to keep potentially closed nuclear power plants running or to capture emissions from industrial facilities and bury them underground before the planet warms. A car buyer whose income is below a certain level can receive a tax credit of $7,500 if he buys a new electric car and $4,000 if he buys a used electric car. Americans receive rebates for installing heat pumps and making their homes more energy efficient.
“This is the action the American people have been waiting for,” said President Biden, praising the bill’s “investment in future energy security.”
Senate Democrats said the bill would allow the U.S. to cut greenhouse gas emissions by 40% from 2005 levels by 2030, putting the U.S. very close to the aggressive climate goals Mr. Biden laid out last year. estimated that it would come in.
Biden wants to cut U.S. emissions by at least 50% from 2005 levels by the end of the decade. Exceeding this would greatly increase the likelihood of catastrophic floods, fires, storms and droughts, scientists say. The Earth has already warmed by about 1.1 degrees in the last 100 years.
The bill “will keep us in the fight against climate change and allow executive action, state and local government policies, and private sector leadership to get us across the finish line,” Princeton said. College student Jesse Jenkins said. modeled the effect of previous versions of the law. “Without this bill, we would be hopelessly far from our climate goals.”
Diplomats and climate experts said they hoped the agreement would spur international efforts to tackle global warming. Leaders plan to meet in Egypt in November to discuss stepping up efforts.
The Biden Administration’s Environmental Agenda
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“We all needed good news. Get the wind you need,” she said, but warned, “We’re staying far from where we need to be.”
Jonathan Pershing, who served as Mr. Biden’s deputy climate change president until January, has received calls in recent weeks from former counterparts in Africa and China who were keenly aware that the US climate change bill was crumbling. He said he addressed the concerns.
“They were like, ‘Okay, you guys aren’t going to do this, so why should we do it?'” Pershing recalls. “I think you have a radically different story now.”
Massachusetts Democratic Senator Edward J. Markey said the bill would restore America’s credibility in international negotiations. “You can’t preach temperance from barstools, and you can’t ask China, India, Brazil, or any other country to cut emissions.
Republicans in the Senate are unanimously opposed to the bill.
Wyoming Sen. John Barrasso said in a statement, “This is nothing less than an attack on American families.” “If you want to contain inflation, lower energy costs, and reduce the deficit, the recipe is clear: Congress should cut spending and free up American oil and gas production.”
This bill will affect nearly every aspect of US energy production. This includes $30 billion incentives for companies to build solar panels, wind turbines, batteries and process vital minerals in the United States, bringing years of clean energy manufacturing to China and elsewhere. We aim to reverse the transition of
Companies say they are ready to respond quickly. South Korea-based solar company QCells, which is building a $171 million assembly plant in Dalton, Georgia, plans a multi-billion dollar expansion of its supply chain in the U.S. if legislation passes said Scott Moskowitz, head of QCells. of market strategy and public relations.
It also includes $60 billion to address the disproportionate burden of pollution on low-income communities and communities of color. His $27 billion into a “green bank” aimed at funding clean energy projects. $20 billion for emissions reduction programs in the agricultural sector.
The bill’s most immediate impact, according to energy experts, would be to spur growth in the production of wind turbines, solar panels and electric vehicles in the United States. Pandemic-related turmoil, trade disputes and uncertainty over federal policy have significantly slowed renewable energy production this year. Recent reports By the American Clean Power Association, which represents wind and solar energy companies and battery manufacturers.
“The entire clean energy industry has breathed a huge sigh of relief,” said Heather Zichal, the association’s chief executive officer. “This is her 11-hour grace period for climate action and clean energy work.”
For decades, the United States has offered wind and solar tax credits that expire in one to two years. Under the new law, the tax credit will continue for up to 10 years to give businesses more confidence in making long-term investment decisions.
However, the bill would address one of the biggest obstacles facing renewable energy: the lack of long-distance transmission lines that would help carry wind and solar power from remote rural areas to cities. I have not. A previous version of the bill included a tax credit for new transmissions, but that has been removed. Rob Gramlich, founder of Grid Strategies, said without the regulation, many wind and solar projects could be difficult to build.
In the long term, the tax incentives included in the bill could foster new technologies such as carbon capture for industrial facilities such as steel and cement, next-generation nuclear reactors and the use of hydrogen as a low-carbon fuel. Expected. Many of these technologies are too costly for widespread use today, but just as federal tax credits in the 2000s and 2010s helped transform wind and solar power, the first projects Creating a market for rounds is expected to drive costs down. From expensive niche tech to affordable mainstream options.
The bill provides support for fossil fuels and is widely believed to require concessions to win Manchin’s support. Manchin’s home state of West Virginia is rich in coal and natural gas. For example, the bill would have required new lease sales for oil drilling in the Gulf of Mexico, but was opposed by environmental groups and Biden had promised to stop running for the White House. .
“Exactly all of the above, this bill does not arbitrarily cut off abundant fossil fuels,” Manchin said in a statement. He called the package “realistic energy and climate policy.”
As part of the deal, Manchin will approve another step from both Biden and California House Speaker Nancy Pelosi to help Congress address the permitting of energy infrastructure that could include natural gas pipelines. He said he made a promise to September 30 settlement.
This could pave the way for Manchin’s personal interest in a project, the Mountain Valley Pipeline, which will transport Appalachian shale gas from West Virginia to Virginia.
But even with the concessions to the fossil fuel industry, “this bill still has absolute value for climate change,” said a professor of environmental policy at the University of Santa Barbara in California, who advises Senate Democrats. said Leah Stokes.
Two weeks ago, a small group of lawmakers continued to work with Manchin when even Biden appeared to be writing an obituary on the climate change bill. Some Democrats and climate activists believe Colorado Sen. John Hickenlooper kept his lines of communication open with Mr. Manchin.
“A lot of people said, ‘That’s it,’ and when everyone put it away, I said to everyone I knew, ‘Wait a minute, I can’t stop,'” said a former petroleum geologist. said Hickenlooper. and the gas company. “There is no satisfactory alternative.”
Hickenlooper said many were wary of continuing negotiations because “they didn’t want to break their hearts again.” But Manchin insisted there was still room for a deal.
Hickenlooper said the group works closely with experts from the Wharton School of Management at the University of Pennsylvania, and Manchin places a lot of value on data that show he can develop laws that don’t make inflation worse.
During the meeting, he called Mr. Manchin a “honest mediator” and wanted to find ways to tackle climate change without burdening the state’s fossil fuel workers.
“He never said the job was done,” Hickenlooper said. “He said I’ll be at the table as long as Joe Manchin is at the table.”