Announcing the new deal, Schumer said the legislation “puts the US on a path to an approximately 40% reduction in emissions by 2030.” And experts agree that the bill could be a game-changer in reducing the nation’s emissions in the coming years, helping to reduce warming and extreme weather events in the coming decades.
What’s on the bill?
In a word, billions. The bill includes hundreds of billions in grants, loans, federal procurement and tax credits for research and development, deployment and manufacturing in clean energy, transportation and other sectors such as agriculture.
“This is the transformative clean energy and climate rescue package we’ve been waiting for,” Leah Stokes, a professor of environmental policy at the University of California, Berkeley, who has been advising Democrats on climate legislation, said in an interview.
A significant portion of the spending in the bill has to do with clean energy deployment: There is roughly $30 billion in new tax credits to build wind, solar and other clean energy projects, as well as extensions of the existing credits. There’s also $60 billion in incentives for domestic manufacturing of everything from batteries to solar panels and heat pumps.
Subsidy increases in the bill could potentially prompt some industrial and fossil fuel plants to add equipment that would prevent climate pollution, increasing the potential role of what’s known as carbon capture and storage.
The bill includes $27 billion for research and development in clean technology, as well as $2 billion specifically for research at domestic laboratories.
Other sectors will also see support for climate efforts. About $20 billion is earmarked to help reduce emissions from agriculture, and there are nearly $5 billion in grants for conservation and forest restoration projects.
Ryan Fitzpatrick, Third Way’s climate and energy program director, said this is an ambitious and politically pragmatic bill designed to boost American manufacturing, support where job sectors are changing and build infrastructure necessary to move to cleaner and more modern energy systems. .