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What the $555 Billion Biden Climate Plan Would Do

Democrats’ spending bill in the House of Representatives passed Friday and sent to the Senate the largest-ever investment call for fighting. climate change: $555 billion for clean energy, tram and resilience global warming.

The White House said the bill, which faces an uncertain fate in the Senate, puts the US on track to meet ambitious climate goals including a 50% to 52% reduction in greenhouse gases. emissions below 2005 levels by 2030 and 100% carbon-free electricity by 2035.

It would slap a fee for the first time on emissions of methane – a potent greenhouse gas – from the oil and gas sector, while also banning oil drilling in most of the US waters and the Reserve. Arctic National Wildlife Refuge in Alaska.

While mainstream environmental groups support the bill, it has been criticized by activists for failing to repeal oil industry tax breaks and provide billions of subsidies to prolong the life of coal-fired power plants through carbon capture projects. A plan to force utilities to generate electricity by using clean sources of electricity and disposing of unused ones, was dropped following objections from Senator Joe Manchin of West Virginia, a primary vote. Democrats in the Senate split evenly.

“The Better Rebuilding Act will be the largest-ever investment in climate action, natural resource recovery, restoration, and recovery,” said Collin O’Mara, President and CEO. community recovery and restoration, clean water and air, and well-paying jobs since the New Deal.” of the National Wildlife Federation.

Republicans criticized the legislation as “socialist,” saying it would lead to higher electricity bills and lower taxes for millionaires.

Here’s a look at what’s on the bill:

Tax credit to promote investment in clean energy

By far the largest component of climate spending – around $300 billion – will be extending tax credits for renewable energy, biofuel and energy efficiency. The credits can spur investments in clean energy at both the utility and residential levels, as well as in power transmission, electricity storage, and production.

These include increased tax credits for utilities and other facilities using carbon capture technology, and new tax credits for energy transmission and storage projects, hydrogen production, and electricity from existing nuclear reactors could provide a lifeline to struggling plants.

Biofuel credits will be expanded and new credits created for sustainable aviation fuels. A popular credit that dates back to the Obama administration will be reinstated to manufacturers of wind turbines, solar panels, fuel cells and other clean energy devices.

In another twist, after five years, energy tax credits will be reduced to just a fraction of electricity and transportation allocated on a sliding scale based on emissions reductions. That could pose a forwarding risk to the recipient.

Promotion of electric vehicles to promote sales, union work

Detroit automakers will be able to offer an additional $4,500 in tax credits to buyers of electric vehicles in the US, up to $12,500 for vehicles made in the US with union labor.

Under the bill, a $7,500 consumer tax credit would be refundable and would be increased by $4,500 for cars assembled domestically by union-represented factories. An additional $500 bonus will be added for vehicles using US-made vehicles the battery.

A new perk in the law creates a $4,000 tax credit for the purchase of used electric vehicles.

Hundreds of millions of dollars will also be earmarked for the installation of EV charging systems and $3.5 billion for the Department of Energy to finance domestic production of electric and hydrogen fueled vehicles. NS General Services Administration will receive $3 billion for the procurement of electric vehicles for government fleets. And the U.S. Postal Service will receive nearly $6 billion for mail purchases vans and charging infrastructure, a move traders see as a positive for Loveland, electric vehicle maker Workhorse Group Inc. based in Ohio.

A separate infrastructure bill, signed into law this week by President Joe Biden, will spend $7.5 billion on EV chargers.

Oil drilling banned at Alaska’s ANWR, new offshore sites

The Democratic spending package would block oil drilling in the Arctic National Wildlife Refuge in Alaska and new offshore drilling in most US waters.

The law will ban the sale of new oil and gas rental contract in the Pacific and Atlantic waters as well as the eastern Gulf of Mexico. It would also repeal the four-year-old requirement that the government sell drilling rights in the coastal plain of the Arctic refuge while canceling nine leases that were granted in northeastern Alaska earlier this year.

Leases will still be conducted in the Central and Western Gulf.

The oil and gas industry has criticized the legislation passed by the House of Representatives. National Ocean Industry Association President Erik Milito said.

“These include arbitrary new fees that would add millions of dollars in annual operating costs, devaluing US manufacturing,” he said.

Methane release fees apply to oil and gas companies

The package will force oil and gas companies to pay for the first time for excess methane leaking from wells, storage yards and pipelines. Charges of up to $1,500 a ton will be imposed on a wide range of oil and gas infrastructure due to methane emissions, which by pound by pound has more than 80 times the heat-trapping power of carbon dioxide and is blamed for a quarter of global warming.

However, this provision could be curtailed or repealed in the Senate.

The act would also impose new fees on the oil and gas industry including $4 per acre, per year “Resource Conservation Fee” for all new onshore and offshore production oil and gas leases. offshore and $6 per acre, per year “Speculation Lease Fee” for all new oil and gas leases and non-production onshore and offshore.

It will also generate annual fees of up to $10,000 per mile for offshore pipelines and increase royalty rates on all new oil and gas leases.

Funding to create a Civilian Climate Corps

This act would provide billions of dollars to create a Civilian Climate Corps that could put hundreds of thousands of Americans to work to stop wildfires, restore wetlands, close oil wells. abandoned and make homes more energy efficient.

The program, which will be modeled after the New Age Civilian Conservation Corps, features senior champions who see it as both an economic and environmental development plan.

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