In announcing the new deal, Schumer said the bill “puts the US on a path to reduce emissions by roughly 40 percent by 2030.” Experts agree that this legislation could be a game-changer in reducing the nation’s greenhouse gas 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 law includes hundreds of billions in grants, loans, federal procurement and tax credits for research and development, implementation and production 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 Stokesprofessor of environmental policy at the University of California, Santa Barbara, who has advised Democrats on climate legislation, said in an interview.
One of the major spending focuses in the bill is the use of clean energy: There are roughly $30 billion in new tax credits for the construction of wind, solar and other clean energy projects, as well as expansions of existing credits. There’s also $60 billion in incentives for domestic production of everything from batteries to solar panels to heat pumps.
Increasing subsidies in the bill could potentially make it cost-effective for some fossil fuel and industrial plants to add equipment that prevents climate pollution, increasing the potential role of what’s known as carbon capture and storage.
The bill includes $27 billion for clean technology research and development, as well as $2 billion specifically for research at national laboratories.
Other sectors will also receive support for climate efforts. About $20 billion is earmarked to help reduce emissions from agriculture, and there are nearly $5 billion in grants for forest conservation and restoration projects.
Ryan Fitzpatrick, director of climate and energy programs at Third Way, said it’s an ambitious and politically pragmatic bill designed to boost U.S. manufacturing, provide support where job sectors are changing and build the infrastructure needed to transition to cleaner, modern energy systems.