US Senate Majority Leader Chuck Schumer and Senator Joe Manchin have reached agreement on a bill that will provide a huge boost for climate action and renewable energy in the US
The agreement between Senator Schumer and Senator Manchin – who scuttled President Joe Biden’s ‘Build Back Better’ legislation – will see the‘Inflation Reduction Act of 2022’added to the budget reconciliation bill being negotiated in Congress.
The plan will face significant opposition from the Republican Party but if it is finally passed it will – as Senator Brian Schatz of Hawaii said of the measure after he was briefed on it – “be by far the biggest climate action in human history” with nearly US$370Bn in tax incentives, grants and other investments in clean energy, clean transportation, energy storage and related measures.
In a statement, Senator Machin said, “In addition to fighting inflation, we must stop pretending that there is only one way to combat global climate change or achieve American energy independence. The Inflation Reduction Act of 2022 addresses our nation’s energy and climate crisis by adopting common sense solutions through strategic and historic investments that allow us to decarbonize while ensuring American energy is affordable, reliable, clean and secure.
“I support a plan that will advance a realistic energy and climate policy that lowers prices today and strategically invests in the long game. As the superpower of the world, it is vital we do not undermine our superpower status by removing dependable and affordable fossil fuel energy before new technologies are ready to reliably carry the load. This legislation ensures that the market will take the lead, rather than aspirational political agendas or unrealistic goals, in the energy transition that has been ongoing in our country.
“The Inflation Reduction Act of 2022 invests in the technologies needed for all fuel types – from hydrogen, nuclear, renewables, fossil fuels and energy storage – to be produced and used in the cleanest way possible… Our increasing dependence on foreign energy and supply chains from countries who hate America represents a clear and present danger and it must end… Build Back Better is dead, and instead we have the opportunity to make our country stronger by bringing Americans together.”
Responding to the agreement, Business Network for Offshore Wind founder and chief executive Liz Burdock said, “The Network is glad to see Congress taking action to support the rapidly growing offshore wind industry. As announced, the proposed Senate package will ensure that more Americans can take advantage of the well-paying jobs that will be created as more offshore wind projects are developed, all while reducing inflationary pressures.
“Offshore wind will play a central role in the country’s transition to a cleaner energy future by providing reliable and dependable power that is shielded from inflationary global energy markets and geopolitics. Although Europe has a three-decade head-start, the US offshore wind industry is poised to compete on the global stage creating tens of thousands of jobs in manufacturing centres and businesses across the US.
“The proposed Senate package takes an important, and historic, step forwards in its support for offshore wind. Building this industry requires the ramping up of a domestic supply chain, investing billions in ports and shipbuilding, and rebuilding our transmission system – all of which requires Congressional support. With global demand for offshore wind growing exponentially and diverting market attention, Congress must take action to keep the US at pace with overseas competitors and support job growth in the US.”
American Council on Renewable Energy president and chief executive Gregory Wetstone said, “It appears that Congress is finally rising to meet the climate challenge. We are still waiting to review the legislation, but we are hopeful that the provisions in the budget reconciliation deal that was announced this evening will spur critical investments in renewable power, energy storage, and advanced grid technologies.”
American Clean Power chief executive Heather Zichal said, “The entire clean energy industry just breathed an enormous sigh of relief. This is an 11th hour reprieve for climate action and clean energy jobs, and America’s biggest legislative moment for climate and energy policy.
“Congress now is inches away from passing a US$370Bn investment in energy security and climate change programs over the next 10 – the biggest climate and clean energy investment in American history. Passing this bill sends a message to the world that America is leading on climate and sends a message at home that we will create more great jobs for Americans in this industry.”
