With Vice President's Tie-Breaker, US Senate Approves Far-Reaching Climate Bill

Abstract

August 8, 2022 Pam McFarland KEYWORDS climate change bill / decarbonization / permitting reform Order Reprints No Comments With Vice President Kamala Harris casting the decisive vote, the U.S. Senate passed 51-50 an economic package on Aug. 7 that authorizes $369 billion to address climate change. The package now moves to the U.S. House of Representatives, which is expected to pass the bill later this week, and then to the White House for President Joe Biden's signature. Senate leaders used a process called reconciliation, which only requires a simple majority to approve a budget-related bill. Tax Credit Extensions The bill's climate provisions include tax credit extensions to spur solar, wind and other renewable energy projects, and also extends the 45Q tax credit for carbon capture, utilization and storage and direct air-capture projects. The bill, which has provisions to reduce health care costs and increase the amount of taxes paid by corporations with $1 billion or more in annual profit, also includes a commitment to enact separate legislation to simplify the construction project permitting process. Manchin had joined the majority of Senate Republicans on Aug. 4 to vote to nullify the White House Council on Environmental Quality regulations reinstating provisions to the National Environmental Policy Act that were removed by the Trump administration. Their "Resolution of disapproval" does not likely have enough support to pass the House, but Manchin noted in a statement his secured commitments from the Biden administration, Schumer and House Speaker Nancy Pelosi to enact some permit reforms by Sept. 30.