Bill would phase out natural gas and force sweeping changes to the economy

President Joe Biden’s climate ambitions will face a critical test on Monday as a significant portion of the $ 3.5 trillion reconciliation bill comes to a vote. If passed, the sprawling legislation will push the U.S. economy to curb carbon emissions by spurring advancements in clean energy, electric vehicles, grid modernization, and more.

Nearly $ 500 billion in grants, incentives and programs will be voted on by members of the House Energy and Commerce Committee. After that, the legislation will be merged with the other parts of the reconciliation bill as of Wednesday. Senate Democrats have met to draft their version of the bill, and Congressional Democrats hope to send a finalized bill to Biden by the end of the year.

So far, Republicans are united in their opposition and passage of the reconciliation bill appears to depend on Sen. Joe Manchin (DW.Va.) approval of key elements. Manchin, who represents coal-rich West Virginia and owns millions of dollars in stock in a coal brokerage firm, has expressed reservations about the bill to phase out fossil fuels.

Ultimately, Manchin may be persuaded to vote yes or no by the United Mine Workers of America. Currently, the group is inclined to oppose the entire reconciliation bill because it does not include provisions for retraining coal miners, reports E&E News. “We’re talking about a whole bunch of jobs,” UMWA spokesperson Phil Smith told the publication. “Where’s the replacement?” “

The coal miners’ transition plan for coal is conspicuous in its absence, although it may be part of the negotiations. “I hope we get to see a really big package for energy workers on the reconciliation bill,” Leah Stokes, a professor at UC Santa Barbara who helped write to E&E News, told E&E News. the clean energy plan.

Clean power, part two

The most important element of the bill is the Clean Electricity Performance Plan, a series of carrots and sticks intended to steadily increase the amount of clean energy produced by utilities and producers. The House envisions a target of 80% clean energy by 2030, a significant increase from 20% today, but one that falls short of Biden’s stated goal of net zero by end of the decade.

To meet the target, the bill would provide $ 150 billion in tax incentives for clean energy, which the bill defines as anything that produces less than 0.1 tonnes of CO.₂ equivalent, a level that effectively removes natural gas from consideration. To benefit from the incentives, power producers must increase the supply of clean energy by 4% per year. If they don’t, they’ll be billed $ 40 for every MWh they miss.

The network is also taking a shock, with $ 9 billion allocated for updates that include improving links between the east and west interconnects – the two main North American grids – and with ERCOT, the Texas grid, which suffered major power outages in February. The hope is that a modernized grid will accommodate the increasing contributions of renewable energy and be more reliable in the face of extreme weather events that are becoming more frequent due to climate change.

On the supply side, oil and gas companies are expected to review their operations to reduce methane leaks throughout their operations. Currently, about 1.5% to 4% of methane escapes from pipelines, gas fields and refineries, according to the estimate. The proposed law would require producers to plug multiple leaks to reduce total methane emissions to 0.2% of sales. If producers were unsuccessful, they would face charges that would help reduce greenhouse gas emissions from other oil and gas operations and clean up lingering pollution in communities near refineries and others. facilities.

Renovations for everyone

The House bill would also help reduce demand for oil and gas through several other programs, including $ 13.5 billion for electric vehicle charging infrastructure. Although it is less than Biden’s $ 15 billion request, the money would target charging points in weak spots across the country, including along roads and highways, in apartment buildings. and condos, in workplaces and in underserved areas. If this part goes as is, it would be an important step forward for EV infrastructure – many apartment and condominium dwellers have refused to purchase EVs due to questions about charging, and support. government in underserved areas would help fill the gaps in many commercial charging networks. .

Buildings are also benefiting from an increase in the bill, with provisions to encourage people to buy more energy efficient appliances and discounts for people who want to improve the energy efficiency of their homes. Federal buildings would also be eligible. There aren’t many details yet, so it remains to be seen how extensive or effective these portions will be.

Disaster driven

The bill is unlikely to reach Biden’s office as written. Manchin, who chairs the Senate Energy and Natural Resources Committee, will make a significant contribution. But Democrats believe the recent spate of extreme weather calls for action as soon as possible.

“Last year alone, our country experienced 22 major natural disasters that cost Americans a record $ 95 billion in damage, numbers that are more than double the historical average but still do not reflect the cost of lost jobs or the trauma of losing families. their homes, ”Representative Frank Pallone (D-NJ), chairman of the House Energy and Commerce Committee, told The New York Times. “The climate crisis is here, and the cost of inaction is already huge.”