Overnight Energy & Environment – Brought to you by ExxonMobil – Democrats seek to preserve climate provisions
Welcome to Wednesday’s show on energy and the environment, your source for the latest news focused on energy, the environment and beyond. Subscribe here: thehill.com/newsletter-inscription.
Today we take a look at the ongoing balance on the climate provisions of the reconciliation package, a suggestion from a Senate Democrat on what the White House can do, and a deep dive on tax credits for renewable energy. in the bill.
Senators strive to keep climate priorities in bill
Democrats are calling for their climate priorities to be maintained in the spending bill passed by the House as a senator. Joe manchinJoe ManchinOvernight Energy & Environment – Brought to you by ExxonMobil – Manchin seeks to ‘adjust’ its spending plan Pence-linked group launches 0K ad campaign in West Virginia praising Manchin Democrats demanding tax credits to bolster clean energy PLUS (DW.Va.) pushes for adjustments.
Democratic senators said on Wednesday that a methane emissions levy and a tax credit for union-built electric vehicles were among the provisions being negotiated. Both are in the bill passed by the House.
How do they feel about it? “I have the impression that we are in a good position. There are a couple of policies that we need to develop, so we’ll see, ”Sen said. Debbie StabenowDeborah (Debbie) Ann StabenowBiden signs four bills to help veterans Five ways the Senate could change Biden’s spending plan Senate Democrats seek to correct bad poll numbers MORE (D-Mich.) Told reporters when asked about the chances of the legislation being significantly changed.
Manchin and centrists in the House have already used their influence to curb some of the climate provisions favored by progressives. While other changes are likely, their size and scope is not entirely clear.
And how are the negotiations going? Senator Tom carperThomas (Tom) Richard Carper Five ways the Senate could change Biden’s spending plan Advocates see pilot program to tackle highway inequality as crucial first step Democrats take as Manchin yo-yos MORE (D-Del.), Who chairs the Senate Environment and Public Works Committee, said he had had “very constructive” discussions with Manchin about the methane program.
“He shared with us the concerns they have about the initial methane royalty and we have taken into account their very constructive comments,” Carper said. Carper said moderates Manchin and House from Texas had raised concerns about the provision, but said they weren’t as concerned after the program was adjusted to also include funding to help companies to stop emitting methane before they are fined.
Democrats have changed their proposal to charge drillers for excessive emissions of methane – a potent greenhouse gas that is a major contributor to climate change – to also include incentives to help companies reduce gas emissions.
Learn more about the ongoing process here.
Coons: fixed costs for carbon-intensive products
Senator Chris CoonChris Andrew CoonsBiden signs four bills to help veterans Senators: U.S. allies worried Senate will not pass annual defense bill (D-Del.) Expressed confidence to reporters on Wednesday that the White House could impose a border tax on carbon-intensive products even if Coons fails to add it to the Democratic reconciliation package.
“I think so,” Coons told reporters when asked if the Biden administration could impose a so-called border carbon adjustment on its own. The Delaware Democrat had previously said he believed such a tax would work best when passed through legislation alongside a carbon levy.
Could they do more? As to whether the Biden administration could “put an additional price on carbon, I don’t see that mechanism at this time,” Coons said.
“But in a series of recent meetings with Canadian, German and European leaders, I discussed the urgency, the importance of a border carbon adjustment system or an approach that would bring together at least those countries, ”Coons added. .
The Delaware senator, considered one of the Senate climate hawks, made the remarks Wednesday following a press conference in which he and several other Democratic senators called for maintaining the climate provisions of the package. social spending.
The state of play: Senator Joe Manchin (DW.Va.), who is a key vote on the package, has repeatedly opposed the energy and environmental aspects of the bill, including the Clean Electricity Payment Program, which reportedly put in place financial incentives for electric utilities to transition to renewable energy.
The program has been confirmed to be removed from the Senate package this fall. The West Virginia Democrat also expressed reservations about provisions such as a methane levy and a tax credit for electric vehicle manufacturers that use union labor.
Learn more about Coons’ remarks here.
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Democrats call for tax credits to boost clean energy
Industry groups and pundits see the clean energy tax credits proposed by Democrats as a major push to expand deployment of alternative energy and fight climate change, highlighting important issues as the party seeks to take action forward.
Modeling has shown that the effects of credits included in the Build Back Better package could up to double the current record rate of renewable energy deployment and reduce significant emissions from the US electricity sector.
Legislation, at the heart of President BidenJoe BidenCDC Works To Tighten Testing Requirements For International Travelers On The Money – Powell Pivots As Inflation Rises Overnight Energy & Environment – Presented by ExxonMobil – Manchin Seeks ‘Adjustments’ to Spending Plan MOREThe national program, contains a number of tax credits that are expected to benefit energy sources, including solar, wind and nuclear power, and enhance technologies such as the storage, transmission and capture of energy. carbon.
How would that work? According to the bill, renewables like wind and solar could use either a tax credit that gives them money based on how much electricity they produce, or a tax credit. which allows companies to deduct up to 30% of their investment.
The production tax credit (PTC) and the investment tax credit (ITC) would last until 2031. These credits already exist now, but the legislation would extend them and raise the ITC from its cap. current of 26%.
By law, people using these credits could also receive tax benefits in the form of direct payment, rather than through more complex mechanisms.
Suzanne Leta, head of policy and strategy at solar energy company SunPower, said the extension of the solar energy investment tax credit was one of the provisions of the solar energy legislation. “most impactful” climate.
Currently, she noted, the tax credit is only available for deployed solar power, but the provisions of the reconciliation package would extend it to micro-grids and self-contained battery storage.
Learn more about the tax credits offered here.
THE OIL GROUPS ARE SEEKING TO MANCHINATE THE CHANGES TO THE EXPENDITURE INVOICE
Oil and gas trade groups publicly called on Senator Joe Manchin (DW.Va.) on Wednesday to help them eliminate several provisions of the Democrats’ social and climate spending bill.
In a letter to Manchin and shared with reporters, eight groups expressed opposition to the provisions.
The measures they have targeted include those that: increase drilling costs on public lands, ban drilling in the eastern Gulf of Mexico and the Atlantic and Pacific Oceans, and add costs for oil and gas wells. gas abandoned on public land.
The groups that signed the letter are: the American Petroleum Institute, the National Ocean Industries Association, the American Exploration and Production Council, the Energy Workforce and Technology Council, the International Association of Geophysical Contractors, the Independent Petroleum Association of America, Louisiana Mid-Continent Oil and Gas Association, and American Oil and Gas Association.
“We hope that as this bill is considered by the Senate, these punitive provisions will be removed,” said the letter to Manchin, who is both a decisive vote and the chairman of the committee. energy and natural resources of the room.
IN THE PRESS FOR TOMORROW
- Senate Energy and Natural Resources Committee to Hold Legislative Session audience examine nine bills
- The House Oversight Committee will hold a markup audience to consider HR 5477, the Federal Agency’s Climate Planning, Resilience and Better Preparedness Act (PREP).
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WHAT WE READ
And finally, something quirky and quirky: You can’t go wrong with a classic.
That’s all for today, thanks for reading. Discover The Hill’s energy and environment page for the latest news and coverage. Well see you tomorrow.