Senate Democrats passed the Inflation Reduction Act of 2022
After nearly a year of fighting, President Joe Biden’s climate plan cleared a major hurdle. The Inflation Reduction Act of 2022 was passed by the Senate Democrats on Sunday. The vote was 51-50. It was a party-line vote, and Vice President Kamala Harir cast the tiebreaking vote. The Washington Post. The 755-page bill, if passed by the House, would be the largest ever national expenditure for climate change. The legislation totals $370 billion to reduce US greenhouse gas emissions by around 40% by the end of this decade.
Several climate change provisions are most likely to impact consumers. Federal EV credit reworked. Inflation Reduction Act provides subsidies up to $7500 for electric vans, trucks, and SUVs with a cost below $80,000 or cars below $55,000. People could also claim up to $4,000 to purchase a used EV. An income ceiling would be applied in both cases to prevent people who earn more than the average American from being eligible for the legislation.
The bill also includes EV subsidies. It provides $370 billion in investment to encourage the construction of renewable power sources. A $1.5 billion program would be created to pay companies who reduce their methane emissions.
The Inflation Reduction Act is the product of years of bipartisan conversations about the most impactful ways to produce more energy domestically, bring down energy and healthcare costs and pay down our debt. The IRA achieves this without raising taxes.
— Senator Joe Manchin (@Sen_JoeManchin) August 7, 2022
The House has now voted to approve the Inflation Reduction Act. It will be returned from summer recess Friday. President Biden’s office was in session for most of 2021 and much of the first half of 2022. Plan to Build Back Better Due to the opposition of Senator Joe Manchin from West Virginia, it looked certain they would not succeed. However, in late July, Manchin and Senate Majority leader Chuck Schumer announced they had reached a compromise.
In exchange for his support, the Inflation Reduction Act contains a provision allowing the federal government to reinstate canceled oil-and-gas leases in the Gulf of Mexico or Alaska’s Cook Inlet. Although this concession may upset environmentalists, it is not likely to alter the positive impact the Inflation Reduction Act has on the environment. One Princeton University Zero Lab estimates. The bill could reduce US greenhouse gas emissions by approximately 6.3 billion tonnes by 2032.