Rebuilding better U.S. climate leadership
Last week, the U.S. House of Representatives passed President Biden’s “Rebuild a Beautiful Home” bill, which includes a number of social welfare and family support provisions. It also includes an extremely important plan to accelerate the reduction of greenhouse gas emissions in the United States. If we are to reduce greenhouse gas emissions and reduce global warming, this bill is essential to prove that the United States is serious and will provide an example for other countries to follow. The bill includes fees for large companies that leak methane. I think it is almost impossible for this expense to survive the Senate version of the sausage production process. I don’t know which climate clauses of the bill will remain, but the remaining clauses have broad political appeal and are likely to be promulgated before the end of the year.
According to Coral Davenport New York TimesThe bills passed by the House of Representatives include:
“…Providing $320 billion in tax incentives for producers and purchasers of wind, solar, and nuclear energy to accelerate the transition from oil, natural gas, and coal. Buyers of electric vehicles will also benefit, receiving up to $12,500 The tax credit for the US-this depends on the proportion of auto parts made in the United States and whether it is made by union workers. US$1 billion is used to build electric vehicle charging stations, and US$2.9 billion is used to make the grid more conducive to wind energy and Transmission of solar energy, $12.5 billion for homeowners who install more energy-efficient appliances. The bill will provide $55 billion for promoting climate-friendly agriculture, forestry and research programs, and $29 billion for “green bank” programs to help communities To finance renewable energy projects, US$10 billion is used to help rural power cooperatives pay for the cost of switching from coal power plants to renewable energy.”
Tax incentives replace the “Clean Energy Program”, which will reward utilities that decarbonize and punish those that do not decarbonize. Since this clause will lead to increased utility bills in states that do not comply with the regulations, I have always believed that this is both a political failure and bad politics for the president. It has been replaced with a reward plan without punishment. This approach should accelerate the transition to renewable energy, as renewable energy expands, lower its price, and ultimately reduce energy costs.
The second clause provides substantial tax incentives for the purchase of electric vehicles. Coupled with Ford and GM’s huge investment in electric vehicles, I expect this will rapidly increase the adoption rate of electric vehicles. I would be surprised if the clause requiring union workers to manufacture vehicles in the United States still exists. Senators from southern states that own non-union automakers will see this rule cancelled.
Write down this rule, Roads and tracks Reporter McHogan observed:
“Democrats in Congress recently revealed a comprehensive reform of the federal zero-emission vehicle tax credit. The plan cancels the phasing out of the Sold more than 200,000 eligible electric vehicles, Restrict the list price of eligible cars, allow buyers to deduct the credit line when purchasing, and start from 2027 only to cars made in the United States.​​​ But the most controversial restriction has to do with union labor. Although the new bill is largely an extension and improvement of the current $7,500 tax credit for battery-electric (and other zero-emission) vehicles, it adds a $500 incentive to vehicles that use American-made batteries, plus another 4,500. The U.S. dollar credit is used exclusively for electric vehicles manufactured by unionized laborers… This means that, for example, Ford electric vehicles manufactured in the United States will receive a federal rebate of up to $12,500, while the maximum limit for BMW electric vehicles manufactured in the United States is 8,000. US dollars…The union bill is unlikely to receive any cross-channel support, which means that all 50 Democratic senators need to support the bill before it can pass. In the face of increasing criticism, it is still uncertain whether the bill will be passed as scheduled. ”
Another allocation is 1 billion yuan to subsidize car charging stations. Although I think this is a useful way to start the charging industry, in the end I expect that charging stations will soon be taken over by the private sector. I suspect that every convenience store with a gas station in front will eventually transform some gas stations into charging station parking spaces. Customers will be encouraged to spend more time with their Slurpee in the store, or may install seats to extend their stay. Since people need to pay for charging, charging will generate revenue and profits, so these subsidies can disappear after initial subsidies are obtained to start the business.
There are also extensive subsidies to encourage household energy efficiency and the installation of solar panels in private homes. With the President’s recent signing of the Infrastructure Act, which became law, it provided the National Power Corporation with billions of dollars to upgrade the grid to promote a more efficient and decarbonized energy system.this Sierra Club fact sheet The bill states: “The Rebuild Better Act includes more than 130 programs that will invest nearly US$600 billion in climate action, clean energy work, and environmental justice.” This Fact Sheet Point out that the new law will:
- “More than 60,000 diesel school buses were converted into clean electric buses…
- Convert 70% of U.S. Postal Service mail trucks into clean electric vehicles…
- Helped to replace more than 5 million lead service lines-about half of the country’s total-to provide clean water…
- Help ordinary families save about 500 US dollars in water and electricity bills every year.
- The expansion rate of wind and solar energy has more than doubled, providing renewable energy for millions of new homes every year.
- Installing solar panels on your roof is on average $7,000 cheaper.
- Facilitate access to renewable energy for low-income and indigenous communities by covering 40-50% of the cost of solar and wind energy projects
- Provide opportunities for churches, hospitals, schools, local governments and other non-profit organizations to install wind and solar energy at a price 30% lower than normal costs.
- Make the grid more reliable…”
The bill includes the establishment of a national climate team to involve 300,000 young people in the project so that we can mitigate and adapt to climate change. Last but not least, the bill provided $29 billion to fund a national green bank.Since late May, 13 students in the Environmental Science and Policy Graduate Program at Columbia University have been conducting Management simulations initiated by such national green banksThey proved the feasibility and potential impact of the National Green Bank. The bank’s goal is to attract the funds needed to accelerate the transition to a decarbonized energy system.As Saul Elbein recently reported Hill:
“Last week, the Democrats included the Clean Energy and Sustainability Accelerator proposal in the “Rebuild Better” plan… The author of the bill said that in the next 10 years, the investment will mobilize another $232 billion in community investment… …Green Banking Initiative-Green Capital Alliance (GCG) CEO Reed Hundt (Reed Hundt) stated that it has been passed in the House of Representatives three times since 2009, but none of them have passed the Senate-“It is not unique “… But the current US proposal is “the largest and most well-conceived version,” Hunter said. The goal of the green bank is to bridge the difficult gap in the energy transition. Hunter said: In fact, there are many needs for a low-carbon economy. Adaptation must occur on projects worth between 100,000 and 10 million dollars, which are easy to afford for small entities, and commercial banks are too small to lend.”
We don’t know which elements (if any) of the plan will be proposed in the US Senate, but its promulgation will be an important milestone in a generation’s efforts to mitigate climate change. Once these initial investments are completed, it will initiate steps driven mainly by the private sector. It will make the U.S. economy more globally competitive because it will reduce energy costs and reduce its impact on the local environment. However, if other countries follow our example, it will only affect climate change. No matter how we decarbonize, we cannot alleviate global warming by ourselves.
Nevertheless, if the United States does not take these steps, you can be sure that few people will do so. If we kick the “climate tank” on the road again, we should be ready for the road to be flooded, washed away, covered by debris, and possibly surrounded by burning forest. The good news about these plans is that they are a positive cause of change. No one asks you to buy electric cars, but the plan will make them cheaper than fossil fuel-powered cars. The President and the House of Representatives have taken a big step in the right direction.
The next move lies in the hands of the severely divided and dysfunctional US Senate. Several moderate Democratic senators do indeed control the fate of the world’s climate. Although this may not be able to convince them, failure to pass the bill will cause a devastating political blow to their party and inevitably affect their own political survival. I bet “rebuild better” and hope this is more than just my stupid optimism.
