As a response to COVID-19 pandemic, Congress is currently discussing an array of climate change policies. These include substantial government efforts to cut carbon emissions as well as incentives for electric vehicle purchases.
American support the measures currently under consideration; however, opinions differ as to how these efforts should be measured.
Clean Energy Standards
Although Congress can be known for partisan and ideological battles, bipartisan support for climate change seems to have finally gained steam. Last month, the Senate approved an ambitious package of new grant and loan programs, tax credits and emissions fees that when implemented will make significant strides toward decarbonizing US energy systems over the coming decade – widely seen as its most ambitious climate action measure taken since decades.
The centerpiece of the bill is its Clean Electricity Standard, or CES, designed to drive US electricity sector toward 80 percent renewables by 2035. While that falls far short of President Biden’s 100 percent clean energy goal when he assumed office in 2021, it will bring us one step closer towards meeting international climate goals than before.
A comprehensive emissions trading scheme (CES) is essential to meeting the goals set out in Paris Climate Agreement, which mandates that US greenhouse gas emissions must drop 26 percent below 2005 levels by 2040. According to congressional experts, without an effective CES in place it would be difficult to meet those targets.
Democrats worked with members of the Senate to devise a way of passing the CES without filibusters, opting instead for budget reconciliation which allows bills that meet certain fiscal criteria to pass without facing opposition in their chamber.
According to a recent analysis by the nonpartisan National Resources Defense Council (NRDC), Democrats’ CES plan does meet budgetary requirements required for reconciliation, while it could reduce emissions by as much as 14 percent by 2050 in sectors including electricity generation, manufacturing, commercial activity and transportation – accounting for 85 percent of US emissions.
However, even if the CES meets fiscal requirements and addresses White House budgetary concerns, its passage is far from assured. Some moderate Democratic senators, like Joe Machin from West Virginia who co-sponsored this bill with Ben Ray Lujan have shown hesitation to back a policy which could put coal mining out of business in their state.
Renewable Energy Tax Credits
Congress and the Trump administration must address financing the transition away from fossil fuels as part of their climate policies set out in the Paris Agreement. A key part of this involves developing a framework for carbon pricing and tax credits as significant sources of funds for projects with the lowest cost per ton carbon emission reduction. Furthermore, tax credits provide incentive for private-sector investors to invest in these technologies.
Congressional leaders are working towards crafting a bipartisan package of measures that will fulfill US commitments under the Paris agreement. This may include provisions for carbon taxes and credits as well as funding renewable energy projects like solar panels or windmills. Furthermore, billions will be set aside to increase availability of electric vehicles as well as increase availability of charging stations for them.
Initial reactions to the proposed measures have been mostly positive, as evidenced by editorials like that in The Washington Post which described them as a step in the right direction compared to what many Democrats expected they’d accomplish. Yet some details have raised alarm, such as an opinion piece written by financial commentator Matthew Lynn for The Daily Telegraph in which he advocated offsetting climate changes with lower corporate tax rates or by using budget reconciliation legislation which will only need 51 votes to pass rather than the traditional 60 needed to overcome filibusters.
One of the key issues will be whether credit changes can secure enough Republican votes for passage. Some trade groups have taken issue with Republican proposals, claiming that repealing credits could jeopardize investments in clean energy projects.
Polling shows there is wide agreement across parties on the need for action to address climate change. More than 90% of Americans support planting a trillion trees to absorb carbon dioxide from the atmosphere (91% among Democrats and 79% among Republicans). Furthermore, majorities across both parties favor mandating power companies use more renewable energy (72% among Democrats and 68% among Republicans), taxing corporations based on carbon emissions (67% among Republicans), and offering incentives to purchase hybrid and electric vehicles (71% among Democrats and 66% among Republicans). Such widespread support demonstrates Americans’ growing awareness that global warming poses real threats which must be tackled head on and managed accordingly.
Carbon Capture and Storage
As Democrats and Republicans battle over President Donald Trump’s climate policies, some legislators of both parties are exploring avenues for winnable climate legislation during this term. According to congressional leaders, their newly proposed bipartisan initiative seeks to reduce greenhouse gas emissions while simultaneously creating jobs and protecting America’s energy security – drawing cautious optimism from media reports; some business groups warned however, that its record levels of spending would adversely impact their businesses over time.
The 195-page climate, health, and tax package would stimulate research and development and deployment of clean energy technologies while expanding renewable electricity and natural gas incentives. Furthermore, it calls for the elimination of hydrofluorocarbon production, which acts as a powerful climate change gas. According to its sponsors estimates, it should reduce federal deficits by over $300 billion over ten years.
Budget reconciliation bills allow legislation to move swiftly through Congress with only 51 votes needed for approval compared to 60 votes required under typical legislation. Therefore, these budget reconciliation bills have the ability to bypass GOP filibusters, potentially reaching President Trump by late July.
This bill features a $2 billion incentive for carbon capture, utilization and storage (CCUS), which involves turning captured emissions into products like transportation fuel. In addition to expanding tax credit 45Q that has helped fund numerous CCUS projects over time; advocates point out recent studies proving its cost-effectiveness while helping meet international climate goals.
Some coal interests are optimistic that carbon capture and utilization (CCUS) incentives could help preserve their industry in an age of increasing global demand for cleaner energy. At a 27 February Senate hearing, Rep. Bruce Westerman (R-Ark.) voiced support for carbon capture technology as well as direct air capture technology – which captures carbon dioxide directly out of the atmosphere – with plants already using direct air capture at plants in California already employing it.
Energy Efficiency Programs
Congress has played an instrumental role in setting America on a path towards cleaner energy solutions, but much more must be done. Modernizing America’s infrastructure to reduce emissions and build resilience against climate impacts such as rising sea levels is of the utmost importance.
One of the most effective strategies for reducing greenhouse gas emissions is through a comprehensive, market-based approach that establishes a price on carbon. But due to political opposition and a Supreme Court decision that restricted EPA’s ability to regulate carbon dioxide emissions, comprehensive climate legislation has proven difficult to advance.
Still, bipartisan proposals have come forward: In 2012, Sen. Jeff Bingaman (D-New Mexico) proposed the Clean Energy Standard Act with an aim of creating a tradeable emissions standard to curb power sector emissions – one source of carbon pollution. After over 20 years of yearly extensions and eventual phase-down agreements for production tax credits for renewable energy production tax credits for solar and wind power production have become cost-competitive, helping reduce emissions from power sector without needing federal carbon caps.
More recently, Democrats and Republicans alike have proposed bills to lower greenhouse gas emissions through expanding energy efficiency programs. Not only would these proposals extend popular tax credits but would also invest more heavily in building codes to make homes more energy-efficient while offering rebates to consumers purchasing electric vehicles.
Leading up to this year’s midterm elections, several proposals for climate change initiatives have gained steam. In May, Senate Democrats issued a proposal for investing $437 billion in climate initiatives – of which $369 billion would go toward emissions-cutting programs such as those included in the Inflation Reduction Act – with $13.5 billion dedicated towards expanding charging stations for electric vehicles and $10 billion allocated toward encouraging homeowners to adopt low carbon technologies.
These proposals reflect broad public support for action on climate change. According to a national poll, an overwhelming majority of Americans support planting one trillion trees to absorb carbon emissions; majorities of both Republicans and Democrats also favor mandating power companies use more renewable energy, taxing corporations for carbon emissions and providing hybrid and electric vehicle incentives as measures of climate policy. While Congress may find itself divided on some measures related to this topic, many opportunities remain for it to continue driving our nation forward towards cleaner energy future.
