Build back better with historic climate investments
Passing this legislation will put us on track for President Biden’s goal of 80% clean electricity by 2030.
The House of Representatives just passed Build Back Better legislation that includes the biggest investment in history to clean up the country’s electric power sector. Passing this landmark legislation will put us on track to President Biden’s goal of 80% clean electricity by 2030. The bill contains more than $ 150 billion in tax incentives for electricity clean as well as over $ 25 billion for loans, grants, research, clean energy, procurement and other essential programs.
Tax incentives are essential to foster the deployment of clean energy and reduce the cost of renewables and other clean energy resources. The tax incentives included in the legislation are designed with greater flexibility and for increased access to usher in the fastest renewable energy development the country has ever seen. New bonus credits for projects built to strict labor standards, using components produced in the country or based in low-income and energy-transitioning communities will create well-paying jobs and promote equitable access to clean energy resources.
In every region of the country, the deployment of existing renewable technologies like onshore wind and solar will accelerate, as will new advanced technologies like offshore wind. Billions of dollars in federal investments – both grants and loans – will support rural, tribal and traditionally fossil-dependent communities in their transition to a vibrant clean energy economy. State and local governments and agencies as well as low-income, tribal and disadvantaged communities will benefit from this funding to combat air pollution and reduce emissions from the power sector.
The incentives provided in this legislation go well beyond basic renewable energy tax credits and agency funding to include:
- additional incentives for solar and wind projects built in low-income communities and on tribal lands;
- $ 5 billion to invest in low-carbon projects in communities affected by the closure of fossil infrastructure such as refineries or coal-fired power stations;
- $ 9.7 billion for loans and grants to move rural power co-ops away from fossil fuels;
- grants and loans of over $ 2 billion and a tax credit of $ 11 billion to build much-needed power lines, connecting wind farms in the Great Plains or solar fields in Texas with electricity customers from San Diego to Boston.
Community and economic benefits
As we move to 80% clean electricity by 2030, communities from coast to coast will reap enormous climate and public health benefits. Analyzes have shown that achieving 80% to 86% zero-emission electricity by 2030 would result in a reduction of more than 80% in carbon dioxide emissions from 2005 levels, as well as a reduction of 88%. % to 98% of sulfur dioxide emissions and 71% to 91%. percent reduction in compounds that cause smog and acid rain.
These pollution reductions will reduce climate impacts and improve local air quality, protecting communities from devastating climate disasters, allowing families to breathe easier and reducing the toll of harmful pollution on low-income communities and communities. colored. In fact, according to a report from the Clean Energy Futures Project, getting the electricity sector to be 80% clean by 2030 will save more than $ 1 trillion in healthcare costs as well as hundreds thousands of lives.
Huge economic and job creation benefits will be generated in the clean energy transition. Wind and solar jobs are already one of the fastest growing job categories in the country, and a recent analysis released by E2 shows that there are clean energy jobs in every congressional district across the country, including included roughly the same number in the Democratic and Republican districts. Over 99 percent of districts already have over 1,000 clean energy jobs. The acceleration of the deployment and transmission of clean energy resources will lead to even more spectacular employment growth. Achieving 80% clean electricity by 2030 will result in a net increase of 500,000 to 1 million net new jobs per year according to Energy Innovation analysis. Substantial investments in the deployment of new clean energy resources and transmission infrastructure will also generate significant economic activity across the country and stimulate demand for new innovative technologies.
In addition to the Build Back Better legislation, the United States Environmental Protection Agency is expected to propose enhanced Clean Air Act standards for cleaning up the electrical system. The combination of these standards and investments will put the power sector on the path to 80% clean electricity by 2030, while realizing significant benefits for the climate, local air pollution, public health, economy and employment.