Overview of incentives
Consumer incentives include tax credits for clean and efficient energy, $9 billion in home energy rebate programs, a tax credit of $4,000 to $7,500 for those who qualify for the purchase of zero-emission vehicles and $1 billion in grant programs for energy-efficient housing projects.
Manufacturer incentives include $60 billion in production tax credits for qualified clean energy generation and storage and would provide funding to promote electric vehicle manufacturing, including $2 billion in subsidies to convert existing auto manufacturing facilities to clean vehicle factories and $20 billion in loans to build new vehicle manufacturing facilities.
The bill would offer grants to facilitate the establishment of interstate power lines and call on environmental agencies to streamline permitting processes. The bill would also provide tax credits for reducing emissions from power generation and energy storage, transportation, industrial manufacturing, buildings and agriculture, and would affect 60 billion to spur investment in disadvantaged communities that have been disproportionately impacted by pollution and climate change, including funding for clean and fair transportation planning, installation of zero-emissions equipment and technologies in ports and other community-led projects.
Methane penalties and fee increases
The bill would impose a penalty of $900 per metric ton of methane leak, which exceeds the applicable annual waste emissions threshold for reported emissions for 2024, and $1,500 for the year 2026 and subsequent years. following. The applicable annual waste emissions threshold is generally based on emissions exceeding a designated percentage of oil and natural gas offered for sale by the facility, depending on the type of operation. For example, a penalty would be paid for methane emissions exceeding 0.20% of natural gas or 10 metric tons of methane per million barrels of oil sent from an onshore or offshore production facility. Additionally, the bill would increase onshore and offshore royalties from 12.5% to 16.66%, at a minimum.
Oil and gas lease sales
For a 10-year period, the bill would dedicate at least 2 million acres of public land and 60 million acres of offshore waters to oil and gas leases per year, and ban wind development leases or solar unless an oil and gas lease sale has also occurred within the previous year and meets a specified minimum square footage. As a result, the bill would reinstate an 80 million acre offshore oil and gas lease sale in the Gulf of Mexico, which was overturned by a federal court due to a faulty environmental analysis that failed to take sufficient account. the effect of lease sales on greenhouse gas emissions.
The bill is expected to go to the Senate for a vote on Saturday, August 6, 2022.