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      Senate passes $739bn healthcare and climate bill after months of wrangling

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      Senate passes $739bn healthcare and climate bill after months of wranglingInflation Reduction Act will reduce planet-heating emissions and lower prescription drug costs – and give Biden a crucial victory Senate Democrats passed their climate and healthcare spending package on Sunday, sending the legislation to the House and bringing Joe Biden one step closer to a significant legislative victory ahead of crucial midterm elections in November.If signed into law, the bill, formally known as the Inflation Reduction Act, would allocate $369bn to reducing greenhouse gas emissions and investing in renewable energy sources. Experts have estimated the climate provisions of the bill will reduce America’s planet-heating emissions by about 40% by 2030, compared with 2005 levels.Climate bill could slash US emissions by 40% – if Democrats can pass itRead moreDemocrats have promised the bill will lower healthcare costs for millions of Americans by allowing Medicare to negotiate prescription drug prices and capping Medicare recipients’ out-of-pocket prescription drug prices at $2,000 a year. Those who receive health insurance coverage through the Affordable Care Act marketplace are also expected to see lower premium costs.The legislation includes a number of tax provisions to cover the costs of these policies, bringing in $739bn for the government and resulting in an overall deficit reduction of roughly $300bn. The policy changes include a new corporate minimum tax, a 1% excise tax on stock buybacks and stricter enforcement by the Internal Revenue Service.“Today, Senate Democrats sided with American families over special interests, voting to lower the cost of prescription drugs, health insurance and everyday energy costs and reduce the deficit, while making the wealthiest corporations finally pay their fair share,” Biden said in a statement celebrating the bill’s passage. “I ran for president promising to make government work for working families again, and that is what this bill does – period.”The final Senate vote was 51-50, with every Democrat supporting the bill while all 50 of their Republican colleagues opposed the legislation. With the Senate evenly divided on the bill’s passage, Vice-President Kamala Harris cast the tie-breaking vote.Because Democrats used the reconciliation process to advance the bill, they needed only a simple majority to pass the proposal, allowing them to avoid a Republican filibuster.But the choice to use reconciliation also somewhat limited what Democrats could include in their bill. The Senate parliamentarian ruled on Saturday that a key healthcare provision, which would have placed inflation-related caps on companies’ ability to raise prescription drug prices for private insurance plans, ran afoul of reconciliation rules. Another proposal to cap the cost of insulin in the private insurance market at $35 a month was also stripped out of the bill after 43 Senate Republicans voted to block the policy on procedural grounds.Still, Democrats celebrated that the Senate parliamentarian allowed most of their healthcare and climate provisions to move forward.“While there was one unfortunate ruling in that the inflation rebate is more limited in scope, the overall program remains intact and we are one step closer to finally taking on big pharma and lowering Rx drug prices for millions of Americans,” the Senate majority leader, Chuck Schumer, said on Saturday.Democratic leaders previously had to alter the tax provisions of the bill to secure the vote of Kyrsten Sinema of Arizona, who announced her support for the proposal on Thursday.Sinema caused some last-minute hand-wringing among Democrats on Sunday, as she pushed for changes to the new corporate minimum tax that would exempt some businesses from the policy. Democratic senators ultimately reached an agreement with Sinema to approve the exemption, which was paid for by extending loss limitations for pass-through businesses.Sinema was considered the last Democratic holdout in the negotiations, after fellow centrist Joe Manchin said he would vote in favor of the bill. The Senate’s approval of the bill came nearly eight months after Manchin abruptly scuttled talks over the Build Back Better Act, which was viewed as Biden’s signature legislative proposal. After tanking that bill, Manchin spent months participating in quiet deliberations with Schumer over another spending package that was more focused on reducing the federal deficit and tackling record-high inflation.The resulting bill was able to win the support of the entire Senate Democratic caucus on Sunday, even though the legislation is much smaller in scope than the Build Back Better Act.The bill’s narrower focus frustrated the progressive senator Bernie Sanders, who criticized the compromise in a Saturday floor speech. Sanders complained that the legislation would do little to help working Americans struggling to keep up with rising prices, and he unsuccessfully pushed for expanding the bill to further lower healthcare costs.“This legislation does not address the reality that we have more income and wealth inequality today than at any time in the last hundred years,” Sanders said. “This bill does nothing to address the systemic dysfunctionality of the American healthcare system.”Despite that criticism, Sanders backed the final version of the bill. The Senate’s approval followed a marathon session that lasted overnight and into Sunday afternoon, as Republicans forced votes on dozens of proposed changes to the spending package. Democrats remained mostly unified in opposing Republicans’ amendments, keeping the bill unchanged and ensuring the legislation’s passage.“It’s been a long, tough and winding road. But at last, at last we have arrived,” Schumer said on Sunday. “I know it’s been a long day and a long night, but we’ve gotten it done. Today, after more than a year of hard work, the Senate is making history.”Republicans fiercely criticized the bill, rejecting Democrats’ arguments that the legislation will help tackle rising prices. According to a report issued by Moody’s Analytics, the bill will “modestly reduce inflation over the 10-year budget horizon”.“Democrats want to ram through hundreds of billions of dollars in tax hikes and hundreds of billions of dollars in reckless spending – and for what?” the Senate Republican leader, Mitch McConnell, said in a Saturday floor speech. “For a so-called inflation bill that will not meaningfully reduce inflation at all.”House Democrats have dismissed Republicans’ criticism of the bill, insisting they will swiftly pass the legislation and send it to Biden’s desk. The majority leader, Steny Hoyer, has said the House will return on Friday to take up the legislation, and Democrats do not need any Republican votes to pass the bill.The House speaker, Nancy Pelosi, has promised that the chamber would move quickly as soon as the Senate gave the bill its stamp of approval. She told reporters at a press conference last week, “When they send it to us, we’ll pass it.”TopicsUS SenateClimate crisisDemocratsUS politicsUS domestic policynewsReuse this content More

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      Climate bill could slash US emissions by 40% after historic Senate vote

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      Climate bill could slash US emissions by 40% after historic Senate voteInflation Reduction Act could put US within striking distance of Biden’s goal of halving emissions by 2030, analysis suggests The US is, following decades of political rancor and fossil fuel industry obfuscation, almost certain to make its first significant attempt to tackle the climate crisis. Experts say it will help rewire the American economy and act as an important step in averting disastrous global heating.Independent analysis of the proposed legislation, known as the Inflation Reduction Act, shows it should slash America’s planet-heating emissions by about 40% by the end of the decade, compared with 2005 levels.This cut would bring the US within striking distance of a goal set by Joe Biden to cut emissions in half by 2030, a target that scientists say must be achieved by the whole world if catastrophic global heating, triggering escalating heatwaves, droughts and floods, is to be avoided.On Sunday, the US Senate passed the legislation and though it still has to be approved by the House, its passage is now virtually assured.Line chart showing the ranges of projected emissions reductions for current policy and the Inflation Reduction Act“This is a massive turning point,” said Leah Stokes, a climate policy expert at the University of California, Santa Barbara. “This bill includes so much, it comprises nearly $370bn in climate and clean energy investments. That’s truly historic. Overall, the IRA is a huge opportunity to tackle the climate crisis.”The climate provisions in the legislation – totaling $369bn, to be exact – are pared back from what Biden initially wanted. Excruciating negotiations with Joe Manchin, the coal company-owning West Virginia senator and a swing vote for the bill, ended up in a reduced compromise.But its heft can still, argued Brian Schatz, another Democratic senator, be considered “by far, the biggest climate action in human history”. Biden said the bill was a “huge step forward”.Democrats mustered all 50 of their Senate votes to pass the bill – and Vice-President Kamala Harris’s casting vote – to overcome uniform Republican resistance to acting on the climate emergency. Billions of dollars will go towards investments in renewable energy such as wind and solar, rebates for people wishing to buy electric cars and support for households to make them run on clean electricity and become more energy efficient.In sum, the bill will cut US emissions by between 31% and 44% below 2005 levels by 2030, according to Rhodium Group, a non-partisan research firm. A separate analysis by Energy Innovation, another research house, has found a similar reduction, of between 37% and 41% this decade. In total, around 1bn tons of greenhouse gases, which is more than double the total annual emissions of the UK, would be eliminated in this timeframe.The range of estimates depends on factors such as future economic conditions, but experts say the bill will set off a cascade of positive impacts, pushing fossil fuels out of the energy grid, dampening America’s thirst for oil and making wind and solar, which have already plummeted in cost in recent years, even cheaper.“This bill will really turbocharge that transition to clean energy, it will transform markets where already solar PV, wind and batteries are in many cases cheaper than incumbent fossil fuels,” said Anand Gopal, executive director of policy at Energy Innovation.“This is a dramatically large climate bill, the biggest in US history if it passes. It doesn’t mean the US won’t need to do more to achieve its emissions goals but it will make a meaningful difference.”The bulk of the bill is composed of tax credits aimed at unleashing a boom in clean energy deployment, along with payments to keep ageing nuclear facilities and other sources of low-carbon energy online. A new system of fees will be imposed to stem leaks of methane, a potent greenhouse gas, from oil and gas drilling operations. The vast fleet of trucks used by the US Postal Service would go electric.Consumers will be able to access a rebate of up to $7,500 for a new electric vehicle, or up to $4,000 for a used car, along with up to $8,000 to install a modern electric heat pump that can both heat and cool buildings. Further rebates are also on offer, such as $1,600 to insulate and seal a house to make it more energy efficient.Table showing the projected effects of the Inflation Reduction act through 2030These actions would cut emissions while having other significant benefits. As many as 1.5m jobs would be created in new clean energy roles, according to Energy Innovations, while Rewiring America, another research firm, has forecast that households that install a heat pump, rooftop solar and use an electric car would save $1,800 a year on energy bills.Meanwhile, thousands of deaths would be avoided, predominantly among people of color who have to suffer air pollution from nearby fossil fuel infrastructure. “If you live next to a power plant that is pumping out toxins, that is the primary concern for you here, not climate change,” said Gopal.The legislation is also an attempt to wrest momentum back from China, which has become the world’s leading manufacturer of solar panels, batteries and other clean energy materials. There are billions of dollars in incentives for the US domestic production of wind turbines, solar panels, batteries, carbon capture and storage and other technologies.This, in turn, would help proliferate these technologies in the US and make it easier for federal agencies to issue stricter pollution rules for cars, trucks and power plants. Meanwhile, the international effort to prevent the world warming by more than 1.5C (2.7F) beyond pre-industrial levels, hampered so far by a patchy American response to the climate crisis, would receive a major boost.“You’ll have a lot of mutually beneficial impacts,” said Gopal. “This should change the way the US is viewed on the global stage and will encourage better pledges from other large emitters such as China and India. Increasingly I’m more optimistic that keeping the temperature rise under 2C (3.6F) is more reachable. 1.5C is a stretch goal at this point.”Climate advocates have criticized elements of the bill, such as Manchin’s successful insistence that oil and gas drilling leases in Alaska and the Gulf of Mexico are included, along with a stipulation that millions of acres of federal land and water are opened up for fossil fuels if they are to be also accessed by solar and wind developers. Such a deal is a “climate suicide pact”, according to Brett Hartl, a campaigner at the Center for Biological Diversity.But the Energy Innovation researchers insist the clean energy benefits of the bill easily outweigh any extra emissions from new drilling, with every ton of new emissions offset by at least 24 tons of emissions avoided by other provisions. The US would, much later than most other large economies, finally have a long-term climate roadmap.“I wouldn’t have put those leases in the bill but the climate side comes out way ahead,” said Gopal.“Is this legislation the size of what we need for the climate? No. Is it extraordinary given the politics and the Senate we have? Yes, it’s incredible. We can’t make up for the lost time of US inaction – we can see the price the world is paying for that right now – but it’s not too late. This can make a massive difference.”TopicsClimate crisisUS domestic policyUS politicsJoe BidenanalysisReuse this content More

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      What does the US-China row mean for climate change?

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      What does the US-China row mean for climate change? Analysis: breakdown of cooperation between world’s two biggest greenhouse gas emitters over Taiwan could spell disaster for global warming targets China’s decision to halt cooperation with the US over the climate crisis has provoked alarm, with seasoned climate diplomats urging a swift resumption of talks to help stave off worsening global heating.On Friday, Beijing announced a series of measures aimed at retaliating against the US for the “egregious provocation” of Nancy Pelosi, the speaker of the US House of Representatives, visiting Taiwan. China, which considers Taiwan its territory and has launched large-scale military exercises near the island, said it will stop working with the US on climate change, along with other key issues.While the extent of China’s withdrawal from climate discussions is still not clear, the move threatens to derail the often fragile cooperation between the world’s two largest carbon emitters, with only a few months to go before the crucial UN Cop27 in Egypt this autumn. Experts say there is little hope of avoiding disastrous global heating without strong action by the US and China, which are together responsible for about 40% of the world’s greenhouse gas emissions.The rupture in relations has occurred amid a summer of climate change-fuelled disasters, with record heatwaves and wildfires sweeping the US and Europe, punishingly high temperatures scorching India and China, and ruinous flooding affecting the US, south Asia and Africa.Revealed: how climate breakdown is supercharging toll of extreme weatherRead moreThe US is on the brink of passing landmark climate legislation at home, but collectively the world’s governments are still not doing enough to avoid breaching agreed temperature goals. The goal of limiting heating to 1.5C is “on life support” with a weakening pulse, António Guterres, the UN secretary-general, warned last month.“US-China relations have always been a rollercoaster and we often witness flare-ups, but while you can freeze talks, you cannot freeze climate impacts,” said Laurence Tubiana, chief executive of the European Climate Foundation and a key architect of the Paris climate accords.“It’s in the self-interest of China and the US to act on climate and start talking. Indeed, China recognizes its own self-interest to act; it is still committed to Paris and is moving forward on domestic pledges around methane and coal phasedown.”The US and China have accused each other of not doing enough to cut planet-heating emissions at various points in recent years. China attacked US “selfishness” when then-president Donald Trump rolled back various environmental protections in 2017, while Joe Biden, Trump’s successor, last year claimed the Chinese president, Xi Jinping, had made a “big mistake” by not attending the Cop26 climate summit in Scotland.However, the two powers achieved a breakthrough at the same talks in Glasgow in November, agreeing a surprise plan to work together “with urgency” on slashing emissions. Xie Zhenhua, the head of China’s delegation, said both countries must “accelerate a green and low carbon transition”. John Kerry, the US climate envoy, acknowledged that the nations have “no shortage of differences” but that “cooperation is the only way to get this job done. This is about science, about physics.”This rapprochement on climate has helped foster collaboration between US and Chinese organizations, as well as providing leadership to other countries, according to Nate Hultman, a former aide to Kerry and now director of the Center for Global Sustainability at the University of Maryland.“The US and China working together is an important dimension of addressing climate change, it has the potential to motivate others to do more,” said Hultman.“The broader relationship is very complex but both countries understand this is not just a bilateral issue, there is a global dimension to this. That is what I hope will bring them back together. Hopefully this suspension is brief and they can get back to the table as soon as possible.”Hultman said that while high-level climate talks could now be curtailed, other bilateral collaboration may continue, although details on this are still scant. Regardless of the situation between the US and China, progress could still be made at the Cop27 talks in Egypt, he insisted.“This has been challenging and at times we are going to stall out,” Hultman said. “But Cop27 won’t just crash out if the US and China don’t iron out their differences. We would have to focus on what else can be done as an international community.”TopicsEnvironmentChinaClimate crisisUS politicsCop26Cop27analysisReuse this content More

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      Democrats secure breakthrough with Kyrsten Sinema on climate bill

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      Democrats secure breakthrough with Kyrsten Sinema on climate billThe Arizona senator said she had agreed to last-minute changes on the measure’s tax and energy provisions Senate Democratic leaders say they have reached an agreement on the party’s major $739bn climate and economic bill with Kyrsten Sinema – the centrist Democrat whose opposition remained a major hurdle to passing the most ambitious US climate legislation yet. Democrat apologises for saying Biden won’t run in 2024 – then says it againRead moreThe support of Sinema, a former member of the Green party who has evolved into one of Congress’s most conservative Democrats, was crucial to the passage of the bill, which tackles energy, environment, health and tax measures. Its success is seen as the Democratic party’s most substantive chance to deliver domestic policy progress before the midterm elections.Backing from all 50 Democratic senators will be needed to pass any legislation in the evenly divided Senate given the party’s narrow majority and Republican resistance to acting on the climate crisis.The Senate majority leader, Chuck Schumer, said lawmakers had achieved a compromise “that I believe will receive the support” of all Democrats in the chamber. His party needs unanimity to move the measure through the 50-50 Senate, along with Vice-President Kamala Harris’s tie-breaking vote.Sinema, the Arizona senator seen as the pivotal vote, said in a statement that she had agreed to 11th-hour changes in the measure’s tax and energy provisions and was ready to “move forward” on the bill.She said Democrats had agreed to remove a provision raising taxes on “carried interest”, or profits that go to executives of private equity firms. That’s been a proposal she has long opposed, though it is a favorite of other Democrats, including the conservative West Virginia Democratic senator Joe Manchin, an architect of the overall bill.The carried interest provision was estimated to produce $13bn for the government over the coming decade, a small portion of the measure’s $739bn in total revenue.Securing Sinema’s support was the next challenge for Democrats after Manchin, the centrist Democrat famed for thwarting his own party’s climate goals, surprised Washington last week by backing the plan.Manchin, who has made millions of dollars from his ownership of a coal-trading firm, made an abrupt U-turn last week and announced support for $369bn in spending to support renewable energy and reduce emissions.Schumer has said he hopes the Senate can begin voting on the bill – known as the Inflation Reduction Act – on Saturday. Passage by the House, which Democrats control narrowly, could come next week.Final congressional approval of the election-year measure would be a marquee achievement for Joe Biden and his party, notching an accomplishment they could tout to voters as November approaches.The Senate and the House of Representatives are not in session on Friday but Schumer has indicated that he intends to move the bill forward this weekend and warned his Capitol Hill colleagues of some long days and nights of debate and votes ahead.Sinema agreed to the legislation in principle on Thursday night but added that before she can confirm, she needs it signed off by the Senate parliamentarian, the official who will check whether the spending bill complies with the rules to allow it to be passed using the reconciliation process that allows a simple majority vote, rather than being subject to the 60-vote majority filibuster rule.Schumer said that the deal first with Manchin and now with Sinema produced a bill that was now one step closer to becoming law.“The agreement preserves the major components of the Inflation Reduction Act, including reducing prescription drug costs, fighting climate change, closing tax loopholes exploited by big corporations and the wealthy, and reducing the deficit,” he said.Joe Biden urged the Senate to pass the bill swiftly. It must then return to the House for another vote before it can make its way to the US president’s desk.Bernie Sanders had been a big backer of the original $3.5tn Build Back Better bill, which was wide-ranging but has now shrunk down, after being blocked repeatedly by Manchin and Sinema, to the Inflation Reduction Act. The Vermont senator called the shrunken $739bn bill “better than nothing”, the Washington Post reported on Friday.Oliver Milman contributed reportingTopicsUS politicsDemocratsArizonaUS SenateUS domestic policyClimate crisisnewsReuse this content More

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      Biden’s climate agenda faces yet another obstacle: Kyrsten Sinema

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      Biden’s climate agenda faces yet another obstacle: Kyrsten SinemaWhile the centrist senator Joe Manchin has announced his support, it is unclear whether Sinema will also back the bill The most ambitious attempt yet to pass climate legislation in the US may have surprisingly won the crucial backing of a senator who owns a coal company. Now it faces a further, deeply ironic, obstacle – a lawmaker who was once a member of the Green party.Last week, Joe Manchin, the centrist West Virginia senator who has been lavished by donations from the fossil fuel industry and made millions of dollars from his ownership of a coal-trading firm, stunned Washington by announcing his support for $369bn in spending to boost renewable energy and slash planet-heating emissions.Manchin’s backing of the bill, known as the Inflation Reduction Act, is critical given Democrats’ slender control of an evenly divided senate. But the fate of Joe Biden’s agenda, along with broader hopes of maintaining a livable climate, now appears to have shifted to another swing vote in the US Senate: Kyrsten Sinema.It’s unclear whether Sinema, an enigmatic and elusive figure, will support the bill, which requires all 50 Democratic votes to pass in the face of unified Republican opposition to acting on the climate crisis. Sinema’s office has said the Arizona lawmaker will “need to review the text and what comes out of the parliamentarian process” before deciding whether to back it.The uncertainty adds to a tortuous process that has stretched back for more than 18 months, with both Manchin and Sinema stymying Biden’s original plan for a $3.5tn bill that included sweeping measures to force down emissions.A pared-down bill, which includes vast tax credits for clean energy and incentives to purchase electric cars has now, eventually, been agreed with Manchin, who on Sunday called Sinema a “friend” and that he “would like to think she’d be favorable to it”.But there is no guarantee of Sinema’s support, given her mercurial career, which began as a Green party member who was anti-war and criticized capitalism, before becoming one of the most conservative Democrats in Congress. Since being elected to the US Senate in 2018, the first Democrat to do so from Arizona since 1976, Sinema has become best known for her colorful wigs, unconventional outfits and calls for bipartisan agreement with Republicans.Her previous action to block Biden’s initial attempt at climate legislation has alarmed advocates and some scientists who warn the US is running out of time to act on global heating. “It seems distinctly possible that she will sink the bill, or make enough concessions to Republican opponents to climate action that the bill is rendered toothless,” said Michael Mann, a climate scientist at Penn State University.“She seems much more interested in working toward the interests of her corporate donors than the people she is supposed to represent. I hope that my suspicions are proven wrong.”Mann said that if Sinema does sink the bill, legislation that analysts said would slash US emissions by about 40% this decade, he would endorse a primary opponent to Sinema. Although she rarely gives interviews or engages with many of her constituents, Sinema has previously expressed reticence to raise taxes on corporations and may look unfavorably at measures in the new bill, called “closing loopholes” by Manchin, that would require large companies to pay a certain level of tax.However, backers of the bill say they are hopeful that Arizona’s vulnerability to rising temperatures will help convince Sinema of the need for significant action to reduce emissions. Arizona is one of the fastest-heating states in the US, with Phoenix enduring a record year so far for heat-related deaths. In May, Sinema toured the aftermath of a huge wildfire near Flagstaff that she called “sobering”.“By supporting this bill Senator Sinema can help grow Arizona’s energy economy while protecting her constituents from the extreme heat, droughts and wildfires that runaway climate change would inflict on them,” said Paul Bledsoe, a former US Senate staff member, who is now with the Progressive Policy Institute in Washington. “Those strong incentives make her support seem overwhelmingly likely.”Mann said people in Arizona are “suffering the devastating consequences of climate change already, in the form of extreme heat, deadly floods and wildfires. If she votes down this bill, it is a slap in the face of her constituents.”Republicans have not given up hope of obstructing the bill’s progress, with Pat Toomey, a GOP senator from Pennsylvania, expressing optimism that Sinema could be convinced to vote against it.“I’m not speculating about what she is going to do, but I do know there are some provisions in this field that she has had reservations in the past,” Toomey told Bloomberg on Monday. “I’m looking forward to chatting with her this week.”TopicsUS politicsDemocratsJoe BidenClimate crisisfeaturesReuse this content More

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      Joe Biden hails Senate deal as ‘most significant’ US climate legislation ever

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      Joe Biden hails Senate deal as ‘most significant’ US climate legislation everProposal backed by centrist senator Joe Manchin also addresses healthcare, tax rises for high earners and cutting federal debt Joe Biden has hailed a congressional deal that represents the biggest single climate investment in US history – and hands him a badly needed political victory.In a stunning reversal, Senate Democrats on Wednesday announced an expansive $739bn package that had eluded them for months addressing healthcare and the climate crisis, raising taxes on high earners and corporations and reducing federal debt.What’s in the climate bill that Joe Manchin supports – and what isn’t Read moreThe president said on Thursday: “This bill would be the most signification legislation in history to tackle the climate crisis and improve our energy security right away.”Biden, who has faced soaring gas prices that have helped drive inflation to 40-year highs, said experts agreed that the bill would help address the problem and urged Congress to pass it.“With this legislation, we’re facing up to some of our biggest problems and we’re taking a giant step forward as a nation … This bill is far from perfect, it’s a compromise, but that’s often how progress is made: by compromises.”The deal, struck between the majority leader, Chuck Schumer, and longtime holdout Senator Joe Manchin of West Virginia, would invest $369bn over the decade in climate change-fighting strategies including investments in renewable energy production and tax rebates for consumers to buy new or used electric vehicles.It includes $60bn for a clean energy manufacturing tax credit and $30bn for a production tax credit for wind and solar, seen as ways to boost and support the industries that can help curb the country’s dependence on fossil fuels. At Manchin’s insistence, $306bn is earmarked for debt reduction.The package, called the Inflation Reduction Act, would cut US emissions 40% by 2030, a summary released by Schumer’s office said, and earned praise from clean-energy advocates and Democratic party elders.Barack Obama, the former president, tweeted: “I’m grateful to President Biden and those in Congress – Democrat or Republican – who are working to deliver for the American people. Progress doesn’t always happen all at once, but it does happen – and this is what it looks like.”Al Gore, an ex-vice-president whose 2006 documentary film An Inconvenient Truth helped raise awareness of the climate crisis, wrote on Twitter: “The Inflation Reduction Act has the potential to be a historic turning point. It represents the single largest investment in climate solutions & environmental justice in US history. Decades of tireless work by climate advocates across the country led to this moment.”Another component of the package would allow Medicare, the government-run healthcare programme for the elderly and disabled, to negotiate prescription drug prices with pharmaceutical companies, saving the federal government $288bn over the 10-year budget window.The Manchin-Schumer measure is substantially smaller than the $3.5tn Build Back Better spending bill that Biden asked Democrats to push through Congress last year.But it gave him a political win when he most needed it. His administration has been assailed by a cascade of setbacks including the war in Ukraine, a series of conservative supreme court rulings, soaring inflation and, on Thursday, a GDP report that showed gross domestic product shrank for the second consecutive quarter this year.This backdrop has left the president struggling with low job approval ratings and ebbing support from his own party. A CNN poll this week found that 75% of Democratic and Democratic-leaning voters want the party to nominate someone other than him in the 2024 election.But the surprise Senate deal, coming on the same day that the Senate passed legislation boosting domestic production of computer chips and Biden completed his recovery from a coronavirus infection, gave a glimpse of light at the end of the tunnel.John Zogby, an author and pollster, said there had already been signs that the president’s approval rating was improving. “This could very well be the critical win. First of all, it’s coming in the context of a few other wins: the manufacturing bill is another and, at the same time, there’s a sense the gas prices are going down. It’s an important piece of Build Back Better and it looks like it can happen. This could lift expectations.”The deal is a boost for Democrats ahead of midterm elections on 8 November that will determine control of Congress. Zogby added: “Democrats can go back to voters and say, ‘Look, we accomplished something. It may not have been what you wanted but here’s our first real accomplishment on climate change.’”Jonathan Kott, a former communications director for Manchin, told the MSNBC network: “Democrats really need to seize on this moment and tell this story, scream it at the top of their lungs. If this was Donald Trump, he’d be out there having press conferences in the Rose Garden all over the country. We should be doing the same thing.”The deal marked a dramatic U-turn by Manchin, a conservative Democrat and the swing vote in the evenly divided Senate, who has received more donations from oil and gas companies than any other legislator in recent years. Earlier this month he drew fierce condemnation from climate activists for apparently scuttling Biden’s spending plans, claiming that he was concerned about inflation.On Wednesday Manchin, who aimed to preserve federal oil and gas leasing projects and natural gas pipelines during months of talks, said the bill will invest in hydrogen, nuclear power, renewables, fossil fuels and energy storage. “This bill does not arbitrarily shut off our abundant fossil fuels.”Democrats hope to pass the bill by a simple majority in the Senate. Schumer told colleagues on Thursday that they now have an opportunity to achieve two “hugely important” priorities on healthcare and climate change, the Associated Press reported, but warned that final passage will be hard.It remains unclear whether Kyrsten Sinema of Arizona, who like Manchin has been a perennial thorn in Biden’s side, will vote in favour. There is also sure to be staunch opposition from Republicans.Senator John Cornyn, a Texas Republican, said in a statement the legislation would be “devastating to American families and small businesses. Raising taxes on job creators, crushing energy producers with new regulations, and stifling innovators looking for new cures will only make this recession worse, not better.”The bill must also pass the House of Representatives, where Democrats have a razor-thin majority, and be signed by Biden.TopicsUS domestic policyUS politicsJoe BidenJoe ManchinUS SenateClimate crisisUS healthcarenewsReuse this content More

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      What’s in the climate bill that Joe Manchin supports – and what isn’t

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      What’s in the climate bill that Joe Manchin supports – and what isn’t Though it faces obstacles before passing, package has been touted by jubilant Democrats as the largest climate bill ever in the US Joe Manchin, the centrist West Virginia senator and coal company owner who has repeatedly thwarted Joe Biden’s attempts to pass legislation to tackle the climate crisis, shocked Washington on Wednesday by saying he will support a bill aimed at cutting planet-heating emissions.The $369bn package has been touted by jubilant Democrats as the largest climate bill ever in the US, and even the world. It still faces obstacles before passing but the support of Manchin, a crucial swing vote in an evenly divided US Senate, appears to augur well for its chances. So what’s in the legislation?The basics of the billThe climate spending is part of a broader package, known as the Inflation Reduction Act, that totals $739bn. The majority of this bill, however, is dedicated to confronting the climate crisis, with $369bn dedicated to the crisis over the next 10 years.It’s part of a reconciliation budget that can only be passed with all 50 Democratic votes in the Senate, due to unified Republican opposition, meaning Manchin’s acquiescence was critical.What does it include to address the climate emergency?The bulk of the bill allows for large tax credits for clean energy, such as solar and wind power, to allow such projects to go ahead on a grand scale. States and utilities will also get $30bn to help the transition to renewable, zero carbon electricity.A new $27bn “clean energy technology accelerator” will be created to help advance renewable technologies, $3bn will be given to the US postal service to electrify its fleet of trucks and there will be a new program to drive down leaks of methane, a potent greenhouse gas, from oil and gas drilling operations.A further $20bn will be spent to promote climate-friendly agricultural practices and another $5bn to make American forests better prepared for the wildfires that increasingly threaten them due to global heating.What will people be able to access directly from this bill?The legislation includes a tax credit worth up to $7,500 for people who want to buy a new electric car, which has until now largely been the preserve of wealthier Americans.There is also a $9bn scheme, focused on low-income households, to electrify home appliances and make dwellings more energy efficient. Further tax credits, spread out over the next decade, will make it easier to buy heat pumps, rooftop solar and water heaters.Disadvantaged communities that suffer the brunt of fossil fuel pollution have also been recognized, with $60bn dedicated to environmental justice projects across the US.Are there any criticisms of the bill?The spending is a big reduction on the $550bn initially envisioned by Biden and Democratic leaders but sunk by Manchin’s opposition. The final bill amounts to far less, even over 10 years, than what the US spends annually on its military.The bill doesn’t include any mechanism to specifically phase out fossil fuels, the primary cause of the climate crisis, and, indeed, looks to lock in their use for decades to come due to a compromise struck with Manchin. Under the deal, regulations around drilling will be loosened and new leases will be offered in places such as the Gulf of Mexico and Alaska. Environmentalists have called this arrangement a “climate suicide pact”.How significant is this?Despite its imperfections, the bill is expected by both its authors and independent analysts to allow the US to cut its emissions by 40% by 2030, based on 2005 levels. This brings the US close to Biden’s goal of slashing emissions in half this decade, which scientists have said is imperative if the world is to avoid catastrophic climate change.What does it mean for the world?The US is the world’s largest economy, the world’s second largest carbon polluter and a superpower in diplomatic and military might. Its failure, thus far, to meaningfully act on the climate crisis has constrained global efforts and so this legislation, if passed, could prove to be an “historic turning point”, as Al Gore, the former US vice-president, put it.World governments meeting later this year at UN climate talks in Egypt could be emboldened to do more to cut their own emissions, while the direct impact of the US reductions could mean that heatwaves, floods and other disasters will be less severe than they would have been otherwise.TopicsClimate crisisJoe ManchinUS politicsexplainersReuse this content More

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      Activists surprised and relieved at Manchin’s decision to back climate bill

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      Activists surprised and relieved at Manchin’s decision to back climate billBut the senator’s insistence on more fossil fuel drilling was called a ‘climate suicide pact’ by one expert Climate advocates reacted with surprise and delight to Joe Manchin’s decision to back a sweeping bill to combat the climate crisis, with analysts predicting the legislation will bring the US close to its target of slashing planet-heating emissions.Joe Manchin makes U-turn on tax and climate bill as US edges closer to recession – liveRead moreThe West Virginia senator, who has made millions from his ownership of a coal-trading company, had seemingly thwarted Joe Biden’s hopes of passing meaningful climate legislation – only to reveal on Wednesday his support for a $369bn package to support renewable energy and electric vehicle rollout.The move by the centrist Democrat shocked many of Manchin’s colleagues, who despaired after more than 18 months of seemingly fruitless negotiations with the lawmaker, a crucial vote in an evenly divided Senate.“Holy shit,” tweeted Tina Smith, a Democrat from Minnesota. “Stunned, but in a good way.”Should the bill pass both chambers of Congress and be signed by Biden, it will be the biggest and arguably first piece of climate legislation ever enacted by the US. The world’s largest historical carbon polluter has repeatedly failed to act on the climate crisis due to missed opportunities, staunch Republican opposition and the machinations of the fossil fuel lobby.The climate spending, part of a broader bill called the Inflation Reduction Act, “has the potential to be a historic turning point” said Al Gore, the former vice-president.“It represents the single largest investment in climate solutions and environmental justice in US history. Decades of tireless work by climate advocates across the country led to this moment.”The bulk of the bill includes hefty tax credits to unleash clean energy projects such as wind and solar as well as a rebate of up to $7,500 for Americans who want to buy new electric vehicles. There is $9bn to retrofit houses to make them more energy efficient, tax credits for heat pumps and rooftop solar and a $27bn “clean energy technology accelerator” to help deploy new renewable technology.A further $60bn would go towards environmental justice projects and there is a new program to reduce leaks of methane, a potent greenhouse gas, from oil and gas drilling.“This will be, by far, the biggest climate action in human history,” said Brian Schatz, a Democratic senator from Hawaii. “The planet is on fire. Emissions reductions are the main thing. This is enormous progress. Let’s get it done.”The authors of the bill predict it will cut US emissions by 40% by 2030, based on 2005 levels, a claim guardedly backed by independent experts. Scientists have said global emissions must be halved this decade then zeroed out by 2050 if the world is to avoid catastrophic heatwaves, droughts, floods and other climate impacts. Biden has set US emissions targets along these lines.The bill would “bring clean energy jobs to America and lower energy bills for American families”, tweeted Leah Stokes, a climate policy expert at the University of California, Santa Barbara.“It would get us 80% of the way to President Biden’s climate goal. This is a gamechanger.”However, Manchin has said the legislation “does not arbitrarily shut off our abundant fossil fuels” and has extracted guarantees of new offshore and onshore drilling, including a stipulation that millions more acres of public lands be opened for fossil fuel companies before new solar or wind energy projects can do the same.The West Virginia senator is a keen backer of a large proposed gas pipeline in his home state and has called for greater domestic oil production, citing fears over inflation.The requirement for more drilling leases amounts to a “climate suicide pact”, according to Brett Hartl, government affairs director at the Center for Biological Diversity.“The new leasing required in this bill will fan the flames of the climate disasters torching our country,” Hartl said, lamenting “a slap in the face to the communities fighting to protect themselves from filthy fossil fuels”.Should the bill pass, it will almost certainly do so without a single Republican vote, with the party still almost uniformly opposed to any significant action to address the climate crisis or impinge on the fossil fuel industry.Lindsey Graham, a Republican senator from South Carolina, said he could not believe that Manchin “is agreeing to a massive tax increase in the name of climate change when our economy is in a recession. I hope that common sense will eventually win the day.”TopicsClimate crisisJoe ManchinUS politicsnewsReuse this content More