A $430 billion legislation, the Inflation Reduction Act, was passed by the US Senate. The Act’s main aims are to lower the cost of prescription drugs, raise corporate taxes in certain areas and fight the impact of climate change.
The Act was approved after a 51-50 vote for the legislation, with Vice President, Kamala Harris giving the deciding vote. In order for the legislation to be fully approved it must go through the House of Representatives, although it is expected to be passed by Friday 12th of August (2022).
Chuck Schumer, the US’s Senate Majority Leader has claimed that the Act contains the “the boldest clean energy package in American history.”
A large amount of the $430 billion is expected to be spent on lowering carbon emissions, and it has been predicted that greenhouse gas emissions, in the US, could be reduced by 40% by 2030. This is a major push in the right direction to meet President Biden’s plan to reduce America’s carbon emissions by half by 2030.
A large amount of the $430 billion is expected ~
to be spent on lowering carbon emissions…
$370 billion of the approved amount will go directly to funding projects that involve the climate and energy. Tax incentives will be put in place to increase sustainable and renewable energy use to cut energy costs. Other incentives will be put into place to encourage consumers to consider swapping to electric vehicles and using renewable energy at home.
In order to increase the purchasing of electric cars, households could be awarded up to $7,500 to buy an EV and those that can’t afford to invest in an electric car will be offered $4,000 to purchase a used car.
This move towards electric vehicles will not only affect households as the US’s Postal Service will have to move to an electric fleet.
Those that produce solar panels, wind turbines, and batteries, as well as those working to produce carbon capture and storage technology will be offered tax incentives from the billions put aside within the Act to spend on green and sustainable innovation.
…renewable energy use will mean that the
US’s levels of air pollution will lower…
This increase in renewable energy use will mean that the US’s levels of air pollution will lower as fewer fossil fuels will be burned. Those that live near to oil and gas plants have previously been victim to health problems and in the most extreme cases death, due to air pollution. The swap to renewable energy should reduce the number of these deaths significantly, as it has the potential to give people in these areas a better quality of life.
President Biden is reported to be incredibly happy with the way the vote swayed and has claimed that: “Our children and grandchildren will remember this for many years to come: this bill changes their lives and secures their future more than almost anything Washington has done for decades”.