Biden salvages compromise $1.75trn Build Back Better bill in US as COP26 looms

Hold-out Democrats Manchin and Sinema sign up to proposed legislation stripped of provisions to phase out fossil fuels, but which might make it possible to slash America's emissions by 50-52% by 2030

. Joe Biden.
. Joe Biden.Foto: Gage Skidmore/Flickr https://creativecommons.org/licenses/by-sa/2.0/

US President Joe Biden looks set to arrive in Scotland on the weekend for the COP26 climate conference with a $1.75tr compromise version of his Build Back Better framework bill, following last minute negotiations with Democrat hold-outs finally yielded an agreed scope for the proposed legislation.

Joe Manchin of West Virginia and Krysten Sinema of Arizona, the two centrist Democrats who threatened to derail Biden’s climate action-focused bill, finally came on board with the administration to approve a plan stripped of some of its key original elements, including provisions aimed at phasing fossil fuels out of the US’ power generation mix, but which might make it possible to slash total emissions by 50-52% by 2030.

“This framework makes the most significant investment to deal with the climate crisis to ever happen, beyond any other advanced nation in the world,” Biden said at a broadcast press conference. “And we will do it in ways that grow domestic industries, create good paying union jobs, address longstanding environmental injustices as well.”

The Build Back Better framework includes $555bn in tax credits, investments and other incentives aimed at boosting renewable energies such as solar and wind, tax credits of up to $12,500 for the purchase of electric vehicles, and even the creation of a 300,000-person strong “civilian climate corps”.

Renewable energy industry bodies applauded Congress for reaching this compromise solution but also raising concerns that the bill doesn’t go far enough.

“This is our last best chance to address the climate crisis, and today’s framework makes clear that Congress is rising to meet this critical moment,” said Gregory Wetstone, CEO of the American Council on Renewable Energy, in a statement.
The provisions in the framework represent an unprecedented national commitment to accelerating the clean energy transition and credibly addressing the climate challenge.”
American Clean Power CEO Heather Zichal stated: “The revised framework for the Build Back Better Act... includes important provisions that will help drive clean energy investment across the country while also delivering substantial emission reductions.

“The Biden administration has laid out an ambitious, comprehensive approach to climate change policy that recognizes renewable energy’s ability to grow America’s economy, create good-paying jobs, a cleaner environment, and a more prosperous and equitable future.”

The bill has not yet been voted on, and with Democrats holding only a slim majority in the House and an evenly split Senate, the administration needs universal party-line support for it to pass.

The Biden administration has set a “national goal” of having 30GW of offshore wind turning by the end of the decade, though analyst groups including BloombergNEF expect a figure closer to 23GW by then.

There are currently 1.7 million acres (688,000 hectares) under lease on the federal outer continental shelf spread across 16 zones. This translates to 21GW of potential capacity for those lease areas using the National Renewable Energy Laboratory’s power density calculator for offshore wind.

US Secretary of the Interior Deb Haaland earlier this month announced that the county would hold as many as seven offshore lease sales by 2025 in its Atlantic, Pacific and Gulf of Mexico waters with the aim of speeding up the offshore wind build-out.
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Published 28 October 2021, 21:02Updated 19 October 2023, 07:19
Joe BidenUSRenewables