FACTBOX-Key provisions in the U.S. Senate climate deal
Transportation generates around a quarter of U.S. greenhouse gas emissions. * An extension of investment and production tax credits for wind, solar and other renewable energy sources to 2025. Wind and solar are considered crucial to cleaning up the power sector, which is the source of another quarter of U.S. greenhouse gas emissions.
- United States
U.S. Senate Democrats have struck a legislative deal that would divert nearly $370 billion to climate and energy security measures with the aim of slashing greenhouse gas emissions 40% by 2030 and curbing consumer energy costs at the same time. The agreement represents a big compromise from the initial sweeping legislative ambitions by President Joe Biden's administration for combating climate change, though the legislation was praised by environmental advocates as a crucial step forward.
Here are some of the key climate and energy provisions in the deal, which must pass in the Senate and House of Representatives before going to Biden to sign. * Credits of up to $7,500 for the purchase of zero-emissions electric vehicles. Transportation generates around a quarter of U.S. greenhouse gas emissions.
* An extension of investment and production tax credits for wind, solar and other renewable energy sources to 2025. Wind and solar are considered crucial to cleaning up the power sector, which is the source of another quarter of U.S. greenhouse gas emissions. * An extension and expansion of credits for carbon capture and sequestration, including from big emitting power plants. This incentive allows fossil fuel plants to keep running as long as they install equipment that can capture 75% or more of their carbon output.
* Credits for production of zero-emissions nuclear power, and funding for advanced nuclear fuels. The Biden administration considers nuclear energy to be vital to decarbonizing the power sector because reactors can provide reliable energy even when the sun is not shining or wind is not blowing. * Extended credits for biodiesel, and incentives for "sustainable aviation fuel" needed to reduce emissions from the airline industry.
* Allocation of $20 billion to the U.S. Department of Agriculture for climate-friendly farming practices, $500 million to support the production of biofuels and a combined $7.6 billion for forest and coastal conservation. * A fee on emissions of the greenhouse gas methane from the oil and gas industry, starting at $900 per ton in 2024 and increasing to $1500 per ton by 2026. Methane is seen by scientists and climate policy experts as one of the worst climate offenders, but also one of the easiest to tackle in the near-term.
* An increase in oil and gas production royalty rates from public lands to 16.66% from 12.5%, and a quintupling of minimum bids for public land to $10 per acre from $2. These measures would increase public revenue from fossil fuel development and reduce speculation on drilling acreage. * A reinstatement of the results of last year's Gulf of Mexico oil and gas lease sale, which were thrown out following a lawsuit by environmental groups over its climate impact. This provision would bolster domestic petroleum development at a time of scarce supply and high prices.
* A requirement that the Interior Department conduct additional Gulf of Mexico oil and gas lease sales this year. Environmental groups have vowed to fight these sales.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)