Machin and Schumer Reach Agreement on Major Climate, Health, and Tax Bill

After months of negotiation, Sen. Machin (D-WV) and Majority Leader Sen. Schumer (D-NY) reached agreement on a broad legislative package that addresses climate, health, and tax priorities of Biden Administration. While details of the bill are still being resolved, the legislation would provide an estimated $360 bill for climate programs, allow the federal government to negotiate drug prices with drug makers for an estimated $288 billion in savings over 10 years, extend key health coverage provisions of the Affordable Care Act, and make changes in corporate tax rates.

The climate provisions of the bill are projected to lower US carbon emissions by 40 percent by 2030. Climate provisions include:

• $30 billion for domestic manufacturing of solar panels, wind turbines, batteries, and minerals processing
• $10 billion for the construction of new solar production facilities
• $27 billion to install new technologies to reduce emissions, particularly in low-income areas
• $20 billion to construct new clean vehicle manufacturing plants, and $2 billion to retool existing facilities
• $30 billion in grants and loans to transition utility services to renewables
• Increasing methane leakage fine up to $1,500 per metric ton by 2026
• $850 million in offered grants to monitor and reduce methane leaks
• Means-tested tax credits for the purchase of new and used electric vehicles

President Biden has signaled his support for the legislation agreement and has urged Congress to quickly enact the legislation. Both the House and the Senate are expected to take up the bill next week.