US Senate passes climate change legislation

4C Offshore | Tom Russell
By: 08/08/2022 4C Offshore
The US Senate has passed the Inflation Reduction Act (IRA), a legislative package that aims to tackle inflation and climate change. It includes $369 billion in planned investments to advance America’s clean energy programs, including offshore wind development, in an effort to reduces emissions 40% by 2030.

The IRA includes several provisions aimed at supporting offshore wind development including investment and expanding tax credits to incentives US production.

The House of Representatives is schedule to consider the legislation on 12 August 2022. If it passes, is will be sent to President Joe Biden to be signed into law. 

President Biden issues the following statement regarding the IRA passing the Senate: "This bill tackles inflation by lowering the deficit and lowering costs for regular families.
"This bill also makes the largest investment ever in combatting the existential crisis of climate change.  It addresses the climate crisis and strengthens our energy security, creating jobs manufacturing solar panels, wind turbines, and electric vehicles in America with American workers.  It lowers families’ energy costs by hundreds of dollars each year."

Liz Burdock, President and CEO of the Business Network for Offshore Wind said: “The Senate’s passage of the Inflation Reduction Act is a watershed moment in America’s renewable energy transition. This historic legislative package sends a message to the world that the U.S. is serious about bolstering supply chain resiliency, increasing American energy security, and reaching our ambitious goal to deploy 30 gigawatts of offshore wind power by 2030. The bill’s $40 billion investment in domestic clean energy manufacturing and shipbuilding is an important down payment that will unleash the vast potential of offshore wind and localize a supply chain on American shores creating thousands of good-paying jobs. Today’s vote represents a momentous leap forward, but the work is not done—the House must act swiftly to send this legislation to President Biden’s desk.”

Heather Zichal, CEO of the American Clean Power Association, commented: “This is the vote heard around the world. It puts America on a path to creating 550,000 new clean energy jobs while reducing economy-wide emissions 40% by 2030.  This is a generational opportunity for clean energy after years of uncertainty and delay. 

"This unprecedented investment in clean energy will supercharge America’s clean energy economy and keep the United States within striking distance of our climate goals. 

"The IRA will lower consumer costs, enhance grid reliability, and strengthen the nation’s energy security. It will expand our domestic manufacturing base, inject nearly half a trillion dollars into U.S. GDP over the next decade and create more than half a million new jobs – more than doubling today’s clean energy workforce. 

"We must seize this moment. We urge the House to quickly pass this historic legislation and send it to President Biden’s desk for his signature.”