Yesterday afternoon, Senators Schumer and Manchin unveiled a revenue and spending deal dubbed the Inflation Reduction Act of 2022 that includes $369 billion for climate and energy programs. The legislation, if passed, could cut climate pollution by around 40 percent by 2030 and would be the biggest federal investment in clean energy ever made in the U.S. The tax credits and incentives in the bill cover wind and solar power, “clean” hydrogen, direct air capture, new and used clean cars, including electric vehicles, and the domestic production of critical minerals needed for batteries and other clean technologies.

As a concession to Manchin, the bill would also require the Department of the Interior to reinstate oil drilling in the Gulf of Mexico. The spending would be covered by changes to tax law that would raise $739 billion over the next decade. The next step will be for the Senate Parliamentarian to assess whether the proposal meets the strict Senate budget rules that govern the budget reconciliation process, and then head to a Senate vote where just a simple majority is needed to pass. The deal still faces multiple hurdles before it can make it to the President’s desk, including having to pass both chambers of Congress, where any Democrat could sideline or delay passage. (ABC NewsNPRAxiosGuardianCNBCThe IndependentNew York Times $, Washington Post $, Wall Street Journal $, E&E $, Bloomberg $, APBBC)