The $369 billion plan to curb planet-warming pollution that President Joe Biden signed into law today doesn't fundamentally reorder American society. Cars, albeit electric ones, are still king. And fossil fuel companies are largely free to continue operating business as usual. But the unprecedented legislative step to save the planet is a big deal, and it offers the clean energy sector a shot in the arm at a time when prices are soaring, production is stalling and natural disasters are raging. If it works as promised, the sprawling law is expected to save Americans money in the short term and improve overall health outcomes in the long term. But what does it mean for the energy and transportation industries — the nation's two largest sources of greenhouse gases? Winners and losers
The measure is designed to supercharge clean energy projects by allocating billions of dollars to lower the cost of wind, solar and electric vehicles, making them more accessible to individuals and businesses. That's good news for renewable energy and EV-producing companies, consumers looking to go green and utilities with carbon-reduction goals. Researchers project that the bill will significantly cut retail electricity costs, saving ratepayers up to $220 annually. While the oil and gas industry isn't exactly embracing the bill, it doesn't hate it either. The measure, which takes a carrot approach to reducing emissions, contains a number of "Easter eggs" for the sector, including access to new federal waters for development in Alaska and the Gulf of Mexico. The law's hefty tax incentive for low-carbon technologies could slash U.S. heat-trapping emissions by 40 percent below 2005 levels by decade's end. But according to modeling done by the Rhodium Group, reductions in transportation emissions are marginal compared with other sectors. Transportation continues to be the nation's leading source of carbon pollution with no abatement in sight. Perhaps the law's biggest losers are the rich. Corporations that make $1 billion a year or more will now have to pay a minimum tax rate of 15 percent as well as 1 percent on stock buybacks. That is projected to reduce the federal deficit by an estimated $300 billion over the next decade. The measure also cracks down on some tax loopholes employed by the wealthy. What's next?
Early analyses of the bill are positive, promising to deliver on Democrats' vision. But the climate and financial benefits may take time to trickle through the economy. Meanwhile, progressives are now gearing up to fight a fossil fuel permitting trade-off the party made to secure West Virginia Sen. Joe Manchin's crucial vote.
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