Tuesday, October 3, 2023

Practically Living Green

Showing practical reasons to live green.


The US May Pass the Biggest Clean Energy Deal In Its History

While legislators have been in negotiations for well over a month, it appears that a deal has finally been reached. While many compromises were made, it is still the biggest clean energy deal in US history, assuming it actually passes.

The Reduce Inflation Act could lower US emissions by 40% by 2030, but that’s only one aspect of the bill.

The $370 Billion Clean Energy Deal

Solar Energy

While the number is much lower than the President wanted, $370 billion is by far the largest investment into clean energy the US government has made.

The main focus of this aspect of the act is to push both consumers and industries away from fossil fuels. This is done by offering large tax rebates for renewable technologies like solar panels and electric vehicles.

There are also incentives for manufacturers to produce more renewable technology in general, which can help drive down the costs.

One of the biggest clauses is the US’s first methane emissions fee for excess emissions. Essentially, businesses will now have to pay a fee for emitting one of the most impactful greenhouse gases, which will incentivize them to reduce methane emissions.

There are also numerous investments that will be made in protecting forests and coastal regions from the impact of climate change.

The Compromise

Of course, for this bill to get passed, there needed to be compromises. And while most of the bill is focused on clean energy, there are wins for big oil.

The main win is that before the Department of Interior can lease out land for solar or wind projects, the land must first be offered for onshore and offshore drilling. This will ensure oil companies will have access to drilling at home.

While it is at odds with the clean energy part, the good outweighs the bad.

How Does This Reduce Inflation?

In no uncertain terms, inflation is impacting everyone, and it is seemingly getting worse each month. This bill has the potential to fight that inflation.

One of the main ways it will fight inflation in the long term is by reducing the US’s reliance on fossil fuels. It’s no secret that the price of oil is very high, which has a huge impact on everything. When gas is high, that means the cost of transportation goes up.

This dramatically raises the price of those goods, which is why the price of food and just about anything you buy in a store has gone up considerably.

Another aspect that I didn’t talk about is that it will increase funding to the IRS. This will improve its ability to collect unpaid taxes. In total, the $80 billion investment could see over $200 billion in unpaid taxes collected.

There will also be a key corporate loophole closed. This will force companies to pay a flat 15% tax on profits exceeding $1 billion. Together, this can help decrease inflation, but it will not have an immediate effect on those struggling.

Although the changes to the healthcare system, another aspect I didn’t talk about, can help. As it lowers the cost of prescriptions.

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Robert Giaquinto

Robert has been following and writing about environmental stories for years at GreenGeeks. He believes that highlighting environmentally friendly practices can help promote change in every household.

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