Renewable Reboot – The Inflation Reduction Act of 2022 Released as Senator Joe Manchin (D-WV) Changes Stance on Climate Change and Signals Support for Renewable Energy
On July 27, 2022, only a few hours after the Senate approved a bipartisan semiconductor and technology package, Senator Manchin made a stunning and well-timed reversal of his prior position and confirmed his support for various climate and energy programs. Senate Democrats (led by Senators Manchin and Schumer) quickly made legislative text available and submitted it to the Senate Parliamentarian for review.
While the legislation has a new name – the Inflation Reduction Act of 2022 (the Act) – it largely mirrors prior draft legislation released by the Senate Finance Committee in December of 2021 with respect to the climate and energy provisions. If enacted, the Act would be a historic investment in climate policy as well as a down payment on deficit reduction and inflation control, as the revenue projected to be generated by the Act (largely resulting from the 15% corporate minimum tax and IRS reform) exceeds the estimated spending by over $300 billion. Reports are that the Act will go to the Senate floor as early as next week.