US senators in the Democrat Party have reached a deal to include the Inflation Reduction Act of 2022 in a reconciliation package, providing a “reprieve” for climate action and clean energy jobs, said renewables groups.
Following the announcement that US Senator Joe Manchin (D-WV) reached an agreement with Senate Majority Leader Chuck Schumer (D-NY) to add the Inflation Reduction Act of 2022 to the budget reconciliation bill being negotiated in Congress, American Clean Power CEO Heather Zichal said the US clean energy industry just “breathed an enormous sigh of relief”.
She said the deal is an “eleventh hour reprieve for climate action and clean energy jobs, and America’s biggest legislative moment for climate and energy policy”.
Congress is now close to passing a $369.75bn investment in energy security and climate change programmes over the next 10, the biggest climate and clean energy investment in American history.
Zichal said: “Passing this bill sends a message to the world that America is leading on climate, and sends a message at home that we will create more great jobs for Americans in this industry.”
The deal includes long-term clean energy tax credits that will translate into the “rapid deployment of affordable, reliable clean energy, thousands of new domestic jobs, and promote domestic clean energy that bolsters our national security”, she added.
Liz Burdock, CEO and founder of the Business Network for Offshore Wind, said: “As announced, the proposed Senate package will ensure that more Americans can take advantage of the well-paying jobs that will be created as more offshore wind projects are developed, all while reducing inflationary pressures.
“Offshore wind will play a central role in the country’s transition to a cleaner energy future by providing reliable and dependable power that is shielded from inflationary global energy markets and geopolitics.”
The US offshore wind industry is “poised to compete on the global stage” creating tens of thousands of jobs in manufacturing centres and businesses across the US, Burdock added.
“The proposed Senate package takes an important, and historic, step forwards in its support for offshore wind. Building this industry requires the ramping up of a domestic supply chain, investing billions in ports and shipbuilding, and rebuilding our transmission system – all of which requires Congressional support.”
“We applaud the hard work and negotiations of Leader Schumer and Senator Manchin to arrive at this pivot point for our country and for future generations.”