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After saying he couldn't reach a deal with his fellow Democrats and the White House on climate action just two weeks ago, Sen. Joe Manchin announced late Wednesday that he and Majority Leader Chuck Schumer have agreed on a sweeping bill that addresses inflation, healthcare costs, and climate change—promising to cut carbon emissions by 40 percent by 2030
The Inflation Reduction Act of 2022 makes unprecedented investments in fighting climate change as well as major reforms to the federal onshore oil and gas leasing program. It raises royalty and rental rates as well as minimum bids, adds a $5 per acre fee for expressing interest in federal land for leasing, eliminates non-competitive leasing, significantly increases bonding requirements for new oil and gas wells, and adds a royalty on all methane that is extracted from public lands, including methane that is vented or flared. It also includes significant funding to clean up abandoned wells and for methane mitigation and monitoring.
“This bill includes the first meaningful reforms to the oil and gas leasing system in a hundred years. If it becomes law, it will represent a turning point in America’s energy and climate policy. The climate measures in the reconciliation bill are a major victory for the country, and the reforms to oil and gas leasing will ensure taxpayers get a fair return during the transition to a clean energy economy,” Center for Western Priorities Executive Director Jennifer Rokala said.
The bill also contains some counterproductive measures, including reinstating the contested November 2021 offshore lease sale, requiring the Interior Secretary to hold onshore and offshore lease sales of at least 2,000,000 and 60,000,000 acres, respectively, in order to hold renewable energy lease sales, and requiring the onshore lease sales to include at least 50% of the acres nominated by oil and gas companies.
Schumer said he plans to attach the bill to existing legislation and hold a vote on it next week.
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I am pleased to report that this will be, by far, the biggest climate action in human history... Nearly $370 billion in tax incentives, grants, and other investments in clean energy, clean transportation, energy storage, home electrification, climate-smart agriculture, and clean manufacturing makes this a real climate bill. The planet is on fire. Emissions reductions are the main thing. This is enormous progress. Let's get it done.”
