United States: Climate Finance

In the United States, the House of Representatives passes a historic $1.7 billion funding bill.

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In the United States, the House of Representatives passes a historic $1.7 billion funding bill.

Funding research

In the U.S., the project will act as part of the clean energy funding increases and other climate-related programs. The FY 2023 appropriations package will arrive at President Joe Biden’s desk for signing. The measure was subject to early passage by a vote of 225 to 201 in the House of Representatives.

It is also the last major accomplishment of House Speaker Nancy Pelosi’s presidency. By passing the federal spending program, Nancy Pelosi is ensuring that government funding levels do not change before the changeover. Indeed, on January 3, the Republicans will once again have a majority in the House of Representatives.

The bill appropriates $46.5 billion to the Department of Energy for FY 2023. This represents a 4% increase over the previous year. The Department of Energy’s Office of Energy Efficiency and Renewable Energy is set to receive a record $3.46 billion.

This is an increase of approximately 6% over FY 2022. It concerns research and development of technologies for clean vehicles. In addition, it also integrates renewable energy networks and the production of clean hydrogen.

A legislative project

The bill then includes billions of dollars in DoE funding for advanced nuclear energy. The project also addresses clean energy demonstration in accordance with a bipartisan infrastructure bill enacted in 2021. In addition, the package provides DoE with $30 million for oil and gas well cleanup activities.

In addition, $60 million will be used to develop methane mitigation technologies. The spending program includes $65 million for the Clean Cities Alternative Fuels Deployment Program. It will fund alternative fuels, infrastructure and the deployment of biofuel vehicles.

The project also includes electricity, hydrogen, natural gas, renewable natural gas, propane and renewable propane. Finally, the bill provides for funding of R&D on biofuels. 44 million will go to research on raw material technologies.

23 million will accelerate the design-build-test-learn cycle for biofuels and bioproducts. It will focus on sustainable aviation fuels. Finally, $10 million will support R&D on engines that can incorporate low-carbon fuels such as ethanol and biodiesel.

A funding program

The U.S. project does not, however, include funding for accelerated production of electrical distribution transformers. However, the electricity industry asked for $1 billion to help boost transformer production. Under the guise of a tight labor market, disruptions in the supply chain significantly increase order lead times.

The package would then provide an additional $576 million to the Environmental Protection Agency, bringing its funding to $10.1 billion. This increases support for enforcement and compliance. In addition, it also addresses clean air, water, and toxic chemicals programs, after years of stable funding.

In addition, funding for the National Park Service would increase by 6.4%. Thus it restores 500 of the 3,000 staff positions lost over the last decade. The objective is to help the agency manage substantial increases in the number of visits.

The Federal Energy Regulatory Commission will receive $508.4 million. It increases its budget by $42 million. The request also included a $24.9 million increase for personnel.

Stabilized credit lines

The Federal Energy Regulatory Commission’s (FERC) new Office of Public Participation has its appropriations stabilized. The goal is to strengthen public awareness efforts on the natural gas and electricity sectors. In addition, the Commodity Futures Trading Commission (CFTC) would receive $365 million corresponding to the agency’s request.

The National Oceanic Atmospheric Administration (NOAA) requested $256.6 million. This represents an increase of over $69 million. The request is for climate research to help the United States better prepare for weather disasters.

Nonetheless, the bill only provides an additional $24 million over NOAA’s 2022 funding levels. This is equivalent to a 12% increase. It is also providing $21.4 million for high performance computer upgrades.

The funding is provided as part of the support for improved climate modeling. Finally, extreme weather and climate change affect one-third of the U.S. gross domestic product. The United States will experience 15 weather events in 2022, causing more than $1 billion in losses.

Between necessities and criticism

The war in Ukraine forced the United States to release 180 million barrels. It was to fight against energy price increases. DoE was making the largest drawdown of the U.S. Strategic Petroleum Reserve (SPR).

In addition, the U.S. Strategic Petroleum Reserve is funded at $207.2 million. Thus, this represents a decrease of $11.8 million from the expenditures adopted in FY 2022. This is $7 million below the Administration’s request to support the modernization and management of the emergency crude stockpile in FY 2023.

Finally, the comprehensive program includes approximately $45 billion in emergency aid to Ukraine and NATO allies. The project will support increased spending on, college access, childcare, mental health and food assistance. In addition, increased support for the military and veterans rounds out the measures as well as additional funding for the Capitol Police.

With a Democratic majority in the House of Representatives, there was little doubt that the passage of the bill would be successful. However, Republican members of the House of Representatives are complaining that there is not enough time to study the text. Kevin McCarthy, the leader of the Republicans, called on the elected Republicans to vote against.

A political rivalry

He wanted to have more room to maneuver after the holidays when the new Republican majority takes office. Nevertheless, the Republicans ignored him. In addition, they attributed about 20 votes to the Democrats.

The Biden administration is rolling out more and more measures to combat climate change. Indeed, several projects, laws and plans are being developed since the inauguration of the American president. This is the case of the Water Power Technologies Office (WPTO).

WPTO receives $16 million to support hydropower and marine energy. CARB(California Air Resources Board), the new plan to accelerate California’s carbon neutrality is coming under heavy criticism. This plan does not indicate action but principles for decarbonizing California by 2045.

Republicans also denounce theInflation Reduction Act enacted in August 2022. This $368 billion scheme aims to lower the cost of clean energy. For example, the IRA encourages an increase in the production of renewable hydrogen.

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