US Senate passes wind-boosting climate spending bill

The Inflation Reduction Act 2022 contains a significant boost for wind power, including an extension of the production tax credit (PTC) and a manufacturing tax credit for advanced technologies including major wind components. 

All of the wind portions of the bill were intact after fierce debate in the Senate this last weekend, said an American Clean Power (ACP) spokesman. 

Overall, the bill offers nearly $370 billion for climate and energy programmes. 

The vote was along strict party lines, with all Democrats and one independent, who caucuses with the Democrats, voting for the bill’s passage, and all Republicans voting against. 

The lone hold-out, moderate Democrat Kyrsten Sinema, had announced on Thursday that she would back the climate portions of the bill. However she forced some changes in the bill’s tax provisions.

All Democratic votes were needed to pass the bill, as the party has an effective majority in the Senate of 51-50. 

In late July, in a surprise compromise Democrats had reached a deal on the spending plan in what was described as an “11th hour reprieve.”

The bill now goes to the House of Representatives, where it is expected to pass. The vote is expected on Friday. President Joe Biden would then sign it into law.

Backers of renewable energy were thrilled by the Senate vote. 

ACP chief executive Heather Zichal said: “This is the vote heard around the world. It puts America on a path to creating 550,000 new clean energy jobs while reducing economy-wide emissions 40% by 2030. This is a generational opportunity for clean energy after years of uncertainty and delay.

“This unprecedented investment in clean energy will supercharge America’s clean energy economy and keep the United States within striking distance of our climate goals.”

ACP expects the act to deliver 525–550GW of new utility-scale clean power between 2022-2030.

Liz Burdock, president and CEO of the Business Network for Offshore Wind, said: “The Senate’s passage of the Inflation Reduction Act is a watershed moment in America’s renewable energy transition. The bill’s $40 billion investment in domestic clean energy manufacturing and shipbuilding is an important down payment that will unleash the vast potential of offshore wind and localise a supply chain on American shores creating thousands of good-paying jobs.”