Impact of the $1 Trillion Infrastructure Bill on Combating Climate Change Exploration
The Build Back Better Act (BBBA) and the Bipartisan Infrastructure Deal, signed into law by the Biden administration, aim to advance the U.S.'s climate goals. However, recent developments reveal a complex picture regarding their overall impact.
The BBBA, with nearly $370 billion earmarked for climate investments, was designed to accelerate clean energy deployment, enhance electric vehicle (EV) incentives, and promote environmental justice initiatives at the state and local level. These provisions align closely with President Biden's objective to reduce U.S. carbon emissions by 40% from 2005 levels by 2030.
However, a significant portion of the BBBA's original climate-related programs and tax incentives has faced rescissions, repeals, or sunset dates. For example, tax credits for residential energy efficiency, rooftop solar, commercial building improvements, and clean vehicle purchases are ending by late 2025 or mid-2026. Additionally, federal funds allocated for EPA’s Greenhouse Gas Reduction Fund, Environmental Justice Block Grants, and other climate grant programs have been rescinded, limiting financial support directly available to states, cities, and community partners.
In contrast, the Bipartisan Infrastructure Deal, enacted earlier, has been actively funding climate-relevant projects such as solar and geothermal power plants, energy storage, industrial emissions reduction demonstrations, and EV infrastructure development. It directs tens of billions toward environmental projects, water storage, EV investments, and clean energy transmission upgrades.
The BBBA also includes provisions such as a 10% bonus for taxpayers who meet the domestic content requirement, a 20% bonus for solar or wind projects in low-income buildings, and the creation of the Civilian Climate Corps to give millions of citizens the chance to solve issues in their communities.
The BBBA also establishes a Greenhouse Gas Reduction Fund for low-cost sustainable construction projects and allocates $7.5 billion for building a national EV charging station network. Moreover, the bill includes funding for federal organizations such as the Federal Emergency Management Agency, Army Corps of Engineers, and National Oceanic and Atmospheric Administration to help U.S. citizens forecast, prepare, and recover from natural disasters.
In summary, the Bipartisan Infrastructure Deal continues to provide a foundational and effective channel for deploying clean energy infrastructure and related technology, contributing significant emissions reductions. The Build Back Better Act initially promised a more comprehensive suite of climate policies and investments but has had key provisions scaled back or repealed, thereby reducing its standalone impact.
While the Bipartisan Infrastructure Deal remains a critical driver for infrastructure and clean energy deployment aligned with Biden’s climate goals, the diminished Build Back Better Act climate provisions mean that achieving the administration’s ambitious emissions reduction targets may require additional policy action or stronger state and local initiatives to fill the gaps.
- The Build Back Better Act (BBBA) and the Bipartisan Infrastructure Deal, both signed into law by the Biden administration, aim to advance the U.S.'s climate goals, but the BBBA's climate-related programs face rescissions, repeals, or sunset dates, which may limit its impact.
- The BBBA, despite its funding for environmental justice initiatives, tax incentives for clean energy deployment, and provisions for renewable energy projects, has seen the end of tax credits for residential energy efficiency, rooftop solar, commercial building improvements, and clean vehicle purchases, reducing financial support available to states, cities, and community partners.
- Contrastingly, the Bipartisan Infrastructure Deal has been actively funding climate-relevant projects, such as solar and geothermal power plants, energy storage, industrial emissions reduction demonstrations, and EV infrastructure development, directing tens of billions toward environmental projects, water storage, EV investments, and clean energy transmission upgrades.
- The diminished climate provisions in the Build Back Better Act may necessitate additional policy action or stronger state and local initiatives to reach the Biden administration's ambitious emissions reduction targets, as the Bipartisan Infrastructure Deal plays a critical role in infrastructure and clean energy deployment aligned with these goals.
