John,

After we signed off last Friday, Congress spent the weekend drafting and finalizing the text of the $1 trillion bipartisan infrastructure deal, now formally known as the Infrastructure Investment and Jobs Act. Clocking in at 2,702 pages, it’s big, big deal. The Senate convened Monday to begin amending the enormous, $1 trillion package.

There are still hurdles to overcome, but one thing is for certain: the bipartisan legislation is popular. Polling from Morning Consult found that the majority of Democrats, Republicans, and Independents all support the major infrastructure provisions within the bill. Voters understand this spending is an investment in cleaner air, water, new technologies, and better transportation that will create jobs here at home. Now lawmakers must recognize that support to ensure the deal makes it to President Biden’s desk.

1. BID: THE POLITICS

The bipartisan group of Senators who initially negotiated the deal, including Senators Sinema (D-AZ), Tester (D-MT), Portman (R-OH), and Thillis (R-NC) have indicated they plan on voting on amendments as a bloc. They’ve committed to defeating amendments that would upset the compromise. Thus far, they’ve stuck to that promise.

The deal is inching forward, and it’s likely that Senators will work on Capitol Hill through the weekend for the second weekend in a row,instead of adjourning for recess. 

Meanwhile, debate over the $3.5 trillion reconciliation package is looming. The Senate only needs a simple majority to vote on the motion to proceed to the $3.5 trillion budget resolution, after which, 50 hours of debate will proceed, followed by an unlimited “vote-a-rama” on amendments.

We’re just as passionate about passing a budget reconciliation package to advance additional climate and clean energy priorities, including expanded clean energy tax credits, and funding a Clean Electricity Payment Program to help utilities accelerate the transition to clean power. But we need to also keep focused on helping get the bipartisan bill over the finish line. 

2. BID: THE POLICY

When we pull back from the political maneuvering that brought the deal this far, what’s actually in the final product? 
 
On Monday, we published a memo highlighting the most impactful investments for climate and clean energy in the bill. Think of this as the investments that will change the direction of the enormous cruise liner that is the US economy. It takes a while to change direction, but as that shift happens, it picks up enormous steam. This shift will accelerate the commercialization of next-generation technologies in carbon capture, advanced nuclear, energy storage, electric vehicles, and more. Notable highlights:

• $27.65 billion to support grid infrastructure, resiliency, and reliability. Our modeling demonstrates that the $11.5 billion in this for electricity transmission will create 22,000 jobs annually over the next five years. 
• $3 billion for battery material processing grants and $3 billion for battery manufacturing and recycling grants, which will help the US bolster its domestic supply chain for EV batteries. This investment will strengthen US competitiveness, and create new jobs for American manufacturers.
• $7.5 billion for electric vehicles and alternative charging infrastructure, $5 billion of this is dedicated to EV chargers. It also finally requires standards for charging stations to be interoperable, so any electric vehicle will be able to plug into any charger.

Also, $27 billion in research, development, demonstration, and commercialization priorities, including $3.5 billion for four regional direct air capture hubs and $8 billion for four regional clean hydrogen hubs. Half of these hubs will be sited in economically distressed areas to support communities in need.

3. NEW EVENT: HOW TO DRIVE CROSS-SECTOR INNOVATION FOR CLEAN TRANSPORTATION

This week, the Biden-Harris Administration announced new fuel emissions standards and a target that half of vehicles sold in the US will be battery electric, fuel-cell electric, or plug-in hybrid by 2030. We’re thrilled with this news, and you can read our full statement here.
 
The transportation sector accounts for the majority of U.S. greenhouse gas emissions. While the media focus is on electric passenger vehicles, there’s a lot of work left to decarbonize alternate modes of transportation, including aviation, rail, and medium- and large-sized cars and trucks. 
 
Join us on August 12 at 2pm ET for a discussion on how increased cooperation between the public and private sectors can help accelerate innovation in clean transportation beyond our cars and SUVs, establish US leadership in clean energy, and meet our climate goals.
 

Keynote Speaker:
Michael Berube, Deputy Assistant Secretary for Sustainable Transportation, Office of Energy Efficiency and Renewable Energy, U.S. Department of Energy
 
Panelists:
Lori Guetre, Vice President, Business Development, Carbon Engineering Ltd.
 
Jordan Stone, Assistant Vice President, Government Affairs, Association of American Railroads
 
Michael Maten, Senior Strategist-EV and Energy Policy, General Motors Company
 
Andrew Lund, Chief Engineer, Zero Emission Vehicles, Toyota Motor North America, Inc.

4. WHAT WE’RE READING

• For the first time in its 118-year history, Ford plans to spend more on electric vehicles than internal combustion engines, as Jordan Grzelewski reported in The Detroit News this week. General Motors also announced earlier this year that it started spending more on electric vehicles than gas- and diesel-powered products. This is a milestone in scaling up electric vehicle manufacturing and deployment. In 2019, our Senior Resident Fellow, Ellen Hughes-Cromwick, predicted that ICE sales had peaked in 2016 at 17.3 million units for the year. Thus far, she’s nailed it, and with such steadfast commitments from the country’s major automakers now locked down, we’re pretty delighted that ICEs won’t likely be making a rebound.
• As Rob Meyer aptly put it in this week’s Weekly Planet column for The Atlantic, The Infrastructure Deal Is Not Not a Climate Bill. Rob cites our own memo on the positive climate and energy provisions within the bill, and then goes on to contextualize some of the broader takeaways from the proposal. Notably, he explains the importance of clean energy innovation funding, which is meant to help commercialize and deploy clean technologies.
• In The Biden Administration’s Embrace of Environmental Justice Has Made Wary Activists Willing to Believe, InsideClimate News Fellow Agya K. Aning breaks down the headway the Biden Administration has made with environmental justice communities. The article provides an excellent, thorough background on the history of the environmental justice movement and how environmental justice groups have been left out of the federal policy and regulatory process for far too long.