John,

Well, the bipartisan deal is done—at least in the Senate.

Ask yourself: When was the last time you remember the Senate passing a piece of legislation as impactful...and as quickly... and as seamlessly (almost) as BID?

With the bipartisan infrastructure deal onto the House, and the $3.5 trillion budget reconciliation package well underway, Democrats are making tremendous headway. 

Looking ahead, there will be a lot of jockeying by individual elected officials, ideological caucuses within the Democratic Party, and interest groups. Everyone is trying to ensure their top priorities remain in the BID or get in reconciliation. It’s a reminder of how legislation used to get done. Our advice, don’t put too much heed in the horserace stories and declarations of possible death coming from the press. Moderates and progressives all recognize the stakes -- in addressing big problems like climate change and the fate of the Biden presidency -- and will get both bills across the finish line
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1. WHAT’S IN THE BID?

For the past several weeks, we’ve been highlighting some of the best clean energy provisions within the $1 trillion bipartisan infrastructure deal, which passed the Senate on Tuesday, August 10, by a vote of 69-30. In previous On the Grids, we’ve highlighted the enormous impact this bill would have on clean energy innovation including advanced nuclear, investing in advanced manufacturing, and funding to build new transmission. You can read more about all of these in our summary memo. There, however, is more, including:

• $7.5 billion for electric vehicle and alternative charging infrastructure, with $5 billion dedicated to EV charging to support the widespread deployment of electric vehicles. This also requires the US government to develop standards for interoperability, meaning we’ll build charging stations that can be used by all EVs. Stay tuned for more details from us on why charging stations will be the backbone of the US transition to electric vehicles and how we can go further in reconciliation.
• Expanding eligibility for the Advanced Technology Vehicle Manufacturing Program in the DOE’s Loan Programs Office to include manufacturing for medium- and heavy-duty vehicles. We recently published a memo explaining the enormous value the LPO generates for clean energy startups. By expanding eligibility requirements for the ATVM program, we can help unlock the next generation of battery- and hydrogen-powered vehicles.
• $8 billion to establish four regional hubs for clean hydrogen production, transportation, and use, as well as $3.5 billion to establish four regional hubs to commercialize direct air capture technology. These hubs will help the US build out the supply chains for these industries, creating thousands of new job opportunities for skilled workers across the country. 

2. UP NEXT: RECONCILIATION

Less than 24 hours after the bipartisan deal passed the Senate, Democrats also passed the $3.5 trillion budget resolution by a vote of 50-49. 
 
Now that the budget resolution has passed, Senate committees can begin writing up the actual legislation. House Majority Leader Steny Hoyer already announced that the House will be called back into session to consider the budget resolution on the week of August 23.
 
This is our opportunity to meet the urgency of this moment. In our c4 capacity, we’re advocating for several critical actions that would help our economy, competitiveness, and action on clean air, water, and climate. This includes:  

• A Clean Electricity Payment Program (CEPP) serves as a budget-based alternative to a Clean Energy Standard (CES). On August 12 we released a helpful one-pager explaining what the CEPP is, how it can help accelerate the building of new, clean energy, and why we think it can get through the arcane reconciliation process. Read it here.
• The 48C manufacturing tax credit program, which invests in companies building new manufacturing facilities or expanding existing facilities to produce clean energy technologies. These incentives will help clean technology businesses grow their business. The tax credit supported a variety of end-products, from wind and solar to electric vehicles to carbon capture and smart grid technologies. The bipartisan deal spends about $750 million in grants to build or retool facilities that manufacture clean energy products. Formally renewing the 48C program with $8 billion in credits in reconciliation would create over 36,000 jobs annually for the next five years.
• The 30C Alternative Fuel Refueling Property Tax Credit, with the cap raised from $30,000 to $200,000 for businesses claiming the credit. This will help companies install chargers at workplaces and in public charging locations and is especially important to help businesses and fleet owners install multiple chargers.

3. UPCOMING: HOW TO TALK ABOUT THE CLEAN ENERGY TRANSITION TO MAXIMIZE SUPPORT

We worked with the public opinion research firm Avalanche Insights to understand what Americans thought about the American Jobs Plan. The good news: the more Americans learned about the policies in AJP, the more they liked them, and most of these proposals are included in the Infrastructure Investment and Jobs Act and reconciliation package. The big challenge, however, remains that voters are still skeptical that a clean energy transition would benefit them. We’re coming out soon with a set of recommendations on how to address this real problem. The toplines include:

• Tell a clean energy story that unifies the story of us: Clean energy messaging that conveys the story of Americans’ and America’s resilience outperforms others
• Craft a holistic message that is simultaneously about both economic well being-and long-term health benefits: In addition to economic well-being, incorporate elements of long-term health, including ‘clean air & water’, ‘future generations’, ‘family and children thriving’, and ‘quality of life’, which resonates across persuadable voters
• Focus on where we’re headed: Emphasize movement ‘toward clean energy,’ as opposed to ‘away from fossil fuels’ to generate a positive outlook
• Connect quality of life with job creation: Emphasize that a transition to clean energy will not only create more jobs, but also that those jobs will improve the quality of life for the workers who fill those jobs

4. WHAT WE’RE READING

• The IPCC report understandably spurred a lot of anguish, even amongst those who don’t work in climate and energy every day of the week. But there’s also cause for optimism, considering the US is making real, tangible progress toward electrifying the power sector, spurring technological innovation, and investing in mitigation and adaptation resources for communities hardest hit by climate change. Home is Always Worth It, an essay published in 2019 by the climate justice writer Mary Annaïse Heglar, circulated the Web after the release of the IPCC report, and it reminds us that there’s no time for fatalism. As she explains in the essay, “every slice of a degree matters. And right now, everything we do matters.”
• For a more technical case for optimism, Zeke Hausfather, our friend over at the Breakthrough Institute, published a comprehensive Tweet thread in response to the IPCC report. Hausfather compares the predictions made in the report to the past decade of climate progress, during which we’ve flattened the curve of future emissions and seen clean energy costs rapidly fall. As Zeke argues, we can recognize the progress we’ve made and simultaneously acknowledge how far we still have to go. You can read his full analysis for BTI here. 
• The Energy Sector Innovation Tax Credit is a Game Changer is an excellent explanation of the benefits of ESIC, a bipartisan tax credit to incentivize the deployment of early-stage clean energy technologies. This differs from previous clean energy tax credits because it creates a technology-inclusive system to support early stage technologies in fields like advanced nuclear, carbon capture, energy storage, and advanced renewables. As the International Energy Agency Modeling from the International Energy Agency predicted that we’ll need next-generation technologies to meet our emissions reductions goals, which is why ESIC is a critical boost to bring these climate solutions to market. You can read our full statement on ESIC here.