President Biden’s Build Back Better agenda is making its way through Congress via a budget reconciliation bill — a once-in-a-generation opportunity for America to reassert its leadership in combating the climate crisis. But a major part of the effort is jeopardized by disagreements over the Clean Electricity Performance Program (CEPP), which would subsidize electric utilities that increase the share of clean energy they produce while penalizing those that do not. This provision could be responsible for up to one-third of the emissions reductions in Biden’s climate agenda, so lawmakers must either find a way to compromise on the CEPP or replace it with a policy that can achieve similar emissions reductions.
Negotiators are reportedly considering dropping the CEPP over concerns from Sen. Joe Manchin JOE MANCHIN Overnight Energy & Environment — Presented by the American Petroleum Institute — Democrats address reports that clean energy program will be axed Overnight Health Care — Presented by Carequest — Colin Powell’s death highlights risks for immunocompromised Progressive coalition unveils ad to pressure Manchin on Biden spending plan MORE , (D-W. Va.), who not only holds the crucial 50th vote Democrats need to pass the bill through the Senate but is also chairman of the Senate Energy Committee that has jurisdiction over the CEPP provisions. Manchin says he is concerned that the program would only subsidize transitions that are already taking place rather than encouraging the adoption of new renewable energy sources. He’s also concerned that the program would hurt states like West Virginia that are heavily dependent on natural gas and coal by requiring them to adopt expensive technologies like carbon capture and storage (CCS) without offsetting the costs. And he has noted the opposition of some major electric utilities over cost and reliability worries, although the industry is somewhat divided on the bill.
Whether climate hawks agree with these concerns or not, the reality is that any climate policy must address them to become law. Because of the work that has already gone into developing the policy, and Manchin’s chairmanship of the relevant committee, we believe the clearest path forward is for Manchin and fellow negotiators to modify the CEPP so that it addresses his concerns while meeting the science-based targets necessary to retain the support of other Democrats.
