Manchin’s Inflation Reduction Act Will Lower Energy And Healthcare Costs, Increase Domestic Energy Production And Pay Down National Debt
Senate passes Inflation Reduction Act, now heads to the House of Representatives
To learn more about the Inflation Reduction Act, click here.
To read the Inflation Reduction Act of 2022, click here.
Washington, DC – U.S. Senator Joe Manchin (D-WV), Chairman of the Senate Energy and Natural Resources Committee, released the following statement on the U.S. Senate passing the Inflation Reduction Act of 2022. The historic legislation will address record inflation by paying down our national debt, lowering healthcare costs, and increasing American energy production to provide relief at the pump and bolster energy security. The legislation will now move to the U.S. House of Representatives. Senator Manchin also secured a commitment from President Joe Biden, Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi to move a comprehensive permitting reform package before the end of the fiscal year on September 30, 2022. To learn more about the permitting reform legislation, click here.
“For years, I have worked across the aisle to determine the most effective way to increase domestic energy production, lower energy and healthcare costs, and pay down our national debt without raising costs for working Americans. The Inflation Reduction Act is the product of that work and I am proud the Senate passed this bill that will lower the inflation taxes that have been so hurtful for West Virginian and American families. By investing in American energy production and innovative technologies the U.S. is on a path toward energy security, lower gas and home energy prices and we are leading the fight on global climate. By ensuring fairness in our federal tax code so that the largest and most profitable corporations pay their fair share, we can begin to get our financial house in order while protecting working Americans and small businesses. I look forward to seeing the U.S. House of Representatives pass this important legislation and President Biden quickly signing it into law. We are moving full steam ahead on comprehensive bipartisan permitting reform so we can efficiently and safely bring more domestic energy projects online. Congress will pass that legislation next month.”
The Inflation Reduction Act will:
Invest in Energy Security
- Boost American Energy Security and Creating Jobs: Immediately increase energy production to lower energy costs and invest in domestic manufacturing supply chains, creating jobs in North America while reducing our reliance on China.
- Black Lung Disability Trust Fund: Permanently extend the Black Lung Disability Trust Fund to preserve critical healthcare benefits for our brave miners suffering with the disease and to the families they’ve left behind.
- Support for West Virginia’s Coal and Oil and Gas Industry: Include nearly $10 billion in incentives to directly support the coal and natural gas industry.
- Coal and Natural Gas Plant Upgrades: Provide $5 billion for the cost of energy infrastructure reinvestment loan guarantees to help existing coal and natural gas plants upgrade to improve efficiency, adopt environmental controls or install CCUS equipment – extending the life and utility of West Virginia’s fossil fuel plants. This will support up to $250 billion in loan guarantees.
- 45Q CCUS Tax Credit: Increase the value of the 45Q carbon capture, utilization, and sequestration (CCUS) tax credit and provide direct pay for the first 5 years to help fossil plants – creating jobs while preserving and enhancing coal and natural gas jobs.
- Methane Emissions Reduction Program: Provide $1.55 billion to support natural gas companies’ efforts to deploy new technologies to continue driving down methane emissions and produce West Virginia’s abundant natural gas resources in the cleanest way possible, including $700 million reserved for marginal conventional wells.
- 48C Domestic Manufacturing Credit: Invest in coal communities by expanding the bipartisan 48C investment tax credit for clean energy manufacturers, with $4 billion reserved for use exclusively in coal communities impacted by the downturn in the coal sector, in addition to making the use of other energy tax credits more valuable if used in coal and other fossil fuel communities – attracting new investments and creating new opportunities for West Virginia’s workforce.
- Hydrogen Tax Credit: Include the first-ever hydrogen production tax credit, worth nearly $8 billion over the next decade, and provide direct pay for the first 5 years of production.
- Help create a multi-billion-dollar hydrogen hub in West Virginia.
- Explicitly include credits for “blue” hydrogen production from fossil fuels with carbon capture.
- Support efforts to repurpose existing infrastructure, such as converting retired coal plants to green hydrogen plants.
- Decarbonize through Innovation, not Elimination: Support technologies to reduce emissions in all sectors of the economy through an all-of-the-above energy policy to provide reliable, affordable, dependable, and clean energy. Ensures continued fossil fuel production while providing the tools to do so in the cleanest way possible, leading the world in advanced energy technologies. Does all this without providing any new authority for the EPA other than to institute the new methane emission reduction program, which was substantially revised to ensure it was productive rather than punitive for the oil and gas industry.
Cover Healthcare Costs
- Prescription Drug Reform: Lower prescription drug costs for approximately 317,000 West Virginians.
- Extend Affordable Care Act Subsidies: Lower healthcare costs for approximately 21,000 West Virginians.
- Cap Medicare Out of Pocket Costs: 317,000 West Virginians with Medicare coverage will pay a maximum of $2,000 per year in out of pocket costs.
- Vaccinate American Seniors: Seniors using Medicare will also receive free vaccines.
Address Inflation and Support Job Creation
- Pay Down National Debt: Invest approximately $300 billion in deficit reduction to reduce our national debt.
- Prevent Tax Increases: No new taxes at all, including on West Virginia families and small businesses making less than $400,000 a year.
- Support American Farmers: $20 billion for farmers and ranchers across America, including the 22,300 farms in West Virginia, to implement conservation practices for greenhouse gases and increase carbon storage and expands public-private partnerships for locally-led conservation and investments.
- Create National Park Service Jobs: $500 million to hire employees to serve in units of the National Park System or national historic or national scenic trails administered by the National Park Service. West Virginia is home to multiple National Park Sites, including the iconic New River Gorge National Park and Preserve, Harpers Ferry National Historical Park, Bluestone National Scenic River, and the Appalachian National Scenic Trail.
- Invest in National Park System: $500 million to carry out projects for the conservation, protection, ecosystem and habitat restoration, and resiliency of lands and resources administered by the National Park Service.
- Restore and Preserve National Wildlife Refuges: $121.250 million to make direct expenditures, award grants, and enter into contracts and cooperative agreements for the purposes of rebuilding and restoring units of the National Wildlife Refuge System, such as the Canaan Valley National Wildlife Refuge and Ohio River Island National Wildlife Refuge, and State wildlife management areas.
What People are Saying:
To view the full list of statements supporting the Inflation Reduction Act, click here.
Senate Republican Leader Mitch McConnell (R-KY): The Inflation Reduction Act does not raise taxes [Fox News Radio, 8/3/2022]
Benson: He’s trying to say this has nothing to do with taxes, not one penny of new taxes; do you have any clue what he means by that or what he’s trying to convey with that?
McConnell: Yeah, look, Guy – he’s saying no new tax rate increases: that’s true.
Chief Economist of Moody’s Analytics, Mark Zandi: The Inflation Reduction Act fights inflation, adds to growth [Moody’s Analytics, 8/1/2022]
“As named, the Inflation Reduction Act will modestly reduce inflation over the 10-year budget horizon.”
President of the Committee for a Responsible Federal Budget, Maya MacGuineas: TheInflation Reduction Act will bring down inflation [Committee for a Responsible Federal Budget, 7/29/2022]
“The best thing Congress and the President can do to help avoid a recession is to help the Fed fight inflation. Lawmakers should be focused on legislation like the Inflation Reduction Act that could make the Fed’s job easier. Improved tax collection, drug savings, and deficit reduction would put downward pressure on inflation and help ensure fiscal policy and monetary policy are rowing in the same direction.” … “With inflation and the national debt both far too high, it’s long past time that policymakers stop adding to the debt and shift focus to deficit reduction. The Inflation Reduction Act is exactly the kind of package lawmakers should put in place to help the economy in a number of ways.”
Former U.S. Secretary of Treasury, Larry Summers: The Inflation Reduction Act lowers prices [Twitter, 7/28/2022]
“Less demand, more supply & direct better bargaining for lower prices--those are the things involved in reducing inflation. The bill reduces the deficit & the level of demand in the economy, reduces prescription drugs prices & increases supply by stimulating energy production.”
Fortescue Metals Group CEO, Andrew Forrest: West Virginia can be super power with the Inflation Reduction Act [Talkline with Hoppy Kercheval, 8/4/2022]
“West Virginia can be a super power, the United States can be a super power in green energy as well as fossil fuel. Why would you just bet on one horse when you can win the race by betting on two horses and you’ve got both horses in it?”
National Mining Association Executive Vice President, Katie Sweeney: Key sections of the Inflation Reduction Act focus on job creation [Politico, 8/3/2022]
“There are key sections of the bill that really focus on American job creation with American-sourced minerals. We like the requirement that minerals for batteries be sourced close to home rather than from our geopolitical rivals. Doing that directly supports the high-paying jobs here in the United States, strengthens our economy, definitely secures our supply chain and really enhances our global competitiveness.”
United Mine Workers of America President, Cecil Roberts: Thousands in coalfields owe Senator Manchin debt of gratitude for the Inflation Reduction Act [United Mine Workers of America, 7/28/2022]
“Senator Manchin never wavered in his commitment to secure the funding for this program, and he delivered. Thousands in the coalfields owe him yet another debt of gratitude, and the UMWA will never forget his dedication to getting this done.”
Shell USA President, Gretchen Watkins: Encouraged by efforts in the Inflation Reduction Actto secure domestic energy production [Shell, 8/5/22]
“Shell is encouraged by recent actions of Senate lawmakers to pass legislation to help diversify lower-carbon energy supply and secure domestic energy production. Transforming the energy system relies on collaboration that includes sound and effective policy, and we will continue working closely with policymakers to help accelerate the energy transition.”
National Black Lung Association President, Gary Hairston: We counted on Senator Manchin, he was listening [Appalachian Voices, 7/28/2022]
“We told Senator Manchin we were counting on him to protect our black lung benefits, and today he proved that he was listening. The Black Lung Association is grateful for Senator Manchin’s work to fight for miners and our families in West Virginia and across coal country. This permanent extension of the excise tax on coal gives us a level of security we’ve never had before. We also want to thank Senator Manchin for helping coal mining states find ways to develop new, good paying jobs. We urge every Senator and Representative in West Virginia and across the nation to support this bill. Let’s get this done.”