Should Congress repeal the Greenhouse Gas Reduction Fund?

Environment and Energy
To repeal Section 134 of the Clean Air Act, relating to the greenhouse gas reduction fund (H.R. 1023)
This bill has Passed the House of Representatives
Bill Summary

If passed, H.R. 1023 would repeal the Greenhouse Gas Reduction Fund. The Greenhouse Gas Reduction Fund was passed as a part of the historic Inflation Reduction Act in 2021, dedicating $27 billion to funding projects that would address climate change and promote energy independence via grants that states and other eligible recipients could apply for. The fund was created mainly to address the effects of climate change and reduce greenhouse gas emissions in low-income and otherwise disadvantaged communities. H.R. 1023 is a part of the larger resolution H.R. 1, the Lowering Energy Cost Act. Sponsor: Rep. Gary J. Palmer (Republican, Alabama, District 6)
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Opponents say

•      "When President Biden took office, he vowed to combat the climate crisis and protect every single person in this country—regardless of the color of their skin, the money in their pocket, or the community they live in. And he’s delivering. He and Vice President Harris fought tooth and nail to secure the most ambitious climate legislation in our nation’s history—a once-in-a-generation investment in America…This $27 billion dollar program is designed to pull hundreds of billions of dollars of private capital off the sidelines to address climate change head on, reinforce our country’s economic competitiveness, and directly invest in communities that have been marginalized for decades." Source: Michael Regan (Administrator, Environmental Protection Agency)


•    "This program is a game-changer. Third-party estimates project that investments made through the fund could save Americans more than $100 billion and create hundreds of thousands of good-paying jobs over the next decade—particularly in low-income and disadvantaged communities. This is what investing in America looks like. Good paying jobs today for a cleaner and healthier tomorrow. This is exactly the kind of thing this Committee should be getting behind. But not one Republican supported the Inflation Reduction Act, and now, true to form, they are already attacking it. Their attacks are unwarranted. EPA has already put in important safeguards to ensure that taxpayer dollars are spent properly. Each funding opportunity from the Greenhouse Gas Reduction Fund includes mandatory reporting requirements that apply to any award or subaward, so that EPA can assess award performance and the progress on meeting key milestones. EPA also included annual audits that allow it to monitor how recipients are using their awards in order to make certain that funds are being spent appropriately. EPA also has the flexibility to make final awards contingent upon recipients taking additional steps that mitigate award-specific risks identified in the selection process." Source: Rep. Frank Pallone Jr. (Democrat, New Jersey, District 6)


•    "It’s been over a decade since we first put the idea of creating a national climate bank on paper. Today, that idea is becoming a reality. With the launch of the Greenhouse Gas Reduction Fund, we are deploying powerful tools to help us address climate change through innovative new solutions while creating jobs and growing our economy. These funds will serve as a force multiplier for private investment in clean energy projects to cut emissions and promote environmental justice in underserved communities across the country. This is a win for workers, our economy, and our fight to confront the climate crisis." Source: Sen. Chris Van Hollen (Democrat, Maryland)

Proponents say

•      "A significant factor of increased inflation is energy. Millions of American households are struggling to make ends meet because of President Biden’s highly inflationary energy policies. Today, House Republicans are charting a better path forward. One that lowers energy costs and keeps our nation more secure through energy independence. H.R. 1, the Lower Energy Costs Act, shows the priorities of Republicans who are focused on ensuring American households have reliable and affordable energy and that our nation does not become reliant on China. I am glad to see my bill to eliminate President Biden’s climate bank is included in this legislation. I applaud the work of my colleagues on both the Energy & Commerce Committee and the Natural Resources Committee for putting together this comprehensive American energy bill." Source: Rep. Gary Palmer (Republican, Alabama, District 6)


•      "Finally, we are also concerned about how this program will function, given the lack of domestic production for solar panels. The Department of Energy has noted that China’s control of key materials in renewable energy extends “across the board.”22 Similarly, the Wall Street Journal reported on China’s dominance of the U.S. solar market, noting that China controls almost half of the U.S. solar panel market share, making it incredibly difficult to supplant Chinese producers with domestic suppliers. 23 The EPA has stated that certain projects under all three competitions are subject to the Buy America domestic sourcing requirements of the Build America, Buy America (BABA) provisions of the Infrastructure Investment and Jobs Act (IIJA). 24 The EPA also claims it will provide future guidance on which projects are subject to the BABA requirements. 25 If there will be domestic sourcing requirements through BABA on the various GGRF programs— and we know that China has a significant stranglehold on the availability of solar panels, among other green energy technologies—we are unsure how the EPA and program participants will ensure that the GGRF programs are not supporting Chinese products." Source: Republican Members of the House Energy and Commerce Committee (Republican) 


•      "Republicans are prioritizing the American people over the Democrat’s radical climate agenda. On his first day in office, President Biden started the war on American energy. He has revoked the permit for the Keystone XL pipeline, imposed a moratorium on oil production on federal lands, directed agencies across the Federal government to impose punitive and burdensome regulations, and made us more reliant on China. Predictably, gas prices skyrocketed to the highest levels in American history. People are counting on us to improve their quality of life. H.R. 1 delivers on that promise and will ensure America continues to lead the world at reducing emissions." Source: Rep. Cathy McMorris Rodgers (Republican, Washington, District 5)

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