House committee unveils historic clean energy plan

Washington, D.C. - Today the Energy and Commerce Committee of the U.S House of Representatives began its mark-up of budget reconciliation language, which includes a Clean Electricity Performance Program (CEPP), a fee on methane polluters, funding for electric vehicles, environmental justice block grants, building electrification and energy efficiency. The committee is expected to send the bill to the full House in the coming days.

The CEPP is an essential investment that would incentivize utilities to invest in clean electricity, putting the country on track to achieve an 80% clean grid by 2030 and 100% clean by 2035. Crucially, the CEPP does not classify fracked gas as clean energy, with significant implications for the nearly 250 gas plants proposed across the country and ensuring that our energy future is in wind and solar.

The methane polluter fee would - for the first time - charge the oil and gas industry based on the amount of dangerous methane that leaks into the atmosphere. Methane is a greenhouse gas more than 80 times as potent than carbon dioxide over a 20 year period, and scientists across the globe are increasingly alarmed by methane’s contributions to the climate crisis. It’s important to specify that agricultural sources of methane are not subject to this fee. 

According to polling from Data for Progress, nearly two-thirds of likely voters nationwide support a transition to 100% clean electricity by 2035. Transitioning to 80% clean electricity by 2030 is affordable, feasible, and reliable, and is projected to create 500,000 good jobs.

“One out of three Americans experienced a climate-driven extreme weather disaster this summer,” said Sierra Club Climate Policy Director Liz Perera. “Right now Congress has a once-in-a-generation opportunity to create hundreds of thousands of good-paying jobs, confront the climate crisis and clean the air in communities that live with high levels of fossil fuel pollution today. Thank you to the House Energy and Commerce Committee for leading on climate, leading on clean energy, and leading on these essential investments.”

BACKGROUND ON CLEAN ENERGY AND CLIMATE JUSTICE INVESTMENTS IN BUDGET: 

Clean Electricity Performance Program: The Build Back Better Act invests ~$150 billion in a Clean Electricity Performance Program (CEPP) at the Department of Energy (DOE). 

• An electricity supplier will be eligible for a grant if they increase their clean electricity supply by 4 percentage points compared to the previous year. A supplier must pay a penalty if they are below 4 percentage points.

• Gas will NOT count as clean energy

• The program is designed to not increase rates for consumers.

Lead Pipe Replacement: Invests $30 billion in lead pipe replacement to fully replace all lead service lines in the country when combined with prior legislative investments.

Electric Vehicles: Invests $13.5 billion in electric vehicle infrastructure to support development of an electric vehicle charging network to assist the transition to zero emissions vehicles. This funding will go toward construction of charging infrastructure in publicly accessible locations, multi-unit housing structures, workplaces, and underserved areas. It will also support electrification of industrial and medium-heavy duty vehicles. Additionally, this money will ensure that state energy offices have resources to develop energy transportation plans. Investing in 

Clean Heavy-Duty Vehicles

• $3B for Advanced Technology Vehicle Manufacturing

• $1B for Domestic Manufacturing Conversation Grants for Zero Emission Vehicles

Air quality monitoring: Invests $265 million the nation’s air quality monitoring infrastructure including air toxics program, the ambient air quality (NAAQS) monitoring network, and methane monitoring.

Clean Energy Innovation and Communities: Invests $7 billion in multiple loan and grant programs at DOE to support development of innovative technologies and American manufacturing of zero emission transportation technologies. 

Electric Transmission: Invests $9 billion into upgrading the nation’s energy grid.

Greenhouse Gas Reduction Fund (Green Bank): Invests $27.5 billion in nonprofit, state, and local climate finance institutions that support the rapid deployment of low- and zero-emission technologies. At least 40 percent of investments will be made in low income and disadvantaged communities. 

Low Income Solar: Invests $2.5 billion for planning and installing solar facilities and community solar projects that serve low-income households or multi-family affordable housing complexes and will help address energy burden.

Green Federal Procurement: $17.5 billion for decarbonizing federal buildings and fleets. 

Appliance & Building Efficiency Rebates: Invests $18 billion in home energy efficiency and appliance electrification rebates. 

Superfund: The Build Back Better Act invests $10 billion for the cleanup of Superfund sites on the National Priority List where federal agencies are the responsible parties, a bipartisan priority. 

Environmental and Climate Justice Block Grants: The Build Back Better Act invests $5 billion to community-led projects that address environmental and public health harms related to pollution and climate change. This grant program provides direct funding to the communities most impacted by climate change and environmental injustice, funding local projects and solutions to decrease pollution and increase climate readiness. 

Methane Fee: Establishes a methane fee at $60/ton of CO2e on pollution from the oil and gas industry above specific intensity thresholds.

Appliance & Building Efficiency Rebates: Invests $18 billion in home energy efficiency and appliance electrification rebates, evenly split between complementary HOPE for HOMES Act and Zero Emissions Home Act.

Leg Text and Important Links

Subtitle A: Air Pollution

Subtitle B: Hazardous Materials

Subtitle C: Drinking Water

Subtitle D: Energy

Section by Section

Fact sheet

Amendments