The Biden-Harris Administration sent to Congress on May 28th the Budget Proposal for Fiscal Year 2022 (FY22). Carbon dioxide removal technologies like carbon capture, hydrogen and research and development on other low carbon tech have a dedicated line for the first time in a federal budget.
Biden’s first budget request is for $6 trillion including the American Jobs Plan dedicated to spending on the nation’s infrastructure, and the American Families Plan for child care, universal prekindergarten and paid family and medical leave.
The US budget for climate change calls for $36 billion which is $14 billion more compared with 2021. The goal of the government is to slash America’s GHG emissions at least 50% below 2005 levels by 2030. Also it wants to put the country on track to carbon neutrality by 2050.
The new climate change budget is an opportunity to create new industries and stable jobs for American workers. The investments are across multiple agencies like the Department of Energy (DOE), Department of Agriculture (USDA), and Department of Interior (DOI) dedicated to support and scale multiple carbon removal pathways.
“These investments will ensure the U.S. is the global leader in research, development, and deployment of critical energy technologies to combat the climate crisis, create good-paying union jobs, and strengthen our communities in all pockets of America,” said the Secretary of Energy Jennifer M. Granholm.
Carbon Dioxide Removal Spending
Biden’s budget is proposing $11.2 billion funding for the Environmental Protection Agency (EPA) after Trump cut the money for its climate change and health programs. There is an allocated spending of $23 billion over the next decade on tax credits for companies that install carbon capture technology at power plants or factories. The carbon capture budget is critical for carbon removal efforts.
$265 billion over the next decade are set to extend federal tax breaks for companies that build clean energy sources such as offshore wind turbines or battery storage on the grid. The maintenance tax credits for nuclear reactors that don’t produce harmful emissions is $9.7 billion.
The spending on new electric transmission lines that can transport wind and solar power is $23 billion. There is a proposal for $10 billion in tax credits for battery powered or hydrogen trucks and $6.6 billion for cleaner jet fuels.
Biden has suggested at least 40% of climate change spending to go to the communities of color, which, according to research, are disproportionately affected by air pollution and other climate change aftermaths.
There is an allocation of $580 million to plug old oil and gas wells and clean up abandoned mines. They pose risks for global warming and could create new jobs as there are thousands of old abandoned mines across the country.
$815 million would go for mitigating climate change risk in disaster planning to support the country to more frequent and intense climate change events like wildfires, floods and droughts.
The Biden administration’s new budget will depend on Congress to be passed. It is oriented around meeting critical climate goals. It is a milestone for federal investment in carbon dioxide removal and supports major climate solutions needed for the decarbonization of the economy.