U.S. House set to give Biden huge win with $430 bln bill on climate, drug prices (updated)

Brookfield Renewable Partners LP

12/08/2022 15:22

(Adds expected afternoon vote and bill details)
    By David Morgan
    WASHINGTON, Aug 12 (Reuters) - The U.S. House of
Representatives will vote Friday on a $430 billion bill to fight
climate change and lower prescription drug prices, in what
Democrats view as a major political win for President Joe Biden
ahead of November's midterm elections.
    Democrats say the legislation will help reduce the federal
deficit, cut domestic greenhouse gas emissions, allow Medicare
to negotiate lower drug prices for the elderly and ensure
corporations and the wealthy pay the taxes they owe.
    Titled the "Inflation Reduction Act," the measure passed the
Senate along party lines on Sunday after a marathon, 27-hour
session.  urn:newsml:reuters.com:*:nL1N2ZJ02X House approval would send the bill on to
the White House for Biden to sign into law. A vote on passage
was expected on Friday afternoon. 
    "House Democrats will pass and send to the president the
landmark Inflation Reduction Act," House Speaker Nancy Pelosi,
the chamber's top Democrat, predicted this week in a letter to 
her party colleagues.
    "This bill makes a tremendous difference at the kitchen
table of America's families," Pelosi said.
    Republicans oppose the legislation, warning that it will
kill jobs by raising corporate tax bills, further fuel inflation
with government spending and inhibit the development of new
drugs. 
    Business groups have had a mixed reaction to the bill, which
offers the prospect of higher tax bills for some companies while
at the same time giving protections to the fossil fuel industry.
    The bill's main revenue source is a novel 15% corporate
minimum tax aimed at stopping large, profitable companies from
gaming the Internal Revenue Service code to slash their tax
bills to zero.  urn:newsml:reuters.com:*:nL1N2ZK25G   
    Investors looking to pour cash into clean energy products
can expect at least a decade of federal subsidies through
long-term tax credits for wind and solar and new credits for
energy storage, biogas and hydrogen. Developers who use
U.S.-made equipment or build in poorer areas will find
additional support.   urn:newsml:reuters.com:*:nL8N2ZL3SO
    But the bill does not leave the U.S. fossil fuels industry
out in the cold. Some provisions allow the federal government to
authorize new wind and solar energy developments on federal land
only when it is also auctioning rights to drill for oil and
natural gas.
    A $7,500 tax credit to encourage U.S. consumers to buy
electric vehicles could not be used for most EV models on the
market, according to major automakers, who warn that the
legislation will put achieving U.S. EV adoption targets for 2030
in jeopardy. 
    To be eligible for the credit, vehicles must be assembled in
North America, which would make some current EVs ineligible as
soon as the bill takes effect.  urn:newsml:reuters.com:*:nL1N2ZJ0HK
    The bill has been more than 18 months in the making. It
represents a final version of Biden's original sweeping Build
Back Better plan, which had to be whittled down in the face of
opposition from Republicans and key legislators from his own
party. 
    Democrats, who have been weighed down for months by
inflation and Biden's anemic job approval numbers, hope the
legislation will help them at the polls in November, when voters
decide the balance of power in Congress ahead of the 2024
presidential election.
    Biden himself plans to travel across the country to tout the
bill along with a series of other legislative victories as a win
for voters and a defeat for special interests.  urn:newsml:reuters.com:*:nL8N2ZN588 
    Republicans are favored to win a majority in the House in
November and could also take control of the Senate.
    But in a hopeful sign for Democrats, Biden's public approval
has risen this week to its highest level since early June, as a
result of recent legislative successes, according to a
Reuters/Ipsos opinion poll. 
    The two-day national poll found that 40% of Americans
approve of Biden's job performance, a level of support that is
historically low for a U.S. president but up from his
rock-bottom level of 36% in May.  urn:newsml:reuters.com:*:nL1N2ZL2EV
    In addition to the Inflation Reduction Act, Biden has gained
momentum from legislative wins aimed at boosting U.S.
competitiveness against China and expanding healthcare benefits
for millions of veterans exposed to toxic burn pits.  
    About half of Americans -- some 49% -- support the climate
and drug pricing legislation, including 69% of Democrats and 34%
of Republicans, according to a Reuters/Ipsos poll conducted Aug.
3 and 4. The most popular element of the bill is giving Medicare
the power to negotiate drug prices, which 71% of respondents
support, including 68% of Republicans.  urn:newsml:reuters.com:*:nL1N2ZJ081

 (Reporting by David Morgan; Editing by Scott Malone and
Alistair Bell)
 ((david.morgan@thomsonreuters.com; +1 (202) 898 8326;
twitter.com/dmorganreuters; Reuters Messaging:
david.morgan.thomsonreuters.com@reuters.net))