Breakthrough on budget reconciliation: 3 actions companies can take now

Last week, Senator Joe Manchin and Majority Leader Chuck Schumer announced their agreement to an investment package including $369 billion in climate and energy programs over the next ten years (see summary). This is a remarkable turnaround after negotiations on these provisions seemed to stall earlier this month. Senate Democrats continued efforts to get them back on track, recognizing they faced long odds. In their joint statement, the Senators said “The Inflation Reduction Act of 2022 will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40 percent by 2030.” The bill will be brought to a vote next week as part of the FY2022 Budget Reconciliation package. 

Business support is essential to get this bill signed into law. The stakes could not be higher: the clean energy tax credits are critical to driving down planet-warming emissions and meeting our national target to cut climate pollution in half by 2030. They’re also critical to meet corporate climate goals that rely on a clean and modernized grid: policy uncertainty is one reason the U.S. clean power industry saw a 55% decline in new project installations in the second quarter. Thanks to the companies that have supported the clean energy tax credits all along. Now it’s time for every company to help get this bill across the finish line.

Three actions companies can take NOW:

• Call your senators ASAP. Urge them to vote for the Inflation Reduction Act of 2022. 
• Ask your trade associations to publicly support the Inflation Reduction Act of 2022 and use their influence to secure its passage. 
• Communicate your support for the bill at all levels – from your CEO on down. Issue a public statement and promote it through your official communication channels. See examples of company statements here and below.

Further resources

• Environmental Defense Fund: Agreement Presents Opportunity for Historic Climate Action in Senate
• Ceres: Climate and energy deal in Senate is a “mammoth investment in confronting the climate crisis” and building U.S. industry
• The Center for Climate and Energy Solutions: President Nat Keohane Statement of Support
• World Wildlife Fund: WWF Statement on Senate Reconciliation Deal
• CEO Climate Dialogue: CCD Statement on Introduction of Inflation Reduction Act | CEO Climate Dialogue