Senator Sinema Key to Passing Schumer-Manchin Bill
Kyrsten Sinema, the U.S. Senator for Arizona, is the key to passing the Schumer-Manchin reconciliation bill.
That’s what Arantza Alonso, Verisk Maplecroft’s senior Americas analyst, told Rigzone, adding that Schumer and Manchin’s “secret negotiations did not include her, placing the bill’s passage at odds”.
“Sinema has made clear she is not in favour of including tax increases in reconciliation. She will now have to choose between handing her party a huge win before midterms and some of her largest donors,” Alonso stated.
When asked what the bill means for the oil and gas industry, Alonso said “tying the expansion of renewables to oil and gas leasing for the next decade guarantees the future of the sector”.
“Oil and gas provisions also legitimize and propel an all-of-the-above energy strategy – a route favoured by Republicans,” Alonso added.
“Legitimizing and propelling an all-of-the-above strategy provides ammunition to Republicans should they take back Congress in November,” Alonso went on to say.
Last week, Senate Majority Leader Chuck Schumer and Senator Joe Manchin issued a joint statement announcing an agreement to add the Inflation Reduction Act of 2022 to the FY2022 Budget Reconciliation bill and vote in the Senate this week.
“We are pleased to announce an agreement to add the Inflation Reduction Act of 2022 to the FY2022 Budget Reconciliation bill. After many months of negotiations, we have finalized legislative text that will invest approximately $300 billion in Deficit Reduction and $369.75 billion in Energy Security and Climate Change programs over the next ten years,” the senators noted in the joint statement.
“The investments will be fully paid for by closing tax loopholes on wealthy individuals and corporations. In addition, the expanded Affordable Care Act program will be extended for three years, through 2025. The revised legislative text will be submitted to the Parliamentarian for review this evening [July 27] and the full Senate will consider it next week,” the senators added.
“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 senators continued.
“The bill will finally allow Medicare to negotiate for prescription drugs and lower health care costs for millions of Americans. Additionally, we have reached agreement with President Biden and Speaker Pelosi to pass comprehensive permitting reform legislation before the end of this fiscal year. We urge every member of the U.S. Senate to support this important legislation,” the senators went on to state.
Bill Stimulates Energy Production
In a statement posted on Twitter commenting on the reconciliation bill, Lawrence H. Summers – a Charles W. Eliot University Professor and President Emeritus at Harvard who served as the Secretary of the Treasury for President Clinton and Director of NEC for President Obama – said it “reduces the deficit and the level of demand in the economy, reduces prescription drugs prices and increases supply by stimulating energy production”.
Less demand, more supply & direct better bargaining for lower prices--those are the things involved in reducing inflation.— Lawrence H. Summers (@LHSummers) July 28, 2022
The bill reduces the deficit & the level of demand in the economy, reduces prescription drugs prices & increases supply by stimulating energy production. https://t.co/8uEWhfMHwj
In another Twitter statement, Janet Yellen, the 78th Secretary of the Treasury and Former Fed Chair, said the reconciliation package “will help ease inflationary pressures by lowering some of the biggest costs families face, including energy, health care, and prescription drugs, while making historic investments in fighting climate change and reducing the deficit”.
The reconciliation package announced yesterday will help ease inflationary pressures by lowering some of the biggest costs families face, including energy, health care, and prescription drugs, while making historic investments in fighting climate change and reducing the deficit.— Secretary Janet Yellen (@SecYellen) July 28, 2022
Heather Boushey, a Member of the Council of Economic Advisers at the White House, highlighted on Twitter that the bill tackles energy costs in two “key” ways.
“First, it helps enhance U.S. energy security by investing in clean electricity generation here in the United States, with tax credits and rebates for renewable technologies like solar panels and wind turbines,” Boushey stated.
“Second, the bill also has provisions to lower costs for households to ease the transition to clean energy. For example, it includes a $10,000 direct consumer rebate that returns money to families when they buy heat pumps or other high-efficiency heating and cooling appliances,” Boushey added.
This bill tackles those energy costs in two key ways.— Heather Boushey (@hboushey46) July 31, 2022
First, it helps enhance U.S. energy security by investing in clean electricity generation here in the United States, with tax credits and rebates for renewable technologies like solar panels and wind turbines. 6/
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