Congress eyes $235B in clean energy subsidies. Here they are – E&E News

The reconciliation package contains roughly $235 billion in incentives for everything from wind and solar to emerging technologies like green hydrogen and sustainable aviation fuels.

Yet that figure could rise to 2.5 cents per kWh if developers pay prevailing wage and employ a certain percentage of apprentices on their projects.

The updated ITC envisions a similar system, with a 6 percent base payment and 30 percent bonus with the prevailing wage and apprenticeship requirements.

But persistently low natural gas prices and renewables have eroded the economic competitiveness of nuclear facilities and prompted a series of plant closures.

If the nuclear production credit aims to keep existing facilities open, a hydrogen credit aims to change how industrial facilities operate.

A reduced credit would be available to other technologies using natural gas with carbon capture, and nuclear facilities.

Speaking of EVs, the bill would provide $42 billion in tax credits over the next decade for electric transportation.

“EVs now are like wind and solar a decade ago,” said Rob Jackson, a Stanford University professor who studies energy systems and climate change.

And, finally, $500 is available if more than 55% of the parts are made in the U.S.

Today, a facility that captures carbon dioxide and stores it in the ground would be eligible for a $50-per-ton tax credit.

A big change under the legislation is expanded credits for DAC facilities, which would pull CO2 from the atmosphere and store it underground.

Small and large facilities alike could qualify, with a minimum capture threshold of 1,000 metric tons a year.

That is music to the ears of DAC supporters like Erin Burns, executive director at Carbon180, a nonprofit that advocates for direct air capture.

“When you think about 45Q, it is really important policy to scaling up carbon management policy.

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