How will H.R. 5376 help the United States Build Back Better?
Summary
The Build Back Better Act (H.R. 5376) allocates $555 billion to climate change and clean energy to reduce emissions by over one billion metric tons by 2030. The legislation employs a sector-wide approach, providing tax credits and grants for zero-emission vehicles, clean hydrogen, carbon capture (via enhanced 45Q credits), and renewable energy. It specifically targets the decarbonization of heavy industry, the power sector—including support for existing nuclear plants—and agricultural and forestry sequestration, while directing 40% of investment benefits to disadvantaged communities.
Key insights
- The Build Back Better Act (H.R. 5376) allocates approximately $555 billion, or 32 percent of its total $1.7 trillion spending, to climate change and clean energy. The White House estimates these investments will reduce emissions by more than one billion metric tons (1 GT) in 2030 compared to business as usual, supporting a national goal to reduce climate pollution by 50-52% by 2030 from 2005 levels.
- The Act enhances carbon management through improvements to 45Q tax credits, including increasing the credit value to $85 per metric ton for industrial facilities and power plants storing CO2 in saline geologic formations, and $180 per metric ton for Direct Air Capture projects. It also introduces 'Direct pay' for the full value of the credit over 12 years and extends the construction commencement deadline to December 31, 2031.
- In the electricity sector, the bill provides tax credits for renewable energy, transmission, and the continued operation of existing zero-emission nuclear plants (up to 1.5 cents/kWh through 2027). It establishes a Clean Electricity Production Credit starting in 2027 for resources with emissions rates of zero or less.
- The legislation targets the transportation sector by supporting both electrification and low-carbon fuels, including tax credits for clean hydrogen production and incentives for new and used electric and fuel cell vehicles. It specifically provides grants for zero-emission vehicle (ZEV) equipment at ports and funding to reduce diesel emissions in disadvantaged communities.
- The Act includes measures to reduce methane emissions, specifically establishing a waste charge on methane emissions from oil and gas operations that exceed a 'good practice threshold' and increasing funding for methane monitoring.
Cite the original document
- APA
- Clean Air Task Force (n.d.). How will H.R. 5376 help the United States Build Back Better? https://cdn.catf.us/wp-content/uploads/2021/11/22171736/CATF_BuildBackBetter_Summary_Proof_11.22.21_v2.pdf
- Chicago
- Clean Air Task Force. How will H.R. 5376 help the United States Build Back Better? n.d. https://cdn.catf.us/wp-content/uploads/2021/11/22171736/CATF_BuildBackBetter_Summary_Proof_11.22.21_v2.pdf.
- Wikipedia
- {{cite report |author=Clean Air Task Force |title=How will H.R. 5376 help the United States Build Back Better? |url=https://cdn.catf.us/wp-content/uploads/2021/11/22171736/CATF_BuildBackBetter_Summary_Proof_11.22.21_v2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{cleanairtaskforcendhow, author = {{Clean Air Task Force}}, title = {{How will H.R. 5376 help the United States Build Back Better?}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2021/11/22171736/CATF_BuildBackBetter_Summary_Proof_11.22.21_v2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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