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US House passes infrastructure package, sending bill to Biden's desk

The U.S. House of Representatives passed a $1.2 trillion bipartisan infrastructure bill late Nov. 5 that could help modernize the electric grid and unlock billions of dollars for cutting-edge energy technologies.

House passage of the bill all but ensures its enactment, with the legislation containing key infrastructure priorities for President Joe Biden. The Senate passed the infrastructure bill in August.

"This bill will make historic and significant strides that take on the climate crisis," Biden said in a statement early Nov. 6. "It will build out the first-ever national network of electric vehicle charging stations across the country. We will get America off the sidelines on manufacturing solar panels, wind farms, batteries, and electric vehicles to grow these supply chains, reward companies for paying good wages and for sourcing their materials from here in the United States, and allow us to export these products and technologies to the world."

Biden said he looked forward to signing the legislation soon. Democratic leaders in Congress also hope to soon advance a massive budget reconciliation package dubbed the Build Back Better Act that includes climate and clean energy measures.

The infrastructure bill, titled the Infrastructure Investment and Jobs Act, has a wave of provisions focused on energy and critical minerals development. Many of the policies align with Biden's infrastructure priorities and underpin his goal to decarbonize the U.S. power sector by 2035.

The package contains more than $65 billion for power infrastructure, of which nearly $29 billion is devoted to the electric grid, including transmission. Transmission advocates have said those totals fall short of what is needed to transition the U.S. to a carbon-free grid. They are pushing for more support from Congress, including an investment tax credit for major transmission projects that House Democrats have proposed as part of the reconciliation package.

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The infrastructure legislation also aims to ease permitting of large regional and interregional transmission projects. Under the bill, the Federal Energy Regulatory Commission can approve certain projects in national-interest electric transmission corridors if a state commission denies approval for the project or has not decided on an application.

Research and development of clean energy technologies is another focus. The legislation will invest billions of dollars to build the foundation for a nationwide hydrogen network. As part of that effort, the legislation has allocated $8 billion over four years for the U.S. Department of Energy to develop at least four clean hydrogen hubs, a network of regional suppliers and consumers, and infrastructure to connect them.

Other energy-focused items include $7.5 billion to build out a network of electric vehicle charging stations and alternative fuel corridors; a program to provide low-interest loans for CO2 transport infrastructure projects; and incentives to avoid the premature closure of nuclear power plants due to economic pressures.

The legislation would also provide billions of dollars in grants for battery material processing, manufacturing and recycling, and invest hundreds of millions into rare earth extraction and mineral mapping programs.

Early Nov. 6, the House passed a rule that would allow for a vote on budget reconciliation package in the week of Nov. 15.

The bill incorporates major climate provisions, including a fee on methane emissions and new and extended clean energy tax credits. Democrats removed a proposal from the bill to create a national clean electricity performance program amid pushback from U.S. Sen. Joe Manchin, D-W.Va., a moderate lawmaker from a coal- and natural gas-producing state.