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Reconciliation Bill with Climate Provisions Advances in House
September 27, 2021 by NAPA Government Affairs

The House Committee on Transportation and Infrastructure approved its portion of a $3.5 trillion budget reconciliation bill with $57.3 billion in spending aimed at reducing greenhouse gas (GHG) emissions in surface transportation. The bill, approved on a party-line vote, includes $50 million in Federal Highway Administration (FHWA) grants for states to establish GHG performance targets and requires FHWA to establish incentives and penalties to encourage states to meet those targets. The bill also includes $3 billion for FHWA to award to entities other than states for projects that reduce GHG emissions. 

Meanwhile, the House Committee on Energy and Commerce approved its portion of the budget reconciliation measure. The bill provides EPA with significant funding to reduce GHG emissions, including $5 billion to establish a grant program that would fund replacement of Class 6 and 7 heavy-duty vehicles with zero-emission vehicles. An additional $250 million would allow EPA to establish and carry out an Environmental Product Declaration (EPD) assistance program to support the development and enhanced standardization and transparency of EPDs for construction materials and products.

House and Senate Committees had until September 15 to report their portions of Democrats’ reconciliation package. House and Senate Budget Committees will then compile the proposals into a single House and Senate bill that could total $3.5 trillion. The reconciliation process allows the Senate to pass its bill with a simple majority rather than 60 votes.

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