Valerie Volcovici and Timothy Gardner

WASHINGTON, (Reuters) – U.S. Sen. Joe Manchin’s refusal to approve President Joe Bidens $1.75 Trillion social spending bill could lead to the extinction of hundreds of billions of funds for global warming mitigation and climate change goals.

Biden wanted to pass his broad Build Back better bill that would put the United States on track for at least halving its greenhouse gas emission this decade, if not more than 2005. Also decarbonizing the grid by 2035. This bill will not be passed if Biden, a fellow Democrat Manchin is unable to support the Senate Republicans in killing it.

These are the five most important climate legislation in the bill. We also discuss their future prospects, if any of the larger legislation is repealed.

CLEAN ENERGY TX CREDITS

More than $300 billion worth of tax credits are available to producers and buyers for low carbon energy. This includes existing and new nuclear power plants, as well as solar and wind power. The bill would increase tax credits for renewable energy and create new credit for reactors.

Given Manchin’s resistance, the prospects of such provisions becoming law are slim, according to Christy Goldfuss (senior vice president for environment and energy policy at Center for American Progress), a left-leaning think-tank.

However, smaller incentives could be adopted for renewables if they were combined with benefits for nuclear power or hydrogen. This could create jobs in areas where existing coal plants have closed.

Goldfuss suggested that another way to get back on the table is narrowing, and pairing low-carbon tax credits with popular elements such as prescription drug and child support provisions.

CARBON Capture TAX INCENTIIVES

Bill contains trillions to allow for the extension of so-called 45Q tax credit for industrial and power plants that capture and store carbon dioxide underground.

Tina Smith is a Democrat and has previously sponsored legislation 45Q. Smith said she would continue fighting for her bill because it could benefit ethanol plant owners in Minnesota as well as across the Midwest.

Smith said that “This is the one area where we’ve been able see bipartisan agreement.”

Manchin is a supporter of carbon capture and would like to see the subsidy system made more secure. Manchin supports the removal of a clause in Build Back better that requires plants to capture at most 75% of their carbon emission to receive 45Q.

METHANE FEE

This bill includes fees for oil and gas facilities emitting methane. Methane is a potent greenhouse gas. This would increase revenues and combat climate change. Manchin had opposed an initial methane charge. Democrats set it aside to allow for drilling fees starting at $900 per ton of emission.

Pramila Jayapal (Democratic Representative), a progressive suggested that Biden might advance methane taxes through executive action. But lawmakers believe climate legislation would be the best because courts and future presidents have the power to reverse executive actions.

INFRASTRUCTURE EXTRACTION

It includes $13 billion to electrify buildings, and improve energy efficiency in order to reduce greenhouse gas emissions.

Many cities have adopted the idea of using electricity to heat and cook, most recently New York. However, it can be difficult for lawmakers in states that rely on fossil fuel production to support the idea.

ELECTRIC VEHICLE TAX CREDIT

Biden’s legislation offers incentives to buyers of electric cars, including an increase in tax credits up to $12,500 for vehicles made by union members starting at $7,500 and a 30% credit on commercial electric vehicles.

ClearView Energy Partners is a nonpartisan research organization that stated in a note sent to clients, that EV credit could be an incentive and included in a “tax extensioners” package late next year. Congress usually votes on legislation on short term extensions of tax breaks.

This tactic may require 60 votes from the equally divided Senate. ClearView indicated that the plan could pass more easily if it was not subject to a union-made condition. Also, electric vehicle manufacturing is expanding into Texas and other traditionally Republican-led states.