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OFFICIAL VERSION: REP. ESPAILLAT's OFFICE. JAN 2023. Contact: Robert Hogan, <Robert.Hogan@mail.house.gov>
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SECTION BY SECTION – THE EARTH ACT TO STOP CLIMATE POLLUTION BY 2030
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Sec. 1. Short Title – Earth Act to Stop Climate Pollution by 2030
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Sec 2. Findings
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This section states that global climate change is an existential threat to the United States on many fronts: national security, public health, the economy, and others. Climate change impacts communities that are already vulnerable such as the elderly and children, as well as low-income communities, communities of color, persons with disabilities, and those with underlying health issues. These findings come from numerous climate reports by reputable organizations such as The United Nations Intergovernmental Panel on Climate Change (IPCC), the Environmental Protection Agency, and the National Centers for Environmental Information.
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Sec. 3. Electricity
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This section describes amendments to the Federal Power Act to enforce stronger standards for renewable energy usage within this sector. It requires that, by 2030, 100% of all electricity from “retail electric suppliers” selling over 1,000 megawatt hours per year be generated from “renewable energy sources,” which are defined as “wind, solar, geothermal, tidal, wave, and existing hydro-power sources.” This section also requires that 80% of all electricity from retail electric suppliers be generated from renewable energy sources for the years 2027, 2028, and 2029. All entities who are subject to these new legal mandates must also submit formal plans for their transition to the Department of Environmental Protection, the Department of Energy, and the Department of Transportation within one year of the law’s enactment.
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Additionally, this section authorizes a grant program that provides grants for eligible retailers to meet up to 50% of these transition costs in order to promote a smooth transfer to renewable energy. Furthermore, this section requires the Department of Energy to issue additional regulations on the “sourcing, recycling, and disposal of materials used to manufacture renewable energy sources,” with the twin goals of eliminating the use of rare earth materials and ensuring the recycling of all such materials. The Department of Energy is also required to issue a “Best Practices Report” for the reference of retail electric suppliers who must comply with this impending transition.
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Sec. 4. Zero-Emission Vehicles
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This section amends the Clean Air Act by requiring 100% of all motor vehicles sold by companies who engage in the manufacturing of motor vehicles (i.e., “vehicle manufacturers”) to be “zero emission vehicles” by 2030. This section also requires that 80% of all motor vehicles sold by vehicle manufacturers be zero-emission vehicles for the years 2027, 2028, and 2029. It defines a “zero-emission vehicle” as a “motor vehicle…“that produces zero exhaust emissions of any criteria pollutant, precursor pollutant, or greenhouse gas in any mode of operation or condition.” All entities that are subject to these new legal mandates must also submit formal plans for their transition to the Environmental Protection Agency, the Department of Energy, and the Department of Transportation within one year of the law’s enactment.
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Additionally, this section authorizes a grant program that provides grants for eligible vehicle manufacturers to meet up to 50% of these transition costs in order to promote a smooth transfer to zero-emission vehicles. This section also requires the Environmental Protection Agency to issue a “Best Practices Report” for the reference of vehicle manufacturers who must comply with this transition.
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Sec. 5. Regenerative Agriculture Production
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This section requires all publicly traded corporations that are engaged in agriculture and livestock operations (referred to as “covered land or livestock corporation[s]”) to transition to managing 100% of their land and livestock with “regenerative agricultural practices” by 2030, with earlier targets of 50% in 2025 and 2026 and 75% in each of 2027, 2028, and 2029. Next, this section lays out a comprehensive list of several different environmentally friendly “regenerative agricultural practices” for both traditional farming and livestock farming. The Secretary of Agriculture is also entrusted with defining “regenerative agriculture practices” as any process that significantly reduces greenhouse gas emissions or assists in mitigating or adapting to the effects of climate change.
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This section further requires covered land or livestock corporations to submit formal plans for their transition to the Department of Agriculture within one year of the law’s enactment, in addition to annual compliance reports beginning in the year 2028. The Department of Agriculture is also directed to issue regulations that would help to reduce and mitigate the overall effects of agricultural production on the climate. Once again, there is also language to authorize a grant program in order to assist producers with up to 50% of the costs of meeting these transition goals, and this section also mandates that the Department of Agriculture provide a “Best Practices Report” for the reference of covered land or livestock companies.
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Sec. 6 Regulations to Reduce Greenhouse Gas Emissions
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This section grants the Secretary of Agriculture the authority to issue regulations to require the reduction of greenhouse gas emissions. The Secretary is also required to issue guidance on how to reduce greenhouse gas emissions through: “reducing the use of synthetic fertilizers and pesticides”; “supporting the supply of organic fertilizers and pesticides”; “changing feed content for animals”; “general farming practices”; “food and animal transportation, packaging, and distribution”; “minimizing food waste”; and by applying the Department of Agriculture’s existing “National List of Allowed and Prohibited Substances.”
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Sec. 7 Regulations for Animal Welfare
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This section grants the Secretary of Agriculture the authority to issue a variety of regulations to advance animal welfare standards. In particular, this section prohibits the use of medically-unnecessary animal hormones and the physical mutilation of animals raised for human consumption and the production of dairy products. It also requires freedom of movement for said animals. This section further empowers the Secretary of Agriculture to establish publicly available livestreams of non-compliant facilities, provided that those livestreams are limited in scope to the particular violation that was discovered. Lastly, the Secretary of Agriculture is required to issue an annual report to Congress on the enactment of this section and industry compliance with these animal welfare standards.
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Sec. 8 Tax Incentives
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This section details an amendment being made to the Internal Revenue Code by adding a section for Climate Transition Costs to provide tax incentives for producers to meet the requirements of the Earth Act to Stop Climate Pollution by 2030. Specifically, the changes to the tax code would create a new double-deduction for “qualified capital climate transition costs” for retail electric suppliers, vehicle manufacturers, and covered land or livestock corporations under the Act.
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Sec. 9. Support, Oversight, and Reporting
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This section establishes oversight from the following departments: The Department of Environmental Protection, the Department of Energy, the Department of Transportation, and the Department of Agriculture. They are required to implement the Act, support its required transition to climate-friendly practices, and file an annual joint report for Congress on said transition and compliance by retail electric supplies, vehicle manufacturers, and covered land or livestock corporations.
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Sec. 10 Disallowance of Deductions for Noncompliant Businesses
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This section ensures that businesses may not report any tax deductions if they do not comply with the Act’s mandates at any point during a taxable year.
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Sec. 11. Severability
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This section clarifies that if one section of the Act is found to be unconstitutional by a court of law, it shall be severed and will not affect the enforceability of the remaining provisions of the Act.
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