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Senate Passes Reconciliation Bill

Bottom Line:  Senate passed the budget reconciliation bill and it is expected to pass the House of Representatives on Friday.

Over the weekend, the Senate passed a long-anticipated budget reconciliation bill, the Inflation Reduction Act. This sweeping legislation was a top priority for President Biden and Congressional Democrats and aims to combat climate change, lower health-care costs, raise taxes for large corporations, and reduce the federal deficit. The Senate approved this bill with a vote of 51-50, with Vice President Kamala Harris casting the tie-breaking vote. The House of Representatives will begin its consideration of the bill on Friday, and NPGA expects it will pass quickly. The President will then sign the bill into law in the following days.

This comprehensive bill contains numerous provisions, including an extension of the Alternative Fuel Tax Credit and the Alternative Fuel Refueling Property Credit, as well as incentives for renewable propane production. While these incentives benefit the propane industry, this bill has many other provisions that favor electrification. One of the most concerning provisions is under section 50122, which establishes a High-Efficiency Electric Home Rebate Program that provides rebates to homeowners to adopt electric appliances and equipment. NPGA is evaluating legislative, regulatory, and state advocacy options to combat the effects of this program.

NPGA developed a section-by-section overview (log-in required) of the relevant provisions of this legislation, which association members can access on the Legislative Affairs section of NPGA’s Member Dashboard.

If you have any additional questions, please reach Michael Baker, NPGA’s Vice President of Legislative Affairs.