Senate passes sweeping climate-focused Inflation Reduction Act

After more than a year of infighting, President Joe Biden’s climate agenda has cleared a significant hurdle. On Sunday, Senate Democrats passed the Inflation Reduction Act of 2022 in a 51-50 decision that went along party lines and saw Vice President Kamala Harris cast the tie-breaking vote, reports The Washington Post. If passed by the House, the 755-page bill would authorize the single largest expenditure to combat climate change in the nation’s history. In all, the legislation calls for $370 billion in spending to reduce US greenhouse emissions by approximately 40 percent by the end of this decade.

Among the climate change provisions most likely to affect consumers is a reworked federal EV tax credit. The Inflation Reduction Act would provide up to $7,500 in subsidies for electric SUVs, trucks and vans that cost less than $80,000 and cars under $55,000. It would also allow people to claim up to $4,000 when buying a used EV. In both cases, an income ceiling would prevent those who make more than the average American from taking advantage of the legislation.

On top of EV subsidies, the $370 billion in investments set aside by the bill would incentivize the building of wind, solar and other renewable power sources. The act also calls for the creation of a $1.5 billion program that would pay companies that reduce their methane output.

With Sunday’s vote, the Inflation Reduction Act now moves to the House, which will return from its summer recess on Friday. For much of 2021 and the first half of 2022, President Biden’s Build Back Better plan looked doomed to go nowhere due to opposition from Senator Joe Manchin of West Virginia. In late July, however, Manchin and Senate Majority Leader Chuck Schumer announced they had come to a compromise. 

In exchange for his support, the Inflation Reduction Act includes a provision that would see the federal government reinstate canceled oil and gas leases in the Gulf of Mexico and Alaska’s Cook Inlet. While that concession upset environmentalists, it’s not expected to undo the good the Inflation Reduction Act is poised to do for the environment. According to one estimate by Princeton University’s Zero Lab, the bill could reduce US greenhouse emissions by about 6.3 billion tons through 2032.

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Apple reportedly tells suppliers to avoid 'Made in Taiwan' labels on shipments to China

Apple has reportedly warned Taiwanese suppliers to ensure shipments to China comply with a longstanding labeling regulation following House Speaker Nancy Pelosi’s recent visit to Taipei. According to Nikkei (via The Guardian), the company recently told manufacturers on the island that parts bound for the mainland must list “Chinese Taipei” or “Taiwan, China” as their source. 

That’s in line with a policy China has had in place for years but only began enforcing after tensions with the US flared up following Pelosi’s visit last week. Under the policy, officials can delay and even reject shipments that say “Made in Taiwan.” The self-governing island has its own set of labeling rules. Shipments must list “Taiwan” or “Republic of China” as the point of origin.

Apple did not immediately respond to Engadget’s request for comment. The tech giant and many other American companies have a complicated relationship with China. If the report is accurate, it wouldn’t be the first time Apple has sought to appease the Chinese Communist Party. In 2019, the company removed the Taiwan flag emoji from iOS in Hong Kong amid the pro-democracy protests that occurred in the city that year. 

In this instance, Apple may have felt it had no choice but to comply with China’s policy on Taiwanese shipments. In April, Tim Cook said semiconductor shortages significantly impacted the company’s iPad business. Ahead of its iPhone 14 launch later this year, additional delays due to a customs dispute would likely be disastrous for Apple.

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