Senate Environment Committee Releases Budget Reconciliation Draft Text

On June 16, 2025, the Senate Committee on Environment and Public Works released draft text for budget reconciliation. The committee proposed to repeal funding for clean heavy-duty vehicles (Clean Air Act §132), the Greenhouse Gas Reduction Fund (CAA §134), diesel emissions reduction (Inflation Reduction Act §60104), air pollution reduction (IRA §60105 and §60106), low-emissions electricity program (CAA §135), advanced biofuel research (IRA §60108), implementation of the American Innovation and Manufacturing Act (IRA §60109), GHG corporate reporting and environmental product declaration (IRA §60111 and §60112), methane emissions incentives (CAA §136), GHG air pollution plans (CAA §137), low-embodied carbon labeling for building and construction materials (IRA §60116 and §60503), environmental justice block grants (CAA §138), climate data collection (IRA §60401), environmental reviews (23 USC §178 and IRA §60115 and 60402), the neighborhood equity program (23 USC §177), sustainable technologies (IRA §60504) and low-carbon transportation materials (23 USC §179). The Committee also proposed to rescind EPA’s 2024 emissions standards for light- and medium-duty vehicles. The proposal will be subject to further congressional negotiations.