Environment and Public Works (EPW)

Summary of EPW Senate Text

The Senate Committee for Environment and Public Works (EPW) covers, among other things, any elements of the reconciliation bill related to air and water pollution, environmental policy, and public buildings. This part of the reconciliation bill repeals many federal grant programs created by the IRA. Here’s what the Senate EPW Committee proposed: 

• The bill increases pollution and consumer costs by rolling back some vehicle emissions standards for light-duty and medium-duty vehicles. This also stretches the limits of the rules of reconciliation that prohibit making non-budgetary policy changes and bypasses the legal regulatory rulemaking process. 
• The Senate EPW bill text largely mirrors the final House text, harming flagship climate programs and making unprecedented changes to underlying federal law via budget reconciliation legislation. 
• The majority of climate programs have been repealed, and any unobligated funds have been rescinded, including the Greenhouse Gas Reduction Fund (GGRF), Environmental Justice Block Grants, and the Climate Pollution Reduction Grants (CPRG).
• The bill would take a wrecking ball to the Climate Pollution Reductions Grant (CPRG) program. This proposal would stall or permanently halt state pollution reduction plans that were intended to create jobs, reduce energy and transportation costs, and mitigate pollution in impacted communities. 
• The bill delays the imposition of a historic methane fee for ten years, rendering the effort to cut this climate super pollutant ineffective. 
• In a continuation of the “pay-to-play politics” we saw in the House version, the Senate bill proposes an “opt-in” fee for project sponsors to pay that expedites their project’s environmental review under NEPA and allows the project to totally avoid judicial review.

In-Depth Policy Analysis for EPW Senate Text

Jump to a section or keep scrolling:

• Vehicle Efficiency and Emission Standards
• Greenhouse Gas Reduction Fund
• Climate Pollution Reduction Grants 
• Environmental Justice Block Grants
• Methane Emissions and Waste Reduction Incentive Program
• Opt-In Fee Program Impacting the National Environmental Policy Act (NEPA) 
• Other IRA programs affected by EPW

1. Vehicle Efficiency and Emission Standards

The Department of Transportation (DOT) and Environmental Protection Agency (EPA) set corporate average fuel economy (CAFE) standards for efficiency and greenhouse gas emissions from cars and trucks. These standards have saved drivers trillions of dollars and drastically reduced harmful pollution from vehicles—reducing smog and health impacts like asthma and heart disease. Rescinding these standards is not allowed by the rules of budget reconciliation, but Republicans are trying to repeal them anyway. 

1a. Summary of Senate Text 

This bill would repeal the EPA air pollution emissions standards for light- and medium-duty vehicles, phasing in over model years 2027 through 2032.

1b. Changes from House Version

This is largely consistent with the House text that repealed these EPA standards, as well as greenhouse gas emissions standards starting in 2023, plus the DOT efficiency standards (which we will likely see in bill text from the Senate Commerce committee).

1c. Key Impacts

If Republicans gut vehicle standards in the final bill as they did in the House bill, we would end up with less efficient and more polluting vehicles, burning 70 billion extra gallons of gasoline through 2050 and increasing climate pollution by more than 710 million metric tons. Eliminating these standards would increase costs by $600 over the lifetime of new vehicles. Increased pollution would lead to greater health risks (asthma, heart disease, cancer) from toxic air pollution. Attempting to repeal these rules via reconciliation would seriously surpass the limits of reconciliation by trying to set regulations via this budgetary process.

2. Greenhouse Gas Reduction Fund

The $27 billion Greenhouse Gas Reduction Fund (GGRF) is the largest grant program within the IRA. This $27 billion is divided into three programs: the National Clean Investment Fund (NCIF), the Clean Communities Investment Accelerator (CCIA), and Solar for All. Not only does this program provide a significant investment in pollution-reducing clean energy technology and green banks, but it also benefits communities that have been historically overlooked and underserved, bringing greater equity to the clean energy transition. For months, the Trump administration has waged an unsubstantiated assault on this fund. At every turn, the administration has been unable to justify its attacks to undermine this program, failing to offer evidence to support its bogus claims of fraud, waste, or abuse.

2a. Summary of Senate Text 

Senate Republicans would repeal Section 134 of the Clean Air Act, which created the GGRF. All unobligated balances from the GGRF program would be rescinded.

2b. Changes from House Version

There is no change from the House version.

2c. Key Impacts

The GGRF is unlocking a historic wave of public and private investment, delivering local economic development opportunities that would not have materialized without this program, especially in disadvantaged communities. But the Trump administration has already been attacking the GGRF through an illegal funding freeze, and a court battle is currently raging with program awardees, in particular the NCIF and CCIA programs. The GGRF funding has technically been obligated, and only minimal GGRF funds remain unobligated and available for rescission. But the EPW bill will harm program implementation and oversight at EPA. It may also represent an attempt by Congress and the administration to block or claw back funds that have been legally obligated.

3. Climate Pollution Reduction Grants 

The Climate Pollution Reduction Grants (CPRG) are an EPA program established as part of a new Clean Air Act Section 137 created in the IRA, which provides grants to state, local, and Tribal governments to create and implement programs that reduce emissions and support jobs and communities. It was funded with $5 billion, including $250 million in planning grants, $4.6 billion for implementation grants, and the remaining balance for technical assistance and program implementation. These grants have been used to support state, local, and Tribal governments in nearly all 50 states.

3a. Summary of Senate Text 

Senate Republicans would repeal Section 137 of the Clean Air Act, eliminating the CPRG program. Any unobligated funds would be rescinded.

3b. Changes from House Version

The Senate version is the same as the House version.

3c. Key Impacts

The CPRG program is a primary vehicle for states to fund their pollution reduction programs. Rescinding unobligated funding for the CPRG program would dramatically harm program implementation at the agency. Many awarded states could have to stall or permanently halt their pollution reduction plans that were intended to create jobs, reduce energy and transportation costs, and mitigate pollution in impacted communities.

4. Environmental Justice Block Grants

This first-of-its-kind $3 billion federal program aims to empower disadvantaged communities to determine and design their own visions of pollution reduction and clean energy investment. The Environmental Justice (EJ) Block Grants, also known as the Community Change Grants, provide highly flexible funding that goes directly to nonprofit organizations serving these communities. This means projects are designed by and for communities to address their unique needs and build resilience to extreme weather events and environmental risks.

4a. Summary of Senate Text 

Senate Republicans want to completely repeal Section 138 of the Clean Air Act, eliminating the Environmental Justice (EJ) Block Grants program, and rescinding any unobligated funding.

4b. Changes from House Version

The Senate version closely mirrors the House version.

4c. Key Impacts

Without EJ Block Grants, there will be less financial support for on-the-ground, community-led organizations that provide life-changing services to households based in disadvantaged communities or living near sacrifice zones. Examples of critical services include community-led pollution monitoring, prevention, and remediation; projects that reduce indoor air pollution; projects to counter health risks from urban heat islands, extreme heat, and wildfires; improved community engagement in public processes; and technical assistance. Much of these funds are unobligated.

5. Methane Emissions and Waste Reduction Incentive Program

Methane is a potent, planet-heating greenhouse gas that oil and gas operators often flare or leak into the atmosphere. That’s why Congress passed the Waste Emissions Charge (WEC) through the IRA in 2022, requiring oil and gas operators to pay a penalty fee if they exceed a certain level of methane pollution. Soon after, the Biden-led EPA introduced a rule implementing the WEC. But at the beginning of 2025, the Republican-controlled Congress voted to eliminate that rule. Now, Congress is trying to get rid of the fee outright via the budget reconciliation bill. 

5a. Summary of Senate Text 

Senate Republicans want to repeal Section 136 of the Clean Air Act. Unobligated balances are rescinded. A fee on excessive methane waste is retained, but the language is now altered so the collection of charges are postponed to 2034, as opposed to 2024 under current legislation. This renders the fee largely ineffective for the next decade.

5b. Changes from House Version

The Senate version is virtually the same as the House version.

5c. Key Impacts

By cutting methane pollution and other harmful pollutants, the WEC would have helped prevent asthma attacks and other health-harming impacts. The program would have reduced an extremely harmful greenhouse gas superpollutant. Altering the WEC will disproportionately impact communities of color and disadvantaged communities. The methane fee is also a revenue raiser, so its alteration increases the budget deficit and would necessitate even deeper cuts to other vital programs to comply with the GOP’s self-imposed spending cut targets.

6. Opt-In Fee Program Impacting the National Environmental Policy Act (NEPA) 

The National Environmental Policy Act (NEPA) is our nation’s bedrock environmental law. It requires federal agencies to assess the environmental impact of all major proposed government projects. 

6a. Summary of Senate Text 

Senate Republicans have created a new “opt-in fee” mechanism that would allow project sponsors to receive special treatment in the environmental review process. Additionally, the fee would allow projects to avoid judicial review of findings, drastically curtailing the rights of affected communities to petition the courts.

6b. Changes from House Version

This is similar to the House version.

6c. Key Impacts

This is a continuation of the “pay-to-play” politics we saw in the GOP’s House version, but this time, the bill is attacking the National Environmental Policy Act (NEPA), which provides for environmental reviews of all major government actions. We also expect to see similar “pay-to-play” provisions in the Senate ENR text related to liquefied natural gas (LNG) exports and expedited gas permitting.

7. Other IRA Programs Affected by the Senate EPW Bill 

The Republican EPW Committee also repealed and/or rescinded any unobligated funds from the following IRA programs: 

• Air pollution monitoring program for schools in low-income and disadvantaged communities at EPA.
• American Innovation Manufacturing (AIM) Act aims to phase down hydrofluorocarbons (HFCs)—potent greenhouse pollutants used in refrigeration, air conditioning, and other applications. The EPW proposes to eliminate funding that helps implement this important bipartisan law.
• Diesel Emissions Reduction Program at EPA for grantmaking to reduce diesel emissions from facilities and goods movement in low-income and disadvantaged communities.
• Funding for Efficient, Accurate, and Timely Reviews at EPA to enhance the efficiency, accuracy, and timeliness of environmental reviews, permitting, and project approvals.
• Efficient and Effective Environmental Reviews, which support expediting the environmental review and permitting processes. This provision was not included in the House bill.
• Funding for Endangered Species Act (ESA) Recovery Plans is rescinded, which is a provision not included in the House bill.
• Enforcement Technology and Public Information at EPA.
• Environmental Product Declarations (EPDs) at EPA for construction materials and products. This initiative aimed to enhance the standardization, transparency, and reporting criteria for EPDs, which include measurements of the embodied greenhouse gas emissions associated with materials and products used in construction. 
• Environmental Review Implementation Funds, which provide funds to the Federal Highway Administration to review transportation projects by providing guidance, assistance, and training to state, local, and Tribal governments. 
• Environmental and Climate Data Collection, which provides funding for data collection efforts on the disproportionate harms and cumulative impacts resulting from pollution and climate change. 
• Fenceline pollution monitoring program at EPA monitors pollution, particularly in communities near polluting facilities.
• Greenhouse Gas Air Pollution Plans and Implementation Grants, which provide funding to states, local governments, and Tribes to develop and implement “Climate Change Action Plans” and environmental justice initiatives. 
• Greenhouse Gas Corporate Reporting at EPA to enhance the standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas (GHG) emissions
• Heavy Duty Vehicle Electrification at EPA for grantmaking for heavy-duty vehicles in non-attainment areas.
• Low Carbon Materials Grant Program at DOT for grantmaking to support the use of low-carbon materials in construction projects. 
• Lowering Embodied Carbon Labeling for Construction Materials, including developing a program for identifying and labeling construction materials with substantially lower levels of embodied GHG emissions compared to industry averages. This initiative was designed to promote the use of low-carbon materials in construction projects, particularly in federal buildings and transportation infrastructure.
• Low Emissions Electricity Program, which funds a wide range of activities to encourage low-emissions electricity generation and reinforced EPA’s authority to regulate carbon pollution.
• Neighborhood Access and Equity Grant Program, which would improve walkability, safety, and affordability in transportation, as well as mitigate and remediate impacts from transportation facilities. 
• Renewable Fuel Program at EPA for grantmaking for advanced biofuels.
• Various Green and Efficient Government Building Programs, including use of low-carbon materials and emerging technologies in federal government building projects.

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