Biden State of the Union to Cast Climate Bill as Anti-Inflation

(Bloomberg) -- President Joe Biden will call on Congress to revive stalled climate legislation in Tuesday's State of the Union address, pitching a package of tax credits and climate spending as a way to battle inflation and save the average American family $500 per year.

The renewed push comes as Biden's approval ratings have dropped precipitously, with voters increasingly frustrated by soaring inflation, driven in part by higher energy prices.

Biden is not expected to explicitly lay out an alternative legislative vision, according a senior administration official who requested anonymity to discuss the preparations. Instead, he'll describe fighting climate change as integral to boosting middle class finances.

The proposal comes after Biden's sweeping Build Back Better economic package -- which included tax credits for renewable power and clean energy manufacturing -- stalled in Congress.

The administration's estimate of savings is based on an analysis by the Rhodium Group last October that said clean energy tax credits, investments in efficiency and other changes necessary to pare U.S. greenhouse gas emissions will help consumers financially. According to Rhodium's assessment, households would save roughly $500 a year in energy costs in 2030, under a mix of federal regulations, state actions and congressional legislation.

The president will also highlight how $47 billion in climate resilience funding in last year's infrastructure bill is being deployed to counteract extreme weather events like fires, floods, and droughts.

Biden also plans to describe progress addressing climate change during his first year in office, including through enactment of the bipartisan infrastructure law that steered funding to upgrading the power grid, charging electric vehicles and capping orphan oil wells.

For years, environmental advocates have urged politicians to frame the fight against climate change as something that can yield big economic dividends. Biden will embrace that narrative in his speech, linking tax credits for renewable power and electric vehicles with household savings.

A recent Washington Post-ABC News poll showed just 37% of Americans approved of Biden's handling of the economy, while 58% disapproved; three-quarters of those surveyed rated the economy negatively and a majority said the economy had gotten worse during Biden's time in office.

In addition to the climate push, Biden will discuss other price-saving efforts, including a bid to bring down the cost of ocean shipping and a push to improve the cost and care provided at nursing homes.