Last-ditch lobbying campaign aims to save Biden’s clean-energy tax credit
Trade groups in the U.S. Energy Industry have launched a last minute lobbying campaign to urge Congress to spare former President Joe Biden’s clean energy tax credit from being cut out of the Republican budget plan.
The House Ways and Means Committee proposed on Monday that several lucrative subsidies in Biden's signature climate legislation, the Inflation Reduction Act, be phased out or cancelled. Several subsidies related to solar and wind power, hydrogen and other technologies that reduce greenhouse gas emissions are on the table.
Over the next few days, lawmakers will amend and pass the tax package.
Advanced Energy United (ADU), a trade group that represents a variety of clean energy, transmission and technology companies, including NRG Sunrun Enel, Microsoft and NRG, has launched a national ad-campaign targeting legislators in five states whose district benefits from investments prompted by the IRA.
The ads will be running until the final budget bill is passed in the House. They show how much a district received in private sector and manufacturing investment generated by IRAs. Speaker Mike Johnson is aiming to have the bill passed on May 26. AEU didn't disclose the total cost of the ads but called it "six digit" campaign.
Heather O'Neill, CEO of Advanced Energy United, said that without these credits American families would be worse off and U.S. manufacturing companies, who had invested in domestic production, would be forced to shut down assembly lines, layoff workers and move production overseas.
Climate Power reports that no Republicans voted in favor of the IRA law when it was passed in 2022. However, districts and states led primarily by Republicans accounted 58% of the new jobs created as a result of investments made under the law.
On Tuesday, dozens lobbyists from the hydrogen industry visited Capitol Hill to urge legislators to save the federal 45V credit for hydrogen projects. They claim that these projects could generate over $12 billion per year in GDP and support 60,000 jobs annually between 2025-2035.
The committee proposed that the tax credit expire in 2026 instead of 2033, which would make it impossible to implement longer-term projects.
In a letter sent to Jason Smith and Johnson, Ways and Means Chair, several companies and trade associations, including Cummins and EQT as well as the ports of Long Beach and Corpus Christi and American Petroleum Institute, "urgently requested" that the credits be saved or they risk losing an advantage to China which has developed rapidly its own hydrogen-based industry.
Abigail Ross Hopper is the president of the Solar Energy Industries Association. She also encouraged member companies to press lawmakers to preserve tax credits. This includes the residential solar credit that will be removed at the end of the year. She noted that some proposed changes may hinder investment in commercial solar and encouraged people to join the Solar Powers America Campaign, which sends letters to Congress. (Reporting and editing by David Gregorio; Additional reporting by Nichola Gregorio; Reporting by Valerie Volcovici)
(source: Reuters)
