Republican lawmakers slow down Trump Treasury picks on wind and solar credits

According to a government source and document, two Republican senators put holds on the nominations of three Treasury Department nominees by U.S. president Donald Trump over an effort made by the White House to make it more difficult for companies to claim credits for solar and wind energy projects.

Senators Chuck Grassley from Iowa and John Curtis from Utah hails states with large renewable industries. They support federal tax credits to lower the cost of solar and wind farms.

Grassley's announcement was published in the Congressional Record Friday. Curtis was held by Curtis on Monday, according to a source familiar with the matter.

Grassley announced that he would hold off on the nominations of the Treasury nominees – Brian Morrissey who was to be the Treasury's General Counsel, Francis Brooke nominated as Assistant Secretary, and Jonathan McKernan – until he had confirmed the tax credit rules were in compliance with the law. Senators tried to negotiate an extended timeline for wind and sun tax credits before the passage of One Big Beautiful Bill Act. However, they joined Republicans in supporting a final draft which phases out clean energy subsides years earlier than originally planned as part their budget megabill. To qualify for credits, projects must either begin construction in a year or be put into service by 2027. According to Treasury Department regulations, a project can be considered as having begun construction if it spends 5% of the project costs. Trump, days after enacting the law, directed Treasury last month to limit this "safe harbor" provision, unless at least a substantial part of an installation has been constructed. This was reportedly a pledge he made conservative Republicans. The agency has until 18 August to draft new rules.

Treasury guidelines have been defining what it means to "begin construction" for over a decade. Grassley noted that Congress has specifically referred to current Treasury guidance in order to establish the meaning of this term. This is a clear case in which both the law as well as the intent of Congress are evident.

According to Senate rules, one senator can block a nomination even if all 99 other senators want it to go forward.

(source: Reuters)