Wednesday, July 2, 2025

Senate bill still deals a big blow to renewables despite last-minute amendments

July 1, 2025

Industry advocates and legislators said that the massive U.S. Senate budget bill passed on Tuesday would make it more difficult to develop solar and wind energy projects despite the removal some controversial provisions.

After last-minute talks with Republican senators who wanted better terms for renewable energy, the Senate dropped its proposed excise taxes on solar and wind projects that didn't meet strict criteria.

Iowa Senator Joni Ernest, Iowa Senator Chuck Grassley, and Alaska Senator Lisa Murkowski - whose votes were critical to the bill's passing - had proposed an amendment that called for the removal of this tax. This amendment caught the lawmakers by surprise when it was included in the final draft.

Renewable energy is a major industry in many Republican states.

The Senate changed the language regarding which solar and wind energy projects are eligible for tax credits under the 2022 Inflation Reduction Act. The Senate's final version allows projects to take advantage of the generous credits if construction begins before 2026. In a previous version, the credits were based on when projects entered service.

The Senate bill is likely to make it difficult for many new solar and wind energy projects to be implemented, which will ultimately deprive the

United States

Critics said that the added capacity of electricity at a time when energy demand is soaring was a mistake.

This could lead to higher bills for consumers and the loss of jobs at projects that depend on credits.

Lena Moffitt is the executive director of climate advocacy group Evergreen Action.

C2ES, a research firm, estimated that 2.3 million American jobs would be lost as a result.

Energy Innovation, another research firm, predicted that the bill could result in a loss of 300 GW electricity capacity, at a time when demand is soaring due to the growth of data centers and AI. (Reporting and editing by Cynthia Osterman, Mark Porter, Timothy Gardner. Additional reporting by Valerie Volcovici)

(source: Reuters)

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