Latest GOP Provisions in Budget Bill Seek to Crush Renewable Energy

Last-minute additions to the Senate draft of the budget reconciliation bill would accelerate the rollback of Biden-era climate and renewable energy tax credit programs and put an excise tax on wind and solar projects.

Far from the front lines of the climate crisis, 100 men and women in air-conditioned offices, 61 of them millionaires, are making decisions that could increase United States carbon dioxide emissions, and the warming of the climate they are driving, for decades to come.

In the latest political wrangle over energy and climate policy, a group of Republican senators over the weekend added provisions to the U.S. federal budget bill that, as currently written, would end clean energy tax credits at the personal level and at utility scale and increase taxes on foreign-made parts for solar power equipment.

Ending federal subsidies for most renewable energy projects, including residential heat pumps, for example, would affect thousands of projects that are already in planning or development and jeopardize future investments in manufacturing renewable energy equipment.

Friday, June 27, hours before the Senate released the latest draft of the reconciliation bill just after midnight, U.S. Secretary of Energy Chris Wright claimed on the Department of Energy website that wind and solar are unreliable and that federal subsidies have made energy more expensive, although he did not cite any official reports or peer-reviewed studies to support that claim.

On the Department of Energy website, Wright wrote, “wind and solar brings us the worst of two worlds: less reliable energy delivery and higher electric bills …If sources are truly economically viable, let’s allow them to stand on their own,” he wrote, ignoring that the fossil fuel industry gets annual subsidies of about $20 billion annually, according to estimates by Oil Change International, a nonprofit watchdog group.

But hundreds of studies show that renewable energy is much less expensive and, in a well-planned grid, can make energy supplies more secure.  

“The proposed GOP tax on wind and solar is a danger to the United States,” Mark Z. Jacobson, a Stanford University renewable energy researcher who has authored numerous studies on wind and solar power, wrote via email.

The new tax provisions “lock in death and illness to up to 100,000 Americans every year due to fossil-fuel and bioenergy-fuel air pollution that wind and solar help to eliminate,” he said.

An early evaluation shows the administration’s planned energy policies would result in the drilling of 50,000 new oil wells every year for the next few years, he said, adding that it “ensures the continuation of land devastation … the poisoning of soil and groundwater due to fossil fuels and the continuation of gas blowouts and fires.” 

There is nothing beneficial about the tax, he said, “only guaranteed misery.”

An analysis by the Rhodium Group, and energy policy research institute, projected that the Republican regime’s proposed energy policies would result in about 4 billion tons more greenhouse gas emissions than a continuation of current policies—enough to raise the average global temperature by .0072 degrees Fahrenheit.

The overall budget bill was also panned in a June 28 statement by the president of North America’s Building Trades Unions, Sean McGarvey.

McGarvey called it “a massive insult to the working men and women of North America’s Building Trades Unions and all construction workers.”

He said that, as written, the budget “stands to be the biggest job-killing bill in the history of this country,” potentially costing as many jobs as shutting down 1,000 Keystone X pipeline projects, threatening an estimated 1.75 million construction jobs and over 3 billion work hours, which translates to $148 billion in lost annual wages and benefits.

“These are staggering and unfathomable job loss numbers, and the bill throws yet another lifeline and competitive advantage to China in the race for global energy dominance,” he said.

Research in recent years shows how right-wing populist and nationalist ideologies have used anti-renewable energy arguments to win voters, in defiance of environmental logic and scientific fact, in part by using social media to spread misleading and false information about wind, solar and other emissions-free electricity sources.

The same forces now seem to be at work in the U.S., said Stephan Lewandowsky, a cognitive psychologist at the University of Bristol who studies how people respond to misinformation and propaganda, and why people reject well-established scientific facts, such as those regarding climate change.

“This is a bonus for fossil fuels at the expense of future generations and the future of the American economy,” he said. “Other countries will continue working towards renewable-energy economies, especially China. That competitive advantage will eventually pay out to the detriment of American businesses. You can’t negotiate with the laws of physics.”

Cover photo:  U.S. Energy Secretary Chris Wright leaves the East Room after attending an event with President Donald Trump to urge the passage of the “One Big Beautiful Bill” at the White House on June 26 in Washington, D.C. Credit: Chip Somodevilla/Getty Images