Republican Budget Reconciliation Package Cuts Clean Energy While Fast-Tracking Fossil Fuels, Mining, and Pipelines.
The proposed GOP budget plan slashes clean energy funding and tax credits, increases incentives for dirty energy projects, and provides new ways for companies to ignore environmental laws.
Several Committees in the House of Representatives have passed budget reconciliation packages this week that would threaten the clean energy boom happening in many rural areas. In addition to the clean energy cuts, the House Republican mega-bill would implement a wish list of incentives and funding sought by fossil fuel, mining, and pipeline corporations. Their plan coincides with President Donald Trump’s “Energy Dominance Agenda” that seeks to fast-track permitting of numerous dirty energy projects that would threaten public health and the environment in many parts of rural America.
The Committee markups from the Ways and Means, Energy and Commerce, Natural Resources, and other Committees would, among other things:
Phase out and wind down the Clean Electricity Production Credit that has facilitated thousands of wind and solar projects all over the country.
Restrict and cut the Clean Electricity Investment Credit that is driving the development of numerous electric vehicle and battery factories in many places.
Open up vast tracts of public lands to drilling and mining projects that could pollute local water and air while threatening the growing rural outdoor recreation sector.
Rescind billions of dollars in Department of Energy funding under the Inflation Reduction Act.
Transfer pipeline permitting authority from states to the federal government through a “pay-to-play” scheme.
Provide energy developers with numerous workarounds of the National Environmental Policy Act, Endangered Species Act, Clean Water Act, Clean Air Act, and other bedrock environmental laws that protect people and the environment from pollution.
These energy proposals are being opposed by many organizations, including grassroots rural groups seeking to protect the places they live. For example, nearly 70 groups issued a letter this week to the House Energy and Commerce Committee opposing fast tracking of pipelines. The letter states:
“These measures would radically expand federal jurisdiction over all types of interstate pipelines, drastically limit public input, shorten environmental review timelines, and shield projects from legal challenges, all while clearing the way for expanded use of federal eminent domain against landowners.”
“We urge you to reject these provisions in the bill. Permitting decisions must not be reduced to a transactional process that trades public safety and welfare for developer convenience. Congress must put the safety and welfare of landowners and communities above the tax credit driven profits of big corporate interests. New infrastructure should not be forced down the throats of landowners via eminent domain, and all landowners and communities deserve robust health, safety, and economic protections.”
Many rural people in Iowa, Minnesota, South Dakota, and North Dakota have been fighting a controversial proposed CO2 pipeline that would link ethanol plants with a CO2 storage site in North Dakota. The pipeline developer, Summit Carbon Solutions, is seeking eminent domain authority from states to push through their project.
“When South Dakota was first faced with carbon dioxide pipelines, our congressmen said it was up to the state to deal with it. Now that we have barred eminent domain for these private projects – their billionaire owners are trying to cut the state out of the process altogether.” said Chase Jensen, Senior Organizer with Dakota Rural Action. “We are calling on our Senators and Representative to stand with the State of South Dakota and oppose this clear attempt to buy permits and bypass the people.”
Many members of Congress, including Democrats and a few Republicans, are calling for changes to these energy provisions before the budget reconciliation package hits the floor. They are arguing that cuts and changes would have serious consequences on energy affordability, manufacturing jobs, and clean energy development jobs. The vast majority of the jobs created by the clean energy boom is happening in Republican Districts.
A Rhodium Group report issued this weeks found that the proposed Republican budget would not only hurt jobs, it would also increase energy prices. The report states:
“While we are still analyzing the package, our preliminary analysis shows that the impact of the proposal is likely to be similar to the impact of a full repeal of the energy tax credits initially extended and expanded in 2022. This will raise energy costs for American households by as much as 7% in 2035, stifle energy technology innovation, increase pollution, and could put a meaningful portion of half a trillion dollars of new manufacturing, industrial, and clean electricity investments across the country at risk.
Republicans are meeting today to discuss final budget reconciliation text language. A full House floor vote is expected soon. It is unclear at this point if Speaker of the House Mike Johnson (R-LA) has the votes to pass the megabill, nor is there a clear path to passing a compatible bill through the Senate. Some Senate Republicans have already expressed opposition to some of these energy provisions, as well as the deep cuts proposed by House Republicans for Medicaid and SNAP nutrition assistance.
The Cocklebur covers rural policy and politics from a progressive point-of-view. Our work focuses on a tangled rural political reality of dishonest debate, economic and racial disparities, corporate power over our democracy, and disinformation peddled by conservative media outlets. We aim to use facts, data, and science to inform our point-of-view. We wear our complicated love/WTF relationship with rural America on our sleeve.