- Over 280 companies and stakeholder groups pressured Democrats to approve an energy tax package one day before a massive spending bill allocating billions to “energy security and climate change” was agreed on by Democratic senators.
- The spending package, which puts roughly $370 billion toward the green energy initiatives, will soon be voted on in the Senate.
- The American Clean Power Association (ACPA), one of the group’s that signed the letter, notably spent $470,000 lobbying for energy subsidies included previously in the now-defunct $3.5 trillion Build Back Better Act, which would have spent $325 billion on green energy tax incentives.
Hundreds of green energy special interest companies and stakeholder groups pressured Democrats to pass an energy tax package one day before a reconciliation deal spending billions on “energy security and climate change” was agreed to by Democratic senators.
Senate Majority Leader Chuck Schumer and West Virginia Sen. Joe Manchin reached a deal Wednesday on a bill dubbed “The Inflation Reduction Act of 2022” that would spend roughly $370 billion on “energy security and climate change.” Just one day before the agreement, more than 280 companies and stakeholder groups demanded Congress pass the energy tax package.
“Additional delay in adopting the transformational policies contained in the package only hinders progress on these national goals,” the groups and stakeholders wrote to Schumer, House Speaker Nancy Pelosi and President Joe Biden on Tuesday. “Clean energy leaders, customers, and advocates across the country are poised to act on these goals.” (RELATED: Manchin’s Spending Bill Shafts Coal Miners With Massive Tax Hike)
The bill, which will head to the Democratic-controlled House for a vote after the Senate officially votes on it, delivers a $10 billion tax credit to manufacturing facilities for electric vehicles (EV), solar panels, wind turbines and more. It also delivers up to $20 million in loans to manufacturing facilities to build clean vehicles, CNBC reported.
The reconciliation package sends $2 billion to existing auto plants so they can manufacture clean vehicles, the outlet reported, and $30 billion in production tax credits for U.S. manufacturers of criminal mineral processing, wind turbines, batteries and solar panels. The package also dishes out a $4,000 tax credit for buying a used EV and a $7,500 tax credit for a new one.
One of the green energy groups that signed on to the letter is the American Clean Power Association (ACPA), a national trade group for companies in the wind power industry. The association notably spent $470,000 lobbying for energy subsidies previously included in the now-defunct Democratic $3.5 trillion Build Back Better Act, which would have spent $325 billion on green energy tax incentives.
“The entire clean energy industry just breathed an enormous sigh of relief,” ACPA CEO Heather Zichal said in a statement Wednesday after the Schumer and Manchin deal. “This is an 11th hour reprieve for climate action and clean energy jobs, and America’s biggest legislative moment for climate and energy policy.”
The deal between the two Democratic senators comes after Manchin said he would not support the reconciliation bill’s climate and energy provisions two weeks ago. There was an “intensive effort” by lawmakers and climate advocates to convince Manchin to support the provisions, according to Politico.
According to Politico, Larry Summers was one of the people who convinced Manchin to support the bill. I support a plan to advance realistic energy-climate policy, which lowers prices and invests strategically in the long term,” Manchin stated on Wednesday. This legislation will ensure that the market takes the initiative, not aspirational or unrealistic political agendas, in the ongoing energy transition in our country .” Schumer’s and Manchins offices didn’t respond to inquiries for comment. ACPA was also silent.
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