(Also, destroy a livable planet, but we don’t do science any more, do we? —
pays to know your audience)
Above, Senator Brian Schatz (D-Hawaii) was asked today about the effects of the giant tax package currently making its way through the Republican lead US Senate.
Mr Schatz is one of a growing chorus of voices warning that pulling the rug out from clean energy development will leave the US with virtually no options to meet growing demand in the near term future.
This week, 4 Republican Senators wrote to Majority Leader John Thune to express a very similar message.
Senators Murkowski (R-Alaska), Tillis (R-North Carolina),Curtis (R-Utah), and Moran (R-Kansas):
The United States produces some of the cleanest and most efficient energy in the world, and an all-of-the-above approach—including support for traditional and renewable energy sources—has long been a hallmark of our energy strategy. To that end, many American companies have made substantial investments in domestic energy production and infrastructure based on the current energy tax framework. A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy.
Given rising energy demand, it is imperative that any modifications to the tax code avoid worsening the economic pressures that American households and businesses already face. For energy credits that provide a direct passthrough benefit to ratepayers, repeals would translate into immediate utility bill increases, placing additional strain on hardworking Americans.
Furthermore, as the Trump Administration continues its efforts to restore manufacturing and secure supply chains, maintaining a reliable energy tax environment is essential to attracting long-term investment, particularly in states that offer business-friendly climates. Repealing incentives that support energy development would undermine these objectives, slowing economic progress and job creation in key industries.
As the U.S. Senate works to craft a budget deal, it faces a defining choice: Will American industry seize the economic rewards of a modern energy system, or allow our competitors to take the lead?
The version of the “Big Beautiful Bill” passed by the House stripped away incentives that support modern clean energy infrastructure and innovation, security and competitiveness, downing the very tools that put the United States on track for global energy leadership. But U.S. senators and their constituents are pushing back, saying that undoing the incentives would raise electricity prices and cut jobs.
As a group of four GOP senators wrote to Senate Majority Leader John Thune, “A wholesale repeal, or termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy.” Now, 13 House Republicans are urging the Senate to restore the incentives, and there is a chance they could get their way.
This is not about ideology. Wherever you are on the political spectrum, clean energy competitiveness is about “economic prosperity, a healthier planet and true national security,” according to Sen. John Curtis (R-Utah). Globally over $2 trillion was invested in clean energy technologies and infrastructure last year — double the amount spent on fossil-based infrastructure. The U.S. must not abandon its position in this ascendent sector.
Markets are moving decisively towards modern clean energy systems because technologies like solar, wind, and batteries are generally cheaperand faster to install than their legacy competitors. A broad array of related new technologies is following close behind.
This isn’t a fluke; it’s basic economics. Clean energy systems generate, store and deliver power without fuel, so that once the infrastructure is in place, the marginal cost of energy is near zero — an overwhelming competitive advantage. These technologies enjoy semiconductor-like cost curves, with production costs declining rapidly as deployment scales, pushing energy prices lower and lower.
“A wholesale repeal, or the termination of certain individual credits, would create uncertainty, jeopardizing capital allocation, long-term project planning, and job creation in the energy sector and across our broader economy.”
Republicans know they can’t frame it as hurting the citizenry, but damaging shareholder value (PBUI).