Analysis by Energy Workforce President Tim Tarpley
On Tuesday, Senator Curtis, speaking at a Politico energy forum, called on Senate leadership to roll back the phase-out for many of the new energy IRA tax credits that occurred in the House-passed reconciliation bill. He argued that the rollbacks could harm energy workers and the overall economy. “I think that banks, the investors have invested billions of dollars based on these things……And if they’re to go, and I do think some of them should go……Let’s just be thoughtful in how we phase them out.”
While Curtis did not go as far as to say he wouldn’t vote for the bill as is, his comments were meant to show how difficult it will be for Senate leadership to get a successful vote out of the Senate before the July 4th recess. There is no hard deadline for the reconciliation bill to pass before this recess; however, this has been the date targeted by leadership. The only really hard deadline is early August, when the country’s debt limit will be reached. Many Capitol Hill observers feel that this is the true deadline for a reconciliation deal to be reached.
There are also a number of House Republicans who are making the same argument as Curtis. In a letter from 16 House Republicans to Senate leadership, the group asks the Senate to “substantially and strategically” improve the energy tax credit provisions in the House-passed bill. Led by Rep. Jen Kiggans (R-VA), the letter stated that the signers were deeply concerned that the phase-down incentive dates had been moved too far back and that the supply chain requirements may have gone too far. The letter expresses specific concern that the 60-day construction start date from passage would render many of the tax credits unworkable, as well as calling for the reinstatement of the “transferability” provisions. Overall, the House bill was favorable for nuclear and biofuels but less favorable for solar, wind and hydrogen. It is important to note that virtually all signers of this letter in the House supported the large reconciliation package when it moved through the House. Therefore, it remains unclear whether these members will be able to persuade their fellow Republican colleagues to support changes to these provisions. However, given that the Senate appears unlikely to take the House package up without changes, it is certainly possible that things could open up in the Senate. The next few weeks will be critical to watch how it plays out.
Tim Tarpley, Energy Workforce President, analyzes federal policy for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.
