Climate- Friendly Federal Programs on the Chopping Block, Likely to End Soon
If you’re considering making a clean energy investment, better do it soon!
Programs designed to encourage clean energy and reduce climate-warming air pollution are on the verge of being cancelled by those controlling the federal government. Legislation being voted on this week would eliminate billions in clean energy and transportation investments approved in the 2022 Inflation Reduction Act.
In Colorado, the credits have generated $3 billion in new private-led investment across 53 domestic energy and manufacturing facilities, according to a report by Energy Innovation. Another $4.7 billion of private investment has been announced across 77 facilities in Colorado, much of which is now threatened. The state's clean energy goals will be difficult to meet if the bill becomes law.
The massive budget bill was passed by the House and is now under consideration by the Senate. Both chambers will have to agree before it can become law.
Electric vehicle tax credits at both the state and federal level are shrinking. Colorado has announced it is cutting its credit in half because of budget constraints. The bill under consideration in Congress would do away with federal tax credits entirely soon after passage.
Additionally, residential solar energy tax credits, which have made it possible for millions of Climate CitiSuns around the country to go solar, are likely to end soon. The residential solar industry in Colorado and elsewhere is likely to face severe consequences including massive layoffs. Larger projects would have to be completed soon, under the legislation being considered, or lose tax credits that were promised.
“The bill will strip the ability of millions of American families to choose the energy savings, energy resilience, and energy freedom that solar and storage provide,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. “If this bill passes as is, we cannot ensure an affordable, reliable and secure energy system.”
Credits that have helped homeowners make their homes more energy efficient through insulation, heat pumps and other improvements would also be eliminated shortly after final passage. An incentive for builders constructing new energy-efficient homes and apartments would end shortly as well.
Energy Innovation estimates that the House-passed version of the bill would lead to increased energy bills in Colorado of $760 million annually by 2030 by forcing higher dependence on fossil fuels and higher prices for that energy.
Nationally, the groups forecasts that the changes would cost America’s workforce 840,000 jobs in 2030 and shrink annual GDP by $1.1 trillion between 2025 and 2034.
Here is a list of all the provisions in the bill: What's in the Senate Version of Trump's Big Policy Bill? - The New York Times
The bill is under consideration by Congress now. Please let your elected representatives know how you feel!
Use this link to find you Congressional representatives: Find Your Members in the U.S. Congress | Congress.gov | Library of Congress
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