Can Big Business Save Democrats’ Climate Law?
TL/DR –
Republicans may hesitate to dismantle President Joe Biden’s climate law, the Inflation Reduction Act, due to pressure from big business. Large trade groups like the U.S. Chamber of Commerce and the American Petroleum Institute, which typically support Republican candidates, are preparing to fight to preserve the law. However, if Republicans gain control in Washington, there will likely still be efforts to roll back parts of Biden’s climate and energy agenda, including elements of the Inflation Reduction Act.
Should Republicans regain control of both the White House and Congress next year, they may not be quick to dismantle President Joe Biden’s climate law. The potential influence of big business, particularly green subsidies and clean energy programs in the Inflation Reduction Act (IRA), could persuade the GOP to reconsider.
Two trade groups that predominantly back Republican candidates, the U.S. Chamber of Commerce and the American Petroleum Institute (API), are preparing to protect the law, despite their opposition to it two years ago.
Christopher Guith, senior vice president at the Chamber’s Global Energy Institute, stated that business is prepared to defend the IRA and its role in energy security and the energy transition. Similarly, API President Mike Sommers expressed support for preserving parts of the law, such as hydrogen and carbon capture tax credits, in an interview with E&E News.
Forecasted Repeals and Changes
Despite this, conservative lawmakers and activists are likely to push for the rollback of Biden’s climate and energy agenda, including elements of the IRA, if Republicans take power. House Republicans have already voted at least 31 times to rescind parts of the law.
However, there is some support among Republicans for aspects of the law. In an intense lobbying push, the House recently rejected an amendment to cap parts of the IRA after input from renewable energy and utility groups.
Sen. Thom Tillis (R-N.C.) has suggested that it’s up to trade groups and companies to defend the act, but acknowledges that some parts, like the tax credits for electric vehicles, should be adjusted.
Business Influence on Legislation
Regardless of the support from the Chamber and API, it’s uncertain how much influence these trade groups will have. The modern GOP is less aligned with business groups than before, and not all lawmakers recognize their sway.
Still, climate and clean energy projects are proliferating across the country, even in conservative districts. At least 523 new projects have been announced since the IRA was passed in August 2022, leading to over 271,000 new jobs and more than $352 billion in investments in 47 states and Puerto Rico.
Options for the GOP range from repealing the law to reprogramming the money. The Department of Energy’s Loan Program Office could potentially fund natural gas projects not traditionally considered “clean.”
The Trump Factor
The role of Donald Trump in this debate is also uncertain. While he has criticized the IRA and promised a “moratorium on all new spending grants and giveaways,” it’s unclear what his specific plans for the law would be.
—
Read More US Economic News