Unexpected Supporters for Biden’s Inflation Reduction Act Appear
TL/DR –
President Joe Biden’s Inflation Reduction Act (IRA) has garnered the support of two conservative industry groups, the American Petroleum Institute and the U.S. Chamber of Commerce, under the condition that Donald Trump retakes the presidency. The groups, which were initially against the Act, are now willing to fight to preserve certain parts of the law which offer hundreds of billions of dollars of tax credits for clean energy. Traditional fossil fuel industries, like oil and gas, are getting into the clean energy market and these tax breaks make projects viable that would not be otherwise.
Biden’s Inflation Reduction Act Gains Support from Conservative Industry Groups
The Inflation Reduction Act proposed by President Joe Biden has begun seeing support from two conservative industry groups, if former president Donald Trump retakes the White House in November. The American Petroleum Institute and the U.S. Chamber of Commerce have made a surprising pledge to defend parts of the law.
According to reports by Kelsey Bruggers, a Politico and E&E News correspondent on energy and climate politics, these right-leaning groups were once against the Inflation Reduction Act.
Who Are the Players?
The American Petroleum Institute is the biggest oil lobby in Washington while the Chamber of Commerce represents big business. They stand as two of the most influential trade associations in the US advocating for their members in various industries such as energy, clean energy, fossil fuels, and developers.
What Caused Their Change of Heart?
Despite initial opposition due to tax hikes and methane emissions fees within the Act, both industry groups now see the benefits in the law’s provision for tax credits for clean energy. These credits could potentially benefit the emerging clean energy interests of their oil company members. This includes investments in advanced manufacturing for solar panels and high-tech carbon capture.
Plans for the Future
While future scenarios remain uncertain, the industry groups are poised to lobby for the preservation of these profitable tax credits, potentially leading to unlikely alliances in the clean energy market. This includes companies with pre-existing infrastructure for alternative energy projects such as offshore wind.
If Trump is elected, a potential lobbying campaign on Capitol Hill can be expected. There could also be divisions within the Republican Party due to the Act’s inclusion of subsidies for biofuels. This could lead to lobbying efforts from the Chamber of Commerce, American Petroleum Institute, and other trade groups to communicate the value of these subsidies to their members.
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