House Republicans nuke incentives for clean energy — except nuclear

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The House voted almost entirely along party lines on Thursday to approve a big budget bill that would send many of the Inflation Reduction Act’s clean energy provisions to an early grave. Now the Senate will take a shot at drafting its own version.

Two major losses in the House bill are the production and investment tax credits for clean power projects known as 45Y and 48E, which would be phased out much more quickly than under the IRA. Clean power projects would have to start construction within 60 days of the bill being signed into law to be eligible for the incentives, and start service by the end of 2028. Another provision means bad news for rooftop solar, as it eliminates incentives for installations that companies build on homeowners’ roofs for free or at a low price and then lease back to them.

Nuclear power, on the other hand, made out a little better. Advanced nuclear facilities would only have to start construction by the end of 2028 to access 45Y and 48E tax credits.

Several more clean energy incentives face straight-up termination, including tax credits homeowners can use to install electric appliances and make energy-efficient home improvements. The bill would also end tax credits for buyers of EVs, and then punish all EV owners with a $250 annual fee, based on the reasoning that they are getting an unfair deal because they don’t pay gas taxes — even though that math doesn’t add up.

Study after study has shown that repealing the IRA’s clean energy credits would raise energy bills, derail the clean manufacturing boom, and cost hundreds of thousands of jobs. Just two months ago, 21 House Republicans signed a letter warning an IRA repeal would bring negative economic consequences. But all of them ultimately voted for the so-called big, beautiful bill.

More big energy stories

More federal clean energy funding is in jeopardy

Energy Secretary Chris Wright announced a push last week to roll back what he called ​“wasteful spending of taxpayer dollars,” and former DOE officials told Latitude Media that Loan Programs Office funding could be the first to go. The LPO allocated more than $107 billion to ambitious clean energy projects under former President Joe Biden, but many of those loans didn’t make it past conditional status, making them easier for Wright to revoke.

LPO uncertainty has already led some conditional recipients to back away from their loans. Battery-component manufacturer Aspen Aerogels ended negotiations in February to finalize its loan to build a Georgia factory, saying it would expand production in China and Mexico instead. That’s the exact kind of thing LPO funding was intended to discourage, said Jigar Shah, who headed the LPO under Biden.

“Based on the early actions of this administration, we can expect to see more and more American factories canceled or closed, leaving our communities with more broken promises,” Shah said in a statement. ​“We are on track to again cede our manufacturing industry to China.”

The ups and downs of Empire Wind

Empire Wind, an offshore project planned for the coastal waters of New York, is maybe, probably, most likely happening. The offshore wind industry has faced stormy seas since President Donald Trump took office in January and halted new leases, permits, and loans for wind farms, pausing at least seven offshore projects that were in the permitting phase. But Equinor’s Empire Wind already had its federal authorizations in hand and quietly began construction in early April. Two weeks later, the Trump administration issued a stop-work order and later cited a mysterious report that alleged the project’s approval was based on ​“flawed science.”

Things changed again Monday when the Trump administration lifted the stop-work order, letting Empire Wind construction restart. Interior Secretary Doug Burgum suggested that a compromise with New York Gov. Kathy Hochul (D) to revive a canceled gas pipeline secured the wind project’s resumption, but Hochul’s staff said there was no such deal.

Overwhelmed by all the back and forth? Canary Media’s Clare Fieseler breaks down everything from Trump’s Day 1 order to Empire Wind’s reinstatement in a handy timeline.

Clean energy news to know this week

Rural clean energy wins: Canary Media is partnering with four other newsrooms on a series about how clean energy is creating new job opportunities in rural areas. Kari Lydersen’s reporting spotlights how partnerships between educational institutions and employers are training students to work in EV manufacturing, solar installation, and other clean energy jobs in Decatur, Illinois, opening up new career paths after decades of factory closures.

Backdoor emissions repeal: The U.S. Senate sidesteps its nonpartisan parliamentarian and votes to overturn three California waivers that let the state set stricter vehicle emissions standards than the federal government for cars and heavy-duty trucks, prompting California to promise a lawsuit. (NPR, The Hill)

Small nuclear, big steps: The Tennessee Valley Authority is the first utility in the nation to submit a construction application to the U.S. Nuclear Regulatory Commission to build a small modular nuclear reactor. (Chattanooga Times Free Press)

Just pretend it didn’t happen: President Trump is routinely ordering federal agencies to stop enforcing rules he doesn’t like, including pipeline safety regulations and appliance efficiency standards. (Washington Post)

Steel’s polluting consequences: The U.S. has seven steel plants that still use coal-fired blast furnaces, and all of them are located in cities that rank among the top 25 for worst air pollution in the nation. (Canary Media)

Tesla’s woes continue: Chinese EV giant BYD sold more vehicles in Europe than Tesla across an entire month, a first and of particular note given the higher tariff rate the cars face compared to Elon Musk’s company. (CNBC)