•   
  •   
  •   

Politics Daily on Energy: House and Senate Democrats face differences on clean energy tax subsidies

12:20  17 september  2021
12:20  17 september  2021 Source:   washingtonexaminer.com

Daily on Energy: House Democrats take on natural gas

  Daily on Energy: House Democrats take on natural gas Subscribe today to the Washington Examiner magazine and get Washington Briefing: politics and policy stories that will keep you up to date with what's going on in Washington. SUBSCRIBE NOW: Just $1.00 an issue! © Provided by Washington Examiner DOE Default Image - July 2021 HOUSE DEMOCRATS VS. NATURAL GAS: House Democrats have decided to keep natural gas out of the “Clean Electricity Payment Program,” the centerpiece climate policy of their reconciliation package, delivering a big win for environmental activists.

HOUSE DEMOCRATS VS. NATURAL GAS: House Democrats have decided to keep natural gas out of the “ Clean Electricity Payment Program,” the centerpiece climate policy of their reconciliation package, delivering a big win for environmental activists. As I reported yesterday, natural gas won’t be counted as a clean power source as part of the program, which would pay utilities to generate electricity from clean sources with the end goal Capito and McMorris Rodgers are the top Republicans on the Senate Environment and Public Works and House Energy and Commerce committees, respectively.

White House economic adviser Brian Deese said House Democrats had made “major progress” with their efforts to increase taxes on corporations and the wealthy to offset the cost of President Joe Biden’s domestic agenda -- despite the proposal falling short of some measures originally proposed by the administration. The package offered by Democrats on the Ways and Means Committee is “not everything that the president called for, but gets at the core issues we face in our tax code,” Deese said Tuesday during an interview on Bloomberg Television’s “What’d You Miss.”

Subscribe today to the Washington Examiner magazine and get Washington Briefing: politics and policy stories that will keep you up to date with what's going on in Washington. SUBSCRIBE NOW: Just $1.00 an issue!

DOE Default Image - July 2021 © Provided by Washington Examiner DOE Default Image - July 2021

DIFFERENCES BETWEEN HOUSE AND SENATE: The House Ways and Means Committee advanced its sweeping green energy tax plan yesterday as part of what Democrats called the single most important piece of climate legislation Congress has had the chance of passing.

But stakeholders are bracing for a “long path to enactment,” as Abigail Ross Hopper, CEO of the Solar Energy Industries Association, noted in one of a hail of statements supporting the package.

Democrats seek corporate, wealthy tax hikes for $3.5T plan

  Democrats seek corporate, wealthy tax hikes for $3.5T plan WASHINGTON (AP) — House Democrats unveiled a sweeping proposal for tax hikes on big corporations and the wealthy to fund President Joe Biden's $3.5 trillion rebuilding plan, as Congress speeds ahead to shape the far-reaching package that touches almost all aspects of domestic life. The proposed top tax rate would revert to 39.6% on individuals earning more than $400,000, or $450,000 for couples, and there would be a 3% tax on wealthier Americans with adjusted income beyond $5 million a year. For big businesses, the proposal would lift the corporate tax rate from 21% to 26.5% on incomes beyond $5 million, slightly less than the 28% rate the president had sought.

WASHINGTON — House Democrats are hoping to extend the existing child cash payments through 2025 and make the expanded Affordable Care Act subsidies permanent as part of the new tax plan lawmakers released on Monday. Families that qualify for the child tax credit began receiving monthly The new proposals released Monday by Ways & Means Committee Democrats are part of the major tax -related portions of the multitrillion-dollar safety net package Congress is currently putting together and that is a centerpiece of President Joe Biden's agenda. The extension of the child tax credit would

But the surprise wins by two Democratic challengers in the Georgia Senate runoff races on Jan. 5 will give Democrats the narrowest possible majority in the Senate , and total control of government for at least the next two years. That will produce a different set of legislative outcomes than if Republicans had held the More than a decade after Congress passed the ACA, legal challenges might finally end. Democrats could also vote to make modest improvements, such as raising the income cutoff for people to qualify for insurance subsidies . Republicans are already plotting how to take back control from the

That’s because the House and Senate still need to work out, or reconcile, their differences, which are pretty vast when it comes to doling out clean energy tax subsidies.

Ron Wyden, chairman of the Senate Finance Committee, reiterated yesterday he plans to proceed with an overhaul of the energy tax code that would replace 44 energy tax breaks and incentives with three emissions-based incentives: clean power, clean fuels, and energy efficiency. These technology-neutral incentives wouldn’t favor a particular technology so long as it reduces carbon emissions. Technologies prompting greater reductions would receive a higher credit.

House on a different track: The Ways and Means Committee, however, has a more straightforward approach, extending renewable energy tax credits already on the books and expanding them to new technologies, while offering a direct-pay option for several tax breaks and providing higher payments to projects that are made in America by union workers.

House Democrats unveil plan to raise taxes on Amazon, Microsoft, and other wealthy corporations and Americans making over $5 million

  House Democrats unveil plan to raise taxes on Amazon, Microsoft, and other wealthy corporations and Americans making over $5 million The House Ways and Means's plans to hike corporate taxes to 26.5% and capital gains to 25% are all more modest than Biden's original proposals.On Monday, Democrats on the House Ways and Means Committee circulated a draft of its tax proposals for the nascent reconciliation plan. They aim to approve it along party-lines without any Republican support because the reconciliation process only requires a simple majority vote.

Wyden’s energy tax plan is also different from the House , with a focus on credits closely linked to carbon emissions reduction. Wyden has also complained that the House panel does not do enough to tax billionaires. EnergyNow is an online energy news and data media service dedicated to providing essential up to-date information on the United States energy industry. We provide live feeds designed to help energy professionals, field personnel, business owners, and senior business leaders get the latest energy news and data, energy industry press releases and energy job and event listings.

Senate Democrats are retooling energy tax reform legislation that was first proposed two years ago but which failed to advance in a Republican-led Congress. "We're actively working on updating that bill for reintroduction and very much view it as a cornerstone of the efforts on energy tax this Congress," Andres said Wednesday at the virtual American Council on Renewable Energy (ACORE) Policy Forum. Dive Insight: Lawmakers on both sides of the aisle have shown interest in overhauling clean energy incentives, and advisors say they are confident agreements can be reached in the

Their proposal does not tie the credits to actual emissions reductions and it keeps in place tax breaks for the fossil fuel industry that Wyden is determined to nix.

Wyden, speaking at a digital happy hour hosted by Evergreen Action yesterday, described the 44 tax breaks that currently exist for energy as a “monument of doing business as usual,” taking specific aim at “fossil fuel relics.”

“It’s time to say no more special breaks for the fossil fuel industry,” Wyden said. “That is in line with what President Biden said during the campaign.”

Wyden tried to minimize differences, adding the House “is moving in our direction on these issues.”

But he also continued to stress his committee’s interest in including carbon pricing in its bill, which would represent a meaningful addition that House Democrats are keen to avoid.

“If you are going to change behavior that really drives our problem that underly climate change, you need to change prices, you need to change taxes,” Wyden said.

Democrats try delicate tax maneuver for $3.5 trillion bill

  Democrats try delicate tax maneuver for $3.5 trillion bill WASHINGTON (AP) — To pay for the massive social plans that President Joe Biden envisions, House Democrats began serious work Tuesday on a maneuver worthy of the most agile circus acrobats. They’re looking to squeeze revenue from the elite 2% of Americans who earn more than $400,000 a year while leaving untouched everyone else — who Biden has pledged won't see any tax increases. Republicans, as opposed to those tax increases as expected, also turned their anger on Tuesday against proposed tax breaks they portrayed as subsidies for wealthy elites rather than help for the poor and middle class.

Nearly all of the House Democratic majority on Tuesday called on Speaker Nancy Pelosi (D-Calif.) and Majority Leader Steny Hoyer (D-Md.) to ensure any final infrastructure package includes energy efficiency and clean transportation tax incentives. The letter also calls for a direct pay option in projects that face financing difficulties. “These incentives will play a critical role in America’s economic recovery, alleviate some of the pollution impacts that have been borne by disadvantaged communities, and help the country build back better and cleaner ,” the letter to Hoyer and Pelosi states.

The Democratic Senators called for the Senate Finance Committee and US Congress to “prioritize extending clean energy tax incentives” as politicians consider extending expired and expiring tax incentives and investments as part of House Resolution 3301 (HR 3301). Specifically prioritized by the authors of the letter were the solar Investment Tax Credit and the residential renewable energy tax credit, the decrease of both of which, according to the authors, “should be delayed by at least as much time as it will take to implement a technology-neutral incentive or other federal legislation to reduce

Welcome to Daily on Energy, written by Washington Examiner Energy and Environment Writer Josh Siegel (@SiegelScribe). Email jsiegel@washingtonexaminer.com for tips, suggestions, calendar items, and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email, and we’ll add you to our list.

WHAT’S IN HOUSE DEMOCRATS’ RECONCILIATION PACKAGE: Now that committees have finished their markups, the Washington Examiner’s Zachary Halachek has a handy roundup of some of the spending and tax measures that have made it through so far.

*Climate/environment/energy:

  • Provides $150 billion for the Clean Electricity Performance Program. The program requires electric providers to increase the percentage of clean energy given to customers by 4% year over year. Providers will be given grants if they meet the goal and fined if they fall short.
  • $13.5 billion in spending on electric vehicle charging infrastructure.
  • $5 billion to replace some heavy-duty vehicles, such as school buses and trash trucks, with zero-emission vehicles.
  • $9 billion toward transmission improvements to the electric grid.
  • $17.5 billion to help decarbonize federal fleets and buildings.
  • $18 billion toward home energy efficiency and appliance rebates to reduce energy usage.
  • $27.5 billion to local, state, and nonprofit climate institutions that support developing low-emission and zero-emission technology. At least 40% is planned for investments in disadvantaged communities.
  • $30 billion to remove and replace lead service lines.
  • $10 billion for Superfund site cleanup.

*Transportation:

Here's what is in House Democrats' multitrillion-dollar infrastructure and social spending package

  Here's what is in House Democrats' multitrillion-dollar infrastructure and social spending package House Democrats are fighting hard to pass a multitrillion-dollar reconciliation package full of new spending and tax measures. While the exact scope and funding of the bill are not yet finalized, here are highlights of what Democrats have laid out in legislation at the committee level this week: © Provided by Washington Examiner SPENDING MEASURES Workplace leave Democrats hope to create the country’s first federal leave program. They are proposing up to 12 weeks of universal paid family and medical leave to workers nationwide.

  • Provides $10 billion in funding to support the planning and development of public high-speed rail projects.
  • $1 billion for investment in projects using low-emission aviation technology or produce, transport, or blend sustainable aviation fuel.
  • $1 billion for climate-resilient infrastructure construction and improvements for the Coast Guard, $788 million for a new polar security cutter, and $350 million for a new icebreaker for the Great Lakes.
  • The Maritime Administration would receive $2.5 billion for grants to support supply chain resilience, reduce port congestion, and develop offshore wind infrastructure.

DEMOCRATS TO PROBE FOSSIL FUEL INDUSTRY ‘DISINFORMATION’: House Oversight Committee Democrats this morning called on top executives of oil and gas companies and lobby groups to testify on the role of the industry in “spreading disinformation” about the role of fossil fuels in causing global warming.

“We are deeply concerned that the fossil fuel industry has reaped massive profits for decades while contributing to climate change that is devastating American communities, costing taxpayers billions of dollars, and ravaging the natural world,” Reps. Carolyn Maloney, the committee’s chairman, and Ro Khanna, who leads the panel’s Subcommittee on the Environment, wrote in letters to ExxonMobil, Chevron, BP, and Shell, as well as the lobby groups American Petroleum Institute and the Chamber of Commerce.

K Street counting on Senate to pare back Democrats’ tax plan

  K Street counting on Senate to pare back Democrats’ tax plan Lobbyists for business interests are confident they can fight off parts of House tax proposal they find most threatening.In interviews this week, lobbyists representing a range of business interests said they aren’t too worried about the party’s opening salvo on tax increases, confident the bill — and the threats their clients insist it poses — will be pared back in order to thread its way through a narrowly divided House and Senate.

The committee’s Democrats ask the companies and groups to provide documents and communications by September 30 related to their organization’s role in “supporting disinformation and misleading the public to prevent action on the climate crisis.”

They also requested the fossil fuel executives to testify at a committee hearing on October 28.

Will the recipients agree? API suggested it would make its CEO Mike Sommers available to the committee.

“API welcomes the opportunity to testify again before the House Oversight Committee and advance our priorities of pricing carbon, regulating methane and reliably producing American energy,” Bethany Aronhalt, a spokesperson for the group, told me.

US-EU METHANE PLEDGE: The Biden administration and European Union officials reached a deal to reduce methane emissions at least 30% by the decade's end and are looking to secure commitments from other nations to make cutting the potent greenhouse gas into a global effort, the Washington Examiner’s Jeremy Beaman reports.

Officials from the EU and the U.S. agreed to the "Global Methane Pledge" and will likely pitch it to others during the Major Economies Forum on Energy and Climate tomorrow, a virtual meeting with world leaders, before introducing the initiative at the United Nations's climate change conference in November.

A senior administration official told reporters the meeting, which won’t be broadcast, is intended to present an opportunity for world leaders to engage in a “candid conversation on what needs to happen” to build momentum for strengthening emissions reductions ahead of the U.N. COP26.

Daily on Energy: Biden can’t meet emissions targets without carbon pricing, research shows

  Daily on Energy: Biden can’t meet emissions targets without carbon pricing, research shows Subscribe today to the Washington Examiner magazine and get Washington Briefing: politics and policy stories that will keep you up to date with what's going on in Washington. SUBSCRIBE NOW: Just $1.00 an issue! © Provided by Washington Examiner DOE Default Image - July 2021 CARBON PRICING BENEFITS: Two fresh analyses make the case that President Joe Biden would fall short of his emissions reduction targets without carbon pricing being included in the Democratic-only reconciliation spending package.

The methane pledge is a start: Nations that U.S. and EU officials want to target for expanding the pledge reportedly include China, the world's No. 1 greenhouse gas emitter, as well as top-ranking emitters Russia and India. Oil-producing Saudi Arabia and Qatar, along with Norway, Brazil, and New Zealand, are also on the list of nations to be targeted with the methane pledge, Reuters reported.

The U.S.-EU’s 30% target is not as ambitious as it could be, according to Arvind Ravikumar, a professor in the petroleum engineering department at the University of Texas.

"Over the past five years, our understanding of methane emissions, and technology to address emissions, have significantly improved. And I think there's no reason why countries cannot be more ambitious than a 30% reduction in emissions," Ravikumar told Jeremy, pointing to the Obama administration's goal of cutting methane emissions by 40 to 45% from 2012 levels by 2025.

ANDREW WHEELER JOINS TRUMP-ALIGNED POLICY GROUP: Former EPA administrator Andrew Wheeler has joined the America First Policy Institute as chairman of its Center for the Environment, Jeremy also reports.

Wheeler, who headed the EPA from late July 2018 through the end of Trump’s administration and joins a bevy of former Trump administration alumni at AFPI, said he plans to use the post to promote environmental conservation and energy independence while challenging Democrats’ aggressive policies aimed at climate change mitigation.

“It's the policy that counts, and it's the policies that we're focusing on, and we want to make sure that we’re putting in for the best policy ideas that will help, in this case, solve the environmental problems that we do have,” Wheeler told Jeremy. “But we need to solve them without hurting jobs.”

Wheeler said he didn’t discount altogether the Biden administration’s preoccupation with carbon emissions but contrasted it with the Trump administration’s deregulatory approach, saying Biden’s proposed climate policies will boost the price of energy for consumers.

A play for critical momentum on Biden's agenda at a moment when there is none

  A play for critical momentum on Biden's agenda at a moment when there is none The White House and Democratic congressional leaders have announced a deal on a framework of a "menu of options" to finance an agreement that doesn't currently exist on a package that doesn't currently have a topline spending number that would require those financing options. © Samuel Corum/Getty Images WASHINGTON, DC - JUNE 23: (L-R) U.S. Speaker of the House Nancy Pelosi (D-CA) and U.S.

“They are looking at things totally under one lens, and that is climate change. We looked at it through multiple lenses, including greenhouse gases,” he said.

VOTE OF CONFIDENCE IN MASSIVE PLANNED NEVADA LITHIUM MINE: International mining giant Sibanye Stillwater is investing $490 million to help bring ioneer’s planned lithium mine in Nevada to production.

Under the terms of the agreement announced last night, South African-based Sibanye is buying half of Australia-based ioneer’s Rhyolite Ridge mine, in one of the largest deals ever to advance the electric vehicle battery materials supply chain.

“Rhyolite Ridge is a world-class lithium project and we recognize its strategic value, with the potential to become the largest lithium mine in the U.S.,” said Sibanye Chief Executive Neal Froneman.

Ioneer will remain the operator of the project, which would tap into the reserves in Nevada's Rhyolite Ridge, located about halfway between Las Vegas and Reno. The region has one-of-a-kind mineralogy that ioneer hopes to take advantage of to produce lithium at some of the world's lowest costs.

Both companies said they will not work to secure debt financing to fund the rest of the project. Ioneer expects to have the necessary financing, as well as permit approval, by the second half of next year

Why it matters: A plentiful supply of critical minerals such as lithium, cobalt, and rare earth elements will be vital to Biden’s aggressive climate plans to massively boost renewable energy deployment and EV adoption. The U.S., however, has little domestic supply of critical minerals, with much of the world’s production and processing dominated by China.

VINEYARD WIND GETS FINANCING TO START CONSTRUCTION: Vineyard Wind announced yesterday it has closed on a $2.3 billion loan from nine international and U.S.-based banks, enabling construction to begin as soon as this week on the nation’s first large-scale offshore wind project.

The financing enables suppliers to start hiring, training, and mobilizing people to begin work. Onshore construction will begin this fall, with offshore work starting in 2022. The first power from Vineyard Wind will be delivered to the grid in 2023.

“Achieving financial close is the most important of all milestones because today we finally move from talking about offshore wind to delivering offshore wind at scale in the U.S.,” said Vineyard Wind CEO Lars Pedersen.

The Biden administration approved Vineyard Wind in May, touting as a move that could help jumpstart an industry that thus far has been stagnant in the U.S.

It’s a first step toward meeting a goal Biden set in March for the U.S. to deploy 30 gigawatts of offshore wind power by 2030. Currently, the U.S. only has two small-scale pilot offshore wind projects in operation, one off the coast of Rhode Island and the other off the coast of Virginia, totaling about 42 megawatts of power.

GRANHOLM CHEERS ILLINOIS NUCLEAR SUBSIDIES: Energy Secretary Jennifer Granholm is gung-ho about Illinois saving its at-risk nuclear plants after Gov. J.B. Prtizker signed legislation yesterday providing nearly $700 million in subsidies as part of a massive clean energy package.

“Preserving our existing fleet of nuclear reactors is essential to reaching our nation’s climate goals,” Granholm tweeted, adding Illinois’ legislation would protect “thousands of good-paying jobs all while showing just what bold state-level action can do to usher in the clean energy future.”

The action in Illinois comes as the Biden administration and Congress are interested in pursuing a federal program giving nuclear plants tax credits or other subsidies to keep America’s largest zero-carbon resource viable.

The bipartisan Senate infrastructure bill creates a $6 billion four-year credit program for nuclear reactors that would provide a big boost to existing nuclear reactors, potentially including others in Illinois.

Democrats are also looking to provide production tax credits for struggling nuclear plants as part of their infrastructure and social spending package.

The Rundown

Axios UN climate summit warning signs are adding up

Reuters UN says world likely to miss climate targets despite COVID pause in emissions

Associated Press Los Angeles County votes to phase out oil and gas drilling

Chicago Tribune EV truck startup Rivian launches production in Normal

Bloomberg Chevron CEO warns of high energy prices and supply crunches

Calendar

THURSDAY | SEP. 16

Congress is out in observance of Yom Kippur.

Washington Examiner Videos

Tags: Energy and Environment, Daily on Energy

Original Author: Josh Siegel

Original Location: Daily on Energy: House and Senate Democrats face differences on clean energy tax subsidies

A play for critical momentum on Biden's agenda at a moment when there is none .
The White House and Democratic congressional leaders have announced a deal on a framework of a "menu of options" to finance an agreement that doesn't currently exist on a package that doesn't currently have a topline spending number that would require those financing options. © Samuel Corum/Getty Images WASHINGTON, DC - JUNE 23: (L-R) U.S. Speaker of the House Nancy Pelosi (D-CA) and U.S.

usr: 1
This is interesting!