President Donald Trump’s extensive tax and spending plan advanced through the House without alterations on Thursday.
The $4 trillion One Big Beautiful Bill Act aims to impact various sectors, significantly retracting the previous climate change and environmental justice initiatives.
The 887-page bill primarily dismantles the investment in cleaner energy and job creation established by the Inflation Reduction Act.
The legislation removes incentives for electric vehicles and energy-efficient appliances, phases out wind and solar energy tax credits, and opens federal lands for oil and gas drilling. It also enhances coal support and ceases funding for communities disproportionately affected by pollution.
President Joe Biden’s administration believed its climate initiatives would endure, given that much of the $132 billion in private clean energy investment was flowing into Republican areas.
Despite support for clean energy from some Republican Congress members, the bill passed due to strategic threats and political maneuvers, securing a significant win for Trump.
Amanda Levin of the Natural Resources Defense Council described the bill as harmful to both the clean energy sector and climate goals.
David Shadburn from the League of Conservation Voters emphasized raising public awareness about the bill’s impacts and holding lawmakers accountable.
Slashing Incentives for Clean Energy
The bill’s cuts to clean energy tax incentives could save the Treasury $499 billion, according to the Joint Committee on Taxation. However, clean energy experts warn of potential factory closures and job losses, with projections of 900,000 job cuts by 2032. The bill also ends the $7,500 electric vehicle consumer tax credit by September 30.
Automakers like Tesla, which currently benefits from the credit, will face significant impacts. CEO Elon Musk urged lawmakers to oppose the legislation.
Boosting Fossil Fuels
The bill reinstates fossil fuel leases in Alaska’s Arctic National Wildlife Refuge and reduces royalty rates for oil, gas, and coal, enhancing profitability for companies but not taxpayers.
American Petroleum Institute President Mike Sommers praised the bill for promoting energy investment and development.
A last-minute addition includes tax credits for U.S. metallurgical coal producers and authorizes extensive coal mining on federal lands.
Ending Help to Communities and Businesses
The bill cuts funding from the Inflation Reduction Act aimed at enhancing energy efficiency and climate resiliency in vulnerable communities.
An analysis indicates the bill could increase greenhouse gas emissions by 470 million metric tons annually by 2035. Funding for environmental protections and grants for community-based initiatives is also rescinded.
Environmental groups have filed lawsuits to reinstate canceled grants under the program.
Cutting Support for Public Lands
The bill opens public lands for development and cuts funding for agencies like the National Park Service, risking national parks amid record visitation and staffing shortages.
Stephanie Kurose of the Center for Biological Diversity criticized the bill for endangering national landscapes.
A Win for Biofuels and Big Commodities
While cutting clean energy incentives, the bill supports crop-based aviation fuels by extending tax credits and relaxing emission-related requirements.
The bill affects food assistance for low-income individuals and boosts subsidies for large commodity growers, impacting smaller, conservation-focused farmers.
The American Farm Bureau Federation supports the bill, citing benefits to farm families and the agricultural economy.
Original Story at insideclimatenews.org