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Politico
21 hours ago
- Business
- Politico
IRA incentive boosters take to the airwaves
Presented by Recycled Materials Association With Daniel Lippman AD BLITZ: Advocacy groups and trade associations continue pouring money into advertising to support various priorities in the reconciliation bill. Two new campaigns launched this week to support the Inflation Reduction Act's clean energy incentives alone. — They include a six-figure ad blitz from Advanced Energy United, a coalition made up of energy stakeholders and tech companies that is targeting Republican senators the group sees as winnable on the issue of protecting the IRA tax credits. — The digital campaign, the details of which were shared exclusively with PI, will target constituents of Sens. Todd Young (Ind.), Tim Scott (S.C.), Dave McCormick (Pa.), Thom Tillis (N.C.) and Jerry Moran (Kan.) with display and Facebook ads touting the economic benefits of the IRA incentives in their respective states. The ads will also run inside the Beltway to target Hill staffers. — The ad buy will be accompanied by a letter campaign from local energy companies urging senators like Sen. John Cornyn (R-Texas) to protect the clean energy incentives. It follows a similar campaign on the House side by the coalition, whose members include NRG, Microsoft, Blink, Rivian, Oracle, Carrier and Ford. — A second new campaign to save the IRA provisions is focused on persuading President Donald Trump (or at least his inner circle). The $2 million ad buy from GOP-led Built for America will run over the next three weeks on platforms closely watched by Trump and his allies, including on Fox News, Truth Social and various conservative podcasts. — The 30-second spot borrows Trump's own language to make the case against gutting the tax credits, contending that 'Trump country is booming' thanks to the incentives, which are helping put 'America first.' — The Association of Equipment Manufacturers is also out with a new nationwide ad buy supporting the reconciliation bill's tax extensions specifically, with a minute-long ad arguing that the bill would keep equipment manufacturers in America by providing certainty to make investments. Happy Wednesday and welcome to PI. Send tips. You can add me on Signal, email me at coprysko@ and be sure to follow me on X: @caitlinoprysko. FIRST IN PI — FLANAGAN'S CORPORATE MONEY FLIP-FLOP: Minnesota Lt. Gov. Peggy Flanagan, who's running for an open U.S. Senate seat, has made rejecting corporate money a major part of her campaign platform. But she accepted millions of dollars in corporate cash on behalf of the Democratic Lieutenant Governors Association when she was its chair, Daniel reports. — Flanagan's launch video said she wouldn't take 'one dime from corporate interests.' In April, she said in a video on X that 'taking corporate money is a choice' and she is 'not taking money from corporations and I never will.' — But Flanagan helped raise more than $2 million in corporate money last year when she was chair of the DLGA. That included half a million dollars from the pharmaceutical industry, almost $300,000 from the tech industry and around $100,000 from the tobacco industry, according to a PI analysis of FEC records. — And even as Flanagan says her campaign won't take corporate cash, NOTUS reported last week that DLGA plans to spend big to support lieutenant governors like Flanagan who are running in open primaries and has already maxed out in direct contributions to her campaign — meaning that at least some of that money could have come from corporations. — Flanagan is facing Rep. Angie Craig (D) in the campaign to fill the Senate seat of Sen. Tina Smith (D), who's retiring. Before joining Congress, Craig, as part of her private-sector job, ran a corporate PAC that gave to many prominent Republicans. Last cycle, she was the 12th-largest recipient among House Democrats of money from corporate PACs, taking $1.3 million from them during that time, according to OpenSecrets. — 'Peggy is the only candidate in this race to reject corporate PAC money,' campaign spokesperson Alexandra Fetissoff said in a statement to PI. 'This is a transparent attempt to distract from Angie Craig's continued funding from big corporations like Elon Musk's SpaceX. People want leaders who are willing to take a stand and make the choice to only be beholden to their constituents. Only Peggy has made that choice.' QUIGLEY CHIEF HEADED DOWNTOWN: Allison Jarus has left the Hill after 12 years to join Arnold & Porter as a policy adviser. Jarus spent the past decade working for Rep. Mike Quigley (D-Ill.), most recently as his chief of staff. — Jarus helped handle Quigley's work on the House Appropriations Committee and was a key architect of the 2021 legislation to increase access for experimental treatments for ALS patients. Before joining Quigley's office, she worked for Rep. Marcy Kaptur (D-Ohio) and former Rep. Tim Ryan (D-Ohio). FLYING SOLO: 'Lobbyists usually run in herds at bipartisan firms, but a slice of K Street takes a lone-wolf approach to the influence game,' Bloomberg's Kate Ackley reports. 'Those who opt to go it alone say it makes for a leaner, more nimble operation, reduces potential client conflicts, and gives them control over how they operate the business.' — 'In good times, a single-lobbyist enterprise can rake in big money that the rainmaker doesn't have to share. But risks abound. … Solo lobbying firms are more vulnerable to the whims of elections, and often rise or fall on which policy fights are hot at the moment. The presidential transition and flip in control of the Senate can ripple into K Street bottom lines, with one-person firms especially susceptible.' — Still, 'more than 50 solo shops reported revenue of $1 million or more last year, according to a Bloomberg Government analysis of federal lobbying disclosures, accounting for nearly $80 million in fees.' INSIDERS, TRADING: 'As markets tanked in the wake of President Trump's 'Liberation Day' tariffs in early April, members of Congress and their families made hundreds of stock trades, shining a spotlight on a controversial practice that some lawmakers have pushed to ban,' according to the Wall Street Journal's Katy Stech Ferek, Jack Gillum, James Benedict and Gunjan Banerji. — 'From April 2, when Trump launched the sweeping tariffs, to April 8, the day before he paused many of them, more than a dozen House lawmakers and their family members made more than 700 stock trades, according to a Wall Street Journal analysis of disclosure filings.' FLY-IN SZN: A handful of health care groups headed to the Hill today, including the Children's Hospital Association, which focused on urging lawmakers to strengthen Medicaid, grow the pediatric health care workforce and address the mental health crisis among youth. Kidney Care Partners also trekked up Pennsylvania Avenue to lobby for improved access and coverage for those with kidney failure. — Advocates with the American Telemedicine Association were in town as well to advocate for the industry's top priorities, which include making permanent various telehealth permissions and expanding coverage for telehealth services, including prescription digital therapeutics and virtual medical nutritionists. The trade group was slated to meet with more than 40 offices on the Hill, including leaders in the House and Senate and on key committees. — And more than 1,000 homebuilders were fanning out across Washington for a fly-in focused on several priorities of the National Association of Home Builders, including loosening energy standards for new homes and addressing workforce shortages. — Tax policy was also expected to be front of mind in the group's more than 250 meetings on the Hill and with the Trump administration: NAHB is pushing for an expanded low-income housing tax credit, fewer SALT cap restrictions and the preservation of clean energy tax credits. — Leaders from the convenience services industry will be on the Hill tomorrow, but the National Automatic Merchandising Association will kick off the fun with a pop-up micro market at tonight's Congressional Baseball Game. SPOTTED at a reception hosted by the Alpine Group celebrating the recent opening of the firm's new Dallas-Fort Worth outpost, per a tipster: Keenan Austin Reed, Barry Brown, Rhod Shaw and Greg Walden of Alpine Group; Pat Shortridge of TrailRunner International; Stewart Hall of PPHC; Reps. Beth Van Duyne (R-Texas), Marc Veasey (R-Texas), Brandon Gill (R-Texas) and Jodey Arrington (R-Texas); Katie Vincentz and Russell Thomasson of Arrington's office; Andrew Leppert of Gill's office; Ryan Dilworth and Brayden Woods of Van Duyne's office; Tasia Jackson of House Minority Leader Hakeem Jeffries' office; Mark Longoria of Rep. Michael Cloud's (R-Texas) office; Matt Esguerra of Rep. Lance Gooden's (R-Texas) office; Karen Navarro of Rep. Monica De La Cruz's (R-Texas) office; Raven Reeder of Del. Eleanor Holmes Norton's (D-D.C.) office; Hayden Upchurch of Rep. Nathaniel Moran's (R-Texas) office; Jianna Covarelli of Cornyn's office; Emily Stipe of Vistra Corp.; Nick D'Angelo of Eaton Corp.; and Drew Wayne of Siemens. Jobs report — Doug Sellers has joined the advisory board at BGR Group. He's a senior counselor at Palantir and was a special assistant to Trump during his first term and served as White House associate staff secretary. — Adam Minehardt is joining Chainlink Labs as head of public policy. He was previously a principal at FS Vector. — Connor Rabb has joined the National Association of Manufacturers as senior director of tax policy. He was previously a legislative assistant for Rep. Randy Feenstra (R-Iowa). — Sabrina Singh is joining Seven Letter as a partner. She most recently was deputy press secretary at the Defense Department and is a Kamala Harris alum. — Tom Corry is joining Rubrum Advising to launch a government affairs practice at the firm. He was most recently managing director of Corry Advisors and was previously assistant secretary for public affairs at HHS and senior adviser to former Centers for Medicare & Medicaid Services Administrator Seema Verma. — Jennifer Short has joined Capital Park Partners as an adviser. She was most recently a senior military assistant to the secretary of Defense in both the Biden and Trump administrations and is an Air Force veteran. — Sam Varie is joining the Australian Embassy as U.S. media and external relations manager. Varie was previously communications director for Rep. Joe Courtney (D-Conn.). — Karina Lubell will be a partner at Brunswick Group. She previously led the competition policy and advocacy section at DOJ's Antitrust Division. — Ashley Moir has launched Ashley Moir Media, a PR company with booking services, media training and comms strategy. She most recently was director of national broadcast operations at Deploy/US and is a former senior booker at Fox News. — Gopal Das Varma is now a vice president at Cornerstone Research. He previously was vice president at Charles River Associates and is a DOJ Antitrust Division alum. — Allison Rivera will be vice president for government and industry affairs at the National Grain and Feed Association. She most recently was executive director of government affairs at the National Cattlemen's Beef Association. — Steven Ferenczy has joined the American Council of Life Insurers as assistant vice president for paid leave policy and implementation. He was previously a first vice president and compliance consultant at Alliant. — Richard Johnson has joined OpenAI as its national security risk mitigation lead, Morning Defense reports. He was previously DOD deputy assistant secretary for nuclear and countering weapons of mass destruction policy. — Joseph Humire is now a deputy assistant secretary of Defense for policy, per MD. He was previously executive director of the Center for a Secure Free Society and a senior fellow at the America First Policy Institute and Heritage Foundation. New Joint Fundraisers Team Coughlin (Coughlin for Congress, One Country, One Destiny PAC) New PACs AMERICANS READY TO WORK PAC (Super PAC) Cohabitate PAC (PAC) Empire State Patriots PAC (PAC) PATIENTS RISING PAC (PAC) Reengineer NJ PAC Inc. (Super PAC) New Lobbying REGISTRATIONS Alston & Bird LLP: Performance Health Atlas Crossing LLC: Trinity University Capitol Counsel LLC: Boviet Solar USa Capitol Resources, LLC: The Federation Of Korean Industries Coreweave, Inc.: Coreweave, Inc. Dc Advocacy, LLC: Konecranes Finland Corp. Dc Advocacy, LLC: Logistec Marine Services Ulc Fgs Global (US) LLC (Fka Fgh Holdings LLC): Six Continents Hotels, Inc. Franklin Square Group, LLC: Fiat Chain Holdings LLC Holland & Knight LLP: Wood Mackenzie Invariant LLC: Oldendorff Carriers USa, Inc. King & Spalding LLP: Lifegift Kyowa Kirin, Inc: Kyowa Kirin, Inc Leavitt Partners, LLC: Orchard Therapeutics North America Mercury Public Affairs, LLC: Novant Health, Inc. Pillsbury Winthrop Shaw Pittman LLP: Flashpoint Intelligence Polsinelli Pc: Clairity, Inc. Resolution Public Affairs, LLC: Jp Morgan Chase Holdings Rutledge Policy Group, LLC: Brownstein (Bhfs, LLP) Obo Apollo Global Management Sorini, Samet & Associates, LLC: Popp Forest Products Inc. Stapleton & Associates, LLC: Intellisense Systems, Inc. Steptoe LLP: Early Warning Services, LLC Stoick Consulting, LLC: Resident Home, Inc. Sullivan Strategies LLC (Fka Sb Capitol Solutions): Vontier Business Services, LLC New Lobbying Terminations Brownstein Hyatt Farber Schreck, LLP: Vector Group Ltd
Reuters
2 days ago
- Business
- Reuters
Trump tax bill squeeze on clean power could raise energy bills
June 10 - President Trump's tax bill passed by the House of Representatives on May 22 is set to slow the country's clean energy expansion by accelerating the expiry of key tax credits introduced under the 2022 Inflation Reduction Act (IRA) and making them harder to access. The bill, which is now being debated by the Senate, shortens the window for developers to start and complete new clean energy projects in order to qualify for a production tax credit (PTC) or an investment tax credit (ITC). Developers would have to begin construction within 60 days of the bill's enactment and the project must become operational before the end of 2028 in order to access the tax credits. The inflation act stipulated these tax credits would be available until at least 2032. Solar and battery storage activity soared on the back of falling costs and tax credits but President Trump's rollback of clean energy support and prioritisation of fossil fuels will curb activity in the coming years, industry experts warn. "Requiring a range of advanced energy projects to commence construction within 60 days of enactment, along with moving up the 'placed in service' deadline to 2028, will pull the rug out from a host of projects in active development and effectively end use of the ITC & PTC going forward," Advanced Energy United, an association supporting low carbon power and transport, said in a statement. CHART: US planned power generation installs in 2025 If approved, the bill could see a surge in clean energy investments in the short-term as developers rush to meet new construction deadlines, followed by a "big drop," Gautam Jain, Senior Research Scholar, Center on Global Energy Policy at Columbia University, told Reuters Events. Approval of the bill would see a lot of projects trying to start construction within 60 days, John Powers, Schneider Electric's VP for Cleantech and Renewables, said. For companies with renewable energy or carbon reduction targets, 'it's the time to be proactive in the market,' Powers noted. Join hundreds of senior executives across energy, industry and finance at Reuters Events Global Energy Transition 2025. Beyond the short-term bump, the bill would "have an adverse impact on deployment," Jain warned. In the long run, this would likely lead to "higher electricity costs for consumers," he said, since the levelised cost of solar and other clean power sources have dropped significantly over the last 10 to 15 years and are often lower than the cost of gas-fired power. Import worries Trump's cutbacks to clean energy support and higher import tariffs and have created major uncertainty for developers and manufacturers. Clean power developer RWE has introduced higher requirements for future investments in the U.S. since the start of the year, a spokesperson told Reuters Events. RWE owns and operates over 10 GW of US clean power capacity and has over 4 GW under construction. "In addition to a stable incentive framework, all necessary federal permits must be in place, all relevant tariff risks mitigated and projects must have secured offtake at the time of the investment decision," the spokesperson said. "Only if these conditions are met will further investments be possible, given the uncertain policy environment.' CHART: Levelised cost of US utility-scale solar Developers are concerned about another restriction in Trump's tax bill that would prevent developers and manufacturers from gaining tax credits if they source components from foreign entities of concern (FEOC). This includes China, a key global supplier of components for solar, wind and battery storage. The bill has slowed the expansion of U.S. clean energy manufacturing as suppliers await clarity before making investments in new factories. Developers and manufacturers are already facing higher costs due to hikes in import tariffs imposed by President Trump. Developers had feared the bill would also restrict the transferability of tax credits, a mechanism which has expanded financing sources for small and mid-size developers, but following a last-minute change this was left intact for the life cycle of the tax credits. The bill also reflected more kindly on nuclear power developers by giving them a later deadline of breaking ground by the end of 2028 in order to qualify for tax credits. Trump wants to accelerate a new wave of nuclear plant construction and on May 23 he ordered the U.S. Nuclear Regulatory Commission (NRC) to streamline regulations and fast-track new licenses for reactors. In March, the DOE reissued a tender for $900 million of federal funding towards light water reactor (LWR) SMR technology (Gen III+), removing a requirement for community engagement. Senate scrutiny Trump has said he wants Senate approval and a final bill on his desk by July 4 but many Republican Senators have seen benefits from the tax credits in their states and the bill may be adapted and sent back to the House. The Senate tends to be a moderating force in comparison to the House, David A. Sausen, partner at Arnold and Porter, noted. 'I think there's some hope that some of the more extreme measures here will be dialed back,' he told Reuters Events. For exclusive insights on the energy transition, sign up to our newsletter. The clean energy sector has called for less drastic changes to the tax credits along with greater clarity on the foreign entity measures, which could take time. The foreign entity rules would take effect on January 1, 2026, under the current bill. 'I'm getting a lot of concern from clients that it's going to be very difficult to interpret these (foreign entity) rules,' Sausen said. The current language of the rules is "fundamentally unworkable," Advanced Energy United said. The foreign entity rules must be clarified and should not deter manufacturing investment, Schneider Electric's Chief Policy Officer Jeannie Salo told Reuters Events. 'Let's remember the underlying goals of the want a tax policy to bring down the deficit, of course, but they want a tax policy that's going to attract more manufacturing and investment into the United States," Salo said. "We need to make sure that there aren't provisions in the bill that inadvertently disrupt that goal.'
Yahoo
13-05-2025
- Business
- Yahoo
Last-ditch lobbying blitz seeks to save Biden's clean-energy tax credits
By Valerie Volcovici WASHINGTON (Reuters) -U.S. energy industry trade groups have launched a last-minute lobbying blitz to urge Congress members to spare a slew of former President Joe Biden's clean energy tax credits from the chopping block in the Republican budget plan. On Monday, the House Ways and Means committee proposed the phase-out or cancellation of several lucrative subsidies from Biden's signature climate law, the Inflation Reduction Act. On the block are several related to wind and solar power, hydrogen, and other technologies meant to cut greenhouse gas emissions. Lawmakers will work over the next day or two to amend and pass their plans for the broader tax package. Trade group Advanced Energy United, which represents a range of clean energy, transmission, technology and transportation companies including NRG, Sunrun, Enel and Microsoft, launched a national ad campaign targeting lawmakers in five states whose districts benefit from investments spurred by the IRA. The ads, which specify how much a congressional district has received in IRA-generated private sector and manufacturing investments, will run until a final budget bill passes in the House. Speaker Mike Johnson wants the bill passed by May 26. AEU did not divulge total spending on the ads, but called it a "six-digit" campaign. "Without these credits, American families will be worse off, and U.S. manufacturers, who have invested in domestic manufacturing, will be forced to shutter assembly lines, lay off workers, and move production abroad," Advanced Energy United's CEO Heather O'Neill said on Tuesday. No Republicans voted for the IRA when it passed in 2022, yet districts and states led by Republicans accounted for 58% of new jobs created due to investments from the law, according to advocacy group Climate Power. Meanwhile, dozens of hydrogen industry lobbyists hit Capitol Hill on Tuesday to urge lawmakers to salvage the federal 45V tax credit to promote hydrogen projects, which they say could support around 60,000 jobs per year between 2025 and 2035 and generate more than $12 billion in annual GDP. The committee proposed to move the expiration of that tax credit from 2033 to 2026, making it impossible to develop longer-term projects. In a letter to Johnson and Ways and Means chair Jason Smith, companies and trade groups including Cummins, EQT, the ports of Long Beach and Corpus Christi and the American Petroleum Institute "urgently request" that they save the credits or risk ceding an advantage to China, which has rapidly developed its own hydrogen industry. Abigail Ross Hopper, president of the Solar Energy Industries Association, also urged member companies to pressure lawmakers to save tax credits, including the residential solar credit, which will be eliminated at year's end. She also noted that other proposed changes could hamper investment in commercial solar, and urged people to sign up to the Solar Powers America campaign, which generates letters to Congress members.
Reuters
13-05-2025
- Business
- Reuters
Last-ditch lobbying blitz seeks to save Biden's clean-energy tax credits
WASHINGTON, May 13 (Reuters) - U.S. energy industry trade groups have launched a last-minute lobbying blitz to urge Congress members to spare a slew of former President Joe Biden's clean energy tax credits from the chopping block in the Republican budget plan. On Monday, the House Ways and Means committee proposed the phase-out or cancellation of several lucrative subsidies from Biden's signature climate law, the Inflation Reduction Act. On the block are several related to wind and solar power, hydrogen, and other technologies meant to cut greenhouse gas emissions. Lawmakers will work over the next day or two to amend and pass their plans for the broader tax package. Trade group Advanced Energy United, which represents a range of clean energy, transmission, technology and transportation companies including NRG (NRG.N), opens new tab, Sunrun (RUN.O), opens new tab, Enel ( opens new tab and Microsoft (MSFT.O), opens new tab, launched a national ad campaign targeting lawmakers in five states whose districts benefit from investments spurred by the IRA. The ads, which specify how much a congressional district has received in IRA-generated private sector and manufacturing investments, will run until a final budget bill passes in the House. Speaker Mike Johnson wants the bill passed by May 26. AEU did not divulge total spending on the ads, but called it a "six-digit" campaign. "Without these credits, American families will be worse off, and U.S. manufacturers, who have invested in domestic manufacturing, will be forced to shutter assembly lines, lay off workers, and move production abroad," Advanced Energy United's CEO Heather O'Neill said on Tuesday. No Republicans voted for the IRA when it passed in 2022, yet districts and states led by Republicans accounted for 58% of new jobs created due to investments from the law, according to advocacy group Climate Power. Meanwhile, dozens of hydrogen industry lobbyists hit Capitol Hill on Tuesday to urge lawmakers to salvage the federal 45V tax credit to promote hydrogen projects, which they say could support around 60,000 jobs per year between 2025 and 2035 and generate more than $12 billion in annual GDP. The committee proposed to move the expiration of that tax credit from 2033 to 2026, making it impossible to develop longer-term projects. In a letter to Johnson and Ways and Means chair Jason Smith, companies and trade groups including Cummins, EQT, the ports of Long Beach and Corpus Christi and the American Petroleum Institute "urgently request" that they save the credits or risk ceding an advantage to China, which has rapidly developed its own hydrogen industry. Abigail Ross Hopper, president of the Solar Energy Industries Association, also urged member companies to pressure lawmakers to save tax credits, including the residential solar credit, which will be eliminated at year's end. She also noted that other proposed changes could hamper investment in commercial solar, and urged people to sign up to the Solar Powers America campaign, which generates letters to Congress members.
Yahoo
01-05-2025
- Automotive
- Yahoo
Massachusetts should uphold the state's clean car rules, advocates say
More than 60 environmental, business, and housing groups are asking Massachusetts Gov. Maura Healey, a Democrat, not to delay the state's commitment to getting more electric vehicles on the road, despite pressure from automakers to do so. 'Massachusetts should not be asked to compromise its policy leadership or economic competitiveness to accommodate private automakers who would prefer to build less efficient, less technologically advanced cars,' wrote Kat Burnham, senior principal at industry association Advanced Energy United, and Jordan Stutt, Northeast senior director for clean transportation advocacy group Calstart, in a letter last week to the Massachusetts Department of Environmental Protection. The push to defend the state's plan to ramp up zero-emissions passenger vehicle sales follows a decision by Healey's administration in April to postpone enforcement of similar rules encouraging sales of zero-emissions medium- and heavy-duty vehicles. The regulations are crucial to reaching Massachusetts' goal of net-zero emissions by 2050, supporters said. Transportation is the state's largest source of carbon emissions, making up 38% of the total as of 2021, the last year for which full data are available. Getting more EVs on the road, advocates said, would also improve air quality and public health, and save consumers money since EVs cost less than gas-powered cars to fuel and maintain. 'If we roll back these regulations or prevent them from moving forward, we will have dirtier air, more unhealthy communities, and higher costs,' said Kathy Harris, director of clean vehicles, climate, and energy for the Natural Resources Defense Council. The Massachusetts Department of Environmental Protection yesterday issued a statement saying, 'We remain committed to working with all stakeholders on a path forward that eases the burden on car customers and dealerships, who are already being harmed by President Trump's tariffs, while continuing to increase access to affordable electric vehicles and achieve our climate goals." The Natural Resources Defense Council will join the Green Energy Consumers Alliance, Union of Concerned Scientists, and Green Latinos to present a webinar on May 1 that will explain the regulations, their potential impact, and how residents can let the state know if they want to keep them on track. The regulation in play is Massachusetts' iteration of the Advanced Clean Cars II (ACC II) rule, which became law in California in 2022. The regulation calls for 35% of the light-duty vehicles automakers provide to dealerships to be zero-emissions as of the 2026 model year; the requirement increases every year until it hits 100% in 2035. California is the only state with the authority to implement vehicle emissions standards stricter than those of the federal government, though other states are allowed to adopt the regulations passed by California. As of today, 11 other states and Washington, D.C., have signed on to ACC II. Combined, these jurisdictions and California account for about 28% of new light-duty vehicle registrations in the country. In recent months, however, resistance to the regulations has grown, particularly among industry and business groups that claim rules deprive consumers of choice and will force automakers to reduce inventory in order to artificially inflate the percentage of EVs they are putting on the market. Opponents also argue that the targets are unrealistic. Indeed, there is a gap between current sales in Massachusetts and the ACC II goals: In the fourth quarter of 2024, EVs made up about 14.2% of the state's new car sales, well below the 35% goal slated to kick in next year. The U.S. House yesterday voted to repeal California's authority to set similar rules for truck sales; a vote on revoking the state's ability to implement the light-duty vehicle regulations is slated for today. And opposition has cropped up in the states as well: Last year, refinery workers in New Jersey and Delaware protested the rules, with some attendees inaccurately saying ACC II would ban gas-powered cars. In Maryland, Democratic Gov. Wes Moore last month issued an executive order delaying penalties for noncompliance by two years. Massachusetts advocacy groups are now hustling to make the case that their state should not be the next to waver. Despite the gap between current sales and the ACC II target, advocates are confident that demand will grow to meet the numbers set out in the regulations. Interest in electric vehicles has steadily risen in recent years: Light-duty EV purchases in Massachusetts rose nearly 50% in 2023 compared with the year prior, though growth slowed in 2024. 'This [opposition] is not coming from consumers. It is coming from companies that are not eager to meet the moment,' Advanced Energy United's Burnham told Canary Media. The regulations are also unlikely to limit consumer choices, supporters contend. New gas-powered cars will still be in the mix until 2035, and even then, used gas-powered cars will be available for many years to come. Plus, zero-emissions options are only increasing: There are now 144 different electric models for sale in the U.S., and more are likely to come as ACC II drives up adoption, proponents said. 'There are plenty of light-duty passenger vehicles that are great options,' said Anna Vanderspek, electric vehicle program director for the Green Energy Consumers Alliance. 'There is really no way automakers can make an argument that they can't comply with these regulations.' Furthermore, Massachusetts has a strong system of electric vehicle incentives and programs that will support the transition, advocates said. A state rebate program offers from $3,500 to $6,000 to drivers buying new or used EVs. The state has also invested in the planning and development of charging infrastructure in recent years. 'There is so much programming and infrastructure there to make it happen,' Burnham said. 'There is really a handful of automakers who have procrastinated on preparing, but we can't afford to procrastinate any longer.'
