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Politico
2 hours ago
- Business
- Politico
Surging renewables fall off the megalaw cliff
Efforts to green the economy are speeding up just as President Donald Trump works to shut them down. Solar generation is up 32 percent through the first six months of 2025 compared with the same time last year, according to preliminary data by the U.S. Energy Information Administration. It is up a whopping 99 percent since 2022, when former President Joe Biden signed the Inflation Reduction Act. The climate law's generous subsidies are also starting to bear fruit for storage developers, who beat the 2022 annual record for new battery capacity by May. Electric vehicle sales in the first half of 2025 also hit a record 607,000 vehicles, an increase of 1.5 percent over the same time period in 2024. But as I write today, that clean energy boom might be headed for a bust. Renewable installations and EV sales are expected to plummet as a result of Trump's One Big Beautiful Bill Act, which phases out credits for most of those industries and puts new restrictions on others. Republicans say the credits are a waste of money and that the country needs more traditional forms of electricity generation like coal and natural gas to bolster the power grid. The credits for EVs will be gone in October, leading some analysts to predict a short-term boom in sales this quarter before they plummet in the last three months of the year. The story is more complicated for wind, solar and other renewables, as the law sets up a complicated system for phasing out the taxes depending on when projects start construction. The bottom line: Renewable installations are likely to continue for the next couple years before falling off a cliff. The nitty-gritty: A graphic helps tell the story. The figures are from EIA, and represent the information that power companies report to the government about their facilities. On the left side, you'll see how solar and storage installations rocketed upward in the wake of the IRA's passage in 2022. As Ryan Jones, the co-founder of Evolved Energy Research, told me: 'I think the IRA was doing what it intended. That increase in solar can't be accounted for in the cost of projects over the last couple of years.' Notably, wind has not performed as well since passage of the IRA. The industry faces a series of restraints, such as the lack of transmission capacity and growing local opposition to new projects that have hampered installations. The right side shows what could happen next. Under Trump's budget bill, projects that begin construction before July 4, 2026, are still likely to be eligible for credits through the end of the decade. That's why you see such a large number of solar and storage projects over the next couple of years. Projects that begin construction after that date are subject to a new restriction requiring they come online by the end of 2027 to receive the credits. Once 2028 rolls around, no new projects will be able to qualify for credits. An important caveat: The EIA's figures represent the most recent data as of May, and so they don't yet incorporate the impact of Trump's budget law. The projects reported to EIA tend to be those that are already in advanced development. Without IRA tax credits to rely on, few renewable developers are likely to add many more projects to the agency's list. It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Benjamin Storrow. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to bstorrow@ Today in POLITICO Energy's podcast: Alex Guillén breaks down what's at stake for energy and climate in the latest government funding process. Power Centers Plowing ahead with the EPA reorgThe Environmental Protection Agency has resumed its efforts to reorganize after a favorable Supreme Court ruling restarted the process of reordering the agency and potentially eliminating more jobs, Robin Bravender and Kevin Bogardus report. But EPA employees will have less say in where they end up, an agency official told colleagues in an internal email obtained by POLITICO's E&E News. EPA is hustling to comply with the White House directive to restructure the federal bureaucracy. Administrator Lee Zeldin in early May announced a plan to reconfigure the agency. Notably, the administration intended to eliminate its stand-alone science office and redistribute employees among other program offices. EPA put the internal shuffle on hold in late May when a federal district court judge in California placed a preliminary injunction on EPA and other agencies planning mass layoffs and reorganizations. AI and energy bonanza Trump's speech at an energy and artificial intelligence summit Tuesday in Pittsburgh highlighted his administration's view that the AI boom can work hand in hand with nuclear power and fossil energy, Jason Plautz and Christa Marshall write. The summit also showed the enormous role swing-state Pennsylvania will play, with its access to plentiful natural gas. Blackstone announced its managed funds would spend more than $25 billion to support AI infrastructure in Pennsylvania and 'catalyze' an additional $60 billion. The investment firm inked long-term contracts to build gas plants near the region's Marcellus and Utica gas basins, where power can connect to pipelines. The utility FirstEnergy said it would spend $15 billion to expand and fortify the grid. 'Pennsylvania's natural gas production could ramp up tremendously fast, and Pennsylvania could lead the world in AI and reshoring manufacturing,' said Energy Secretary Chris Wright. Italians say 'yes' to U.S. gasThe Italian energy firm ENI inked its first long-term agreement to buy gas from an American producer Wednesday, as Trump calls on nations to increase their U.S. energy imports, Gabriel Gavin reports from Brussels. ENI's 20-year contract with Virginia-based exporter Venture Global calls for shipments of 2 million metric tons of liquefied natural gas per year. Trump has told European nations that they can avoid worsening trade relations by buying more U.S. LNG. The president on Saturday said he would apply 30 percent tariffs on European Union nations on Aug. 1. In Other News Where the bucks stop: Utility customers could end up paying the price for the Trump administration's push to keep fossil fuel plants open. Plan on it: State regulators approved Georgia Power's long-range energy plan that will keep coal and gas as dominant sources, driven by AI's increasing demands. Subscriber Zone A showcase of some of our best subscriber content. Massachusetts officials say nearly $3 billion in climate bonds are needed to pay for resilience projects because of cuts to federal disaster aid. The late Arizona Rep. Raúl Grijalva's daughter, Adelita Grijalva, won the Democratic primary Tuesday in the special election to succeed him. Oil and gas executives are cheering the megalaw's cuts to the rates they pay to produce on federal lands, but critics say the move will rob federal coffers of needed funds. That's it for today, folks! Thanks for reading.


Boston Globe
5 hours ago
- Politics
- Boston Globe
Massachusetts sues Trump over cuts to climate disaster funds
'In the wake of devastating flooding in Texas and other states, it's clear just how critical federal resources are in helping states prepare for and respond to natural disasters,' Massachusetts Attorney General Andrea Campbell said in a statement Wednesday. '... This administration is abandoning states and local communities that rely on federal funding to protect their residents.' Trump administration officials ended the Federal Emergency Management Agency's disaster preparedness grant program in April. In a press release at the time — which is Advertisement FEMA's disaster preparedness grant program, currently called the Building Resilient Infrastructure and Communities program, or BRIC, has been around in some form for decades. It funds things like floodwalls, pump stations, tornado shelters, and levees across the nation. The program got a big boost during the Biden Administration with a $1 billion appropriation from the Infrastructure Investment and Jobs Act. Advertisement Since Trump has taken office, his administration has aimed to reverse much of the funding allocated by that legislation and from the Inflation Reduction Act, both of which provided billions for climate resilience projects. President Trump suggested early in his administration that FEMA would 'go away,' and Secretary of Homeland Security Kristi Noem said they would 'eliminate' the agency. Since the Texas flood emergency, however, administration officials FEMA officials did not immediately respond to a request for comment about the end of the grant program or about why the press release concerning it is no longer posted. In They Massachusetts lost out on about In Chelsea and Everett, a $50 million grant from the program would've been used to build a storm surge control facility, a storm surge barrier, and restore salt marsh to prevent flooding along a tributary of the Mystic River. More than 5,000 residents live in the floodplain nearby, according to the complaint. Advertisement And in Boston, Massachusetts is one of the most vulnerable states in the nation to sea level rise, which is increasing at a faster pace in New England than in most areas of the world. Already, sea levels here have risen by about a foot over the last century, and are likely to rise another foot by 2050 compared to 2000, Boston, a major city built right up to the water's edge, is particularly at risk. Dozens of coastal resilience projects are planned for the city's 47-mile waterfront to withstand 40 inches of sea level rise by 2070, but financing is an open question. Cities and states have long relied on the federal government to help fund costly sea walls, berms, and stormwater infrastructure, which are now being delayed or halted altogether by the federal funding cuts. 'Communities across the country are being forced to delay, scale back, or cancel hundreds of mitigation projects depending on this funding,' states attorneys general wrote in the lawsuit. 'And in the meantime, Americans across the country face a higher risk of harm from natural disasters.' Erin Douglas can be reached at
Yahoo
5 hours ago
- Business
- Yahoo
Builders say One Big Beautiful Bill Act will fuel construction activity
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. The One Big Beautiful Bill Act is opening the door for increased construction investment, but it may also deepen existing challenges tied to labor and supply. Unlike the Inflation Reduction Act, which concentrated its support on clean energy, the One Big Beautiful Bill Act casts a wider net, said Vance Walter, senior director of legislative affairs at Associated Builders and Contractors. Its most transformative provisions include the restoration of 100% bonus depreciation, immediate expense of research and development costs and a permanent extension of the 20% pass-through deduction under Section 199A, said Deniz Mustafa, senior director of infrastructure finance at Associated General Contractors of America. These serve as boons for construction activity, according to industry sources. 'This also improves cash flow and makes it easier for contractors to replace aging equipment,' said Mustafa. 'In the construction industry, this means it is easier for companies to access equipment that is safer, cleaner and more efficient.' The changes are particularly significant for small and mid-sized contractors, where cash flow and tax predictability influence everything from equipment purchasing to hiring. 'Businesses can now immediately expense capital investments through 100% bonus depreciation,' said Walter. 'This will encourage firms to invest in new construction equipment and technologies, boosting safety, quality, productivity and economic growth.' Winning sectors The biggest potential winner may be manufacturing construction, said John Robbins, global head of enterprise project management at Turner & Townsend, the U.K.-based real estate and infrastructure consultancy. Expect more construction activity on automotive, food production and semiconductors, all of which now qualify for the 100% deduction, he said. 'I believe this will stimulate activity and investment with construction of new high-tech manufacturing. These tax enhancements should be very attractive and help greenlight shovels in the ground throughout the country,' said Robbins. 'Any newly built non-residential facility whose primary use is to manufacture, process or refine tangible goods can take the 100% deduction.' The provision covers a wide swath of domestic production, so long as projects break ground between January 2025 and December 2028, and are placed in service by 2031, said Robbins. This means projects that have been in a holding pattern or on the design boards — the Project Stress Index increased 11.4% in May — can 'now be accelerated,' according to Robbins. Beyond factory construction Other sectors likely to benefit include defense-related construction, air traffic control improvements and traditional energy production, said Jeff Urbanchuk, senior vice president at the American Council of Engineering Companies. The bill also sets aside nearly $50 billion for border security construction, he added. That funding could lead to new contracts across the southern U.S., potentially driving demand for firms with experience in civil and federal work. Projects tied to air traffic control and defense infrastructure may also open the door for specialty contractors and design firms, especially those with experience navigating federal contracts and military specs. Robbins added electric production, including zero-emission nuclear power, could also see renewed construction activity due to the broader capital-friendly structure of the bill. That may prompt developers to advance previously delayed or underfunded power generation work, said Urbanchuck. 'America's engineering firms are engaged across the domestic energy sector, designing systems that produce and transmit power generated from traditional, nuclear and renewable sources,' said Urbanchuck. 'We do believe the Big Beautiful Bill will lead to meaningful growth.' A rush to build But as more construction companies benefit from greater activity, pressure could build on labor and material pipelines already under strain, said Joseph Molloy, tax partner at Anchin, a New York City-based accounting, tax and advisory firm. 'The bill's emphasis on domestic sourcing and reshoring may increase demand for U.S.-based construction labor and materials,' said Molloy. '[That's] potentially intensifying workforce and supply chain pressures.' That strain may only increase as firms rush to break ground before other provisions phase out, said Robbins. For example, tax credits for energy-efficient buildings are set to expire after 2026, creating urgency for stalled or newly planned green developments. 'Timing and financing strategy now matter as much as project cost in maximizing the new law's benefits,' said Robbins. Enhanced incentives for projects in opportunity zones could also drive more construction in distressed communities, particularly in residential and mixed-use segments, he added. Yet, even with these provisions in play, long-term momentum still hinges on what comes next, said Urbanchuk. 'Overall, the Big Beautiful Bill is a step forward for our industry,' said Urbanchuk. 'Our attention now goes to what Congress is planning for the reauthorization of the Infrastructure Investment and Jobs Act, which is set to expire in September 2026.' Recommended Reading Tariffs keep contractors guessing on material costs


New York Post
6 hours ago
- Automotive
- New York Post
Biden push for $10B electric mail delivery fleet flops with just 250 trucks built in two years
WASHINGTON — A Biden administration plan to create a 'green' fleet of postal vehicles has churned out just 250 electric mail trucks in just over two years — after shelling out taxpayer funds meant to build thousands — leaving Republicans raging at the multibillion-dollar 'boondoggle.' The nearly $10 billion project — which called for more than 35,000 battery-powered US Postal Service (USPS) vehicles to be completed by September 2028 — was funded in part by $3 billion in funding from former President Joe Biden's 2022 Inflation Reduction Act. As of this month, the project is well behind schedule despite taxpayers forking over $1.7 billion — prompting Capitol Hill Republicans to try to rescind the remaining nearly $1.3 billion earmarked from the IRA. 'Biden's multi-billion-dollar EV fleet for the USPS is lost in the mail and more than $1 billion is postmarked to order more,' Sen. Joni Ernst (R-Iowa) told The Post. 'I am working to cancel the order and return the money to the sender, the American people. The rescissions package is a great start, but Congress must keep its foot on the pedal and make DOGE a lifestyle by stamping out waste like this on a regular basis.' 6 A Biden administration plan to create a green fleet of postal vehicles has built only 250 electric mail trucks in more than two years, amounting to a multibillion-dollar 'boondoggle,' Republicans said. Business Wire The move comes after former Postmaster General Louis DeJoy stepped down earlier this year, passing off the agency's EV embarrassment to his successor, David Steiner, whose new job became official Monday. Wisconsin-based Oshkosh, a defense contractor, agreed to be paid $2.6 billion by the USPS to provide the 35,000 vehicles — but the Washington Post reported late last year that just 93 battery-powered electric vehicles (BEVs) were ready by November 2024, even though 3,000 were expected by that date. Oshkosh's mail truck production has struggled to clear a number of engineering hurdles, including issues with airbag calibration and during leak testing, which resulted in 'water [pouring] out as if [the vehicles'] oversize windows had been left open in a storm.' A senior executive at Oshkosh attempted to alert USPS about the production problems in 2022, but was blocked by their superiors. 'This is the bottom line: We don't know how to make a damn truck,' one person involved with the manufacturing process told the Washington Post. Michigan-based Morgan Olson, a previous contractual partner of USPS, had tried and failed to win the bid to produce the BEVs in February 2024. During a meeting between DeJoy, postal officials and Morgan Olson executives, the postmaster general lamented the status of 'a production plant in South Carolina,' apparently referring to the Oshkosh truck manufacturing facility, a source who attended the meeting revealed to The Post. 6 The nearly $10 billion project included $3 billion in funding from former President Joe Biden's 2022 Inflation Reduction Act to electrify the agency's fleet. Getty Images But DeJoy later added that he was 'in the parcel delivery business, not the vehicle manufacturing business,' the source continued. At the time, Oshkosh's Spartanburg factory could produce just one mail truck per day, with company records showing that they had expected to be producing upwards of 80 vehicles on a daily basis. The cost per truck to the defense contractor was pegged at $77.692 for 28,195 electric vehicles, according to The Washington Post. In December 2023, USPS put out a call for vehicle suppliers that could provide 'at least 12,000 battery-electric' mail trucks by October 2025, along with 'at least 1,500 internal combustion engine' trucks starting in October 2024. 6 A rep for Oshkosh referred comments to USPS but confirmed the manufacturer still has an active contract with the agency for electric vehicles. USPS OIG A rep for Oshkosh referred questions to USPS but confirmed the manufacturer still has an active contract with the agency for electric vehicles. 'Modernization of the Postal Service's delivery fleet is part of the organization's $40 billion investment strategy to upgrade and improve the USPS processing, transportation, and delivery networks,' a USPS spokesperson said. 'The Postal Service has placed orders for 51,500 next generation delivery vehicles (NGDVs), of which 35,000 are Battery Electric Vehicles (BEV). More than 1,000 NGDVs have been received to date, of which more than 250 are BEV,' the rep added. 'Additionally, the Postal Service has ordered 9,250 Ford E-Transit electric vehicles, of which nearly 8,000 have been received. Deployment continues to expand to sites across the country in accordance with the rollout of our new delivery network.' 6 Ex-Postmaster General Louis DeJoy admitted he was 'in the parcel delivery business, not the vehicle manufacturing business,' according to a source. AP 6 USPS's Grumman Long Life Vehicles are expensive to maintain, loud, fuel-inefficient, and have been known at times to burst into flame. CJ GUNTHER/EPA-EFE/Shutterstock The Biden administration had been committed USPS to acquiring '100% electric' postal vehicles starting in 2026, but it remains to be seen whether Republicans will withdraw the funding for the green fleet project. The transition of USPS vehicles to electric power from gas vehicles — a central pillar of Biden's environmental agenda — has been stalled almost from the outset. Expert estimates project that the broader set of environmental provisions included in the Inflation Reduction Act could cost taxpayers upwards of $1 trillion during the decade following the bill's passage. The new, predominantly electric vehicles are meant to replace the antiquated fleet of Grumman Long Life Vehicles, which date to 1987 and are expensive to maintain, loud, fuel-inefficient, and have been known at times to burst into flame. 6 The transition of USPS vehicles over to electric power from gas-powered vehicles — a central pillar of Biden's environmental agenda — has been at a near standstill from the outset. AP The miniscule number of vehicles that have been produced by Oshkosh are also a small fraction of the 60,000 total 'Next Generation Delivery Vehicles,' powered by a mix of battery-electric and other energy sources, that USPS is set to purchase from the firm. The Government Accountability Office, a non-partisan taxpayer accountability agency, identified USPS in a February 2025 report as having 'high risk' financial viability because the agency 'still cannot fully fund its current level of services and financial obligations.' In recent months, Trump has floated the possibility of merging USPS with the Department of Commerce, citing USPS losses of an astonishing $9.5 billion in fiscal year 2024. '[USPS has] been just a tremendous loser for this country, tremendous amounts of money they've lost,' the president told reporters in February. 'We want to have a post office that works well and doesn't lose massive amounts of money, and we're thinking about doing that, and will be a form of a merger, but it'll remain the Postal Service, and I think it'll operate a lot better than it has been over the years.' With the 250th anniversary of the founding of the United States Post Office by the Second Continental Congress approaching on July 26, the newly-appointed Steiner will inherit the tall task of modernizing USPS while its EV program continues to tread water.
Yahoo
7 hours ago
- Business
- Yahoo
Rounds, GOP holdout, says he'll back Trump's funding cuts package
Sen. Mike Rounds (R-S.D.) said he'll support a package of more than $9 billion in cuts to foreign aid and public broadcasting after making a deal with the Trump administration. Rounds said Tuesday that he worked with the Office of Management and Budget (OMB) on a deal that would redirect some funding approved under the Biden administration as part of the Inflation Reduction Act. 'We have an agreement with OMB to resource the funds from other already allocated funding through what had been [former President] Biden's Green New Deal program, and we'll take that money and we'll reallocate it back into the tribes to take care of these radio stations that have been granted this money for the next two years,' Rounds told reporters Tuesday. Rounds had previously held off from backing the package, citing concerns about how tribal stations would fare under President Trump's proposed public media cuts. The shift comes as top Senate Republicans are ramping up work to lock down support for Trump's package to claw back previously congressionally approved funds. Republicans can afford to lose three votes in the Senate. The bill, which passed the House last month, calls for $8.3 billion in cuts to the United States Agency for International Development and foreign aid, and more than $1 billion in cuts to the Corporation for Public Broadcasting (CPB). Congress has until July 18 to pass the legislation under the special rescissions process initiated by the White House last month that allows the Senate to approve the funding cuts with a simple majority vote, bypassing expected Democratic opposition. While the CPB provides some funding to NPR and PBS, which have come under heavy GOP scrutiny as the party has leveled allegations of bias against the media organizations, Republicans in both chambers have raised concerns the cuts could have a disproportionate effect on rural and tribal stations. Asked Tuesday whether a parallel deal for nontribal broadcasters was also in the works, Rounds said he is 'not aware of any of those.' 'The ones that I was concerned with were specifically these tribal grants. I think there were 14 total,' Rounds said. 'Some of them might be 50 percent funded under this program,' Rounds said. 'Some of them are 80-85 percent funded.' 'They wouldn't have survived without this, but they provide emergency services information for some of the most rural parts of our country and some of the poorest counties in the United States.' Pressed on the legality of the move, Rounds argued the move to transfer the funds would be legal, 'according to OMB.''OMB has assured us that they believe that they do have the authority to make that transfer, and that the Department of the Interior has agreed to take the transfer and to place it directly in — through the Department of the Interior to these tribes,' he said.'But we know it's less than $10 million total, so it's not a huge sum of money compared to the rest of the rescissions package. But for me, it was very important.'The Trump administration has already faced a series of legal challenges over efforts to withhold congressionally approved funds. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.