3 days ago
Climate watch: Why Congress must not pull the plug on PA's clean energy progress
On May 22, the House of Representatives voted to pass a budget bill that drastically cuts America's clean energy tax credits. I'm disappointed to see that the House advanced this legislation.
Make no mistake: These cuts will hurt Pennsylvania if they go on to become law. Experts are already warning that these changes would raise energy costs for American households, increase pollution, and threaten growing economic investments in the commonwealth. The House passage of this bill just put these investments at risk.
Federal tax credits — designed to boost clean energy manufacturing in the U.S. — have been working. Since the passage of the Inflation Reduction Act (IRA) in 2022, Pennsylvania has benefited from just under $3.5 billion in investments in 34 clean energy projects to create more than 7,900 jobs. That's according to an analysis by Citizens' Climate Lobby.
An outsized chunk of that investment is in the state's 15th Congressional District, represented in Congress by Glenn Thompson. Nine projects — eight solar and one for electric transmission lines — have spurred $1.7 billion in investments in PA15 with an estimated 2,550 jobs to be created.
The tax credits were passed by Democrats, so they have been an easy target for Republican attacks. But the legislation has overwhelmingly benefited Republican-held districts — 78% of the funding has gone to rural and suburban areas held by the GOP.
That success story, however, could unravel quickly. The legislation is now in the Senate's hands, and the House passage has set them on a path toward drastic cuts.
If the cuts become law, energy prices will rise. Manufacturing will slow. Phasing out tax credits that support clean energy manufacturing will jeopardize long-term projects. Eliminating clean vehicle tax credits could put up to 100% of planned EV plant construction and a significant portion of existing capacity at risk, according to industry analysis.
Households and local businesses will take a huge hit. A rollback of tax credits for home energy upgrades such as rooftop solar is a blow to Pennsylvanians who've been using these tools to cut energy bills. Incentives have made it easier for homeowners to install solar panels, save money, and even help stabilize America's power grid. But those benefits — and the local businesses that depend on them — are in jeopardy if Congress moves forward with these cuts.
By contrast, if Congress protects clean energy tax credits, it would be a giant boost to the commonwealth's economy over the next decade. Analysis by American Clean Power and ICF estimates that continuing clean energy incentives will be a $65 billion economic boost to our state in the next 10 years and support more than 35,000 in full-time jobs in Pennsylvania annually.
Encouragingly, a growing number of Republican members of Congress are vocalizing their support for the clean energy tax credits. Four Republican Senators recently sent a letter to leadership last month saying repeal would 'lead to significant disruptions for the American people and weaken our position as a global energy leader.'
The numbers are clear: clean energy tax credits work for Pennsylvania. Undoing them now — as the House just voted to do — would be reckless and harmful. I urge Senators David McCormick and John Fetterman to work with their colleagues in the Senate to protect these tax credits.
Lisa Richardson is co-leader of the State College chapter of Citizens' Climate Lobby.
