Latest news with #BobKeefe
Time of India
30-06-2025
- Business
- Time of India
Trump's Senate bill has a 'kill shot': The 'midnight dumping' provision could pinch your pocket
Senate Republicans stunned the power industry over the weekend with a proposed new tax on wind and solar projects, part of a broader push to unravel incentives for renewable energy. Republicans added a new tax on future wind and solar projects that don't meet strict new restrictions on parts produced by any company that received 'material assistance' from certain U.S. adversaries like China. The projects will be taxed if a certain percentage of the value of their components come from China. Tired of too many ads? Remove Ads What is the surprise element in the bill? Tired of too many ads? Remove Ads What are the provisions? Tired of too many ads? Remove Ads Republicans in the US Senate have proposed a new tax on supply chain components sourced from China in a bill that could be voted on today (30 June). Senate Republicans have quietly added a provision to their megabill that would penalize future developments with a new updated draft of the Senate's megabill text slashes tax incentives for wind and solar energy — and adds a new tax on future wind and solar projects. The tax provision, tucked inside the 940-page bill that the Senate made public just after midnight on Friday, stunned proposed tax would levy a first-of-its kind penalty on all solar and wind projects tied to the quantity of materials they source from companies with ties to China or other countries designated as adversaries by the US government.'This is how you kill an industry,' said Bob Keefe, executive director of E2, a nonpartisan group of business leaders and investors. 'And at a time when electricity prices and demand are soaring.''It's a kill shot. This new excise tax on wind and solar is designed to fully kill the industry,' said Adrian Deveny, founder and president of policy advisory firm Climate Vision, who helped craft the climate law as a former policy director for Democratic Senate Leader Chuck at the Rhodium Group said in an email the new tax would push up the costs of wind and solar projects by 10 to 20 percent — on top of the cost increases from losing the credits, according to Politico.'Combined with the likely onerous administrative reporting burden this provision puts in place, these cost increases will lead to even lower wind and solar installations. The impacts of this tax would also flow through to consumers in the form of higher electricity rates,' Rhodium to a report in The Hill, the initial draft released by Senate Republicans slashed the credit for any wind and solar projects that did not 'begin construction' by certain dates. But the latest version bases incentives on when projects actually begin producing electricity — a much higher bar to first draft gave any project that began construction this year full credit, any project that began construction next year 60 percent credit and any project that began construction in 2027 20 percent of the credit, before phasing out the new legislation instead states that the credits will only apply to facilities that begin producing electricity before the end of 2027. In addition, it imposes a new tax on some wind and solar projects that are placed in service after projects will be taxed if a certain percentage of the value of their components come from China. The bill would rapidly phase out existing federal tax subsidies for wind and solar power by 2027. Doing so, many companies say, could derail hundreds of projects under development and could jeopardize billions of dollars in manufacturing facilities that had been planned around the country with the subsidies in mind."The renewables lobby slammed the changes as hampering the sector.'In what can only be described as 'midnight dumping,' the Senate has proposed a punitive tax hike targeting the fastest-growing sectors of our energy industry. It is astounding that the Senate would intentionally raise prices on consumers rather than encouraging economic growth and addressing the affordability crisis facing American households,' Jason Grumet, CEO of the American Clean Power Association, said in a written statement.'These new taxes will strand hundreds of billions of dollars in current investments, threaten energy security, and undermine growth in domestic manufacturing and land hardest on rural communities who would have been the greatest beneficiaries of clean energy investment,' he added.
New York Times
29-06-2025
- Business
- New York Times
G.O.P. Bill Adds Surprise Tax That Could Cripple Wind and Solar Power
Senate Republicans have quietly inserted provisions in President Trump's domestic policy bill that would not only end federal support for wind and solar energy but would impose an entirely new tax on future projects, a move that industry groups say could devastate the renewable power industry. The tax provision, tucked inside the 940-page bill that the Senate made public just after midnight on Friday, stunned observers. 'This is how you kill an industry,' said Bob Keefe, executive director of E2, a nonpartisan group of business leaders and investors. 'And at a time when electricity prices and demand are soaring.' The bill would rapidly phase out existing federal tax subsidies for wind and solar power by 2027. Doing so, many companies say, could derail hundreds of projects under development and could jeopardize billions of dollars in manufacturing facilities that had been planned around the country with the subsidies in mind. Those tax credits were at the heart of the Inflation Reduction Act, which Democrats passed in 2022 in an attempt to nudge the country away from fossil fuels, the burning of which is driving climate change. President Trump, who has mocked climate science, has instead promoted fossil fuels and demanded that Republicans in Congress unwind the law. But the latest version of the Senate bill would go much further. It would impose a steep penalty on all new wind and solar farms that come online after 2027 — even if they didn't receive federal subsidies — unless they follow complicated and potentially unworkable requirements to disentangle their supply chains from China. Since China dominates global supply chains, that measure could affect a large number of companies. Want all of The Times? Subscribe.
Yahoo
04-06-2025
- Business
- Yahoo
Clean Energy Investments Worth $14 Billion Have Already Been Pulled In 2025—'Returning Us To A Country Powered By Coal And Gas Guzzlers'
Billions in clean energy projects are getting scrapped this year as political decisions in Washington make the future of renewable power more uncertain than ever. According to an analysis by a nonpartisan business group, E2, more than $14 billion worth of U.S. clean energy investments have been canceled or delayed in just the first few months of 2025. The main reason is fear. Specifically, there is concern that Congress may soon eliminate the clean energy tax credits enacted in 2022 as part of the Inflation Reduction Act. The House has already approved a bill that would do just that, and companies are responding by halting projects. Don't Miss: Invest where it hurts — and help millions heal:."Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America's growing energy demand," E2 Communications Director, Michael Timberlake, said in the report. Just in April, companies cancelled or delayed $4.5 billion in clean energy and electric vehicle-related investments, according to the report. Projects getting the axe include a $1.2 billion battery plant in Arizona, a major EV factory shutdown in Michigan, and a paused hydrogen fuel cell project in South Carolina. Many of these losses are happening in Republican-led districts—areas that have so far gained the most from clean energy expansions. E2 estimates that more than $12 billion in canceled projects and over 13,000 lost jobs are in red districts. Trending: Here's what Americans think you need to be considered wealthy. "The House's plan, coupled with the administration's focus on stomping out clean energy and returning us to a country powered by coal and gas guzzlers, is causing businesses to cancel plans, delay their plans, and take their money and jobs to other countries instead," E2's Executive Director Bob Keefe told the Associated Press. E2 estimates that since the Inflation Reduction Act passed, companies have announced nearly 400 major clean energy projects across 42 states and Puerto Rico, worth an estimated $132 billion. But 2025 is now shaping up to be a turning point, and not in a good way. Battery and EV projects have been hit the hardest. Battery storage alone accounts for over $10 billion in canceled plans. EV manufacturers have seen around 10,000 jobs disappear alongside more than $6 billion in lost all the news is negative. A handful of companies are still making bets on U.S. clean energy. April brought $486 million in new project announcements, including a $400 million solar wafer factory in Michigan by Corning (NYSE:GLW), which could create 400 jobs, and a $9.3 million investment by a Canadian solar firm in North Carolina. Even so, the scale of cancellations is far outpacing new activity. Timberlake said the entire industry is holding its breath. "If the tax plan passed by the House becomes law, expect to see construction and investments stopping in states across the country as more projects and jobs are cancelled. Businesses are now counting on Congress to come to its senses and stop this costly attack on an industry that is essential to meeting America's growing energy demand," he told the AP. Read Next:Can you guess how many retire with a $5,000,000 nest egg? .Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? CORNING (GLW): Free Stock Analysis Report This article Clean Energy Investments Worth $14 Billion Have Already Been Pulled In 2025—'Returning Us To A Country Powered By Coal And Gas Guzzlers' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Fast Company
29-05-2025
- Business
- Fast Company
$14 billion in U.S. clean energy projects have been canceled or delayed this year
More than $14 billion in clean energy investments in the U.S. have been canceled or delayed this year, according to an analysis released Thursday, as President Donald Trump's pending megabill has raised fears over the future of domestic battery, electric vehicle and solar and wind energy development. Many companies are concerned that investments will be in jeopardy amid House Republicans' passage of a tax bill that would gut clean energy credits, nonpartisan group E2 said in its analysis of projects that it and consultancy Atlas Public Policy tracked. The groups estimate the losses since January have also cost 10,000 new clean energy jobs. The tax credits, bolstered in the landmark climate bill passed under former President Joe Biden in 2022, are crucial for boosting renewable technologies key to the clean energy transition. E2 estimates that $132 billion in plans have been announced since the so-called Inflation Reduction Act passed, not counting the cancellations. Last week's House bill effectively renders moot many of the law's incentives. Advocacy groups decried the potential impact that could have on the industry after the multitrillion-dollar tax breaks package passed. 'The House's plan coupled with the administration's focus on stomping out clean energy and returning us to a country powered by coal and gas guzzlers is causing businesses to cancel plans, delay their plans and take their money and jobs to other countries instead,' E2 executive director Bob Keefe said. The Senate is now reviewing the bill with an informal July 4 deadline to get it to the president's desk. What has been canceled Some of the most recent cancellations include the Kore Power battery factory in Arizona and BorgWarner's closure of two EV manufacturing sites in Michigan. Bosch suspended a $200 million investment in a hydrogen fuel cell factory in South Carolina, citing changes within the market over the past year in a statement to The Associated Press. Tariffs, inflationary pressures, nascent company struggles and low adoption rates for some technologies may also have been reasons for these companies' plans changing. For instance, the battery storage and electric vehicle sectors have seen the most impact in 2025, with the latter especially having had had a difficult past few years. Several projects spurred by the IRA were also canceled prior to 2025. Of the projects canceled this year, most — more than $12 billion worth — came in Republican-led states and congressional districts, the analysis said. Red districts have benefited more than blue ones from an influx of clean energy development and jobs, experts say. Georgia and Tennessee are particularly at risk because they are highly invested in EV and battery production, said Marilyn Brown, an energy policy professor at the Georgia Institute of Technology who was not involved in the analysis. 'If all of a sudden these tax credits are removed, I'm not sure how these ongoing projects are going to continue,' said Fengqi You, an engineering professor at Cornell University who also was not involved. A handful of Republican lawmakers have urged the continuation of energy tax credits, with some saying in an April letter to Senate Majority Leader John Thune, R-S.D. that a repeal could disrupt the American people and weaken the county's position as a global energy leader. The US and the global stage The Trump administration has sought to dismantle much of Biden's environmental and climate-related policy — what he calls the Democrats' 'green new scam' — withdrawing again from the Paris climate agreement, rolling back countless landmark pollution regulations and environmental initiatives, reconsidering scientific findings supporting climate action, blocking renewable energy sources and more in an effort to bolster a fossil fuel-led 'American energy dominance' agenda. Meanwhile other countries are proceeding with green investments. The European Parliament is committing to the European Union Carbon Border Adjustment Mechanism, a policy meant to prevent 'carbon leakage,' or companies moving production to countries where climate policies are less strict. And the International Maritime Organization is moving toward a global carbon tax on shipping. In a sign that not all hope is lost for the future of renewables in the U.S., April alone saw nearly $500 million in new development, with Japanese manufacturing company Hitachi's energy arm building out transmission and electrification operations in Virginia and materials and technology company Corning investing in solar manufacturing in Michigan.
E&E News
29-05-2025
- Business
- E&E News
‘Major blow' for clean energy: Project cancellations snowball
April saw $4.5 billion in cancellations and delays of clean energy projects in the U.S., highlighting pressure on the renewable and low-carbon sectors as Congress weighs cutting billions of dollars in tax credits, according to a new report. Clean energy business group E2 reported Wednesday that the scrapped investments — the second-highest monthly amount since the passage of the Inflation Reduction Act — affected electric vehicle, offshore wind and battery projects. The nixed projects included a Stellantis $3.3 billion battery plant in Illinois and RWE's halting of offshore wind development in the United States. 'What the House delivered the other day was worse than anyone expected, so I think you are going to continue to see cancellations,' said Bob Keefe, E2 executive director. Advertisement The group found that since January, approximately $14 billion in announced clean energy investments have been canceled or delayed, affecting 10,000 jobs.
