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US Senate bill's clean-energy cuts evoke backlash from business, labor

Since they were announced over the weekend, the U.S. Senate has been criticized by business and labor groups for its proposed cuts to clean-energy subsidies in the version of President Donald Trump’s tax and spending plan. Some have argued that the changes will increase power prices and destroy jobs.

Elon Musk, a Trump ally, also took a shot at the senators as they began voting on amendments to the bill Monday morning. This gave renewable energy advocates from both sides of politics a final window to make changes.

In a weekend post on X, Neil Bradley, the policy director of the U.S. Chamber of Commerce said, "Taxing the production of energy is never a good policy. "Electricity consumption is expected to grow at a rapid rate & the tax will raise prices." It should be removed."

"This would be incredibly damaging to America!" Musk said in a post on X that the cuts would be detrimental to the development of artificial intelligence, which is energy-hungry.

Trump said that he plans to maximize U.S. Energy production with a special focus on fossil fuels. This is partly to ensure that the AI industry has enough power to grow. He has promised to eliminate subsidies for renewables. The Senate bill would repeal incentives for wind, battery, solar and other clean technologies that were created by President Joe Biden’s 2022 Inflation reduction Act. It would also add a tax to these projects if the companies cannot prove they are not made with Chinese components.

These provisions were more harsh on credits than either the Senate version or even the House version.

Sean McGarvey of the North America’s Building Trades Unions, which represents more than 3 million construction workers in the United States, has criticized the bill’s impact on the jobs.

If passed, it would be the largest job-killing law in the history this country. It is equivalent to terminating 1,000 Keystone XL projects, he said, referring an oil pipeline project that was blocked by Biden’s administration.

The bill was also attacked on the Senate floor by Republican Senator Thom Tillis, of North Carolina. He is one of the two Republicans that voted against it.

Tillis has said that he will not run for reelection after Trump criticized him for voting against the motion for the bill to be advanced.

He said, "You have created a blip on the power service because there won't be a generator powered by gas anytime soon."

Tillis, a consultant in the utility industry, said that the bill ignored the reality of data centers' soaring power demand.

Brian Schatz is a Democratic senator from Hawaii who also spoke out against the impact of the bill.

This bill will raise prices. He said that the 500-GW of energy we'll need in the next decade to meet the rising demand is exactly what we'll need.

He said: "You don't need to be an environmentalist or a fan of clean energy to realize that this is fundamentally a question of supply-and-demand." (Reporting and Editing by Margueritachoy)

(source: Reuters)