GOP Energy Bill Risks Undermining Renewable Production

The Republican-led megabill could undermine US energy production by gutting clean energy tax credits, according to lawmakers, industry executives, and former officials.

The House-passed bill seeks to cut wind and solar power subsidies, which were enacted by Democrats in 2022, and has sparked warnings from companies that have made investments based on the tax credits. Utah Republican Sen. John Curtis said the bill’s phase-out of investment and production tax credits would hurt businesses that have invested billions of dollars based on the rules.

Energy companies have warned that the bill could lead to the cancellation of hundreds of major electricity generation projects, just as the nation’s utilities prepare for a surge in power demand from new AI data centers. NextEra CEO John Ketchum said renewables cannot be taken “off the table” and must be complemented by emerging technologies like geothermal and nuclear.

Former Federal Energy Regulatory Commission Chair Neil Chatterjee also emphasized the need to balance fossil fuels with renewables, saying “we can’t possibly win the AI race and keep energy reliable and affordable with only fossil fuels.” Meanwhile, Jarrod Agen, executive director of Trump’s National Energy Dominance Council, said wind and solar are “intermittent” sources that cannot stand on their own feet.

Lawmakers have called for tweaks to the bill, including setting a phase-out date for clean energy tax credits based on when developers start construction. Democrats have urged changes to the bill’s prohibition on foreign involvement in projects and restoring rules that allow companies to buy and sell tax credits.

The debate highlights the challenges of balancing the nation’s energy needs with environmental concerns. As the country moves forward, it is essential to find a sustainable solution that works for all stakeholders.

Source: https://www.politico.com/news/2025/06/10/gop-megabill-could-undermine-us-energy-production-republicans-warn-00397093