On Monday, June 30th the American Energy Alliance, along with the Competitive Enterprise Institute, sent a joint letter to the Senate urging senators to uphold President Trump’s campaign commitment to eliminate all remaining energy subsidies from the Inflation Reduction Act (IRA), which he aptly has called the “Green New Scam.” The text of the letter is available below.
Dear Senator:
In 2022, Democrats passed a radical plan to change how Americans use and consume energy. This plan was contained in the Inflation Reduction Act (IRA), a reconciliation bill that did not get a single Republican vote in the House or Senate.
Republicans and other lawmakers concerned about energy affordability and reliability now have a chance to undo the numerous IRA provisions that advance this radical Green New Deal agenda. Quite simply, the only way to undo the Green New Deal is to dismantle the “green” subsidies within the IRA.
Our organizations sought stronger language to undo the IRA subsidies than what is in the current Senate reconciliation bill (H.R. 1). However, we recognize that the existing language reflects compromise to get the One Big Beautiful Bill across the finish line. It may not be ideal, but the language is a strong effort to undo what President Trump rightly calls the “Green New Scam,” and for that, lawmakers should be commended.
Unfortunately, some Senators want to weaken the text in the Senate bill by undermining efforts to dismantle the IRA subsidies such as the requirement that projects be “placed in service” by the end of 2027 in order to qualify for certain tax credits. This is unacceptable and we strongly encourage you to reject any amendment that weakens the existing IRA related language in the most recent Senate draft.
These subsidies, among other problems, would continue to force our country towards a mix of unreliable sources of electricity (e.g. wind and solar) that would severely threaten our nation’s electricity grid. Americans need reliable and affordable electricity, not handouts to special interests at the expense of the electricity needs of Americans.
For once, the interests of Americans appear to be taking priority over the interests of the swamp. We encourage you to ensure that this does not change. This can only happen if Senators reject amendments that weaken the current language in H.R. 1.
Sincerely,
Daren Bakst
Director, Center for Energy and Environment
Competitive Enterprise Institute
Thomas Pyle
President
American Energy Alliance