Proposed legislation would gut key components of the Inflation Reduction Act and potentially sideline the nation's innovation growth in energy and transportation. On Thursday, executives in these sectors spoke out. Pulling back on incentives to advance clean transportation and energy will damage the nation's leadership in innovation and job creation, leaders from the electric vehicle and green energy sectors warned Thursday.
The lobbying comes as Congress considers major domestic policy legislation which includes extending and expanding tax breaks, and spending overhauls to bring the federal budget in line with current priorities. The proposal being considered by the U.S. House of Representatives -- known as the Big Beautiful Bill -- would largely gut the Inflation Reduction Act of 2022, a foundational component of former President Joe Biden's administration in addressing human-caused climate change and reorienting the economy toward technologies of tomorrow.
"The bills reported out of committee earlier this week are a repeal of the Inflation Reduction Act, in all but name," Ted Fertik, vice president for manufacturing and industrial policy at the BlueGreen Alliance, said, speaking to reporters Thursday. "This is a sledgehammer to investments and tax credits that are already creating jobs, lowering costs and bolstering manufacturing across the country."
It's not yet clear how the situation will play out. On Friday, conservatives on the House Budget Committee blocked the legislation, citing deficit concerns.
Built into the Inflation Reduction Act, which passed with no Republican support, were numerous provisions and incentives to advance clean energy and transportation. Those incentives have been helping to transition the trucking industry away from diesel, spurred the development of computer chips, wind energy, battery innovations and other technologies, all in the United States. That momentum, advocates said, ought not be slowed.
Zero-emission vehicles "appear to be in that takeoff moment," Steven Higashide, director of the Union of Concerned Scientists clean transportation program, said. "This could be the start of a new kind of freight system. One that's better for our health, as well as delivering significant operational savings to fleets. So, lets not undercut this remarkable advance in technology at this critical moment."
One of the key reasons the nation ought not be pumping the brakes on technology and innovation, an executive said, is that China is stepping on the accelerator.
"This is a 'Sputnik' moment for the U.S.," Adam Browning, executive vice president, policy at Forum Mobility, said, noting 30 percent of heavy-duty truck sales in China in December were zero-emission.
"We need some Apollo 11 energy here," said Brown, whose company makes heavy-duty truck charging depots. "Not, failure to launch."
The proposed legislation would end incentives like the Alternative Fuel Vehicle Refueling Property Credit, known as 30C, an incentive available for developers of electric vehicle (EV) charging sites. Also on the chopping block would be the popular Commercial Clean Vehicle Credit, which provides a $7,500 tax credit for businesses or nonprofits purchasing an EV.
Eliminating credits for new and used EVs "means thousands of dollars in costs for households that want to make the switch, ending the clean vehicle infrastructure credit, making it harder for people to put a charger at their home, specifically in rural and underserved areas," Higashide said, indicating these incentives have been instrumental in turning the page on air pollution from trucking and the transportation sector.
"Our research shows, when you replace a diesel truck with an electric truck, the pollution is so much lower. You've cut the health impacts associated with that truck by almost 80 percent," he said.
Republicans have been dismissive toward these arguments.
"The legislation would reverse the most reckless parts of the engorged climate spending in the misnamed Inflation Reduction Act, returning $6.5 billion in unspent funds," wrote Kentucky Republican Rep. Brett Guthrie, who chairs the House Committee on Energy and Commerce, in an op-ed Sunday for The Wall Street Journal.
"In addition to raising new revenue, the bill will slash waste, particularly handouts to Democrats' climate activist cronies. The 2024 election sent a clear signal that Americans are tired of an extreme left-wing agenda that favors wokeness over sensible policy and spurs price increases," Guthrie wrote.
Michael Fielkow, general counsel and head of corporate development at Harbinger Motors, which makes plug-in hybrid delivery trucks, said the matter is about more than partisanship.
"This is really not a partisan issue. This is about protecting American national security. It's about building an American infrastructure for what will absolutely be future technology that leads the transportation market," Fielkow said. "So the real question comes down to whether or not we support the growth of that technology in the U.S., or in other countries."