PRO FARMER

Clean Energy Tax Credits Face Uncertain Future in GOP Tax Bill

Tue, 13 May 2025 17:56:09 GMT

House Republicans are advancing a sweeping tax and spending bill that could significantly scale back or reshape some of the clean energy tax credits established under the Inflation Reduction Act (IRA). These credits — worth hundreds of billions of dollars — have become a major flashpoint in ongoing GOP budget negotiations. Key proposals under consideration

Immediate repeal: EV tax credits could be repealed as early as Dec. 31, reflecting strong GOP opposition.
Phased rollbacks: Credits for solar, wind and other renewables may face gradual phase-outs, though timelines remain undecided.
Transferability & foreign ties: Proposed changes would eliminate the ability to sell credits to third parties and ban eligibility for projects linked to China, Russia and other foreign adversaries.

The GOP remains split. While hardliners are pushing for full repeal, over 20 Republican lawmakers support retaining select credits to protect jobs and investments in renewable-heavy districts.

Developers and investors face growing uncertainty, though credits for existing projects are unlikely to be revoked retroactively.

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House Dems Use Agriculture Bills for Food and Fuel Messages

Wed, 06 Jul 2022 21:45:50 GMT

House Democrats are touting legislation that would create a special investigator for agricultural competition and permanently allow year-round sales of E15 fuel as inflation-fighting tools in a package to be considered on the floor later this week, according to House Majority Leader Steny Hoyer (D-Md.).

“The House will consider the Lower Food and Fuel Costs Act from the Committee on Agriculture and the Committee on Energy and Commerce to address food prices and help bring down the cost of fertilizer for farmers while providing more affordable options at the gas pump for Americans,” Hoyer said during a floor colloquy.

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The package (HR 7606) incorporates seven bills that advance Democratic messages that a few companies’ domination of the meat and poultry processing has contributed to higher food prices and that lawmakers’ are tackling pocketbook issues, such as gasoline prices of around $5 a gallon.
The bill would establish an Office of the Special Investigator for Competition Matters at USDA, giving it subpoena powers and the ability to file civil lawsuits or take administrative actions over violations by meatpacking companies and live poultry dealers under the Packers and Stockyards Act of 1921. The legislation doesn’t authorize funding, but the Congressional Budget Office estimates an office of 10 attorneys and staff would cost a total of $9 million over fiscal years 2022 to 2027. House Agriculture ranking member Glenn “GT” Thompson (R-Pa.) called the bill’s language flawed and said it would add regulatory compliance costs that would raise grocery expenses for consumers.
The measure would use loans, loan guarantees and grants to help communities and individuals expand networks of local and regional processors and increase job opportunities. It would authorize $100 million for each fiscal year from 2023 to 2025. The bill also would authorize $20 million per fiscal year for fiscal 2023 through 2025 for grants.
The bill would authorize $200 million in funding for fiscal years 2022 and 2023 for competitive USDA grants to fuel retailers and distributors to offset costs of installing blender pumps that can dispense fuel mixtures with more than 10% ethanol or 20% biodiesel. The goal is to increase the availability of such fuels and support increased biofuel production and use.
The bill would make permanent the waiver the Biden administration announced in April to allow summer sales of a gasoline blend of 15% ethanol and 85% gasoline. The administration said the decision was among steps it was taking to try to reduce pump prices since ethanol costs less than gasoline. The measure would amend the law to allow ethanol blends of more than 10% to qualify for sales between June 1 and Sept. 15. A federal court had ruled that the Trump administration didn’t have the authority under the law to allow such sales.
The package includes language that would increase cost-sharing payments and federal payments through existing USDA conservation programs to encourage farmers and ranchers to buy precision agriculture equipment, systems and technology. The Environmental Quality Incentives and the Conservation Stewardship programs would make higher payments to producers to help meet the expense of precision technology and higher payments to producers who use precision agriculture practices. Loan guarantees through the Conservation Loan and Business and Industry programs would be available for private lenders to encourage them to finance farmers and ranchers’ precision agriculture purchases.
Language would direct USDA to establish the Agricultural and Food System Supply Chain Resilience and Crisis Response Task Force within 60 days of enactment. The Agriculture secretary would name the task force leader, who would be a special adviser to the department. The special adviser would have 270 days after the bill is enacted to report on the food and agricultural system. The task force would sunset by Sept. 30, 2023.
The measure would authorize $500 million to be used in fiscal years 2022 and 2023 for additional payments to participants in the Environmental Quality Incentives Program who are using conservation practices to limit fertilizer and other nutrient runoff. The payments would be in addition to any cost-sharing funds a farmer or rancher already receives through the program. However, a participant couldn’t receive total payments that exceed the cost for managing nutrient runoff.

Supreme Court Curbs EPA’s Power to Regulate Emissions

Wed, 13 Jul 2022 20:27:39 GMT

The Supreme Court has made it more challenging for the Environmental Protection Agency to regulate greenhouse gases and fight climate change, as justices ruled today in favor of Republican-led states and coal companies that asked the court to limit how much the EPA can control emissions from power plants. The court ruled 6-3 along ideological lines that the EPA does not have the authority under the Clean Air Act to create caps for greenhouse gas emissions. The consolidated cases are known as West Virginia v. EPA.

Chief Justice John Roberts wrote for the court’s conservatives. “Capping carbon dioxide emissions at a level that will force a nationwide transition away from the use of coal to generate electricity may be a sensible ‘solution to the crisis of the day’ ” Roberts wrote, referring to a court precedent. “But it is not plausible that Congress gave EPA the authority to adopt on its own such a regulatory scheme.”

Justice Elena Kagan, writing for the dissenters, countered: “Today, the Court strips the EPA of the power Congress gave it to respond to ‘the most pressing environmental challenge of our time,’ ” referring to another precedent.

Bottom line: The ruling delivers a blow to Democrats and environmental groups, who want the agency to crack down on emissions from power plants and other sources to mitigate climate change.

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EPA Working with USDA, DOE on Biofuel Blending Levels Beyond 2022

Wed, 14 Sep 2022 13:26:15 GMT

EPA is coordinating with USDA and the Department of Energy (DOE) on biofuel blending requirements past 2022, EPA Administrator Michael Regan said on Tuesday. EPA understands the requirements are of great importance to the biofuels industry, Regan said during remarks at the Growth Energy Biofuels Summit. He added that agriculture and the biofuels industry will play a key role in helping President Joe Biden meet climate goals, as the electric vehicle market will not be available immediately.

Regan said he anticipated the upcoming Renewable Volume Obligations — which set blending targets under the nation’s biofuel usage mandate — will leave room for growth in the industry. “The safest thing for me to say, since we’re in this stage that we are in the process, is... we want to continue to grow … we don’t want to take any steps backwards,” Regan said. “I believe that what we’re proposing will continue the progress that we’ve made up until this point.”

The volumes are expected to be proposed by Nov. 16 in line with a consent decree reached between EPA and Growth Energy in July. The decree requires the proposal to be finalized by June 14, 2023.

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Regan also said EPA plans to move forward on a petition from eight states to allow for summertime sales of E15 within their borders following the loss of a national waiver due to a 2021 court ruling. Those states – Illinois, Iowa, Kansas, North Dakota, Nebraska, South Dakota and Wisconsin – petitioned EPA for the authority to do so in April following the Biden administration’s move to use emergency authority to allow summertime sales of the fuel for 2022. But he says the process will take time to ensure it is on sound legal footing.

“What I think EPA has learned, especially the career staff, is when we rush and do things or we don’t follow the science or follow the law, it ends up in court and we all end up waiting in suspense,” Regan said. “We want to do this correctly, and I believe we’re taking all the appropriate steps we need to take to do this in a manner that will meet the 2023 ozone season but also meet the letter of the law.”

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