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City officials and business leaders in the clean energy sector are intensifying efforts to persuade Congress to prevent the budget reconciliation bill from cutting tax credits for clean energy. Mayors say thousands of jobs in their cities and regions are at risk due to the House version of the One Big Beautiful Bill Act (OBBBA), which would largely eliminate tax incentives for renewable energy such as solar and wind, and many types of cleantech manufacturing like electric vehicles (EVs) and batteries.
New analysis by Rhodium Group identified $522 billion in clean energy investments linked to tax credits that have been announced but not yet implemented. Some of these investments have already been canceled in communities affected by uncertainty about federal tax policy, as noted by Phoenix Mayor Kate Gallego during a press call last week. She listed a battery factory and solar manufacturer in the Phoenix area that either shut down or scaled back operations.
U.S. Speaker of the House Mike Johnson (R-LA) speaks to media after the House narrowly passed a bill advancing President Trump’s agenda, which includes ending most clean energy tax credits under the OBBBA. State-by-state analysis by Energy Innovation shows $18 billion in outstanding private investment at 132 facilities in Arizona, and that the OBBBA would undercut investment at 196 clean energy or manufacturing projects.
In South Carolina, recent expansion by EV battery makers has made the state part of a new “battery belt” stretching from the Carolinas into Georgia, Tennessee, and Kentucky. The clean energy tax credits have generated $7 billion in new private investment since 2022 at 34 facilities in South Carolina. Mayors Rickenmann and Gallego emphasize that these tax credits not only support economic growth but also secure good-paying jobs.
Energy Innovation’s analysis found $12.07 billion of announced clean tech investment at risk in South Carolina, with up to 15,000 jobs potentially affected over the next five years. Mayors and business leaders will focus on state-level impacts during upcoming outreach efforts targeting critical Senators from states like South Carolina, North Carolina, and Pennsylvania.
Some Senate Republicans have indicated a willingness to make changes to energy provisions in the bill, with four prominent Republican Senators joining a letter to party leaders cautioning against changes that risk clean energy jobs and projects. Mayors are concerned about how proposed energy changes will affect local energy supply, prices, and their cities’ ability to address climate change.
Electricity demand is rising, with over 90% of new generating capacity added last year coming from renewable sources or battery storage. The Rhodium Group’s analysis shows that the OBBBA could reduce clean power additions to the grid by up to 72% over the next decade, increasing energy bills for ratepayers and shifting demand to more costly and polluting fossil fuels.
Mayor Gallego highlighted the need for these tax credits to ensure residents can afford clean, abundant energy in a region where temperatures reached 109 degrees Fahrenheit on the day of the press call. “Climate change is real,” she said, “and we need these tax credits to help our residents thrive.”
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What is the main concern of city officials and business leaders in the clean energy sector regarding the budget reconciliation bill?
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