Shift Key with Robinson Meyer and Jesse Jenkins The Fight Over the Inflation Reduction Act Has Arrived
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May 13, 2025 Luke Bassett, a former senior advisor for domestic climate policy at the U.S. Treasury, joins to dissect the brewing battle over the Inflation Reduction Act. He reveals the GOP's recent proposal to reshape energy tax provisions, emphasizing its potential to significantly impact clean energy funding. The conversation covers critical aspects of the legislative process, including budget reconciliation's role and navigates the complexities of new tax credit regulations on sectors like electric vehicles and renewable energy. Bassett highlights the stakes for manufacturers and working families amidst these political shifts.
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Senate Controls Reconciliation Budgets
- The Senate holds the binding rules for reconciliation bills, especially through the Byrd Rule constraining budget alignment.
- The House can pass bills ignoring its own budget caps, but the Senate would then need to adjust or restart the process.
Energy and Commerce Targets IRA Funds
- The Energy and Commerce Committee plans to rescind all unobligated IRA funds to use as offsets.
- The Loan Programs Office funding aimed at repurposing energy infrastructure faces elimination, risking rural economic development.
Energy Infrastructure Financing Anecdote
- Luke Bassett likened utility debt issues to family mortgage problems, explaining IRA's loan provisions for repowering energy assets.
- Example: repurposing a waste-to-ammonia plant in Indiana into carbon negative ammonia is enabled by DOE support.