Uncertainty Surrounds Clean Technology Under the New Political Regime
With the Republicans now in control of both Congress and the presidency, the clean tech industry is on high alert, anticipating the potential impact the new administration will have on its future. While it's unlikely that all existing government initiatives will be scrapped, certain clean energy initiatives have been singled out as possible targets to help decrease the federal deficit.
President Donald Trump, a longtime supporter of the fossil fuel industry, is expected to revive his deregulatory stance, which favors the energy sector's growth and competitiveness.
By examining Trump's past actions, recent executive orders, and the House Budget Committee's potential revenue raisers, we can gather clues about the new administration's intentions regarding energy initiatives.
In Trump's 2018 budget proposal, there were plans to increase federal revenue related to sales and divestment in certain energy initiatives by approximately $36 billion. This proposal also called for an 18% reduction in Department of Energy funding, targeting the DOE's Office of Energy Efficiency and Renewable Energy. Despite these proposals, Congress limited the budget cuts.
But what does this mean for the clean tech industry under the new administration? While the Green New Deal-related executive order may pause the disbursement of funds from the Inflation Reduction Act, the order states that funding will not be terminated if it supports initiatives like establishing U.S. dominance in non-fuel minerals or improving energy accessibility.
The budget may also impact offshore wind energy, electric vehicles, and charging stations, as some Republicans have expressed concerns about rescinding clean energy tax provisions.
Ultimately, the clean tech industry should stay informed and prepared for potential changes due to the new administration, though negotiations are still in the early stages. As ever-evolving policies and proposals emerge, the need for advocacy and adaptation will remain essential.
Revenue raisers, like repealing clean fuel production and green energy tax credits, could significantly impact the clean tech industry. However, some lawmakers still vocalize their support for clean fossil fuel production and carbon sequestration.
In summary, under the new administration, clean energy initiatives may face challenges, with offshore wind energy, electric vehicles, and charging stations being potential areas of adjustment. The clean tech industry must stay vigilant and adaptive as the congressional process unfolds.
The new administration might consider revoking certain clean energy tax credits, posing a challenge to the growth of charging stations for ev vehicles. President Trump's 2018 budget proposal highlighted plans to increase revenue through sales and divestment in certain energy initiatives, potentially affecting the Inflation Reduction Act's funding for clean tech initiatives like nuclear energy and offshore wind. To counteract these potential changes, the clean tech industry should continue advocating for its causes and adapting to evolving policies.
