Sierra Club Statement on House Tax Reconciliation Provisions

WASHINGTON, D.C. - House Democrats, under the leadership of Ways and Means Committee Chair Richard Neal, are delivering a historic package of clean energy tax incentives through committee today. It makes clean investments across multiple sectors of the economy and builds momentum for these essential policies to be included in any final reconciliation bill. In contrast to these important investments, however, House Democrats failed to cut billions in domestic subsidies for the fossil fuel industry. 

HIGHLIGHTS INCLUDE:

• Significant investments in clean energy like solar - including robust credits for disadvantaged communities - wind, offshore wind, energy storage, energy efficiency, and transmission. 

• Major investments in the transportation sector, including strong consumer incentives for electric vehicles and in the charging infrastructure needed to support electrification.

• Investment in the domestic manufacturing capacity for clean technologies in the U.S.

• Strong standards, requirements, and bonuses to help achieve critical labor advancements, domestic production goals, and create good-paying family-sustaining jobs

CONCERNS:

The House bill has a major oversight in that it does not seize the opportunity to eliminate toxic domestic fossil fuel subsidies. Oil and gas companies collect billions of dollars in taxpayer-funded handouts every year, the vast majority of which go to excess profits for executives. Despite the need to dramatically cut oil and gas production in order to avert the worst of the climate crisis, House Democrats responded to oil industry pressure by opting to leave these handouts intact. Eliminating fossil fuel subsidies is an important component of President Biden’s Build Back Better agenda and was included in Chairman Wyden’s Clean Energy for America Act, which was marked up and passed out of the Senate Finance Committee.

Unfortunately, the bill also maintains the status quo by needlessly incentivizing technologies that will not advance us towards our truly renewable, and clean goals, such as credits for municipal solid waste, biomass, carbon capture and utilisation, and nuclear facilities. 

In Response Sierra Club Legislative Director Melinda Pierce Released the Following Statement: 

“We applaud House leaders for their remarkable progress in crafting an historic budget reconciliation package that advances bold investments in climate, jobs and justice. The tax package will serve as a major driver of climate action and clean energy deployment at a scale that can truly transform the way we power our economy--our homes, buildings and transportation sector--while protecting public health by cleaning up our air and water. Alongside other provisions of the reconciliation bill, it will help put our country on a path to meet President Biden’s climate action goals of 80% clean electricity and 50% economy-wide carbon emissions reductions by 2030, while delivering at least 40% of the investments to disadvantaged communities.

“Unfortunately, the House bill fails to eliminate toxic fossil fuel subsidies -- something which was included in the Senate version and must be included in final passage of this bill. We also have concerns about inappropriate nuclear, municipal solid waste, biomass, and coal and gas carbon sequestration subsidies that should not be part of a safe clean energy future. 

“Together, the final version of clean energy and climate policies in the reconciliation bill are poised to play a critical role in addressing the climate crisis, aid America’s economic recovery with well-paying, family-sustaining jobs, alleviate some of the pollution impacts that have been borne by communities, and help the country build back better.”