White House says renewables still pivotal to budget reconciliation despite rumours of ITC changes

Facebook
Twitter
LinkedIn
Reddit
Email
The US$3.5 trillion budget reconciliation has been pending in the US Senate amid opposition from two key Democrat lawmakers. Image: Obi Onyeador via unsplash.

The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified, as opposition to the bill by senators Manchin and Sinema continues.

Speaking at a White House press conference, White House communications director Jen Psaki said it was “absolutely pivotal” that the legislation contained “climate components”, holding up parts of the bill such as “offshore wind and solar”.

The US$3.5 trillion budget reconciliation package currently includes an extension to the solar ITC for 10 years at 30% for projects that meet certain labour conditions, but there have been reports in international media outlets that the ITCs could get cut from the bill.

There have been recent suggestions in international media outlets that Democrats are discussing changes to the ITC to bring Manchin onside. This could be a cut to the length of the ITC to five years or a devaluation in its support to 20%.

Due to the even split within the US Senate, President Joe Biden needs all of his 50 senators to vote in favour of the bill, but West Virginia senator Manchin and Arizona senator Krysten Sinema have delayed its passing so far.

When asked at the briefing about Manchin’s opposition to the bill in its current form and whether President Biden will be able to meet his climate goals without the senator’s support, Psaki said:

“It is absolutely pivotal that these pieces of legislation have climate components — and they will — to address the climate crisis.

“President Biden has been clear about what he supports. A hundred percent clean power by 2035 is a goal he committed to over a year ago […] and he remains committed to it.”

Yesterday (18 October), Reuters reported that Biden was speaking with Manchin, who thinks the bill is far too costly, about what was required for his support.

When asked about the difficulties during an appearance in Hartford, Connecticut, local media reported that Biden said: “To be honest with you, we’re probably not going to get US$3.5 trillion this year. We’re going to get something less than that. But I’m going to negotiate, I’m going to get it done.”

Meanwhile, Manchin has entered into a very public war of words with Vermont senator Bernie Sanders over the budget reconciliation. Sanders wrote an op-ed on Friday (15 October) in Manchin’s home-state paper, the Charleston Gazette-Mail, lambasting the moderate lawmaker for obstructing the bill.

Manchin fired back shortly after. He said: “This isn’t the first time an out-of-stater has tried to tell West Virginians what is best for them despite having no relationship to our state.

“Senator Sanders’ answer is to throw more money on an already overheated economy while 52 other Senators have grave concerns about this approach. To be clear, again, Congress should proceed with caution on any additional spending and I will not vote for a reckless expansion of government programs.” 

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

September 20, 2022
From module makers and BOS producers to utility-scale developers and community solar companies, the Inflation Reduction Act (IRA) has taken centre stage at this year’s RE+ in Anaheim, California.
September 7, 2022
German investment firm Aquila Capital has raised €1 billion in financing to support the development and construction of a 2.6GW renewables pipeline in Spain and Portugal over the next three years.
September 6, 2022
The European Bank for Reconstruction and Development (EBRD) is providing up to US$100 million in financing to support the development of 150MW of solar in Turkey.
August 29, 2022
A breakdown of LONGi's financial and performance results for the first half of the year as the company eyes new technology breakthroughs
August 26, 2022
Toronto-based renewables developer Amp Energy has closed on a US$155 million tax equity and debt financing round for its solar-plus-storage portfolio in the US.
August 23, 2022
US Solar Fund has sold a purchase option over its 50% interest in the 200MW Mount Signal 2 (MS2) PV project in southern California to renewables company MN8 Energy, which was formerly known as Goldman Sachs Renewable Power.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)