Trump gives the oil industry what you want; It hurts solar energy and wind

President Donald Trump A single beautiful invoice work Long -term federal support for solar and wind energy ends, with a friendly environment for oil, gas and coal production.

The Migabel Parliament approved Trump on Thursday before the deadline imposed by the White House, yet Senate It tightly agreed to the controversial legislation on Tuesday.

Trump has made his priorities in energy production clear. The President said at the end of last week that the United States will depend on oil, gas, coal and nuclear to meet its increasing energy needs.

“I don’t want to destroy the windmills in our place,” Trump told Fox News in an interview. June 29. “I do not want these solar things as they go to the miles and cover half a ugly mountain like hell.”

The president’s embrace of fossil fuel and hostility is reflected in renewable energy in the distinguished local policy law. It provides most of the priorities of the oil and gas sector, according to the lobby group in the industry, while ending the tax credits that played an important role in solar energy growth and wind energy.

Oil, gas and coal are the winners

The law opens the federal lands and water to oil and gas drilling after the Biden administration has entered into restrictions, and to assign 30 rental sales in the Gulf of Mexico for 15 years, and more than 30 years every year on land in nine states and granting industry the ability to reach Alaska.

The law also reduces the royalties that the government’s producers pay to pump oil and gas on federal lands, which encourages high production.

“This draft law will be the most transformative legislation that we have seen decades ago in terms of reaching both federal and federal water,” Mike Somers, head of the American Petroleum Institute, told the industry pressure group. “It includes almost all of our priorities.”

The law also pays oil companies to use carbon capture credit to produce more crude. Tax credit to support emerging technology that embodies and stores carbon emissions underground. Under the Trump invoice, the producers will get a tax increase in the injection of these emissions in wells to produce more oil.

The law ends the hydrogen tax in 2028, after previous versions of the draft law. Chevronand Exxon Others invest in projects to produce hydrogen fuel.

“I have a number of members who are planning to invest heavily in hydrogen, and therefore the extension until the end of 2028 was a welcome priority that has been fulfilled,” Somers said.

The coal industry is also a great winner of the law, which imposes at least 4 million additional acres of federal mining. The law also reduces the royalties that the coal companies pay the government to mining on federal lands, and allows the use of advanced manufacturing credit in order to mining the coal of metal used in making steel.

Solar energy and wind losers

The law fills the tax credits for investment and production in the field of electricity for wind and solar energy, which played a decisive role in the growth of the renewable energy industry. Investment credit has been in effect since 2005 and production credit since 1992. The extension of the law to reduce inflation until at least 2032.

Solar and wind farms that enter the service after 2027 are no longer eligible to obtain credits. However, there is an exception to projects that begin to build within 12 months to become the bill.

The gradual disposal is more gradual than previous versions of legislation, which was at a difficult deadline on December 31, 2027. This has given all solar and wind projects only 2.5 years to access the Internet in order to benefit from the credits.

“Despite the limited improvements, this legislation undermines the basis of the return of manufacturing in America and global energy leadership,” Abyel Ross Hopper, CEO of the Solar Energy Industries Association, said in a statement when the draft law approved the Senate.

A related tax credit for the use of American components in solar and wind farms for projects that enter service after 2027. Sculpture provides projects that begin construction within one year of law legislation to claim credit. Credit is designed to stimulate demand in American factories in order to break the nation’s dependence on equipment from China.

“If nothing changes, the factories will start closing,” Michael Car, CEO of the solar energy manufacturers Association, told CNBC. “The factories on the drawing plate that are likely to flounder (positively) two weeks ago, may not be read now. We will see the investment slowing down in this sector.”