Congresswoman Julie Fedorchak and Senator Kevin Cramer, both Republicans from North Dakota, have reached out to congressional leadership with calls to amend current federal energy tax policies. They aim to align these policies more closely with the United States’ objectives for energy reliability, affordability, and security.
In their communication to House and Senate Republican leaders and Committee Chairs, the former state utility regulators expressed concerns about the impacts of existing energy tax policies. “We understand state and regional power markets and strongly believe smart, targeted federal investments in our energy sector can be in the national interest,” they wrote. They pointed out that while federal policies aim to maintain a reliable and resilient grid, tax codes often subsidize intermittent energy sources, such as wind and solar, which, according to them, contribute to the decline of the electrical grid’s integrity.
Their letter references a recent report from the North American Electric Reliability Corporation, indicating that 11 out of 18 Regional Transmission Organizations face increased risks of resource shortages. Specifically, the Midcontinent Independent System Operator, serving 45 million people, is identified as being at high risk of failing to meet electricity demand under normal conditions.
Fedorchak and Cramer urge Congress to review energy tax credits introduced in the “Inflation Reduction Act” using specific criteria. These include whether these credits enhance or weaken the electric grid, affect power delivery reliability, complicate grid operations, increase costs to consumers, or encourage generation sources that require costly transmission lines.
They propose a careful phase-out of tax credits like 45Y and 48E, which favor zero-emission sources but overlook other essential attributes like reliability and affordability. On the contrary, they endorse targeted credits such as 45Q for carbon capture and 45U for nuclear power, which they argue support emissions reduction while ensuring dependable electricity supply.
“Generators should be paid for their performance; not how good they make policymakers feel,” they concluded, sharing their readiness to collaborate with other Republican officials to achieve energy policy goals entrusted to them by Americans.
The full letter and further details on Rep. Fedorchak’s legislation for phasing out tax credits in renewable energy sources are accessible online.
