Peace Garden News

Congresswoman Julie Fedorchak of North Dakota has introduced the Ending Intermittent Energy Subsidies Act in Washington, D.C. This new bill aims to phase out the production and investment tax credits for wind and solar energy over a five-year period. Her introduction of the legislation comes with the support of fellow Republicans Gary Palmer, Randy Weber, and Craig Goldman.

Fedorchak emphasized the need for this legislation, stating, “Wind and solar are no longer emerging technologies—they’re mature, market-proven, and widely deployed.” She expressed concerns that continuing to incentivize these energy sources through tax credits distorts energy markets. According to Fedorchak, the focus should be on more dispatchable resources for grid reliability.

The proposed legislation seeks to restore market signals that prioritize grid security while maintaining incentives for clean and reliable technologies such as nuclear, hydropower, and geothermal. It specifically targets tax credits under Sections 45Y and 48E of the Inflation Reduction Act. The Cato Institute estimates that these provisions might cost taxpayers up to $901 billion over the next decade, a figure significantly higher than the Congressional Budget Office's projections.

Under the current subsidy structure, intermittent resources like wind and solar—which cannot be dispatched on demand—receive disproportionate benefits. This has contributed to the premature retirement of dispatchable baseload generation, such as coal, natural gas, and nuclear, leading to what NERC describes as a "reliability crisis" across the U.S.

The Ending Intermittent Energy Subsidies Act stipulates a 20% annual phase-out of the Production Tax Credit and Investment Tax Credit for wind and solar energy over the next five years. The bill also eliminates the transferability of these credits to third-party buyers, aiming to close a loophole that prolongs market imbalances.

Craig Goldman voiced his support, stating, “As energy demand continues to rise across the United States, it’s critical we get the federal government out of the game of picking winners and losers. I fully support Rep. Fedorchak’s Ending Intermittent Energy Subsidies Act, which phases out costly taxpayer-funded subsidies for wind and solar energy. This important legislation will curb excessive government spending and help restore balance to our energy markets.”