Trump gives oil industry what it wants; hurts solar and wind
President Donald Trump’s A great beautiful bill law It creates a friendly environment for oil production, gas and coal production, while ending federal support for sun and wind energy for a long time.
After the House of Representatives had narrowly approved the controversial legislation on Tuesday, Trump’s Megabill was passed on Thursday before a final delivery date imposed by the White House.
Trump clarified his priorities in energy production. The President said that he would trust that the US would trust the US to meet the increasing energy needs of the US by beating wind and solar energy last weekend.
Orum I don’t want windmills to destroy our place, Tr Trump said in an interview published on Fox News 29 June. “I don’t want this solar energy where they go for miles, and they cover a half of the ugly mountain like Hell.”
The president’s embracing fossil fuels and hostility to renewable energy are reflected in the signature domestic policy law. According to the industry’s lobby group, it offers the most important priorities of the oil and gas sector, while ending tax loans that play an important role in the growth of solar and wind power.
Petroleum, gas and coal earns
The law opens the federal territory and waters to the oil and gas drilling after removing the pavements of the Biden administration, for 15 years, it requires 30 rental sales in the Gulf of Mexico and the sale of more than 30 rent in nine states every year and allows the industry to access Alaska.
The law also encourages higher output by reducing the copyrights that the manufacturers pay to the government to pump oil and gas in federal lands.
“This draft law will be the most monitoring legislation we’ve seen for decades in terms of access to both federal lands and federal waters.” He said. “It contains almost all our priorities.”
The law also encourages oil companies to use a carbon capture tax loan to produce more raw. The tax loan is designed to support the newborn technology that captures and stores underground carbon emissions. According to Trump’s bill, manufacturers would receive more tax advantage to inject these emissions into wells to produce more oil.
The law terminates the hydrogen tax loan in 2028 later from the previous versions of the bill. Knight– EXXON And others invest in projects to produce hydrogen fuel.
“I have a few members who plan to invest significantly in hydrogen, and therefore, it was a pleasant priority that was fulfilled by the end of 2028.” He said.
The coal industry is also a great winner from the law, which necessitates at least 4 million additional acres of federal land for mining. The law also cuts the royalties that coal companies pay to the government for mining in federal land and allow advanced production tax loan to be used for mining metallurgical coal used to make steel.
Sun and Wind Loser
The law is gradually grading the clean electric investment and production tax loans for wind and solar energy that plays an important role in the growth of the renewable energy industry. The investment loan has been in force since 2005 and since 1992. The inflation reduction law extended both the life of both to at least 2032.
Sun and wind farms, which are put into service after 2027, will no longer be suitable for loans. However, there is an exception for projects that start construction within 12 months after the bill becomes a law.
Fazout should be more gradual than previous versions of the legislation, which has a difficult deadline on December 31, 2027. This gave all Sun and Wind Projects only 2.5 years to come online to benefit from loans for only 2.5 years.
“Despite limited improvements, this legislation weakens America’s production return and global energy leadership.” He said.
In order to use US -made components in sun and wind farms, a relevant tax loan ends for projects that are put into service after 2027. A carvedmaker permits the projects of the law to demand the loan within one year. The loan was designed to increase the demand for US factories to break the country’s dependence on equipment from China.
“If nothing changes, factories start to close,” said Michael Carr, General Manager of Solar Energy Producers Association. He said. “Factories on the drawing board, probably drawn with a pencil [favorably] Two weeks ago, maybe don’t make a pen now. We will see that the investment in the sector is slowing down. “
