Written on: August 16, 2022 by ICM
The National Energy & Fuels Institute’s (NEFI) President & CEO Sean Cota provided a “critical” updated on the “Inflation Reduction Act,” which was passed by the House of Representatives on August 12. It included many changes from the original proposal. Here is Cota’s letter in full:
Dear NEFI Members and Supporters:
The U.S. House of Representatives gave final approval to the Inflation Reduction Act (IRA) by a vote of 220-207 on Friday. The White House has indicated the president will sign the bill this week.
This is the most impactful piece of federal legislation our industry has ever been faced with. Its $369 billion worth of energy and climate policies will have significant implications for your business and reshape the entire U.S. energy market for years if not generations to come.
The NEFI government affairs team has been working for more than 18 months to ensure the best possible outcome for our Main Street family businesses. Since Democrats first began work on this bill in early 2021, we have been in frequent contact with key members of Congress to raise concerns. This includes hundreds of meetings with lawmakers and their staff, and thousands of grassroots letters from NEFI members and supporters calling for fair and sensible energy policies.
As a result, this final iteration is much less harmful than either the initial $6 trillion proposal, or the ill-fated “Build Back Better Act” which passed the House last fall. It opens 700 million acres of federal lands and waters to conventional energy production as a “bridge” to a lower-carbon future; allows biofuel-compatible furnaces and boilers to compete for the bill’s new home energy efficiency tax incentives; and provides $500 million for downstream biofuel infrastructure grants at fuel terminals and heating oil distribution facilities.
Not all our concerns have been addressed. As they say in Washington, “there are no defeats, only setbacks.” The November election is just around a corner and a new Congress is on the horizon. This could present new opportunities to address harmful policies and enhance the competitiveness of our low-cost climate solution for consumers. Rest assured NEFI will continue to fight for you.
In the meantime, we must prepare our businesses for the challenges and opportunities presented by the Inflation Reduction Act. Here are several ways your business can prepare:
Familiarize yourself with the details of the bill (click here to see our updated summary) and have a conversation with your management team, as well as your company’s tax and legal professionals, about how to best prepare for the changes to come.
Register for the upcoming HEAT Show at the Rhode Island Convention Center on September 27-29. This year’s business sessions and must-attend Industry Summit will provide in-depth discussions of this legislation, the upcoming election, and the implications for our industry.
Please consider contributing to our annual advocacy fund. These funds keep the NEFI team in the field, on the job, and fighting for you. Your support is needed now more than ever.
Make no mistake. Our businesses face unprecedented challenges, but also extraordinary opportunities. Time and time again, this industry has proven to be adaptable and resilient. We urge you to seize the opportunities before you and pave a brighter future for your hardworking employees and loyal customers.
Reach out anytime, our contact information is below.
With warm regards,
Sean Cota, President & CEO, NEFI