House Democrats Propose Plan to Strengthen Grid After GOP Rollback of Clean Energy Credits

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The policy framework aims to speed up clean energy development as demand rises from AI, EVs, and onshoring.

A group of centrist House Democrats warned on July 9 that rising power demand and recent policy changes could threaten grid reliability and drive up costs unless Congress acts to modernize the countryโ€™s energy system.

The New Democrat Coalition released a framework on July 9, laying out steps to expand clean energy, strengthen transmission infrastructure, and speed up federal permitting.

The announcement follows the passage of the Republican-backed budget bill that repeals key clean energy tax credits enacted under the Inflation Reduction Act. Signed by President Donald Trump on July 4, the megabill will end or phase out credits for home solar, batteries, heat pumps, electric vehicles, and large-scale wind and solar projects.

Rep. Scott Peters (D-Calif.), who leads the Coalitionโ€™s Environment, Climate, and Clean Energy Working Group, said the country faces โ€œa massive increaseโ€ in demand and needs to respond urgently.

โ€œFor the first time in decades, America faces a massive increase in energy demand, due to AI data centers, onshoring manufacturing, and the electrification of our economy,โ€ Peters said in a statement.

โ€œWe need affordable power, good-paying jobs, and reliable serviceโ€”abundant clean energy is the answer.โ€

Peters said the GOP megabill incentivizes โ€œoutdated and expensive fossil fuels like coal,โ€ and that taking โ€œcheap and easily deployable clean energy offlineโ€ increases the chance of blackouts along with higher energy bills.

The White House stated in a July 7 executive order that the rollback is the policy of the United States to โ€œrapidly eliminate the market distortions and costs imposed on taxpayers by so-called โ€˜greenโ€™ energy subsidies.โ€

The order stated that wind and solar energy are โ€œexpensive and unreliable,โ€ displace affordable dispatchable power, and create dependencies on โ€œsupply chains controlled by foreign adversaries.โ€ It directed federal agencies to strictly enforce the repeal of solar and wind tax credits, limit safe harbor provisions for construction timelines, and review Interior Department policies for any preferential treatment of renewable energy sources.

By Chase Smith

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