In a critical moment for clean energy policy, top utility executives are mounting a robust defence of the Inflation Reduction Act’s (IRA) tax credits, urging the incoming Trump administration and Republican-controlled Congress to maintain the landmark climate legislation.
Pedro Pizarro, President and CEO of Edison International, has emerged as a key spokesperson for the utility sector’s strategic approach to preserving the transformative clean energy incentives. On the sidelines of the COP29 climate summit in Azerbaijan, Pizarro outlined the industry’s comprehensive lobbying strategy to protect the substantial tax credits that have become pivotal to the sector’s growth and environmental objectives.
The 2022 IRA represents a monumental legislative achievement, allocating hundreds of billions of dollars in subsidies for clean energy initiatives and electric vehicle (EV) technologies. However, the legislation faces potential dismantling under President-elect Donald Trump, a well-known climate change sceptic who has publicly vowed to rescind the act.
Pizarro emphasised that the industry’s motivation extends beyond corporate interests. “Most of those (IRA) benefits don’t actually accrue to our shareholders. They go straight to our bills and down to our customers,” he explained, underlining the consumer-centric rationale for maintaining the tax credits.
The utility sector’s lobbying efforts are gaining momentum, with the Edison Electric Institute (EEI) actively engaging Trump’s transition team and Republican congressional members. The approach focuses on articulating the broad economic and consumer benefits of retaining the IRA’s provisions.
The stakes are particularly high for critical sectors including energy storage, transmission, nuclear power, hydrogen technologies, and electric vehicles. Major industry players such as AES, Duke Energy, and Southern Company are united in their conviction that these tax credits are essential for continued sectoral growth and innovation.
Parallel to the utility industry’s efforts, a coalition representing leading electric vehicle manufacturers, including Rivian, Tesla, and Panasonic, has independently urged the incoming administration to preserve EV tax credits. Their advocacy highlights the potential economic impact on key Republican-voting states, adding a strategic political dimension to the lobbying campaign.
Trump’s transition team has already signalled potential plans to eliminate the USD 7,500 consumer tax credit for electric vehicle purchases as part of broader tax reform legislation. This prospect has galvanised industry leaders into proactive engagement with policymakers.
The involvement of Dan Brouillette, Trump’s former energy secretary and recently stepped-down CEO of EEI, adds another layer of complexity to the political negotiations. Brouillette is currently working with the transition team on energy policy and cabinet appointments, potentially providing an insider perspective on the administration’s potential policy directions.
Pizarro confirmed that EEI members will spend the coming months conducting extensive outreach to Capitol Hill, meticulously explaining the multifaceted benefits of the Inflation Reduction Act. “We’ll be very active there, just explaining the benefits of the IRA,” he stated, signalling a comprehensive and sustained lobbying strategy.