(The Center Square) – In the wake of the passage of the Big Beautiful Bill Act, clean energy groups are warning of potential impacts on Michigan’s auto industry and rising energy costs for consumers.
“This bill is a scorched-earth assault on the health, wallets and future of every Michigander,” said Bentley Johnson, federal government affairs director for Michigan League of Conservation Voters. “At a time when families are battling rising costs, dangerous air pollution and the escalating impacts of climate change, Senate Republicans chose to side with billionaire polluters over the people they were elected to serve. This is legislative malpractice of the highest order.”
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On the other hand, fossil fuel advocates are applauding the act, which President Donald Trump signed into law on July 4. It cut a number of federal clean energy-related tax credits, including:
• Terminates the energy efficient home improvement tax credit. Under current law, taxpayers may claim that credit of up to $3,200 for certain energy-efficient property purchased and installed into a primary residence before 2033.
• Accelerates the expiration of the zero-emission nuclear power production tax credit by one year to 2031. Under current law, a tax credit is available for qualified nuclear power facilities before 2033.
• Rescinds funding for a low emissions electricity program that provided “education, technical assistance, and outreach to reduce greenhouse gas emissions that result from domestic electricity generation and use.”
• Imposes annual federal registration fees on owners of electric and hybrid vehicles, terminating in 2035.
• Repeals the Environmental Protection Agency’s program that awards grants to states, air pollution control agencies, municipalities, and Indian tribes for developing and implementing plans to reduce greenhouse gas air pollution.
This is part of a broader push from Republicans in support of nuclear, coal and fossil fuels, instead of the renewables which Trump has labeled the “Green New Scam.”
Since taking office in January, Trump has signed a number of executive orders “unleashing American energy” and in line with his campaign promise to “drill, baby, drill.”
“America is blessed with an abundance of energy and natural resources that have historically powered our nation’s economic prosperity,” stated an executive order Trump signed on his first day in office. “It is thus in the national interest to unleash America’s affordable and reliable energy and natural resources. This will restore American prosperity.”
Yet, clean energy groups are concerned about the “staggering” impact the cuts to clean energy initiatives could have.
“The bill guts nearly all federal investments in clean energy, sending electricity rates skyrocketing and gas prices soaring,” said a statement from the league. “On top of the economic pain, the bill kneecaps Michigan’s ability to build the clean energy infrastructure urgently needed.”
The league also cites a study from Energy Innovation which found that cumulative annual consumer energy costs could increase more than $16 billion in 2030 and more than $33 billion by 2035. For Michiganders, this equates to an extra $120 a year immediately and up to $230 annually within a decade.
“The GOP passed this disastrous budget bill, and everyday Americans will pay the price,” said BlueGreen Alliance Executive Director Jason Walsh. “This bill is a loud wakeup call that the GOP does not value working families.”
Republicans say the act will release consumer choice and pull back on federal red tape in the energy sector.
“I joined my colleagues in passing the One Big Beautiful Bill to prevent the largest tax hike in American history, lower energy costs, and permanently secure our border,” said Michigan Rep. Tom Barrett, a Republican. “This legislation will create thousands of good-paying jobs to boost our economy, ensure the middle class keeps more money in their pockets, and invest in a brighter future for America.”
A statement from Barretts office also promised the act will lower “the costs of gas and electricity for families and businesses by unleashing American energy dominance and increasing domestic mining.”
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The American Petroleum Institute, the nation’s largest oil and natural gas trade association, applauded the passage of the act and its “sensible tax policy.”
“This is the most important energy bill in a generation,” said Mike Sommers, the institute’s president and CEO. “We applaud President Trump and Congress on this historic legislation that cements American energy leadership for years to come and ushers in a new era of energy development.”