Congress has spent more than three trillion dollars so far in its efforts to stimulate the economy. Curiously, none of that money has been directed toward the nation’s energy sector—other than some independent operations that may have qualified as small businesses. It is strange because the government has, in past downturns, recognized the role of energy in accelerating growth, from the New Deal-era Rural Electrification Administration to a $90 billion investment in renewables in President Obama’s stimulus package in 2009.
Moreover, clean energy industries have demonstrated such outstanding growth potential the past decade but have been devastated by the pandemic. A recent report from the analysis of U.S. Department of Labor data found that 620,590 workers in clean energy occupations, representing 18.5 percent of the industry’s workforce, filed for unemployment benefits in March, April, and May. The number of jobs lost is more than double the number of clean energy jobs created since 2017, but many of them could quickly recover.
What is frustrating is that an ideal bill had been queued up even before the pandemic that had enjoyed strong bipartisan support. The American Energy Innovation Act (AEIA), a legislative package comprised of over 50 bills reported to the Senate in 2019, was introduced in February by Senate Energy and Natural Resources Committee Chair Lisa Murkowski (R-AK) and Ranking Member Joe Manchin (D-WV). But it was derailed by disagreements after a bill was added that would have reduced hydrofluorocarbon use.
That bill may be back and could be the heart of the next stimulus package. During a webinar hosted this week by Citizens for Responsible Energy Solutions, Lucy Murfitt, chief counsel for the Senate Energy and Natural Resources Committee, assured participants that Chairman Murkowski will make a major push to pass the AEIA in July.
"I want to make sure that you understand, because I think if Senator Murkowski were on this call right now, she'd be telling you this—she is absolutely 110% committed to this bill," Murfitt said. "She has not wavered at all on that. And she's gonna fight until there's just simply no path forward left for the bill."
Another existing bill that could be a practical option to help stimulate the nation’s energy sector is America’s Transportation Infrastructure Act (ATIA), which would help streamline federal approval of clean-energy infrastructure projects, helping us lower carbon emissions, increase our carbon-capture capabilities, and fund sustainable energy projects.
In recent days, Democrats have offered partisan bills that would seem to have less opportunity for passage because of their plainly political goals.
The House of Representatives is planning to bring the Democrats’ GREEN Act to the floor this week as part of a larger $1.5 trillion green stimulus dubbed the Moving Forward Act, which is over 2,300 pages and includes federal tax incentives for solar, storage, offshore wind, electric vehicles, among others.
Meanwhile, the New York Times reports that the Democrats’ new climate agenda is “tying [the] environment to racial justice.” It features ambitious goals, such as ensuring that every new car sold by 2035 emits no greenhouse gases and eliminating overall emissions from the power sector. But it also explicitly cites the police killing of George Floyd in its opening paragraph and goes on to argue that communities of color are at greater risk from the effects of climate change.
From a pure consumer perspective, social justice benefits are dubious and will only weaken tangible choices. Boosting innovation and emerging energy industries is good, but only if the solutions are practical and actionable. Considering the Green New Deal already fell flat on its face when it was wheeled out a few years ago, these latest efforts by the Democrats seem once again far too politicized to gain support in the Senate. Cynics might suggest they want to keep the issue alive for the election rather than get behind something that can actually pass, like the AEIA.
Regardless, there does seem to be real hope for some sort of action in the next round of stimulus packages. The Energy Choice Coalition will follow developments carefully and stand up for consumers.
