Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Politics

‘We Have a Real Chance’: Chuck Schumer on the Plan to Save the IRA

The Senate’s Democratic minority leader talks to Heatmap about the origins of the law and working with Republicans to preserve it.

•
Chuck Schumer.
Heatmap Illustration/Getty Images

The Inflation Reduction Act was never supposed to get here.

The clean energy law was one of President Joe Biden and the then-Democratic congressional majority’s proudest accomplishments. But the law — which as initially written would put America much closer to its climate goals — is now in the process of being dismantled. Last month, House Republicans overhauled the law in their reconciliation megabill, all but undoing most of the incentives meant to support the American solar, battery, and electric vehicle industries.

The onus to save the IRA now lies with Senator Chuck Schumer, the New Yorker who leads the Senate’s now-Democratic minority. The IRA, which was first born of his wrangling with former Senator Joe Manchin of West Virginia, could possibly perish under his watch. On Thursday, I caught up with Senator Schumer for a conversation about where the clean energy law came from, the costs of repealing it, and how Democrats plan to save it. Our conversation has been edited for length and clarity.

How the Inflation Reduction Act passed at all:

Manchin and I sat down and first he wasn’t going to do it. We needed his vote — we only had 50. And finally — you know the story — sitting in this little room, we negotiated the bill no one else could know about. And to the surprise of everyone, we came out with a good, strong bill that Manchin would support, and it passed, and the support was just overwhelming.

Why the tax credits in the IRA aren’t capped to a certain dollar amount:

We wrote into the bill that wind and solar would get $369 billion in tax credits. We said that, but it ended up being closer to $1 trillion. Manchin got mad at me. I said, Well, Joe, while we were sitting in that room together. I was always afraid that you would want a cap. You could’ve asked for a cap, and you could have gotten it. Anyway, the program’s been overwhelmingly successful in every corner of America.

On why the IRA is in danger now:

When the Republicans came in, when Trump won and the Republicans won the House and Senate, I knew we were in trouble, because this has divided the parties. Unfortunately, the Republican Party in the Senate and in the House was too much in the throes of the fossil fuel industry, and we knew that the hard right — it’s not every Republican, but there’s a hard right group that, almost as a religion, hates clean energy.

On how he sees the Senate math for saving the IRA:

We have 16 Senate Republicans who are sympathetic, either because of the geography of their districts, or they just understand that this is a new future, and we are working them intensely. I have a good team of eight Democrats who are reaching out to the 16 — they have friendships with them — and we are meeting several times a week.

You see, there’s two groups in the Republicans. None of them are going to be a big advocate right now for wind and solar, with maybe a few exceptions. But the hard right, which wants to kill it, went too far.

On what the public campaign to save the IRA is looking like:

We have $10 million of ads going out in different Republican states, and other groups are doing more ads. We’ve mobilized the environmental movement. I spoke to the [League of Conservation Voters] four or five times, and I’m doing a tele-town hall meeting with thousands and thousands of members of the environmental groups to get them to call their senators and call their friends. We’re going all-out.

On some Republicans’ reported views that China is so far ahead on solar, wind, EV, and batteries that the U.S. should double down on oil and gas instead:

No one believes it because they know, first, the cheapest, quickest way to produce new energy is through solar. It takes five, six years to get more natural gas [on the grid]. Solar can take two years, and it’s cheaper.

We’ve made the argument to the Republicans — if we need a lot more energy quickly, you can do whatever you want with oil and gas, but you can’t cut off clean energy. And the tech companies support that, and a lot of the financial companies that want more energy. The AI industry is on our side.

On whether hyperscalers are talking to Senate Republicans and the Trump administration:

We’re asking the AI companies to quietly talk to both. There are some friends in the Trump administration, but we’re asking them to talk to the senators. It makes no sense for the Trump administration to say we need to double our output of energy and then cut off the quickest, cleanest, cheapest source.

On why the public campaign to save the Inflation Reduction Act has been so nonexistent and feckless — until now, maybe:

The power of the hard-right Freedom Caucus to dictate much of what goes in the Republican bills. Their margin’s so narrow, and they say they’re not going to vote for the bill. We need the people on the other side to be just as strong. So far, that’s what we’re trying to build.

On Senate Democrats’ strategy to save the IRA:

Our goal is to get a critical mass of Republican senators. We have four ways to win. We first have the parliamentary procedures — you know, the Byrd bath. We’re not going to be able to knock out a bunch with that, maybe a little bit.

Our second and our best chance is to get a group of critical mass of Republican senators to go to [Senate Majority Leader John] Thune and [Senate Finance Committee Chair Mike] Crapo and say, You’ve got to change this. We can’t vote for it the way it is.

Our third option is we will prepare a long list of amendments, which will be very difficult for some of them to vote for. They may end up voting for them, but the fact that they know they’re coming will help us. And the fourth is we’re going to get another chance back in the House, because once the Senate changes the bill, it has to go back to the House. We’re continuing to work House members. I’ve been in all six Republican House districts in New York, talking about how bad this stuff is. And so we have a real chance.

Blue

You’re out of free articles.

Subscribe to access Heatmap’s expert analysis of energy, climate change, and sustainability, including coverage of our regular survey research. Save $57 on an annual subscription, just $156 $99/year.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Politics

The Senate’s Big Bipartisan Permitting Deal, Explained

The Bipartisan American Affordability and Jobs Act would remove longstanding roadblocks to expanding the power grid and developing new energy infrastructure. Here’s our guide.

The Capitol and power lines.
Heatmap Illustration/Getty Images

It’s taken two presidential administrations, four years, and who-knows-how-many proposals that never saw the light of the Senate floor. But a long-awaited bipartisan deal to streamline the country’s permitting system is here.

On Tuesday, a bipartisan gang of senators — the leaders of the Environment and Public Works and Energy and Natural Resources committees — released an omnibus legislative package meant to streamline many permitting processes across the country.

Keep reading...Show less
Green
AM Briefing

A Quid for the Grid

On space solar, EU methane rules, and solar tariffs

Andy Burnham.
Heatmap Illustration/Getty Images

Current conditions: For the first time since 1914, the Atlantic hurricane season may pass without any major hurricanes, per an AccuWeather forecast • From Phoenix to Dallas, flood watches are in effect as the remnants of Hurricane Polo stretch inland from the Pacific through the Southwest • Surigae, now upgraded to a “severe” tropical storm, is set to slam into Japan’s Izu Islands, a partially populated archipelago in the same municipality as Tokyo.


THE TOP FIVE

1. Trump taps the Strategic Petroleum Reserve as diesel nears $7 a gallon

The Department of Energy has ordered the release of 40 million barrels of oil from the Strategic Petroleum Reserve as diesel surpasses $6.50 per gallon and Texas proclaims a statewide “disaster” over soaring prices. The move, which Secretary of Energy Chris Wright said would “stabilize the market,” comes as the Trump administration weighs whether to temporarily ban exports of diesel, a radical step that might only slightly lower American prices while sending Europe’s fuel costs skyrocketing, as the chief executive of the continent’s No. 2 oil company cautioned in a Bloomberg interview this week. The oil is expected to be a loan from the stockpile that would, Wright said, ultimately save Americans more than $3 billion. The transaction follows the same approach the Trump administration has taken since agreeing to distribute 172 million barrels from the Strategic Petroleum Reserve back in March, when the war with Iran began. Had the administration instead sold the barrels through an emergency drawdown instead of a trade, as it did previously, and simultaneously structured the deal to allow it to buy back oil at the lower prices the futures market is trading at presently, the Energy Department could have significantly increased its profits. That’s the finding of a policy memo from the think tank Employ America that I told you about a few weeks ago. The profit could, in turn, be used to invest in America’s fuel stockpile, clearing some of the $230 million backlog of physical repairs needed on the infrastructure that stores the crude. “The choice to deliver more barrels is fraught, but with that decision made, the administration missed an opportunity to set up the SPR for long-term success,” Arnab Datta, Employ America’s managing director of policy implementation, told me in a text message last night. “I hope they consider creative options to do so moving forward.”

Keep reading...Show less
Blue
Climate Tech

The Startup Raising $17 Million for Super-Thin, Wall-Mounted Batteries

Novele is aiming to smooth out power consumption for commercial buildings, saving tenants money and easing grid strain.

Novele batteries.
Heatmap Illustration/Novele, Getty Images

Electricity is more expensive in times of peak demand — that’s simply a universal truth. But for many commercial building owners and tenants, their most energy-intensive minutes of the month can have an especially outsized impact on their electricity bill. That’s because of the “demand charge,” a fee based on a building’s single highest burst of power consumption, which can make up over 50% of a customer’s monthly bill. Likewise, shrinking those bursts would not only ease strain on the grid, but could also dramatically lower commercial users’ costs.

Or at least that’s Novele’s pitch. The startup, which makes 2-inch-thick, fire-safe lithium-ion batteries that mount on the interior walls of commercial spaces such as offices, hospitals, and big box retailers, announced Wednesday that it raised an oversubscribed $17 million Series A led by impact-focused investor Boisei Labs. The funding will help the company scale its AI-powered battery system, which networks batteries placed throughout a building and uses software to predict impending spikes in power demand. Just before the peak hits, the system can automatically switch the building from grid power to battery power, helping the customer avoid those costly demand charges.

Keep reading...Show less
Green