Brett Guthrie discusses tax cuts' impact on U.S. energy policy

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Brett Guthrie, Chairman of the House Energy and Commerce Committee | Official website

Brett Guthrie discusses tax cuts' impact on U.S. energy policy

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Congressman Brett Guthrie, who serves as Chairman of the House Committee on Energy and Commerce, recently authored an opinion piece featured in the Washington Examiner. In his commentary, Guthrie discussed the impact of the Working Families Tax Cuts on American energy policy and household electricity costs.

Guthrie argued that rising energy prices under the Biden administration are a result of past policy decisions. “The energy prices that dramatically increased during the Biden administration are continuing to rise, and the attempts by Democrats to pin the increase on President Donald Trump’s policies willfully ignore how their reckless decisions during the previous administration have led us here,” he wrote.

He further stated that claims from Democrats about Republican policies raising energy prices are unfounded. “Since the Working Families Tax Cuts was signed into law, Democrats have tried to claim that Republican policies would cause energy prices to rise for families. This is false. The legislation strips subsidies for parts of the far-left energy agenda that have been driving up prices. On the contrary, the tax cuts law will save the average household $2,900 in 2026.”

Guthrie criticized what he described as overreliance on wind and solar power supported by taxpayer subsidies: “The truth is that building the electricity grid on unreliable, taxpayer-subsidized wind and solar — as Democrats have advocated for the last decade — has driven up costs. As energy producers and grid operators have told us in hearings this year, subsidizing intermittent sources of electricity essentially requires building two systems to keep the lights on. One is the costly wind and solar system touted by liberal donors and the renewable energy lobby. The other is a reliable backup system necessary for when the wind doesn’t blow and the sun doesn’t shine.”

He linked these subsidies and related regulations with higher rates and reliability concerns: “Subsidies for wind and solar projects, as well as regulations aimed at hampering natural gas and coal generation, have been driving up rates and undermining reliability. It was the Biden administration that restricted energy supplies, forced the end of fossil fuel generation in favor of costly intermittent power, and failed to provide for increased demand from artificial intelligence data centers, advanced manufacturing, and the growing consumer economy.”

According to Guthrie, these policy effects are now evident in household bills: “With those harmful policies of the past four years already built into state and utility planning decisions, families are continuing to see the legacy effect of rising costs in their household bills. The energy grid cannot be rebalanced to provide affordable, reliable power in a matter of months; it takes years.”

He cited data showing significant increases in energy prices: “Energy prices rose nearly 30% under the Biden administration, 13 times faster than the previous seven years. That spike came from the far-left policies that rewarded Democrats’ anti-fossil fuel special interest allies and the green energy sector. The Obama and Biden administrations wielded the regulatory state to stifle production of reliable baseload power, all while like-minded states continued to phase out reliable baseload power generation as well.”

Guthrie also warned against further expansion of renewables without adequate support from traditional sources: “Democrats are now claiming even more wind- and solar-powered electricity needs to be brought online quickly to meet our needs, which flatly ignores effects we’re already seeing from these policies leading to rising costs and unreliability. Simply put, intermittent resources cannot reliably provide power during times of peak demand especially during extreme weather events.”

He acknowledged a role for renewables but stressed their limitations: “This is not to say there is no role at all for wind and solar energy, but reality is these sources must be supported in background by natural gas coal hydropower or nuclear. Adding more wind solar inputs while closing restricting more reliable power only drives up costs increases risks brownouts blackouts just compare two largest states natural gas-dominant Florida seen electricity rates half those renewable-dominant California.”

Citing testimony before his committee about current challenges facing grid operators: “The House Committee on Energy and Commerce has heard testimony from grid operators that current imbalance in grid caused by retirements reliable generation massive oversupply intermittent wind solar unsustainable major need more baseload power coming years this leading grid operators take emergency steps expedite build-out fossil fuel generation over wind solar rebalance avoid costly blackouts.”

He referenced warnings from federal authorities about future risks: “In a recent report Department Energy warned outages could increase 100 times by 2030 if power plant retirements increase overall demand electricity continue at current pace Even as more renewables come online our grid not prepared meet increased demand AI data centers domestic manufacturing That why Working Families Tax Cuts created Energy Dominance Financing Program investing projects provide power 24/7 365 days year.”

Guthrie concluded with a summary of intended outcomes: “By ending costly subsidies for unreliable sources such as wind solar leveling playing field natural gas coal nuclear hydropower Republicans making sure America gets ‘best above’ energy balanced reliable grid serve families industry far into future To be clear it will take time these policies materialize actual construction projects but we cleared some regulatory blockers allowing industry start making investments We cannot go back policies prioritized radical environmental agendas over families brought higher prices blackouts brownouts grid cannot meet increased demand The people know better Alongside our president House Republicans working restore reliable abundant energy lower electricity costs restore America’s energy dominance.”

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