U.S. President-elect Donald Trump smiles at the crowd during the National Guard Association of the United States’ 146th General Conference & Exhibition at Huntington Place Convention Center on Aug. 26, 2024 in Detroit, Michigan.
Emily Elconin | Getty Images News | Getty Images
The fate of President Joe Biden’s landmark climate legislation, the Inflation Reduction Act, is in the hands of the incoming Republican-controlled White House, Senate and House of Representatives.
At the White House level, President-elect Donald Trump has already nominated three people to posts in his administration who are likely to be key to the future of the IRA, if they are confirmed by the Senate: hedge fund executive Scott Bessent as Treasury Secretary, oilfield services company Liberty Energy CEO Chris Wright to lead the Department of Energy, and at the Interior Department, North Dakota Gov. Doug Burgum.
Any full repeal of the IRA would have to be passed by both chambers of Congress, where Republican lawmakers so far have been reluctant to completely discredit the law’s benefits. House Speaker Mike Johnson, R-La., told CNBC in September that he would use “a scalpel and not a sledgehammer” on the IRA.
There’s a good reason for this approach: As of late October, roughly three quarters of the clean energy investments that have been made with IRA funds benefitted congressional districts that backed Trump in the 2020 presidential election, according to a Washington Post analysis of data from the Massachusetts Institute of Technology and the clean energy think tank Rhodium Group.
President Joe Biden signs The Inflation Reduction Act with (left to right) Sen. Joe Manchin, D-WV; Senate Majority Leader Chuck Schumer, D-NY; House Majority Whip James Clyburn, D-SC; Rep. Frank Pallone, D-NJ; and Rep. Kathy Catsor, D-FL, at the White House on Aug. 16, 2022.
Drew Angerer | Getty Images News | Getty Images
But what future Trump Cabinet members would do is also “pretty profoundly important” to the future of the massive legislation, said Tanuj Deora, a former director for clean energy at the Biden administration’s Office of the Federal Chief Sustainability Officer. The agencies hold considerable power over the interpretation and implementation of the IRA’s programs and incentives, like tax credits and business loans.
Renewable energy tax credits are likely safe
A priority for Republicans going into 2025 is extending the expiring provisions of the Tax Cuts and Jobs Act of 2017. Trump is looking to extend the tax cuts within his first 100 days in office next year.
This extension would cost $4.6 trillion over the 10-year budget window, according to estimates from the Congressional Budget Office.
“In addition, Trump promised another seven to eight trillion in tax breaks during the last few weeks of the [presidential] campaign,” said Keith Martin, co-head of projects at the law and lobbying firm Norton Rose Fulbright.
The money for all this has to come from somewhere, however, and experts say provisions of the IRA are the most likely candidates for potential cost-savings. In an interview with the Financial Times last October, Bessent called the IRA “the Doomsday machine for the deficit,” suggesting that Trump could dismantle it to cut spending.
Among them, the renewable energy tax credits, especially those for carbon capture technologies, domestic manufacturing and the green economy job transition are well-liked by Republicans, Martin said, and likely to be safe from any potential repeal efforts.
But the current phase-out dates for the IRA tax credits are likely to be accelerated, experts predict, and the Trump transition team is already in talks to completely dismantle a $7,500 consumer tax credit for electric vehicles.
Scott Bessent, who U.S. President-elect Donald Trump has nominated to lead the U.S. Treasury Department, walks towards the New York Stock Exchange (NYSE), on the day U.S. President-elect Donald Trump will ring the opening bell at NYSE to celebrate being named Time magazine’s ‘Person of the Year’, in New York City, New York, U.S., December 12, 2024.
Adam Gray | Reuters
Most of the final rules governing implementation of the IRA tax credits have either been finalized or are expected to be by the end of the year.
But there is still considerable fear that the remaining money could be rescinded, frozen or “awarded in ways that are aligned with a shift in priorities” in a new administration, said Julie McNamara, deputy policy director of the Union of Concerned Scientists.
“Theoretically, a future Treasury could reverse course on interpretation and implementation, but that would take a long time and would need to be justifiable and defensible if challenged in the courts,” she added.
Business loan programs are in trouble
The more immediate concern, experts say, is the future of the Department of Energy’s Loan Programs Office (LPO), which provides financing for green projects. While Wright has yet to voice an opinion on the LPO, several Republicans have called for scaling it back or doing away with it altogether.
As of November, private companies were seeking more than $300 billion in funding applications from the LPO. Beneficiaries of the loan program have included Tesla, whose CEO Elon Musk is co-heading Trump’s outside advisory council, the so-called Department of Government Efficiency.
The Inflation Reduction Act expanded the LPO’s lending authority and eligibility requirements for projects.
“I think that a lot of the private sector is very concerned about the loan program,” said Claire Broido-Johnson, co-founder and president of Sunrock Distributed Generation, a financier and developer of commercial-scale solar projects. “Everybody’s trying to slam as many projects as they possibly can into this process before the administration changes.”
Liberty Oilfield Services CEO Chris Wright at Liberty January 17, 2018.
Andy Cross | Denver Post | Getty Images
An ‘all-of-the-above’ energy strategy
With the boom in AI data centers, domestic manufacturing and electrification, the U.S. is facing “a significant challenge in meeting a growing demand for energy,” said Frank Macchiarola, chief policy officer of the American Clean Power Association, which represents renewable energy interests in Washington.
This demand can only be met by an “all-of-the-above” energy policy, Martin says, especially if Trump is planning to reduce energy prices by 50% within his first year, as he promised.
Trump’s potential Cabinet officials in the energy space are consistent with that message, according to both Macchiarola and Deora.
“Burgum has a pretty clear track record in being supportive of all kinds of energy investment and given the very real need for more energy infrastructure of all types, it seems hard to imagine that somebody of his background and his business competence and his governance competence would try to suppress any reasonable technology from being deployed as quickly as possible,” Deora said.
Former U.S. President and Republican presidential candidate Donald Trump greets Governor of North Dakota Doug Burgum at a rally, in advance of the New Hampshire primary election in Laconia, New Hampshire, U.S. January 22, 2024.
Mike Segar | Reuters
North Dakota is one of the leading states in wind energy, utilizing the source for more than one-third of the state’s electricity.
As for Wright, although he has denied the existence of a climate crisis, he worked in the solar industry as well as oil and gas, according to Trump’s statement announcing his nomination.
“He’s not necessarily against any technology, he’s just going to be for certain technologies,” Deora said.
Ultimately, an all-of-the-above approach to energy would effectively defeat the purpose of climate policy, even though it might sound reassuring to sectors that would be negatively impacted by a targeted attack on renewables.
“Climate change isn’t about how many solar panels we put up. Climate change is how much carbon dioxide and methane that we do not admit,” said Deora.
“The concern isn’t about whether we keep business and keep solar developers happy. This is really about, are we going to produce more fossil fuels?”
In a bold bid to combat the crippling air pollution crisis in its capital, Delhi, Indian lawmakers have begun high-level discussions about a plan to phase out gas and diesel combustion vehicles by 2035 – a move that could cause a seismic shift in the global EV space and provide a cleaner, greener future for India’s capital.
Long considered one of the world’s most polluted capital cities, Indian capital Delhi is taking drastic steps to cut back pollution with a gas and diesel engine ban coming soon – but they want results faster than that. As such, Delhi is starting with a city-wide ban on refueling vehicles more than 15 years old, and it went into effect earlier this week. (!)
“We are installing gadgets at petrol pumps which will identify vehicles older than 15 years, and no fuel will be provided to them,” said Delhi Environment Minister Manjinder Singh Sirsa … but they’re not stopping there. “Additionally, we will intensify scrutiny of heavy vehicles entering Delhi to ensure they meet prescribed environmental standards before being allowed entry.”
The Economic Times is reporting that discussions are underway to pass laws requiring that all future bus purchases will be required to be electric or “clean fuel” (read: CNG or hydrogen) by the end of this year, with a gas/diesel ban on “three-wheelers and light goods vehicles,” (commercial tuk-tuks and delivery mopeds) potentially coming 2026 to 2027 and a similar ban privately owned and operated cars and bikes coming “between 2030 and 2035.”
Electrek’s Take
Xpeng EV with Turing AI and Bulletproof battery; via XPeng.
Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.
The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.
At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.
“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”
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The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.
“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”
In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.
Electrek’s Take
T7X all-electric track loader at CES 2022; via Doosan Bobcat.
With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.
Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.
Based on a Peterbilt 579 commercial semi truck, the ReVolt EREV hybrid electric semi truck promises 40% better fuel economy and more than twice the torque of a conventional, diesel-powered semi. The concept has promise – and now, it has customers.
Austin, Texas-based ReVolt Motors scored its first win with specialist carrier Page Trucking, who’s rolling the dice on five of the Peterbilt 579-based hybrid big rigs — with another order for 15 more of the modified Petes waiting in the wings if the initial five work out.
The deal will see ReVolt’s “dual-power system” put to the test in real-world conditions, pairing its e-axles’ battery-electric torque with up to 1,200 miles of diesel-extended range.
ReVolt Motors team
ReVolt Motors team; via ReVolt.
The ReVolt team starts off with a Peterbilt, then removes the transmission and drive axle, replacing them with a large genhead and batteries. As the big Pete’s diesel engine runs (that’s right, kids – the engine stays in place), it creates electrical energy that’s stored in the trucks’ batteries. Those electrons then flow to the truck’s 670 hp e-axles, putting down a massive, 3500 lb-ft of Earth-moving torque to the ground at 0 rpm.
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The result is an electrically-driven semi truck that works like a big BMW i3 or other EREV, and packs enough battery capacity to operate as a ZEV (sorry, ZET) in ports and urban clean zones. And, more importantly, allows over-the-road drivers to hotel for up to 34 hours without idling the engine or requiring a grid connection.
That ability to “hotel” in the cab is incredibly important, especially as the national shortage of semi truck parking continues to worsen and the number of goods shipped across America’s roads continues to increase.
And, because the ReVolt trucks can hotel without the noise and emissions of diesel or the loss of range of pure electric, they can immediately “plug in” to existing long-haul routes without the need to wait for a commercial truck charging infrastructure to materialize.
“Drivers should not have to choose between losing their longtime routes because of changing regulatory environments or losing the truck in which they have already made significant investments,” explains Gus Gardner, ReVolt founder and CEO. “American truckers want their trucks to reflect their identity, and our retrofit technology allows them to continue driving the trucks they love while still making a living.”
If all of that sounds familiar, it’s probably because you’ve heard of Hyliion.
In addition to being located in the same town and employing the same idea in the same Peterbilt 579 tractor, ReVolt even employs some of the same key players as Hyliion: both the company’s CTO, Chandra Patil, and its Director of Engineering, Blake Witchie, previously worked at Hyliion’s truck works.
Still, Hyliion made their choice when they shut down their truck business. ReVolt seems to have picked up the ball – and their first customer is eager to run with it.
“Our industry is undergoing a major transition, and fleet owners need practical solutions that make financial sense while reducing our environmental impact,” said Dan Titus, CEO of Page Trucking. “ReVolt’s hybrid drivetrain lowers our fuel costs, providing our drivers with a powerful and efficient truck, all without the need for expensive charging infrastructure or worrying about state compliance mandates. The reduced emissions also enable our customers to reduce their Scope 2 emissions.”
Page Trucking has a fleet of approximately 500 trucks in service, serving the agriculture, hazardous materials, and bulk commodities industries throughout Texas. And, if ReVolt’s EREV semis live up to their promise, expect them to operate a lot more than 20 of ’em.