K Street vs. House Republicans on the IRA
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Illustration: Aïda Amer/Axios
The next phases of the IRA battle could pit GOP-friendly K Street players against House Republicans over the fate of major subsidies.
Why it matters: It highlights how legacy fossil fuel companies and groups have branched into climate tech sectors like hydrogen, offshore wind and carbon capture.
State of play: The National Ocean Industries Association — which reps offshore oil and renewables sectors alike — this week warned against "premature" repeal or phaseout of various credits.
- The group supports policies like clean energy production and investment tax credits, and incentives for supply chain manufacturing.
- Meanwhile, the American Petroleum Institute and National Association of Manufacturers both signed a letter urging against killing hydrogen credits.
The big picture: Oil companies and manufacturers remain broadly and publicly supportive of the GOP deregulatory push and making more lands available for drilling.
- But they also want long-term certainty for their diversification plans.
Catch up quick: The House Ways and Means panel approved a sweeping reconciliation bill Wednesday that either weakened or dismantled many IRA credits.
What we're watching: Changes could in theory happen on the House floor as some GOP members gently argue Ways and Means went too far in various areas.
- Axios Pro's Daniel Moore reports that geothermal executives are reminding lawmakers that Energy Secretary Chris Wright is a fan of the tech.
- But attention is also shifting across the Capitol, where several GOP senators are already expressing misgivings about the House plan.
The intrigue: The House plan to end "transferability" of key tax credits could also hinder sectors that have bipartisan support, House Axios Pro Deals' Katie Fehrenbacher reports.
- That includes nuclear power, biofuels and carbon capture.
What they're saying: TD Cowen Washington Research Group, in a note, predicts the Senate will take a "hard look" at many House rollbacks.
- That includes removing electricity tax credit "transferability" and killing the hydrogen credits, to name just two.
The bottom line: The K Street energy map is blurrier than it used to be.
