GAIN Statement on $13 Billion in New Federal Programs Aiming to “Lower” Energy Costs
Just before the midterm elections, Vice President Kamala Harris announced $13 billion in new federal spending, funded by the “Inflation Reduction Act,” that will purportedly lower energy costs. At the same time, the IRA includes a provision that raises taxes on the oil and gas industry beginning in 2026, which may raise energy costs over the long-term. The programs will encourage families to “weatherize” their homes for the winter by providing customer rebates for heat pumps, heating, ventilation, air conditioning systems, water heaters and upgrades to electrical wiring. These actions come as Americans across the country brace for a cold and expensive winter, as illustrated by recently released EIA data that found the average wholesale cost of home heating oil in the Northeast has nearly doubled since last year.
Please find below a statement from me, Craig Stevens, spokesman for the GAIN Coalition and former senior advisor to U.S. Energy Secretary Sam Bodman:
“Announcing these new federal government programs in Massachusetts is no coincidence—the Northeast will bear the brunt of poor energy policies from both the Biden administration and local leaders. The lack of pipeline infrastructure in New England, coupled with ongoing resistance to renewable energy, has led to increased costs for electricity, heating oil, and gasoline.
“This handout is yet another short-term gimmick that will do nothing to fix the underlying problems that are causing sky high energy costs in New England and across the country. Instead of employing media stunts, the administration must adopt an all-of-the-above energy policy that unleashes American energy.”