Colorado Governor Jared Polis and Will Toor, the Executive Director of the Colorado Energy Office, have sent a letter to federal lawmakers urging them to refrain from cutting clean energy programs proposed in a reconciliation bill backed by Congressional Republicans.
The Republicans’ sweeping domestic policy package, referred to as the “One Big Beautiful Bill,” aims to enact significant portions of President Donald Trump’s agenda.
This comprehensive measure seeks to extend tax cuts from the first Trump administration while simultaneously slashing government spending in various sectors.
Among the proposed cuts included in the House version of the bill, which passed narrowly on May 22, is the reduction of clean energy subsidies established under President Joe Biden.
These subsidies were part of the Inflation Reduction Act, a landmark climate initiative providing hundreds of billions of dollars in incentives for wind, solar, and hydrogen energy production, as well as tax credits and rebates for energy-efficient home appliances and electric vehicles.
The House bill, which largely passed along party lines, aims to expedite the elimination of these tax credits and reduce funding for clean energy initiatives, which the White House has labeled as “green corporate welfare.”
In their letter, Polis and Toor included all eight Colorado House lawmakers and the state’s two senators, as well as Senators Mike Crapo and Ron Wyden, chairman, and ranking member of the Senate Finance Committee, respectively.
They argued that ending clean energy incentives would have dire consequences for the Colorado economy, potentially raising costs for residents across the state.
Polis and Toor highlighted successes of energy funding within Colorado, citing farmers in the San Luis Valley and Western Slope who have installed solar panels, along with manufacturers on the Front Range producing components for electric vehicles.
They warned that repealing clean energy tax credits could result in the loss of approximately 10,800 new jobs that the Inflation Reduction Act was projected to create by 2030, while jeopardizing over $19 billion in funding and investments in the state.
The letter emphasized that Congress reversing its commitments after significant investments and established supply chains would send a disheartening signal to free markets and developers who chose Colorado for its strong policy alignment and predictable federal support.
Concerns were also raised about the elimination of subsidies for individual consumers; Polis and Toor noted that nearly 30% of Colorado households are burdened by energy costs, spending a significant portion of their income on electricity, heating, and cooling.
The Biden administration’s legislation aims to provide rebates for a variety of energy-efficient upgrades, including heat pumps, electric wiring, stoves, and water heaters, promoting increased home electrification.
Tax credits for solar installation and home energy efficiency improvements, such as insulation for doors and windows, are also included.
Polis and Toor cautioned that repealing these tax credits without a plan to maintain savings for consumers could lead to household energy bills increasing by about 10%, approximately $180 annually by 2030, which would disproportionately impact rural households.
Their letter concluded by stressing Colorado’s commitment to responsible and transparent use of taxpayer dollars, while arguing that concerns over government spending should not justify dismantling programs that generate jobs, reduce energy costs, and enhance the U.S.’s position in the global clean energy economy.
Some House Republicans have shown interest in revisiting certain clean energy cuts after initially supporting the One Big Beautiful Bill Act in May.
They are advocating for a more gradual phase-out of certain tax credits instead of the swift elimination proposed in the House version of the bill.
A June analysis by the nonpartisan business group E2 revealed that states with Republican leadership have reaped the greatest benefits from both private and public investments tied to clean energy spending.
A letter to the Senate Finance Committee from 13 House Republicans expressed pride in ensuring that the clean energy tax credits were not completely repealed.
However, they voiced concerns about provisions that would terminate several credits 60 days post-enactment for projects not yet under construction.
The letter stated, “We believe the Senate now has a critical opportunity to restore common sense and deliver a truly pro-energy growth final bill that protects taxpayers while also unleashing the potential of U.S. energy producers, manufacturers, and workers.”
Rep. Gabe Evans, who represents the competitive 8th Congressional District covering parts of Adams, Larimer, and Weld counties, was the sole Colorado Republican to endorse the letter.
Nick Bayer, a spokesperson for Rep. Jeff Hurd, a Grand Junction Republican representing much of western and southern Colorado, indicated that the congressman is closely monitoring any changes to the House-passed Big Beautiful Bill.
Bayer noted that Hurd encourages the Senate to produce legislation that the House would be able to support, adhering closely to the carefully constructed reconciliation text.
On Monday, Senate Republicans introduced their version of the bill’s tax proposals, which retain some clean energy incentives while allowing others to phase out more gradually.
Any adjustments approved by the Senate will necessitate returning the legislation to the House for final consideration before it can reach President Trump’s desk.
Currently, Republicans have a 53-47 majority in the Senate and a 220-212 majority in the House.
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