What the heck even is reconciliation — and how it could impact the things we care about?
It’s hard to get legislation through the U.S. Senate because of the filibuster: Senators can literally kill bills by talking them to death. To get around this, Congress often relies on something called “reconciliation,” which lets budget-related bills pass with a simple majority.
In recent years, we’ve seen the process of reconciliation used more and more frequently due to congressional gridlock and polarization in the Senate. Congress is in the midst of the budget reconciliation process right now, and the resulting legislation could have major impacts on Wyoming’s landscapes and communities.
The House of Representatives fiercely debated various spending changes, including investments in clean energy, energy efficiency, and the sale of public lands to help fund the cost of tax cuts. As the Senate develops its version of the bill, we’ll be keeping a watchful eye on what transpires. We are here to keep you informed on what’s happening and how it may impact our lands, water, wildlife and communities here in Wyoming.
Public lands sell-off narrowly avoided … for now
Throughout this spring, Congress toyed with the idea of selling public lands in order to help pay for tax cuts. This threat was taken seriously by several public lands champions in the Senate, who introduced an amendment in early April that would have prevented the sale of public lands from being included in the budget reconciliation process. This amendment unfortunately failed (both Wyoming senators voted against it) and shortly afterward the House Natural Resources Committee added the sale of roughly a half million acres in Nevada and Utah to the House reconciliation bill.
Though this sale dealt with neighboring states, Congress could have just as easily included the sale of hundreds of thousands of acres in Wyoming. The use of the budget reconciliation process to sell off public lands is unprecedented. It disallows public input and testimony, the cash from the sale would not go to conservation (as typically occurs with land sales), and it sets an ugly precedent for selling our national public lands to pay for the whims of politicians.
Outraged public lands enthusiasts from across the country spoke up and demanded Congress not use this means for balancing the budget. Rep. Ryan Zinke (R-Montana), Rep. Ryan Vasquez (D-New Mexico), and other representatives from outside our state drew a hard red line and were able to have these sales removed.
Land management plans in the crosshairs
The Bureau of Land Management’s Rock Springs Resource Management Plan, which would provide significant protections for important areas of the Northern Red Desert, has been in the crosshairs of some lawmakers as of late. Fortunately, a provision that would block its implementation was stripped out of the House reconciliation bill. Although it’s unlikely that the provision will be included again in the Senate version, we expect to see ongoing efforts to scale back the protections in the plan through administrative processes.
Clean energy tax credits on the chopping block
Longstanding clean energy tax credits that make solar, wind, and battery storage more affordable were removed in the House reconciliation bill. These incentives have driven investments in technologies like carbon capture and clean hydrogen and have helped Wyoming businesses and families afford rooftop solar and energy efficiency upgrades. The House bill would eliminate many of these credits with significant consequences to Wyoming communities and tribes.
If enacted, clean energy projects could become 30–40 percent more expensive. The bill also targeted residential energy efficiency tax credits that were established in 2005 under the Bush Administration. These credits have helped Wyoming homeowners afford energy efficiency upgrades like insulation, windows, and HVAC systems.
The timing for these cuts couldn’t be worse. Utilities in Wyoming are already proposing double-digit rate hikes while warning of rising demand and grid challenges. Cutting these credits now will increase costs for families, make it more difficult to invest in local clean energy projects like rooftop solar, and weaken Wyoming’s energy resilience.
While the future of many federally funded programs that promote clean energy and energy efficiency remains uncertain, several key initiatives the Wyoming Outdoor Council has been monitoring appear to be making progress. For example, some programs funded through the Inflation Reduction Act have had their funds “obligated,” making them much harder to eliminate entirely. Although certain funds have been temporarily frozen — causing frustration — they now seem to be becoming more accessible.
Help protect Wyoming’s clean energy future: Send a message to our senators and tell them to maintain clean energy and energy efficiency tax credits.
Nuclear energy emerges as a winner
The nuclear energy industry would continue to qualify for production tax credits under the House reconciliation bill. It would also make the nuclear industry the only energy sector to maintain the “transferability” of tax credits — a benefit that gives project developers the ability to sell their tax credits to others. For those tracking the active discussion around nuclear energy in Wyoming, it’s clear that this industry is emerging as a favorite for the Trump Administration as a way to meet new energy demand and remain competitive with other countries developing new kinds of reactors. We’ll be carefully watching these developments to better understand how these incentives translate into more proposals around nuclear energy in Wyoming.
What’s next for WOC’s public lands and clean energy priorities?
The removal of public land sales from the House reconciliation bill was a big sigh of relief for public lands users. However, bad public lands provisions could still be included in the Senate version of the bill. Sen. Mike Lee (R-Utah), who heads the Senate Energy and Natural Resources Committee, has long advocated for the privatization of public lands.
On the clean energy side, now is the time to let our senators know that you support clean energy and longstanding common-sense programs designed to encourage energy conservation and efficiency like the residential energy efficiency tax credits.
As the reconciliation process continues through the summer, we’ll be keeping a watchful eye on the Senate. Wyoming has an important role to play. As one of the largest energy exporters in the country, the Cowboy State will find itself in the crosshairs. We will continue to keep you updated as we have more news.