Rep. Fedorchak introduces bill to phase out intermittent energy subsidies, reinforce grid reliability
Washington, D.C. — Congresswoman Julie Fedorchak (R-ND) today introduced the Ending Intermittent Energy Subsidies Act, common-sense legislation to responsibly phase out production and investment tax credits for wind and solar energy over the next five years. The legislation is cosponsored by Energy and Commerce Republicans Gary Palmer (R-AL), Randy Weber (R-TX), and Craig Goldman (R-TX).
“Wind and solar are no longer emerging technologies—they’re mature, market-proven, and widely deployed,” Fedorchak said. “By continuing to incentivize these intermittent energy sources through generous tax credits, we’re distorting energy markets and sending the absolute wrong signal to investors. As all the grid operators are saying, we need more dispatchable resources. We must stop providing generous incentives that run contrary to that.”
This legislation restores market signals that prioritize grid security, while maintaining incentives for clean, reliable technologies like nuclear, hydropower, and geothermal. It targets tax credits established under Sections 45Y and 48E of the so-called “Inflation Reduction Act.” The Cato Institute estimates these provisions could cost taxpayers up to $901 billion over the next decade, nearly triple the Congressional Budget Office’s projections.
The current subsidy structure disproportionately rewards intermittent resources—like wind and solar—that can’t be dispatched on demand. Meanwhile, dispatchable baseload generation, such as coal, natural gas, and nuclear, are being prematurely retired, leading to a reliability crisis across the country according to NERC. As the nation’s grid operators told Rep. Fedorchak at a recent Energy and Commerce Subcommittee hearing, what they need most is dispatchable, reliable energy.
The Ending Intermittent Energy Subsidies Act will:
Phase out the Production Tax Credit (PTC) and Investment Tax Credit (ITC) for wind and solar over a five-year period, 20% each year
Maintain incentives for other dispatchable technologies like nuclear, hydropower, and geothermal
Eliminate transferability of these wind and solar tax credits to third-party buyers—closing a loophole that inflates their value and prolongs market imbalances
“As energy demand continues to rise across the United States, it’s critical we get the federal government out of the game of picking winners and losers. I fully support Rep. Fedorchak’s Ending Intermittent Energy Subsidies Act, which phases out costly taxpayer-funded subsidies for wind and solar energy,” Goldman said. “This important legislation will curb excessive government spending and help restore balance to our energy markets.”
CLICK HERE to read the one pager on the bill.
CLICK HERE to read the legislation.