Senate Approves Big Beautiful Bill Act with Tiebreaker Vote
Vice President JD Vance cast a pivotal tiebreaker vote as the U.S. Senate passed the final version of the Big Beautiful Bill Act (OBBBA) with a 51-50 vote on Tuesday. This outcome, a win for Republicans in both the Trump administration and Congress, was marked by high tension, particularly surrounding the wind and solar subsidies found in the 2022 Inflation Reduction Act (IRA).
The OBBBA, initially released by the Senate Finance Committee on June 16, 2025, served as a practical guideline for regulations. Unlike the version from the House, which imposed a strict 60-day deadline for project construction and outlined requirements for 2028 services, the Senate’s initial amendment allowed for incentives if construction began by the end of 2025, with gradual steps extending to 2028.
Over the weekend, however, the bill saw significant amendments including a new requirement to have projects in operation by the end of 2027. This shift aligns more closely with the stricter timeline from the House, presenting obstacles for developers who may struggle to meet these deadlines.
In a surprise move, a new excise tax was introduced, targeting projects with any Chinese components—a nearly impossible standard considering China’s dominance in the renewable energy sector. Many wind and solar developers have expressed concern, highlighting that this could severely impact an industry often reliant on substantial government subsidies. For example, Elon Musk, who has heavily invested in solar energy, remarked that this new language is “incredibly destructive for America!”
Energy Secretary Chris Wright countered these concerns, stating, “The more you load the grid with intermittent generations, the more it works during times of maximum demand.”
Reportedly, senators like Lisa Murkowski and Chuck Grassley advocated for amendments that would allow developers more flexibility with the project timelines, shifting back to the original June 16 draft’s construction start deadline of the end of 2028 instead of the 2027 service requirement.
It remains uncertain whether these modifications will restore the gradual phases outlined in the Senate’s initial proposal while eliminating the newly imposed excise tax.
Senator Ernst mentioned to reporters that as majority leader John Toon gears up for the final vote, there will not be separate votes on the amendments. However, it’s been noted that some of the language is being considered as part of a “wrap-around fix” for various issues.
The final compromise, as reported, included eliminating the new tax and a minor adjustment for wind and solar power planning a year post-enactment. But such leniencies could ultimately stunt the industry’s growth, which relies heavily on federal support.
As for future energy needs, should these and other energy-related clauses stay intact in the OBBBA’s final version, traditional power sources—natural gas, coal, and nuclear—may need to step in to address the increasing electricity demands. Those industries claim they are prepared for the challenge and indeed might have a chance to demonstrate their capabilities.
