Democrats Unveil Energy Plan to Jolt 2026 Midterm Messaging
Tax incentives for renewable energy projects would be restored and a low-income energy assistance program expanded under a draft bill House Democrats unveiled Wednesday.
The blueprint aims to stem rising energy costs for Americans by doubling down on wind and solar energy, building out transmission lines to bolster the electricity grid, and curtailing the Trump administration’s ability to favor fossil fuel projects over renewables. Reps. Sean Casten (Ill.) and Mike Levin (Calif.) released the framework, which includes provisions from multiple Democratic bills, including from Reps. Kathy Castor (Fla.), Paul Tonko (N.Y.), Yassamin Ansari (Ariz.), Susie Lee (Nev.), and Alexandria Ocasio-Cortez (N.Y.).
Democratic leaders are eyeing increased energy costs on consumers as a potent election year issue to use against Republicans who control Congress and the White House. They’ve pointed to President Donald Trump's attacks on clean energy, particularly wind, and the administration’s focus on reviving coal power plants and expanding oil and gas leasing, as adversely affecting the economy and climate.
The discussion draft is unlikely to get traction in Congress this year given the political landscape. But Democrats view it as an important marker for their energy and climate agenda if they can retake one or both chambers of Congress in 2026.
“We want to get it right and have it be a really comprehensive agenda that Democrats can rally behind,” Levin said in an interview, adding that it’s “not just a messaging bill.” Levin also said he and Casten hope to formally introduce legislation reflecting the framework early next year.
The draft would reinstate renewable energy tax credits rolled back and phased out by Republicans’ tax-and-spending law passed in July, as well as create an investment tax incentive to pay 30% of the cost of new electricity transmission lines, modified existing transmission lines, and related property.
The discussion draft also seeks to prevent the administration from putting its thumb on the scale for permitting traditional energy projects by preventing the Interior secretary from “instating additional levels of review for renewable energy projects that are not required for fossil fuel projects, and ensuring that reviews are completed in a timely manner,” according to the section-by-section summary.
Separate language would require the Energy Department to expand existing grant, loan, and financing programs to include community solar projects.
Another provision prevents the president from declaring national energy emergencies to “prop open expensive fossil plants,” according to an explanatory document released with the bill. Trump invoked a national energy emergency in January. Sens. Martin Heinrich (D-N.M.) and Tim Kaine (D-Va.) have introduced a measure to terminate that emergency.
Low-Income, Weatherization Aid
The Democrats’ framework would expand the Low-Income Home Energy Assistance Program to provide year-round access to reliable heating and cooling for disadvantaged households. Trump’s fiscal 2026budget request recommended eliminating LIHEAP altogether; both the House and Senate spending bills would continue to fund the bipartisan program.
The Casten-Levin draft would renew the Weatherization Assistance Program and expand it by increasing the average cost per unit from $6,500 to $12,000.
Electric Grid
Democrats and Republicans are concerned about the effect more data centers will have on the already strained grid and consumer energy prices.
Several aspects of the Casten-Levin draft would strengthen and build out more transmission lines and carve out a more robust role for the Federal Energy Regulatory Commission in siting projects and establishing a cost allocation framework for them.
Who bears the cost of paying for more transmission projects, particularly those crossing multiple states, has become a thorny issue between Republicans and Democrats. Neither party wants to see consumers shoulder the financial burden of modernizing the grid and expanding transmission projects. The Casten-Levin framework attempts to balance those costs.
Another section of the discussion draft would expedite hiring of federal permitting staff if necessary to reduce project delays and ensure meaningful input from affected communities and tribes. It also would direct the White House Council on Environmental Quality to create a comprehensive, online portal for permits that require review under the National Environmental Policy Act.
Levin noted that he and Casten crafted the roadmap to tackle energy affordability, not overhaul the permitting process, though there are “elements” of permitting addressed, he said.
“There are things in there reining in abuses of the clean energy permitting process that have to be the start of any conversation on a permitting deal,” Levin said.
Democrats have repeatedly warned Republicans that Trump attacks on clean energy will make it hard for them to figure out consensus legislation on fixing the permitting process.