Senator Chuck Grassley (R-Iowa) questioned Treasury Department nominee Derek Theurer regarding the implementation of provisions related to biofuels, wind, and solar energy in the One Big Beautiful Bill Act during a Senate Finance Committee session. Grassley sought clarity on whether Theurer would advise the Treasury Department to maintain its longstanding interpretation of when a project "begins construction," a key term affecting tax credits for renewable energy projects.
Grassley emphasized the importance of adhering to congressional intent as the Treasury implements the bill’s provisions. He asked Theurer, "Can we count on you to keep Congress well informed during the implementation process and consult with [relevant] members of Congress where questions arise as to what was congressional intent?"
Highlighting his involvement in shaping renewable energy policy, Grassley stated, "There are several provisions that I’m particularly interested in, in seeing faithfully implemented. This includes the structure of the phase-out for the wind and solar credits and modifications to the Clean Fuels Production Credit. And, remember, you’re talking to the father of the Wind Energy Tax Credit."
He further explained that Congress established a 12-month transition period for phasing out certain tax credits based on when projects begin construction. Grassley noted that this definition has been consistently interpreted by Treasury guidance for over a decade: "So, Mr. Theurer, will you commit to advising the Department that both the law and congressional intent are clear and that the 'beginning of construction' – those official words – means what it has meant for more than a decade?"
Grassley also addressed concerns about delays in implementing new regulations under section 45Z—the Clean Fuels Production Tax Credit—which he said have led to uncertainty within Iowa’s biofuels industry. He pressed Theurer for a timeline: "When can we expect to see guidance formally implementing the clean fuels credit so the biofuels industry can confidently move forward with operations?"
In addition, Grassley questioned Bryan Switzer, nominee for Deputy U.S. Trade Representative, about America’s trade relationship with China: "Do you think that the whole United States economy needs to decouple completely from China, or only certain sectors of our economy?"
The hearing reflects ongoing scrutiny by lawmakers over how federal agencies interpret legislative language related to major economic policies.
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