Democratic leaders in Congress are signaling a likely decrease in the price tag for a massive budget reconciliation package stuffed with climate and clean energy provisions. The impact of that decision on the proposed climate and energy programs is unclear, however, with negotiations around the bill ongoing.

In an Oct. 11 letter to colleagues, U.S. House Speaker Nancy Pelosi, D-Calif., said "difficult decisions must be made very soon" for the House to pass both a bipartisan infrastructure bill and the reconciliation package, which is aimed at carrying out President Joe Biden's Build Back Better agenda.

Democrats had voted to cap the reconciliation bill at $3.5 trillion but could trim that figure amid opposition from moderate party members, including U.S. Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona.

"Overwhelmingly, the guidance I am receiving from members is to do fewer things well so that we can still have a transformative impact on families in the workplace and responsibly address the climate crisis," Pelosi wrote.

During an Oct. 12 press briefing, Pelosi further explained "we're still talking about a couple trillion dollars [for reconciliation], but it's much less."

Pelosi did not give details on what the new topline figure will be or how it could affect climate and energy programs. She emphasized that the goal was not to drop entire programs but potentially scale back the number of years some would last.

House Democrats' reconciliation package includes new and extended clean energy tax credits and a national clean electricity performance program aimed at helping generate 80% of U.S. power from carbon-free sources by 2030. The Senate has yet to release its proposals for the reconciliation legislation, but Democrats in the upper chamber have also called for including a clean power program and tax benefits for emissions-free energy.

Rep. Pramila Jayapal, D-Wash., who chairs the Congressional Progressive Caucus, said during an Oct. 12 call with reporters that progressive lawmakers are open to reducing the number of years some programs last. But the clean power program would be "difficult to do for less than 10 years," Jayapal said.

"Because it's a market-driven program, there are real arguments for keeping that to 10 years, but that's part of the discussion," Jayapal said.

Energy industry sources also appear upbeat on prospects for major climate provisions staying in the bill. Rhone Resch, president of Solarlytics Inc. and former CEO of the Solar Energy Industries Association, said he expects Democrats will still pursue 10-year extensions of renewable energy tax credits and seek to enable direct pay for those incentives.

"Where we sit right now as solar is on the right side of the conversation," Resch said during an Oct. 12 webinar hosted by ROTH Capital Partners. "We are popular, and Democrats seem to be moving towards a smaller number of initiatives, but to fully fund them for the full period."

Resch, who is also president and CEO of the consulting firm Advanced Energy Advisors, said Democrats could ease some tax proposals related to wage and domestic content requirements for renewable energy projects.

Disagreements over the size and scope of the reconciliation package are also holding up the infrastructure bill, which the Senate passed in August.

The House was set to vote Sept. 30 on the infrastructure legislation, but Democratic House leaders postponed the vote as progressive lawmakers in the narrowly divided House threatened to withhold support for the bill unless the reconciliation package was guaranteed passage too.

Democratic leaders now are aiming to vote on both the infrastructure bill and reconciliation package by the end of October.