Investments in the Inflation Reduction Act will create middle-class jobs, revitalize American manufacturing, and make our nation more energy independent
WASHINGTON, D.C., August 7, 2022 – Advanced Energy Economy (AEE), a national trade association of clean energy buyers and businesses, celebrated Senate passage of the Inflation Reduction Act of 2022, which includes $369 billion for clean energy, advanced energy manufacturing, and electrified transportation, and released the following statement on behalf of its CEO, Nat Kreamer:
“Rising inflation and global instability have put America’s energy security in jeopardy. A federal clean energy investment of this magnitude is our best defense. The era-defining investments in the Inflation Reduction Act will more than pay for themselves by creating thousands of good American jobs, decarbonizing our electricity and transportation sectors, and reducing Americans’ energy bills.
“Specifically, with both refundable and transferable tax credits in hand for the first time, renewable energy developers will be able to move more quickly on clean energy projects. It will also mean fewer federal dollars going to big banks, instead going toward hiring American workers and building the advanced energy infrastructure we need for a carbon-free electric power system. We are proud that these provisions, for which AEE has long advocated, are included in this bill.
“Global inflation in fossil fuel costs underscores the need to speed up development of advanced energy projects and modernize our power grid. The quicker we transition America’s electric grid and transportation sector away from these price-volatile commodities, the more stable and better protected our economy will be.
“The bill will also start us down the road to true energy independence. With the help of Congress, we must develop a U.S. advanced energy manufacturing industry that can serve as an arsenal of clean energy so that democratic nations will never again be dependent on adversaries. We must develop domestic supply chains we can rely on and trading partners we can trust, to make sure autocracies have no say over how America powers its homes, businesses, and transportation today and for decades to come. It’s time for the U.S. House to finish this work, pass the Inflation Reduction Act, and send it to President Biden’s desk. The advanced energy industry is ready to get to work.”
AEE has been active in advocating for a number of components in the Inflation Reduction Act, with a focus on domestic manufacturing (incentives to buy domestic and credits for production), tax incentives that are more liquid and effective, and resources to support expanded use of the Defense Production Act for advanced energy products, among other provisions. AEE has also delivered roadmaps to help state decision-makers implement advanced energy-related federal funding from the Infrastructure Investment and Jobs Act last year. As Congress works to boost advanced energy production and deployment with the Inflation Reduction Act, AEE and its member companies will work with state governments to utilize these dollars effectively in communities across America.
Background Materials
- Press Statement, July 25, 2022; Advanced energy industry applauds inflation-fighting agreement
- Press Statement, July 25, 2022; AEE Calls on Congress To Work Through Differences and Pass a Reconciliation Package That Uses Clean Energy to Reduce Inflation
- Sign-on letter, May 13, 2022; National business group AEE delivers sign-on letter to Senate, White House on growing domestic manufacturing of advanced energy industry
- CEO Nat Kreamer blog post, April 12, 2022: For True Security from Dictators, America Needs to Become the Arsenal of Clean Energy
- Read AEE’s 2021 economic analysis on the impact of a federal clean energy stimulus