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AEE Supports Use of Defense Production Act, Calls for Full Funding & Implementation

Posted by Adam Winer on Jun 29, 2022

Letter also lauds two-year bridge for solar imports, calls for swift end to Auxin investigation 

WASHINGTON, June 29, 2022 – Today, national business association Advanced Energy Economy (AEE) sent a letter to the Department of Commerce, Department of Energy, the White House, and leaders on Capitol Hill strongly defending President Biden’s use of the Defense Production Act (DPA) to expand domestic production of “five critical clean energy technologies,” including solar, heat pumps, power grid infrastructure, building insulation, and equipment for making and using clean electricity-generated fuels.  

As the letter details, this action is vital to address the immediate issues of rising energy prices, U.S. and European exposure to Russian oil and gas, and America’s security interests. AEE called upon the Administration and Congress to significantly increase resources in the DPA Fund to meet this moment. In addition, Congress should harness reconciliation to pass a robust package of energy and manufacturing incentives, akin to those in Build Back Better, to build on the progress the DPA should initiate. AEE Managing Director Harrison Godfrey provided the following statement about the letter and its message to the Administration:

“We applaud the Administration for its decision to invoke the DPA in this case. We believe it is justified given the urgent threat to our national and economic security. To ensure we see the industry build-out this moment demands, we’re urging Congress to significantly expand the resources in the DPA fund. At the same time, policymakers should understand the DPA is an emergency action – they need to build on the progress it kickstarts with real policies to support and sustain domestic clean energy manufacturing, or we’ll squander this moment.” 

A copy of AEE’s letter is available here for viewing or downloading. The letter likewise expresses AEE’s support for the President’s decision to extend a 24-month bridge for solar imports, lays out key questions to help guide implementation of that order, and details the case for the Department of Commerce to swiftly conclude the Auxin investigation with a negative determination. As the letter states:  

“Additional tariffs would produce results that are deeply antithetical to the United States’ present national security interests and even run contrary to the intent of federal trade law. A positive determination would decimate the U.S. solar industry and could cost the U.S. tens of thousands of solar jobs (e.g., developers, installers, electricians, and sales staff) while only “saving” a fraction of that number in manufacturing jobs at Auxin and the small handful of domestic solar producers.”  

Background Materials  

Topics: Federal Policy, Press Releases, manufacturing, Manufacturing and Infrastructure, Harrison Godfrey