{"id":58616,"date":"2022-06-13T16:06:23","date_gmt":"2022-06-13T23:06:23","guid":{"rendered":"https:\/\/energi.media\/?p=58616"},"modified":"2022-06-13T16:06:23","modified_gmt":"2022-06-13T23:06:23","slug":"biden-invokes-defense-production-act-to-boost-clean-energy-manufacturing","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/biden-invokes-defense-production-act-to-boost-clean-energy-manufacturing\/","title":{"rendered":"Biden invokes Defense Production Act to boost clean energy manufacturing"},"content":{"rendered":"

This article was published by the US Department of Energy<\/a> on June 6, 2022.<\/em><\/p>\n

WASHINGTON, D.C.\u2014 <\/strong>Last week, President Biden issued presidential determinations providing the U.S. Department of Energy (DOE) with the authority to utilize the Defense Production Act (DPA) to accelerate domestic production of five key energy technologies: (1) solar; (2) transformers and electric grid components; (3) heat pumps; (4) insulation; and (5) electrolyzers, fuel cells, and platinum group metals. The DPA determinations are part of the Biden-Harris Administration\u2019s plan to lower energy costs for families, strengthen national security, and achieve lasting American energy independence that reduces demand for fossil fuels and bolsters our clean energy economy.<\/p>\n

\u201cPresident Biden has invoked the Defense Production Act so that the U.S. can take ownership of its clean energy independence,\u201d said\u00a0U.S. Secretary of Energy Jennifer M. Granholm. \u201cFor too long the nation\u2019s clean energy supply chain has been over-reliant on foreign sources and adversarial nations. With the new DPA authority, DOE can help strengthen domestic solar, heat pump and grid manufacturing industries while fortifying America\u2019s economic security and creating good-paying jobs, and lowering utility costs along the way.\u201d<\/p>\n

\u201cReducing America\u2019s dependence on gas and oil is critical to U.S. national security,\u201d saidDeputy Secretary of Defense Dr. Kathleen Hicks. \u201cIn conflict, fossil fuel supply lines are especially vulnerable. The actions President Biden announced today will help strengthen our supply chains and ensure that the United States is a leader in producing the energy technologies that are essential to our future success. They will also help accelerate DoD\u2019s transition toward clean energy technologies that can help strengthen military capability while creating good jobs for American workers.\u201d<\/p>\n

Demand for clean energy technologies such as solar panels, heat pumps, and electrolyzers for hydrogen has increased significantly as the costs of these technologies have plummeted over the last decade. As the world transitions to a clean energy economy, global demand for these essential products and components is set to skyrocket by 400-600 per cent over the next several decades. Unless the U.S. expands new manufacturing, processing, and installation capacity, we will be forced to continue to rely on clean energy imports\u2014exposing the nation to supply chain vulnerabilities, while simultaneously missing out on the enormous job opportunities associated with the energy transition.<\/p>\n

Defense Production Act Authority\u00a0<\/strong><\/p>\n

We must harness the United States\u2019s untapped potential to support greater domestic production for domestic use and export. With today\u2019s DPA actions, the Biden-Harris Administration is taking bold action to support U.S. clean energy manufacturing and supply chains. This will strengthen U.S. national and climate security while reducing energy costs for American families. These technologies, products, and component materials will be made in America, creating more good-paying union jobs. In using the DPA to support clean energy manufacturing, the Department will encourage recipients of federal support to use strong labor standards, including project labor agreements and community benefits agreements that include local hire provisions. In addition, the Department encourages use of the tools unlocked by the DPA to support low-income communities who have been hard-hit with pollution.<\/p>\n

Technologies Included in the President\u2019s DPA Announcement<\/strong><\/p>\n

DPA authority, with the necessary funding appropriated by Congress, will allow the federal government to invest in companies that can build clean energy facilities, expand clean energy manufacturing, process clean energy components, and install clean energy technologies for consumers.<\/p>\n