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Summary:

One year after the Inflation Reduction Act (IRA) was signed into law on August 16, 2022, private industry has announced at least 210 major new clean energy and clean vehicle projects across the country, according to E2’s findings. Based on publicly available information from 178 of the 210 announcements that included new jobs and/or investment estimates, if completed the projects would create at minimum 74,181 new jobs and bring in $86.3 billion in private investments.

These announcements are expected to drive a major boost in new clean energy jobs in the coming years, compared to clean energy employment growth before the IRA. Not including 2020 job losses fueled by COVID-19 shutdowns and ensuing economic crisis, clean energy has averaged an annual increase of 117,000 jobs since 2018. The jobs and investments estimated in the more than 200 announcements would represent a sizable increase in annual employment growth in clean energy and is indicative of a coming  wave of job gains on the horizon unequaled in the history of the clean energy sector — presuming normal employment gains based on overall market growth, projects announced and in development before the IRA was signed, and smaller investments and new projects that are unable to be tracked by this analysis. In addition, only 142 of the announcements included a temporary and/or permanent job creation estimate — leaving one-third of new announcements without any employment estimates as of the time of this analysis.

Highlights

* 54 of the 208 announcements did not include investment estimates and 68 did not include job estimates.

• Electric vehicle and battery manufacturing accounted for more than half of all new projects, with 115 battery and EV factories or expansions announced.
• Renewable energy companies announced 44 solar panel and equipment factories and major solar projects, and at least 18 wind turbine factories or major wind products.
• Red states and Republican congressional districts are benefitting the most from the IRA. More than half of all projects were in Republican districts, and 18 of the top 20 congressional districts for clean energy investments are held by Republicans. About 60 percent of all jobs and investments announced were in Republican districts.
• About 28 percent of congressional districts are home to at least one announced project.
• The top congressional districts for clean energy investments are North Carolina’s 9th district with nearly $9.9 billion, represented by Republican Rep. Richard Hudson, Georgia’s 11th congressional district with $6.6 billion, represented by Republican Rep. Barry Loudermilk, and Nevada’s 2nd congressional district with $6.6 billion, represented by Republican Rep. Mark Amodei.
• The top congressional districts that would see the largest clean energy employment growth from new clean energy projects are Georgia’s 11th district with 5,660 estimated jobs, represented by Republican Rep. Barry Loudermilk, Nevada’s 2nd congressional district with 5,050 jobs, represented by Republican Rep. Mark Amodei, and South Carolina’s 2nd congressional district with 4,600 jobs, represented by Republican Rep. Joe Wilson.
• The top congressional districts that are home to the most projects announced are Ohio’s 9th congressional district with 6 projects, represented by Democratic Rep. Marcy Kaptur, and Georgia’s 1st congressional district with 5 projects, represented by Republican Rep. Earl Carter. Six other districts are home to four announced projects.
• Foreign companies led or were involved with nearly 100 announced projects. U.S.-based companies led or were involved with 118 announced projects.
• South Korean companies announced the most projects – more than two dozen. Companies based in Michigan, California, and North Carolina led announcements from domestic-based companies.
• Manufacturing accounted for 171 projects, 91 percent of investments and 95 percent of jobs announced.
• Seven states are home to 10 or more projects, including Georgia, South Carolina, Michigan, Ohio, Tennessee, Texas, and New York. A total of 31 states are home to at least 2 projects.

Previous Clean Economy Works Monthly Reports:

• Clean Economy Works – July 2023
• Clean Economy Works – June 2023
• Clean Economy Works – May 2023
• Clean Economy Works – April 2023
• Clean Economy Works – March 2023
• Clean Economy Works – February 2023

FOCUS: The Great American EV Road Trip

This summer, more Americans are hitting the open road in an electric vehicle (EV) than ever before. For evidence of the EV market’s expansion, look to two places.

The first is the lane next to you. About 1 million new EVs are expected to be sold in the U.S. this year, a record. In the second quarter alone, Americans bought 300,000 new EVs, led by Tesla, Chevrolet and Ford. That’s nearly 50 percent more than the second quarter a year ago. According to the U.S. Department of Energy, Americans drove 19 billion miles in light-duty plug-in EVs in 2021, 57 percent higher than the previous year. In 2023, those miles are certain to increase by billions more.

Another good place to look for EV market growth is the list of more than 200 projects E2 has tracked since the Inflation Reduction Act (IRA) was signed into law last summer. Of those announcements, more than 90 are related to EVs, amounting to some 43,000 new jobs and more than $51.5 billion in investments across 18 states. Twelve announcements came from the UAW stronghold of Michigan alone – more than any other state, suggesting many jobs we’ve tracked provide good union wages that can sustain growing families.

Last month, six of the 10 projects E2 tracked were related to EV manufacturing. For example, Kia said it will soon start production of its three-row, plug-in electric SUV in Georgia, creating nearly 200 jobs and generating about $200 million in private investments. In Tennessee, meanwhile, a major hub for Ford suppliers – the so-called “BlueOval City,” after the carmaker’s iconic nameplate – will add another 1,050 American jobs. The governors of Georgia and Tennessee, both Republicans, lauded the clean economy projects in their respective states, calling them “generational” job creators that will provide “new opportunities for families to thrive.”

With all these new EVs hitting the road, where will they charge? Currently, there are 62,700 public EV charging stations across the U.S. The Bipartisan Infrastructure Law includes $7.5 billion to help expand that network, especially along the interstates and other major highways where most long-distance trips occur. Earlier this year, the White House said it wants 500,000 charging stations nationwide by 2030 – about eight times what’s currently available.

SPOTLIGHT

DREW GRAVITT

Director, Strategic Partnerships
Schneider Electric
Mt. Pleasant, South Carolina

You work on microgrids at Schneider Electric. What are some trends you’re seeing?

I’ve been with Schneider about 15 years. One industry challenge is that a lot of the technology that a homeowner or a commercial industrial business uses to install renewables or microgrids has been heavily customized and engineered. That’s starting to change. Now, you’re seeing a lot of standardization, a lot of products and solutions coming in a more packaged format. This evolution is making microgrids, and the renewables that power them, more accessible to all of us. It does this by driving down manufacturing, installation and service costs allowing consumers and utilities see meaningful financial returns while lowering their carbon footprint.

A big focus of this newsletter is how federal clean energy policies and investments are benefiting the economy. How is Schneider benefiting from the Inflation Reduction Act?

This pre-dates the IRA, but we worked closely with Duke Energy to set up a microgrid for Montgomery County, Md. The county had been hit by major storms in recent years that kept knocking out power, and it wanted to enhance resiliency for critical infrastructure like a correctional facility and the county’s public safety headquarters. We came up with a concept that relied on technologies like solar and CHP, developed the project, validated the system and brought together the various renewable energy generation technologies so they could work in sync. We already see the IRA bringing more projects like this to fruition.

You live further south, down in South Carolina. What kinds of impacts have federal clean energy policies had on your state?

I live in Mt. Pleasant, S.C., which is just outside Charleston. Clean energy projects are popping up all over the place, including EV charging stations. It really feels like South Carolina has a great opportunity to lead one of the biggest economic transitions our country has ever seen.

Specifically, what kinds of projects have you been reading about?

There have been plenty. I know E2 tracked a big EV announcement this month outside of Columbia, but that’s just the latest one in my state. BMW is also investing $1.7 billion to expand its Spartanburg factory to build electric cars. Albemarle Corp. is building a new $1.3 billion lithium processing plant in Chester County. Volkswagen is planning a new electric vehicle factory in Blythewood employing about 2,000 workers. Cirba Solutions is constructing a new $300 million battery materials company in Orangeburg that will create another 300 jobs.

What has struck you about these projects?

I’m not particularly interested in politics, but witnessing the transformative impact of recent federal climate and clean energy legislation on my industry and our state, I have to say I have come to appreciate the power of good policy.  These are lighthouse projects that will demonstrate what’s possible and draw more businesses, and people, into the growing clean energy economy.

Do you feel this progress could be at risk?

In the spring, it was disheartening to watch House Republicans vote to undermine clean energy investments as part of Speaker McCarthy’s federal debt ceiling bill, plus a separate solar panel policy provision that led to layoffs in solar and could result in retroactive fines for completed projects. These were shortsighted partisan games. In South Carolina, it was pretty clear our federal lawmakers were sending the wrong market signals to American companies and workers. The last thing we need is another lawmaker in South Carolina to turn their back on the jobs, cost savings and economic resiliency that clean energy delivers to our state. We have a massive economic opportunity, and we can’t let it slip away. Lawmakers need to put aside partisan politics and prioritize their constituents. In South Carolina, that means prioritizing our economy and our environment by standing behind policies like the IRA and the Bipartisan Infrastructure Law.

TOTAL PROJECTS BY STATE

Alabama (5)
Arizona (8)
Arkansas (2)
California (8)
Colorado (7)
Connecticut (3)
Florida (2)
Georgia (20)
Illinois (3)
Indiana (6)
Iowa (2)
Kansas (1)
Kentucky (5)
Louisiana (3)
Maine (1)
Maryland (1)
Massachusetts (5)
Michigan (18)
Minnesota (3)
Mississippi (2)
Missouri (1)
Nevada (5)
New Hampshire (1)
New Jersey (1)
New Mexico (2)
New York (11)
North Carolina (9)
Ohio (13)
Oklahoma (4)
Oregon (1)
Pennsylvania (2)
South Carolina (18)
Tennessee (12)
Texas (12)
Vermont (1)
Virginia (3)
West Virginia (2)
Wisconsin (4)

OPPORTUNITIES

Biden-Harris administration launches historic $20 billion in grant competitions to create national clean financing network

The U.S. Environmental Protection Agency (EPA) launched two Notices of Funding Opportunity for $20 billion across two grant competitions under the $27 billion Greenhouse Gas Reduction Fund, an Inflation Reduction Act program central to President Biden’s Investing in America Agenda and environmental justice goals. Together, these competitive grant opportunities will mobilize private capital into clean technology projects to create good-paying jobs and lower energy costs for American families, especially in low-income and disadvantaged communities, while cutting harmful pollution to protect people’s health and tackle the climate crisis. Read more.

Biden-Harris administration to jumpstart clean hydrogen economy with new initiative to provide market certainty, unlock private investment

The U.S. Dept. of Energy (DOE) released a Notice of Intent, which includes a Request for Information, to invest up to $1 billion in a demand-side initiative to support the Regional Clean Hydrogen Hubs, or H2Hubs. Funded by the Bipartisan Infrastructure Law, the H2Hubs program will help form the foundation of a national clean hydrogen network vital to reducing emissions from some of the most energy-intensive sectors of our economy, including industrial and chemical processes and heavy-duty transportation. Read more.

USDA announces new investments to improve measurement, monitoring, reporting and verification of greenhouse gas emissions

Agriculture Secretary Tom Vilsack announced the U.S. Dept. of Agriculture will invest $300 million to improve measurement, monitoring, reporting and verification of greenhouse gas emissions and carbon sequestration in climate-smart agriculture and forestry. Read more.

DOE announces $150 million for states to train residential energy efficiency contractors

The DOE announced funding for states to begin training a new generation of residential energy contractors. The State-Based Home Energy Efficiency Contractor Training Grants Program will provide $150 million in grants for states to reduce the cost of training, testing and certifying residential energy efficiency and electrification contractors. This funding will attract and educate new workers in the industry, train and empower existing workers, and support business owners to make homes healthier and more energy efficient. Read more.

Summary:

Innovation is at the heart of America’s farm tradition. Having proven over more than two centuries that they can thrive while dealing with uncertainty and unforeseen challenges, adapt to new circumstances often out of their control, and innovate practical solutions to ongoing change, America’s farmers are proven entrepreneurs. Whether it’s rising input costs, fluctuating commodity prices and tariffs, or market disruptions based on events thousands of miles away, farmers are skilled at seizing the opportunities in adversity.

Now the agriculture industry increasingly faces unprecedented challenges from severe and unseasonable weather, putting practices that were effective in past decades in question. Out of necessity, farmers and ranchers are experimenting with and adopting forward-thinking methods to ensure that their operations, both large and small, survive and thrive in the face of these swiftly evolving circumstances.

More than ever, American farmers need the support and freedom to innovate. But U.S. federal farm policies do not sufficiently incentivize, and in many cases hinder, this farmer-led entrepreneurial activity. The 2023 Farm Bill represents a timely and strategic opportunity to greatly increase investment and innovation in new practices and technologies that:

• restore and increase soil health
• reduce farm input costs
• boost crop resilience to extreme weather events while reducing crop loss risk and insurance costs
• store atmospheric carbon and mitigate climate change
• enhance additional ecosystem benefits such as reduced soil erosion and input runoff, improved water and air quality, and increased biodiversity
• bolster economies of hard-hit communities in rural America

These economic and environmental benefits can be achieved through three policies in the 2023 Farm Bill that will incentivize and promote the freedom to innovate that so many farmers are demanding to manage their operations for maximum health and productivity.

The next decade represents a critical window to enact policies that address the climate challenge. It’s imperative that the next Farm Bill helps transform U.S. agriculture to meet 21st century challenges with a framework that robustly incentivizes innovation—and actively partners with the producers, Ag tech, equipment and input companies, consumer product companies and consumers, and other stakeholders who are leading the Ag sector to a new, innovative, and economically sustainable future.

Include The Healthy Soils Healthy Climate Act

The 2018 Farm Bill introduced a new program, On-Farm Conservation Innovation Trials, under the USDA’s Natural Resources Conservation Service (NRCS). The program included the Soil Health Demonstration Trial (SHDT) program with a specific focus on practices and innovations to improve soil health. Hundreds of farmers and ranchers in nearly all 50 states are now participating in SHDT trials, and many more would like to. As called for in the Healthy Soils Healthy Climate Act introduced in Congress6, the 2023 Farm Bill should greatly expand the SHDT program and make it permanent.

Create And Fund An Advanced Research And Innovation Hub Within the U.S. Department of Agriculture

With the emergence of Ag Tech as a potentially transformational and fast-growing investment sector in recent years—akin to the clean-energy sector in 2009—Congress should create and fund an entity comparable to ARPA-E within USDA to support and accelerate private and academic R&D in future-focused Ag areas such as soil health data collection and measurement; farm robotics; precision Ag management software; and bio-based fertilizers, herbicides, and pesticides. The new entity should create partnerships with other relevant agencies such as EPA, DOE, DOD and National Labs, as well as land grant universities across the U.S. These federally funded research hubs will bring high-quality jobs, both directly and indirectly through p

Include the Cover Act

Crop insurance has been a cornerstone of U.S. federal agriculture policy and an essential economic safety net for America’s farmers for nearly a century. Under policies administered by the USDA’s Risk Management Agency (RMA), some 90% of all farmed acres in the U.S. are covered by federal crop insurance. However, some crop insurance policies have become a barrier to best practices and have reduced producers’ ability to innovate for crop resilience in their specific regions and on their individual farms. And the current system costs U.S. taxpayers billions of dollars every year.

FOCUS: ‘The industrial revolution of our time’

In press releases and news stories touting the 10 major clean economy announcements tracked by E2 in June alone– amounting to nearly $1 billion in new investment and 3,140 jobs – business leaders and elected officials didn’t hold back their excitement about what they’re seeing happening on the ground across America’s booming clean economy:

• “The passage of the [Inflation Reduction Act] was a landmark moment for the clean energy future of the United States,” said VSK Energy co-chairman Sriram Das, whose company announced plans to develop a $250 million solar module manufacturing facility in Adams County, Colo., estimated to create 900 jobs.
• “The latest partner in making Georgia the epicenter of the industrial revolution of our time,” said Georgia Gov. Brian Kemp (R) of NVH Korea and its new $72 million EV battery system component facility in Henry County, which could create more than 160 jobs.
• “Another example of the unprecedented growth happening here…for what continues to be an economic explosion for this area,” said Tennessee State Rep. Johnny Shaw, a Democrat, upon Enchem’s decision to invest $152 million in a Haywood County facility that will manufacture electrolytes for EV batteries and create 190 jobs.

Federal clean energy policies like the IRA and the Bipartisan Infrastructure Law are now clearly having a tangible impact in towns and cities across the country – big, small and sometimes off the beaten path.

In addition to the projects above, the latest batch of announcements E2 tracked came from places like Canyonville, Ore., where a 4-megawatt solar array spread across 18 acres of field will be designed to support agriculture underneath; Crawfordville, Ind., where a state-of-the art steel plant will manufacture utility structures to help support electrification initiatives nationwide, and Mesquite, Texas, where yet another $250 million facility will manufacture solar modules, this one creating 1,500 jobs.

All told, since the IRA passed last August, 189 projects have been announced across 37 states totaling more than $84 billion in investments and more than 66,000 jobs.

Given these numbers, it’s easy to understand why businesses and politicians – Republicans and Democrats alike – are growing increasingly excited about America’s clean economy.

SPOTLIGHT

SHAUGHN DOLCY

Founder
Climate64
New York, New York

Where do you currently live?

I live in Brooklyn. There’s a good tech scene here and as a full-stack software engineer it was a logical place to be within New York City. But a lot of my friends call me a traitor, because I grew up in the Bronx.

What kind of access do you have to residential clean energy?

We live in Crown Heights. Back around 2017, we were an early client of BlocPower, which is now backed by VC firms and the likes of Goldman Sachs. BlocPower employs a lot more people now than the eight or so who worked there during our energy efficiency upgrades. We also have solar on our eight-apartment co-op. The array was installed by Brooklyn SolarWorks and Solar One, a nonprofit that connects New Yorkers to renewable energy incentive programs while helping train workers.

How has living in a green home impacted your own career?

I had previously worked in the nonprofit sector and thought I could help people join the green economy, particularly low-income people in the city, doing the kind of work I saw being done on my home. So I became business development manager for sustainability and clean energy at The HOPE Program, which helps people overcome barriers like racism and the digital divide to find good careers in the green economy. I built the business cultivation arm of their first HVAC training program and partnered with businesses and organizations from around the city.

Did that lead to other opportunities?

Absolutely. I was invited to join a green jobs working group within a larger network of organizations in New York. Our group developed a green jobs board, and given my software engineering background, I was asked to develop the software. I was like, ‘Okay, that sounds right up my alley.’

Is that what inspired you to start your current company, Climate64?

Yes. What I realized is that before people even get into the green economy, they have to have certifications. All these companies need talent and trained workers, but they are scarce. Before you can even set foot on a construction site, you need to have certain entry-level certifications, like OSHA 30, OSHA 40 and EPA 608 for handling refrigerants. We are basically an AI-driven certification matching system for workers and employers in a niche market, which is climate tech.

What advice would you give to a hiring manager at a clean economy company that wants to reach underserved communities to diversify their workforce?

I’ve been in workforce development for a while, focusing particularly on sustainability, and one of the things companies should be doing is partnering with community-driven sustainability programs. They need to get the word out with local communities and initiatives. They need to build some trust.

Anything else employers can do?

Unfortunately, one problem I run into with employers is they’re reluctant to hire people from these communities, because some people can have rough edges – maybe they have a record, maybe a misdemeanor. So they’ve kind of been shunned because of their background. But the truth is, people from these areas are some of the hardest-working people and all they need is opportunity. Some of my best experiences have been with employers who are a little bit more open to giving people a second chance.

On the other side of the equation, what advice would you give young people who want to break into the clean economy?

The green economy gives you an avenue to have a great job and take care of your family. More and more, it’s important for people to participate in the very projects happening in their neighborhoods. I’ll take an example from where I grew up in the Bronx. In a part of the borough called Hunt’s Point Market, it’s basically an industrial zone with fabrication plants, big truck depots and storage facilities where so much of the food and produce that feeds New York City passes through. That whole facility and all those trucks will be going electric. There are job opportunities in that transition.

OPPORTUNITIES

Environmental Protection Agency (EPA) launches $7 billion ‘Solar for All’ grant competition to fund residential solar programs

The EPA launched a $7 billion grant competition to increase access to solar energy for millions of low-income households. The Solar for All competition will help create and expand low-income solar programs that provide financing and technical assistance, such as workforce development, to enable low-income and disadvantaged communities deploy and benefit from residential solar. Read more.

First-ever national clean hydrogen strategy and roadmap is released

The Biden-Harris Administration released the “U.S. National Clean Hydrogen Strategy and Roadmap,” a comprehensive framework for accelerating production, processing, delivery, storage and use of clean hydrogen. Read more.

Commerce announces $575 million for coastal and Great Lakes climate resilience

The Commerce Department announced its first-ever Climate Resilience Regional Challenge, which will provide $575 million to help coastal and Great Lakes communities become more resilient to extreme weather and other climate impacts. The Challenge is the first and largest funding opportunity released under the $2.6 billion Inflation Reduction Act climate resilience framework unveiled by the Commerce Department earlier this month. Read more.

EPA announces over $278 million in funding to improve water infrastructure for tribes and Alaska Native villages

The EPA announced more than $278 million in funding to improve access to safe and reliable drinking water and wastewater services for American Indian tribes and Alaska Native villages, helping to improve compliance with existing water regulations, identify and replace lead service lines, and address harmful emerging contaminants in drinking water and wastewater, such as per- and polyfluorinated substances, or PFAS. Read more.

New funding to advance battery recycling technology is announced

The Energy Department announced more than $192 million in new funding for recycling batteries from consumer products, launching an advanced battery R&D consortium and the continuation of the Lithium-Ion Battery Recycling Prize. Read more.

America’s industrial sector to receive $135 million to reduce emissions

Department of Energy (DOE) is investing $135 million in 40 projects to reduce carbon pollution from the industrial sector. The selected projects will support research, development and pilot-scale demonstrations in industries including cement and concrete, chemicals, food and beverage, iron and steel and petroleum refining. Read more.

Department of Energy announces $80 million to strengthen American manufacturing

DOE announced up to $80 million in grant funding help small- and medium-sized manufacturers improve energy efficiency, cut costs, increase productivity and reduce industrial emissions. Applications due July 14. Read more.

National Oceanic and Atmospheric Administration (NOAA) invests $60 million to create a Climate-Ready Workforce

NOAA opened a competitive funding opportunity for the Climate-Ready Workforce for Coastal States, Tribes and Territories Initiative to connect people to good-paying jobs, such as landscape technicians, heat health outreach specialists and climate equity officers. NOAA will invest $60 million from the Inflation Reduction Act. Read more.

Energy Department intends to fund up to $36 million for industrial thin-film photovoltaic RD&D

The Solar Energy Technologies Office issued a notice of intent to release a funding opportunity announcement of up to $36 million for research, development and demonstration projects on two major thin-film PV technologies: metal halide perovskites and cadmium telluride. Read more.

DOE announces $4 million to reduce wood heater pollutants and accelerate innovative technology

Nearly 11 million U.S. homes use cordwood or wood pellets for space heating, producing 7 percent of the nation’s harmful particulate emissions. Now, Brookhaven National Laboratory and Lawrence Berkeley National Laboratory are teaming up to improve air quality through wood heater innovation, with $4 million in funding provided by EERE’s Bioenergy Technologies Office. Concept papers due August 11. Read more.

DOE launches new round of American-made solar prize

The Energy Department launched the American-Made Solar Prize Round 7 – a $4 million prize program to spur innovations in solar hardware and software technologies. The round offers additional cash prizes and business development support for new and diverse teams. Read more.

FOCUS: Foreign investments in U.S. soaring thanks to IRA – especially from Europe

With bipartisan agreement finally reached on the debt ceiling, the threat of the U.S. either defaulting on its debts or repealing Inflation Reduction Act investments and tax credits responsible for driving a mammoth economic boom is behind us – at least for now.

That’s good news for the nearly 200 major clean energy and clean transportation projects and factories announced since the IRA’s passage – including 13 just last month – that suddenly faced uncertainty when the IRA was tossed around as a debt ceiling bargaining chip.

And it’s also good news for foreign companies which continue to reap benefits from investing in America. Nearly half the clean energy projects announced in May – including the majority of all expected new jobs – came from companies based in Europe.

It’s the kind of race to the top where everyone wins.

But what does all this international competition mean? America’s clean energy economy is vital to global economic growth, and in many industries helping decarbonize the world, the U.S. has staked its claim as a global leader.

Norwegian hydrogen electrolyzer manufacturer Nel, for instance, announced a $400 million project in Michigan. “I can tell you as a European, [the IRA] does work,” CEO Håkon Volldal said at an investment summit covered by the Detroit News. “Some of our largest orders are now coming from the United States, and we as a supplier want to be close to our customers.”

Other European companies announcing new U.S. projects last month include Italian energy giant Enel’s $1 billion solar manufacturing facility in Oklahoma (the largest single investment in the state’s history); a Portuguese company that plans to manufacture steel tubing for the solar industry in Tennessee and a Spanish electrical engineering business that credited federal EV provisions with its decision to expand a 140,000-square-foot production facility in Milwaukee.

Europe had a big month for investment in the U.S. clean economy, but since it was signed into law last summer, the IRA has attracted investments from around the world. Just look at Toyota’s $2.1 billion investment expanding EV manufacturing in North Carolina, or South Korea-owned QCells’ $2.5 billion investment to build a new solar manufacturing plant in Georgia.

Not long ago, America was exporting jobs to other countries; now, foreign companies are investing here, in clean energy, in clean transportation and in American workers.

Members of Congress should recognize that the clean energy revolution spurred on by the IRA – and the steady stream of foreign investments it’s attracting to America – is making our country more competitive in the industries that will drive global economic growth for decades to come.

SPOTLIGHT

AMANDA GODWARD
Owner/Chief Energy Engineer
Ecotelligent Homes
E2 member
Farmington, Michigan

What does your company do?
We evaluate how energy is used in homes and make recommendations for how to be more energy efficient. We send crews to homes to implement the improvements we’ve identified, whether it’s updating insulation or installing a new heat-pump system that uses electricity instead of natural gas to heat a home.

How many homes have you upgraded so far this year?
Ecotelligent Homes has upgraded thousands of homes in metro Detroit over the past 13 years. It’s hard to come across a client who doesn’t want to make improvements that lower their utility bill and make their house more comfortable. After all, it’s important to have a warm house in the winter and a cool house in the summer!

Have you been hiring more staff?
Yes. We have three full crews of 15 people on staff and we’re hiring more. We’ve already added four new staff members and plan to add at least three more before the end of this year. I bring people onto my team who have never swung a hammer before, but through this work, they enter meaningful careers where they can make tangible impact in our clients’ lives.

How has the IRA impacted your company?
My company started as a side hustle more than a decade ago when I was still a mechanical engineer in the auto industry. We’ve steadily grown since 2009, but when the clean energy tax credits were passed by Congress last summer in the Inflation Reduction Act, I’ve been getting a lot more calls from old and new clients asking how they can benefit. The stability of the federal investments through the IRA and the longevity in the nation’s focus on a clean energy future is really driving much more demand from homeowners who want to invest in energy efficiency and renewable energy upgrades.

Does the IRA help your company overcome any obstacles to growth you had been encountering?
For lots of people, the upfront cost of home energy efficiency improvements can still be a barrier. That can be true even if you know you will get your money back over time through lower utility costs. For these homeowners, federal tax credits and rebates make a world of difference. As home energy upgrades become more accessible to more people, the industry will grow – and along with it, jobs.

Big companies have been attracting lots of attention for major announcements in Michigan. What’s happening with the IRA and small businesses in your state?
Huge investments are making headlines for all the great jobs they promise to create in electric vehicles, batteries and chip manufacturing. But I think what is being missed are the thousands of skilled trades jobs that the IRA investment is also helping to support at smaller employers like us. It’s really giving smaller employers the confidence to grow. Over the next five years, we’re projecting even more growth. To support small business, Michigan lawmakers should keep moving full-steam ahead toward a clean economy – and at the same time push back hard against any efforts to roll back the clean economy incentives passed last year.

OPPORTUNITIES

Biden-Harris administration makes historic, $11 billion investment to advance clean energy across rural America through investing in America agenda

The Biden-Harris Administration announced the availability of nearly $11 billion in grants and loan opportunities that will help rural energy and utility providers bring affordable, reliable clean energy to their communities across the country. This represents the single-largest investment in rural electrification since President Franklin D. Roosevelt signed the Rural Electrification Act into law in 1936. Read more.

DOE announces $187 million to ensure widespread and accelerated electrification of America’s transportation sector

The U.S. Department of Energy (DOE) today announced a new $99.5 million funding opportunity in addition to the selection of 45 projects totaling $87 million to advance production of next-generation electric vehicle (EV) technologies, train the future electrified transportation workforce, and ensure the equitable deployment of clean mobility options in disadvantaged communities. Read more.

$45 million funding opportunity to advance tidal and current energy development

DOE released funds to advance a comprehensive approach to tidal and current energy development in the U.S. Up to $35 million will support development of a pilot tidal and/or current energy technology demonstration site in state waters, and up to $10 million will support a community-led tidal and/or current energy planning and development project. Read more.

Wind energy funding for offshore wind Centers of Excellence

EERE’s Wind Energy Technologies Office released a $4.75 million funding opportunity that will create one or more university-led Centers of Excellence to increase offshore wind expertise at U.S. universities; develop partnerships to address key offshore wind development challenges; and educate the next generation of offshore wind experts in the United States. Read more.

Workshop (June 14): Creating Good, Inclusive Clean Energy Jobs

DOE is seeking stakeholder input about a potential workforce program aimed at ensuring that historic investments in clean energy result in high-quality, accessible careers. Join this virtual workshop to learn about the program concept and discuss ideas about the quality of jobs in the growing field of clean energy development. Read more.

DOE launches new ‘Energy Earthshot’ to decarbonize transportation and industrial sectors

Energy Secretary Jennifer M. Granholm announced the launch of the Clean Fuels & Products Shot, which aims to significantly reduce greenhouse gas (GHG) emissions from carbon-based fuels and products critical to our way of life. This is the seventh DOE Energy Earthshot, and it focuses on reducing carbon emissions from the fuel and chemical industry through alternative, sustainable sources of carbon to achieve a minimum of 85 percent lower GHG emissions compared to fossil-based sources by 2035. Read more.

DOE invests $26 million to support clean energy grid

As part of President Biden’s Investing in America agenda, DOE announced $26 million for eight selected projects across 13 states and Puerto Rico to demonstrate how solar, wind, storage and other clean energy resources can support a reliable and efficient U.S. power grid. Read more.

DOE announces nearly $60 million to advance clean hydrogen technologies and improve the electric power grid

The U.S. Department of Energy announced nearly $42 million in funding for 22 projects in 14 states to advance critical technologies for producing, storing and deploying clean hydrogen. DOE also announced $17.8 million to establish a new North American university research consortium that will help states and tribal communities implement grid resilience programs and achieve decarbonization goals. Read more.

FOCUS: Drove my EV to the levee but the levee was dry

When the president of South Korea smoothly belts out the first verse of the Don McLean classic “American Pie” at a White House state dinner, you can be sure the two countries are collaborating on much more than just the occasional live music performance.

That certainly seems to be the case within the booming EV industry, at least judging from the latest batch of clean economy announcements tracked by E2.

A rendering of Seohan’s Georgia facility announced in April. It will manufacture auto parts for a larger, multi-billion-dollar Hyundai plant nearby. (Photo courtesy of Seohan)

Last month, there were 14 project announcements across 12 states that are expected to drive $2.23 billion in private-sector investments and create at least 1,821 jobs. One of those announcements came from Georgia, where Gov. Brian Kemp (R) announced that Seohan Auto Georgia, a Hyundai parts supplier, will invest $72 million in a new facility in Liberty County. The project is expected to create 180 jobs helping to manufacture shafts, axels and brake systems.

This is at least the 11th major clean economy project announcement made by a South Korean company since the Inflation Reduction Act was signed into law last summer. Ahead of the state dinner/rock performance last week, a fact sheet released by the U.S. Embassy in the Republic of Korea highlighted a few of them, including Hyundai’s new multi-billion-dollar plant in Bryan, Georgia (8,100 jobs, according to the White House), as well as Hanwah Q Cell’s $2.5 billion expansion of its solar factories in Dalton, Georgia.

Both these projects were previously tracked by E2. The new Seohan facility will supply Hyundai’s Bryan plant.

There are several reasons for the steady pace of outsized investments South Korean companies are making in the clean economy in Georgia and other states. One is the proposed federal rule that stipulates tax credits cannot go to clean vehicles that contain battery components manufactured by “a foreign entity of concern,” which is likely to benefit South Korea at the expense of China, at least for now.

At the same time, states like Georgia have been actively courting South Korean companies that are operating in the clean economy, whether it’s Seohan, Hyundai, SK, LG or others. Georgia’s collaboration with South Korea has been so fruitful that in January Gov. Kemp paused his State of the State address to ask Yoonie Kim, his director for Korean investment, to stand and be recognized.

In the months ahead, more opportunities – and challenges – are sure to emerge around foreign investment in the U.S. clean economy. For now, though, the U.S. and South Korea are singing the same tune.

Spotlight

DAVID COHEN-TANUGI
Cleantech venture builder
MIT Proto Ventures
E2 member
Boston, MA

David Cohen-Tanugi is a physicist, entrepreneur, French-American dual national, China expert and former NRDC fellow. At the end of April, he started a new position as the head of cleantech commercialization at MIT’s new venture studio, Proto Ventures. E2 recently caught up with Cohen-Tanugi to talk about his career, venture building and the Inflation Reduction Act.*

How would you describe where you fit into the wider professional landscape?

My specialty is developing and commercializing clean energy technologies. Almost by definition, that requires being a strong technologist and scientist on one hand, but also a savvy, real-world professional      with business and leadership experience. I try to bridge those two worlds for maximum impact.

What motivates you?

Two things: the end goal of a cleaner, more sustainable and more just planet, and the desire to make sure that scientific breakthroughs and innovative technologies are being put to good use to tackle climate and sustainability challenges.

How are you helping to make this happen?

I’ve just started a new role as MIT’s first clean energy venture builder. MIT has identified that while there is a lot of entrepreneurial interest among some researchers and students – with dozens or even hundreds of would-be entrepreneurs and teams and spin-offs – big swaths of the technology and knowledge portfolio at MIT are still not being applied in any impactful way.

My job for two years will be to identify the problems in the clean energy space that are the most pressing and that have technology gaps with no clear solutions today. If we then rethink how we approach the technologies, inventions, patents and capabilities coming out of MIT that are not currently being put to good use, that could have a tremendous impact on our clean energy future. At Proto Ventures, we’re working to commercially deploy breakthrough innovations that leverage MIT research and that will have a strong positive impact on the availability of clean energy. We want to use knowledge and MIT’s exceptional people to solve the world’s great challenges in clean energy.

How closely do you pay attention to the cleantech policy landscape?

Certainly, as I enter this new role at MIT and ask myself which problems are the most pressing, I won’t just be looking at dollars and cents and business problems, I’ll also try to get a sense of where the world is headed, where it needs to be headed and where the current policy landscape takes things in the U.S.: What needs to happen? Is there a big gap between where we will need to be, and what’s possible today?

What about the IRA?

The IRA has a big emphasis on domestic production requirements. I think that’s powerful politically, to make sure this is a piece of legislation that has staying power and has broad bipartisan support, including support from different states and different stakeholder groups. It’s also tremendously important that the IRA has a particular emphasis on growing a workforce that benefits from the clean energy transition and the growth of this new sector of the economy.

At the same time, America is a big part of an interdependent global economy, and different countries have a lot to benefit from each other’s competitive strengths and projects. So we need to find a way to make sure all the countries, continents and companies that are aggressively tackling climate change and deploying energy technology can leverage each other and benefit from each other, as opposed to being primarily in competition with each other, or else we just end up with a lot of wasted opportunity. That’s something where I think there are still a lot of open questions, and it’s fascinating to look at.

The IRA also amplifies clean energy venture building at a leading university like MIT by providing the long-term price signals that are essential for raising venture capital in the clean energy sector. The breakthrough technologies and cleantech ventures that come out of Proto Ventures will doubtless leverage the IRA to reach the scale and impact that we really need to transition to a green, clean jobs economy.

*This interview has been edited and condensed.

Opportunities

National funding opportunity calendar for the Bipartisan Infrastructure Law
This document highlights funding opportunities that communities can apply for today, as well as a calendar of key upcoming funding opportunities for 2023. For more information on the full set of programs in the Bipartisan Infrastructure Law, including upcoming milestones, visit build.gov. Read more.

Request for Information: Scaling the U.S. solar manufacturing workforce
DOE’s Solar Energy Technologies Office released an RFI to better understand the anticipated quantity, quality and accessibility of solar manufacturing roles. The RFI will solicit feedback from unions, industry, academia, research laboratories, government agencies and other stakeholders on the challenges and opportunities associated with a historic expansion of the U.S. solar manufacturing workforce. Read more.

Biden-Harris Administration proposes strongest-ever pollution standards for cars and trucks to accelerate transition to a clean-transportation future
The EPA announced new proposed federal vehicle emissions standards that will accelerate the ongoing transition to a clean vehicles future and tackle the climate crisis. The new proposed emissions standards for light-, medium-, and heavy-duty vehicles for model year 2027 and beyond would significantly reduce climate and other harmful air pollution, unlocking significant benefits for public health, especially in communities that have borne the greatest burden of poor air quality. At the same time, the proposed standards would lower maintenance costs and deliver significant fuel savings for drivers and truck operators. Read more.

EPA releases framework for the implementation of the Greenhouse Gas Reduction Fund
The EPA released new details about the design of the $27 billion Greenhouse Gas Reduction Fund, a first-of-its-kind, national-scale competitive grant program created by the President’s Inflation Reduction Act. This program will leverage public investment with private capital and finance clean energy projects that reduce pollution and energy costs, increase energy security and create good-paying jobs, especially in low-income and disadvantaged communities and places that have historically shouldered the burden of pollution. Read more.

DOE: $450 million to deploy clean energy projects on mine lands
DOE announced up to $450 million from the Bipartisan Infrastructure Law to advance clean energy demonstration projects on current and former mine lands. Approximately 17,750 mining sites occupy 1.5 million acres in the U.S. Repurposing this extensive area of land for clean energy projects could generate up to 90 GW of clean energy – enough to power nearly 30 million American homes – while reducing greenhouse gas emissions that jeopardize public health and pollute local ecosystems. Read more.

Biden-Harris Administration announces availability of $1 billion to help farmers, ranchers and rural businesses invest in renewable energy systems and energy-efficiency improvements
The USDA announced it is accepting applications for $1 billion in grants to help agricultural producers and rural small businesses invest in renewable energy systems and make energy-efficiency improvements. USDA is making the grants available under the Rural Energy for America Program, with funding from the Inflation Reduction Act. Read more.

Energizing Rural Communities Prize
The $15 million Energizing Rural Communities Prize challenges individuals and organizations to develop partnership plans or innovative financing strategies to help rural or remote communities improve their energy systems and advance clean energy demonstration projects.  The application period for Phase 1 closes May 24. This prize is part of the $1 billion Energy Improvements in Rural or Remote Areas Program, created by DOE’s Office of Clean Energy Demonstrations. The program supports projects that improve the resilience, reliability, safety, availability and environmental performance of energy systems in rural or remote areas of the U.S. with populations of no more than 10,000 people. Read more.

Biden-Harris Administration announces nearly $585 million from Bipartisan Infrastructure Law to repair aging water infrastructure, advance drought resilience
The White House announced a nearly $585 million investment from the Bipartisan Infrastructure Law for infrastructure repairs on water delivery systems throughout the West. Funding will go to 83 projects in 11 states to improve water conveyance and storage, increase safety, improve hydro power generation and provide water treatment. Among the projects selected for funding are efforts to increase canal capacity, provide water treatment for Tribes, replace equipment for hydropower production and provide necessary maintenance to aging project buildings. Projects will be funded in Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota and Washington. Read more.

Biden-Harris Administration announces historic funding for 37 projects to improve safety, fix old, leaky gas pipes and create jobs
The U.S. Dept. of Transportation and the Pipeline and Hazardous Materials Safety Administration announced $196 million in grants for 37 projects across 19 states. This new grant program helps improve public safety, protect public health and reduce methane emissions from natural gas distribution pipes. The Natural Gas Distribution Infrastructure Safety and Modernization grant program, established by the Bipartisan Infrastructure Law, provides nearly $1 billion in funding over the course of five years to modernize municipally and community-owned natural gas distribution pipes. Read more.

Summary:

New Mexico’s clean energy sector employed 12,014 workers by the end of 2021 an of 8.1% from 2021, the highest rate of job growth in the country. This strong growth was mainly driven by increase in clean fuels and clean vehicle jobs.

• 8.1% – New Mexico led the nation in clean energy job growth in 2021.
• 56% – Small businesses (<20 employees) accounted for nearly 3 out of every 5 clean energy jobs in New Mexico.
• Most Diverse New Mexico continues to have the most diverse clean energy workforce in the U.S. Hispanic and/or Latinos account for more than 1 in 5 workers (22.6%) and multiracial workers make up more than 1 in 7 (14.0%).
• 11.7% – Clean energy job wages are above state-specific medium wage.

Figure 4 // U.S. Clean Energy Employment by subsector 2021