1) WH FACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing
Today’s clean energy technologies are a critical part of the arsenal we must harness to lower energy costs for families, reduce risks to our power grid, and tackle the urgent crisis of a changing climate. . . . Today, President Biden is taking action to:
Authorize use of the Defense Production Act (DPA) to accelerate domestic production of clean energy technologies, including solar panel parts;
Put the full power of federal procurement to work spurring additional domestic solar manufacturing capacity by directing the development of master supply agreements, including “super preference” status; and
Create a 24-month bridge as domestic manufacturing rapidly scales up to ensure the reliable supply of components that U.S. solar deployers need to construct clean energy projects and an electric grid for the 21st century, while reinforcing the integrity of our trade laws and processes. . . .
INVOKING THE DEFENSE PRODUCTION ACT FOR CLEAN ENERGY
Today, President Biden is . . . authorizing the Department of Energy to use the DPA to rapidly expand American manufacturing of five critical clean energy technologies:
Solar panel parts like photovoltaic modules and module components;
Heat pumps, which heat and cool buildings super efficiently;
Equipment for making and using clean electricity-generated fuels, including electrolyzers, fuel cells, and related platinum group metals; and
Critical power grid infrastructure like transformers. . . .
BOOSTING MADE-IN-AMERICA CLEAN ENERGY WITH FEDERAL PROCUREMENT
President Biden is also putting the full power of federal procurement to work spurring additional domestic solar manufacturing capacity. Today, the President directed the development of two innovative tools to accelerate Made-in-America clean energy:
Master Supply Agreements for domestically manufactured solar systems to increase the speed and efficiency with which domestic clean electricity providers can sell their products to the U.S. Government; and
So-called “Super Preferences” to apply domestic content standards for federal procurement of solar systems, including domestically manufactured solar photovoltaic components, consistent with the Buy American Act. . . .
SUPPORT FOR U.S. GRID-STRENGTHENING, CLEAN ENERGY CONSTRUCTION PROJECTS
[T]he United States is now on track to triple its solar manufacturing capacity by 2024. . . . To rapidly build on this progress and create a bridge to this American-made clean energy future, we need to boost short-term solar panel supply to support construction projects in the United States right now. This is because grid operators around the country are relying on planned solar projects to come online to ensure there is sufficient power to meet demand, and to ensure we can continue to deploy solar at the rates needed to keep us on track to meet the President’s climate goals.
Today, President Biden is using his powers to create a 24-month bridge for certain solar imports while reinforcing the integrity of our trade laws and processes. Specifically, the President is:
Temporarily facilitating U.S. solar deployers’ ability to source solar modules and cells from Cambodia, Malaysia, Thailand, and Vietnam by providing that those components can be imported free of certain duties for 24 months in order to ensure the U.S. has access to a sufficient supply of solar modules to meet electricity generation needs while domestic manufacturing scales up; and
Reinforcing his commitment to safeguarding the integrity and independence of all ongoing trade investigations by career officials at the Department of Commerce and recognizing the vital role these processes play in strengthening our economy.
2) Declaration of Emergency and Authorization for Temporary Extensions of Time and Duty-Free Importation of Solar Cells and Modules from Southeast Asia https://www.federalregister.gov/d/2022-12578
3) Memoranda on Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as amended, on:
Electrolyzers, Fuel Cells, and Platinum Group Metals https://www.federalregister.gov/d/2022-12585
Solar Photovoltaic Modules and Module Components https://www.federalregister.gov/d/2022-12583
Transformers and Electric Power Grid Components https://www.federalregister.gov/d/2022-12587
Electric Heat Pumps https://www.federalregister.gov/d/2022-12586
4) DOE news release: President Biden Invokes Defense Production Act to Accelerate Domestic Manufacturing of Clean Energy
President Biden today 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. . . .
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% 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—exposing the nation to supply chain vulnerabilities, while simultaneously missing out on the enormous job opportunities associated with the energy transition.
We must harness the United States’s untapped potential to support greater domestic production for domestic use and export. With today’s 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.
Technologies Included in the President’s DPA Announcement:
Solar — Solar photovoltaic (PV) energy is the largest source of new U.S. electricity generation capacity and the cheapest new electricity source in many regions of the country. However, domestic solar PV production does not meet current demand. . . .
Transformers and Grid Components —The U.S. is highly reliant on foreign-sourced critical electric grid components. Traditional industrial efforts are insufficient to meet the unprecedented growth in electrification necessary to support U.S. decarbonization, defense against cyber-security attacks, and critical infrastructure maintenance, and are not positioned to respond to the demands of U.S. electricity needs in the near-term. By expanding the domestic production of transformers and critical grid components to enable the reliable and increased use of the electric power system, the U.S. would immediately enhance its domestic energy security, decrease vulnerability of U.S. infrastructure, and ultimately support climate security and stability worldwide. Supply chain delays are leading to wait times in rural and urban parts of the U.S. of up to two years for crucial grid components. Independent estimates indicate that we need to expand electricity transmission systems by 60% by 2030 and may need to triple it by 2050 to meet the country’s increase in renewable generation and expanding electrification needs. . . .
Heat Pumps — Our nation’s buildings, homes, offices, schools, hospitals, military bases, and other critical facilities drive more than 40% of all U.S. energy consumption. To reduce the amount of energy needed in our buildings, leading to less reliance by the U.S. and allies on adversaries such as Russia for oil and gas, heat pumps are an important solution. Their use by the U.S. and allies can shrink Russian revenue for war and reduce climate instability. However, currently, U.S. HVAC manufacturers are not producing heat pumps at the rate needed. . . .
Insulation — About half of all homes in the U.S. were built before modern-day building energy codes, meaning they lack contemporary insulation, causing energy to seep out. At a time when conserving energy means limiting the reliance by the U.S. and allies on adversaries such as Russia for oil and gas, building retrofits can reduce energy use by 50% or more. In addition to lowering energy costs for families and increasing the domestic clean energy workforce, well-insulated buildings also provide “passive survivability,” meaning that they can retain a safe indoor temperature for longer in the event of energy disruptions, reducing casualties from extreme weather. While U.S. insulation production is currently sufficient to cover new construction and some retrofits, we must also rapidly insulate older buildings to further reduce energy demand. . . .
Electrolyzers, Fuel Cells, and Platinum Group Metals — Electrolyzers, fuel cells, and platinum group metal (PGM) catalysts are vital for increasing domestic production and utilization of clean hydrogen, a versatile energy carrier. Clean hydrogen produced through electrolysis is projected to contribute significantly to achieving U.S. decarbonization goals. President Biden’s actions supporting domestic supply chains for electrolyzers, fuel cells, and PGM catalysts will enhance national and energy security by reducing U.S. reliance on imported fossil fuels, particularly Russia (the world’s second-largest producer of PGMs) and China. Consumers will benefit from clean hydrogen’s price stability relative to fossil fuels, cost reductions as the hydrogen economy scales up, and resilient domestic supply chains. . . .
Following this announcement, DOE and the White House will continue to convene relevant industry, labor, and community stakeholders as we maximize the impact of the DPA tools made available by President Biden’s actions and strengthen domestic clean energy manufacturing.