THIS WEEK IN CLIMATE & CLEAN ENERGY WINS: WEEK OF 6/16/23:

This week, motor companies are driving new clean energy investments. Toyota unveiled new technology to improve EV range and performance towards the second half of the decade, lowering costs for consumers. Toyota also announced it will invest $50 million in a new automotive battery lab in Michigan. In Indiana, General Motors (GM) and Samsung SDI plan to build a $3 billion EV battery cell plant, creating 1,700 jobs, while GM also announced they will invest $632 million in an EV assembly plant in the state. 

Additionally, all 50 states are now on board to build a national EV charging network with help from Inflation Reduction Act tax credits – to support U.S. made EVs and to soften the policy landscape for further use of the technology.

The Inflation Reduction Act is projected to drive an impressive $200 billion in solar wages by 2035, according to a new report from Dartmouth and Princeton. A new survey from ACORE found that renewable energy investors unanimously view the U.S. as an increasingly attractive market for investment, and the Inflation Reduction Act, together with other hallmark Biden legislation, is spurring a “watershed” moment for U.S. manufacturing construction investments – leading a shift towards environmentally friendly manufacturing.

The Treasury Department released guidance this week on direct pay for clean energy tax credits, which allows nonprofits, state, local, and Tribal governments, publicly owned utilities, and other entities exempt from income taxes, to claim tax credits as a direct payment from the IRS. Additionally, the Bureau of Land Management proposed an 80% fee reduction for wind and solar developments on federal land. The Department of Energy this week announced its plans to invest $13.5 million in equitably growing America’s solar energy workforce and more than $192 million in advancing battery recycling technology. Thanks to investments like these, the Inflation Reduction Act is expected to create more than 1 million additional wind and solar jobs by 2035, according to a new study by BlueGreen Alliance. 

Lastly, the Nevada Governor signed a bill into law last Friday that will create a new clean truck and bus incentive program in the state. In Wisconsin, Alliant Energy started construction on a new solar project as part of the company’s clean energy blueprint, which includes the development of 12 solar projects across Wisconsin. In Arizona, Kore Power won an $850 million loan from the Department of Energy to build its first major U.S. manufacturing facility, which will create 700 construction jobs and 1,250 operations jobs. 

Private Sector

• Toyota unveiled new technology to improve EV range and performance while lowering projected EV costs for the second half of the decade. [Reuters, 6/13/2023]
  • The planned improvements include solid state batteries, which have higher energy density, shorter charging times, advanced production processes, and improved aerodynamics to extend EV range. 
• General Motors and Samsung SDI announced they would build a $3 billion EV battery cell plant in Indiana, creating 1,700 jobs. [Reuters, 6/13/2023] 
• GM also announced it would invest $632 million in its Fort Wayne Assembly Plant to produce EVs and EV trucks. [WFYI Indianapolis, 6/12/2023]
• Toyota will invest $50 million in a new automotive battery lab in Michigan. [Green Car Congress, 6/9/2023]
  • The battery lab will evaluate batteries for EVs across North America. 
• Promega committed to sourcing 100% of its global electricity usage from renewable sources by 2025. [Yahoo Finance, 6/13/2023]
  • The Wisconsin-based biotechnology manufacturer will continue scaling up renewable electricity production at its facilities, partnering on local projects, and purchasing renewable credits – supporting the company’s goal of a 50% reduction in carbon emissions by 2030. 

New Reports 

• By 2035, the Inflation Reduction Act will drive $200 billion in solar wages. [PV Magazine, 6/12/2023]
  • A new study from Dartmouth and Princeton found that the Inflation Reduction Act will generate $200 billion in solar market wages by 2035, assuming the workforce earns the median real wage.
  • The study also found that solar and wind project developers will have significant cost savings due to the Inflation Reduction Act, with the cost of producing solar or onshore wind dropping 60% and offshore wind dropping 20% compared to developers that do not offer fair pay and career pathways. 
• A new survey from ACORE found that renewable energy investors unanimously view the U.S. market as attractive. [PV Magazine, 6/12/2023]
  • 100% of respondents perceive the U.S. renewable energy market to be increasingly an attractive area for investment compared to other major countries. 
• The Bipartisan Infrastructure Law, CHIPs, and Inflation Reduction Act are driving a surge in manufacturing construction investment. [The Hill, 6/13/2023]
  • Experts say these investments are creating a ‘watershed’ moment for U.S. heavy industry and driving a shift towards environmentally friendly manufacturing.
• All 50 states are now working to build a national EV charging network with funding from the Bipartisan Infrastructure Law. [Forbes, 6/12/2023]
  • These infrastructure investments are working in tandem with new Inflation Reduction Act tax credits to support US-made EVs and create a favorable policy landscape for EVs. 

Biden Administration 

• On Wednesday, the Treasury released guidance on direct pay and transferability for clean energy tax credits in the Inflation Reduction Act, which allows state, local, and tribal governments, non-profits, rural energy co-ops, and other entities exempt from income taxes to benefit from clean energy tax credits for the first time. [U.S. Department of the Treasury, 6/14/2023]
• The Bureau of Land Management proposed a nearly 80% fee reduction for wind and solar energy development on federal land. [Reuters, 6/15/2023]
• On Tuesday, the Biden Administration announced its plans to invest $13.5 million in equitably growing America’s solar energy workforce. [U.S. Department of Energy, 6/13/2023]
  • As part of this announcement, the Department of Energy aims to create training partnerships in underserved communities across more than 13 states and create career pathways with thousands of good-paying jobs. 
• On Monday, the Biden Administration invested more than $192 million to advance battery recycling technology in the U.S. [U.S. Department of Energy, 6/12/2023]
• According to a new analysis by the BlueGreen Alliance, the Inflation Reduction Act will create more than 1 million additional wind and solar jobs by 2035. [Marketplace, 6/12/2023]

State-Level  

• Last Friday, Nevada Governor Joe Lombardo signed Assembly Bill 184, creating the Nevada Clean Trucks and Buses Incentive Program, into law. [News 4, 6/12/2023]
  • This law is designed to accelerate the adoption of medium and heavy-duty electric trucks, buses, delivery vans, and more among small businesses, public agencies, and school districts.
• Alliant Energy has started construction on a new solar project in Wisconsin as part of the company’s clean energy blueprint. [Solar Power World, 6/12/2023]
  • Alliant Energy’s Clean Energy Blueprint includes the development of 12 utility-scale solar projects in the state that will provide nearly 1,100 MW of energy once operational. 
• Kore Power won a conditional commitment from the Department of Energy for an $850 million loan to help build its first U.S. battery manufacturing facility in Arizona. [Canary Media, 6/9/2023]
  • The 1.3-million-square-foot facility is expected to create 700 construction jobs as it’s built out and about 1,250 operations jobs when it opens.