Seven years ago, Ajuro Osow founded EnerWealth Solutions, a solar-power-and-storage company, to set up small-scale solar projects on farms and other sites in the rural southeast, where capital is scarce and the term “green economy” is rarely heard.
Ossow said that in the last year alone, the amount of solar power her company developed has increased from 2 megawatts to 25 megawatts, a 1,150 percent increase thanks to the massive Climate and Economic Development Act of 2022 that has helped bring the country into the grip of Inflation Control.
“The Inflation Control Act will help ensure that this technology is available to the public,” said John F. Kennedy, a longtime solar industry attorney in North Carolina. Black Owner of Solar Power Service.
The IRA is the Biden Administration’s signature climate change legislation. The historic legislation is the most aggressive climate change policy in U.S. history, introducing billions of dollars in tax breaks and other incentives with the goal of reducing economy-wide carbon emissions by 40% by 2030.
All Republicans voted against the bill, calling it a mere handout to support climate change and social justice programs. Continues to claim that climate change is a hoaxBut now some Republican members of Congress who voted against the IRA are calling on their party leaders to consider preserving key parts of the program.
Urias Communications
The IRA will bring about an “economic revolution”
In fact, it is Republican-leaning states that have overwhelmingly benefited from the federal clean energy funding. Report Released this month E2is a national, nonpartisan group of more than 10,000 business leaders who advocate for a cleaner economy and environment.
Friday marks the second anniversary of Biden signing the IRA. Since then, companies have announced roughly 330 clean energy and automotive projects that, if completed, could create 109,278 jobs and bring in as much as $126 billion in private investment, according to the E2 report.
The E2 report breaks down IRA-backed projects by state, sector, industry and constituency. “Approximately 60% of the announced projects (accounting for 85% of the investment and 68% of the jobs) were in Republican constituencies,” the report said.
Democratic Rep. Marcy Kaptur of Ohio boasts the most projects in her own district (eight), but the next seven districts with the most IRA-funded projects (Georgia, the Carolinas, Nevada, and Oklahoma) are all represented by Republicans.
“I truly believe this is the greatest economic revolution this country has seen in generations, and it’s because this country is finally, finally, finally deciding to take action on climate change and clean energy,” E2 Executive Director Bob Keefe said during an hour-long online presentation with reporters.
Red State Projects Proliferate
One major project is South Korea-based solar manufacturer Q Cells, which last year announced a $2.5 billion expansion in Dalton, Georgia, creating more than 2,500 jobs and helping transform the city known as the “Carpet Capital of the World” into a clean-energy manufacturing hub.
Nevada is aiming to become the lithium capital of the United States, with $6.6 billion in investment in projects such as the Rhyolite Ridge and Tucker Pass lithium mines creating more than 5,000 jobs in the northern third of the state from 2022 onward.
Lee Pedinoff / Floodlight
North Carolina also saw $19.7 billion pumped into the state, creating 22 clean energy projects and more than 10,000 jobs in solar, recycling, electric vehicles and battery manufacturing, including the $13.9 billion Toyota Motor Corp. North America EV/hybrid battery plant scheduled to open next year.
E2’s report was based on publicly available information, such as news releases and official government statements, but E2 said roughly a third of the information did not include the amount of investment or the number of jobs the projects are expected to create.
In other words, the IRA’s influence may be broader than the nonprofit tally — a good sign for environmentalists and clean energy advocates.
Indeed, the QCells project is taking place in the home district of very vocal Republican Congresswoman Marjorie Taylor Greene, a climate change denier and ardent supporter of former President Donald Trump, who is seeking a second term. US Representative Mark Amodei of Nevada is aligned with MAGA Republicans who have pushed for an increase, not a reduction, in fossil fuel production in the US.
North Carolina lawmakers block reform
North Carolina is led by Democratic Governor Roy Cooper. Presidential Decree The administration’s climate plan aims to cut carbon dioxide emissions by 40 percent by next year compared to 2005 levels, but the Republican-controlled Congress and congressional delegation frequently oppose clean energy policies.
In 2021, three years after his climate change executive order, Governor Cooper successfully pushed the state legislature to pass a comprehensive energy bill that was signed into law. Meanwhile, the state legislature has used the state budget to cut environmental protections and set energy policy.
In 2023, lawmakers added a provision that would ban North Carolina from participating in cap-and-trade programs aimed at limiting power plant emissions, such as the Regional Greenhouse Gas Initiative.
It’s not surprising that Republican-led states are seeing the most results from IRAs: Many states, particularly in the Midwest and Southeast, are home to major manufacturing operations, including automakers, that are transitioning to fully hybrid or electric vehicle products over the next decade.
Provided by Toyota
So while conservative politicians might scoff at money to clean up the environment, they’ll take notice of spending that promotes new or expanding businesses and jobs.
Georgia is one of five states that boast more than 20 projects that came from IRA investments, Nevada has one of the highest congressional districts with the most jobs created by IRAs, and North Carolina’s multibillion-dollar investments are the highest of any of the 50 states.
Toyota Battery Manufacturing North Carolina Inc. in Liberty is now valued at $13.9 billion. A company spokesman said the IRA was instrumental in Toyota’s decision to expand the scope of the project but was not pivotal to the decision. Toyota plans to start making batteries for electric and hybrid vehicles next year.
“While incentives can be helpful, they are often temporary or dependent on changing political conditions, which is why Toyota makes long-term investment decisions based on market rather than incentive opportunities,” Eric Booth said in a statement to Floodlight.
Some Republicans are reconsidering their opposition to the IRA
In fact, 18 Republicans letter Republican House Speaker Mike Johnson of Louisiana urged Trump to be careful about repealing all or part of the IRA, which he has vowed to do if re-elected.
“Energy tax credits have spurred innovation, encouraged investment and created good jobs in many parts of the country, including many districts represented by members of our conference,” the Aug. 6 letter to Johnson said.
Lawmakers said they’ve heard from industry and constituents that revoking previously issued energy tax credits would hurt private investment and discourage development, especially for projects that have already broken ground.
“A complete repeal would create a worst-case scenario in which billions of taxpayer dollars would be spent with almost nothing in return,” the letter said.
The IRA’s second year has seen a marked decline in the number of projects, jobs and investment compared to its first year, and Keefe believes part of the reason is the upcoming election.
“We know that in an election year there’s going to be uncertainty around policy,” he said.
Keefe warned that if the IRA were repealed, “you know, it’s not going to be foresters or environmentalists in San Francisco or New York who are going to be hurt. It’s going to be working class people in Georgia, Michigan, North Carolina, Ohio, because that’s where these projects are headed.”
