Supply chain weaknesses slow down clean energy development & electric grid modernization. We need both supply-side and demand-side policies to onshore key industries and create high quality jobs. Many of these policies have bipartisan appeal. Today, the Sustainable Energy and Environment Coalition (SEEC) Institute released the Thriving Economy Project policy blueprint. I wrote Chapter 5 on "Cheap, Abundant, and Clean American Energy for All" with Rep. Mike Levin (D-CA-49). Here's what we recommended:
🔹 Extend and expand the 45X Advanced Manufacturing Production Credit:
🔸 Reaffirm long-term support for 45X for solar and storage manufacturing. Provide Production Tax Credits for domestically manufactured LDES components, including electrolytes, thermal media, tanks, heat exchangers, compressors, and mechanical assemblies.
🔸 Remove the 2027 termination for 45X for wind energy components to provide long-term certainty.
🔸 Expand 45X for key next-generation geothermal components, including drill bits; large diameter well casings and drill string components, including insulated drill pipes; high temperature, high pressure sensing and power electronics; geothermal electricity production
equipment; heat exchangers; air-cooled condensers; and production well pumps.
🔸 Expand 45X for power transformers, switchgear, and grid-forming inverters.
🔸 Expand 45X for the production and incorporation of domestically produced high-performance rare earth magnets, which are critical for EVs, wind turbines, and many other applications. Provide a higher credit for recycled magnets.
🔸 Expand 45X for components of industrial heating technologies, including geothermal, solar thermal, electric heat pumps, and clean hydrogen.
🔹 Extend and strengthen the Clean Electricity Investment Credit with the Domestic Content Bonus and high road labor standards. Ensure a continuing role for demand-side incentives to sustain domestic supply chains for clean energy and electric grid components and equipment.
🔹 Provide additional funding for the Section 48C Qualifying Advanced Energy Project Credit.
🔹 Direct DOE to supplement Defense Production Act support with long-term purchase commitments between utilities and manufacturers to stabilize market demand and de-risk manufacturing expansions. Allow other DPA tools to be used, including price floors, price insurance, and equity investment, for clean technologies with appropriate guardrails and environmental review.
🔹 Expand DOE EDF to invest in the manufacturing needed to develop the domestic supply chain for clean energy and electric grid components and equipment.
🔹 Expand and incentivize the use of the U.S. Department of Labor Registered Apprenticeship programs.
🔹 Establish place-based initiatives in partnership with state policymakers and regional commissions to provide holistic support to expand advanced manufacturing for clean
energy and electric grid components and equipment.