President Biden Invokes Defense Production Act to Accelerate Domestic Manufacturing of Clean Energy (2022)

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DPA Invocation Will Boost American Production of the Critical Technologies Necessary to Lower Energy Costs, Support the Clean Energy Economy, and Strengthen National Security.

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WASHINGTON, D.C.— 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. The DPA determinations are part of the Biden-Harris Administration’s plan to lower energy costs for families, strengthen national security, and achieve lasting American energy independence that reduces demand for fossil fuels and bolsters our clean energy economy.

“President Biden has invoked the Defense Production Act so that the U.S. can take ownership of its clean energy independence,” said U.S. Secretary of Energy Jennifer M. Granholm. “For too long the nation’s clean energy supply chain has been over-reliant on foreign sources and adversarial nations. With the new DPA authority, DOE can help strengthen domestic solar, heat pump and grid manufacturing industries while fortifying America’s economic security and creating good-paying jobs, and lowering utility costs along the way.”

“Reducing America’s dependence on gas and oil is critical to U.S. national security,” said Deputy Secretary of Defense Dr. Kathleen Hicks. “In conflict, fossil fuel supply lines are especially vulnerable. The actions President Biden announced today will help strengthen our supply chains and ensure that the United States is a leader in producing the energy technologies that are essential to our future success. They will also help accelerate DoD’s transition toward clean energy technologies that can help strengthen military capability while creating good jobs for American workers.”

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.

Defense Production Act Authority

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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

DPA authority, with the necessary funding appropriated by Congress, will allow the federal government to invest in companies that can build clean energy facilities, expand clean energy manufacturing, process clean energy components, and install clean energy technologies for consumers.

  • 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. By supporting a secure, stable, diversified, and competitive domestic solar supply chain, President Biden’s actions will increase national security, promote energy independence, help to address the urgent threat of climate change, and drive down energy costs for American consumers.
  • 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. President Biden’s invocation of the DPA will support a robust domestic supply of modern grid components, which is necessary to strengthen and modernize the nation’s grid and will accelerate customers’ ability to get electricity from clean sources.
  • 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. The Biden-Harris Administration can help American manufacturing expand and expedite the installation of heat pumps in homes and residential buildings by qualified building professionals.
  • 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. President Biden’s actions will help expand insulation manufacturing to meet this need.
  • 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.

DOE’s Continued Commitment to Bolstering a Domestic Clean Energy Supply Chain

In February, DOE launched the new Office of Manufacturing and Energy Supply Chains to secure energy supply chains needed to modernize America’s energy infrastructure and support the full transition to clean energy. DOE will also partner with the energy and utility industry, labor unions, and community groups to explore a variety of options on supply chain issues, including through the Electricity Subsector Coordinating Council. DOE recently released a major set of reports on the energy supply chain laying out the nation’s first comprehensive strategy for the energy industrial base with a focus on securing the transition to clean energy.

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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.

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FAQs

What is Biden doing for clean energy? ›

DOE also announced $10 million from President Biden's Bipartisan Infrastructure Law to jump-start solar energy careers in underserved communities. Today's announcements support President Biden's goal to reach a carbon-free electricity sector by 2035 while creating good-paying jobs across the country.

What is Biden's climate plan? ›

Biden pledged on the campaign trail to spend $2 trillion on a plan to rapidly increase clean energy and electric vehicles and cut greenhouse gas emissions in half by the end of the decade.

Why are they pushing solar panels? ›

Rooftop solar has a “huge potential” to cut air pollution, create jobs, protect against outages and shrink utility bills, said Mark Jacobson, a professor of civil and environmental engineering at Stanford University.

Is the US government giving away solar panels? ›

No, the federal government is not giving away free solar panels. There are private companies offering to install solar panels on homes for free, but the homeowner is only renting the panels and still has to pay for their electricity.

What did Biden say about climate change today? ›

And when it comes to fighting the climate change — climate change, I will not take no for an answer. I will do everything in my power to clean our air and water, protect our people's health, to win the clean energy future. This, again, sounds like hyperbole, but our children and grandchildren are counting on us.

What is the federal government doing about climate change? ›

Reducing U.S. greenhouse gas emissions 50-52% below 2005 levels in 2030. Reaching 100% carbon pollution-free electricity by 2035. Achieving a net-zero emissions economy by 2050.

What is the single most significant cause of carbon emissions? ›

Electricity and Heat Production (25% of 2010 global greenhouse gas emissions): The burning of coal, natural gas, and oil for electricity and heat is the largest single source of global greenhouse gas emissions.

Are solar panels on a house really worth it? ›

There are various ways solar panels pay off, ranging from reducing your carbon footprint to increasing your home's value. Recently, the National Renewable Energy Laboratory (NREL) found that for a home with a solar power system, every dollar saved on energy increases a home's value by $20.

Are solar Roofs worth it? ›

While expensive to install, a solar roof can save in the long run. Depending on the number of tiles on your roof, solar shingles can reduce energy costs by anywhere from 40 to 60 percent, according to the consumer education site SolarReviews. Additionally, you may be eligible for federal and state tax incentives.

What will replace solar panels? ›

Perovskites are widely seen as the likely platform for next-generation solar cells, replacing silicon because of its easier manufacturing process, lower cost, and greater flexibility.

Who owns the solar panels on my roof? ›

Where solar panels have been installed by a solar panel provider, the provider will usually own and maintain them under the roof top lease. The lease should set out clearly the responsibilities for maintenance and removal of the panels where works are required to the roof.

Do solar panels give you free electricity? ›

Solar photovoltaic (or PV) panels convert the energy in sunlight into electricity, and this is effectively free electricity that can be used in your house (once the cost of installing the panels has been taken into account, of course).

How long do solar panels last? ›

Solar panels, also known as photovoltaic or PV panels, are made to last more than 25 years. In fact, many solar panels installed as early as the 1980s are still working at expected capacity. Not only are solar panels remarkably reliable, solar panel longevity has increased dramatically over the last 20 years.

What is the clean energy Act? ›

The Clean Energy and Pollution Reduction Act (Senate Bill 350) established clean energy, clean air, and greenhouse gas (GHG) reduction goals, including reducing GHG to 40 percent below 1990 levels by 2030 and to 80 percent below 1990 levels by 2050.

Is the clean energy initiative real? ›

The Clean Energy Manufacturing Initiative (CEMI) is a U.S. Department of Energy (DOE)-wide commitment to enhancing U.S. manufacturing competitiveness while advancing the nation's energy goals, boosting the economy, and contributing to energy security.

What is the Build Back Better Act 2021? ›

The Build Back Better Act is a bill introduced in the 117th Congress to fulfill aspects of President Joe Biden's Build Back Better Plan.

What is clean energy plan? ›

The Clean Energy Plan is a strategic road map for eliminating coal as a fuel source for electricity and cutting carbon emissions by 90 percent from 2005 levels by 2040 while maintaining affordability and reliability.

What are the main points of the energy Policy Act? ›

The Energy Policy Act (EPAct) of 1992 (Public Law 102-486 ) aims to reduce U.S. dependence on petroleum and improve air quality by addressing all aspects of energy supply and demand, including alternative fuels, renewable energy, and energy efficiency.

What is in the new climate change bill? ›

The historic legislation invests in a variety of efforts, including low-carbon technologies, environmental justice initiatives for disadvantaged communities, and tax credits to promote electric vehicle sales.

What is the new climate bill called? ›

938 - Climate Emergency Act of 2021117th Congress (2021-2022) | Get alerts.

Why is clean energy important to our future? ›

Renewable energy is healthier

In 2018, air pollution from fossil fuels caused $2.9 trillion in health and economic costs, about $8 billion a day. Switching to clean sources of energy, such as wind and solar, thus helps address not only climate change but also air pollution and health.

How can we reduce energy waste and promote clean energy? ›

6 ways to cut big waste in our energy system
  1. Switch to renewable energy.
  2. Reduce methane leaks.
  3. Pick power sources that use less water.
  4. Minimize energy loss along wires.
  5. Give people only the voltage they need.
  6. Boost energy-saving tools for homes.
  7. Help launch these solutions.

Is clean energy the same as renewable energy? ›

Renewable energy is derived from sources that can naturally replenish themselves — wind and sun are the two most obvious examples — while clean energy encompasses all zero-carbon energy sources.

What is in Biden Build Back Better plan? ›

President Biden's Build Back Better Plan would invest in training initiatives to help the millions of American workers to create high-quality employment in expanding fields through high-quality career and technical education paths and registered apprenticeships.

What is actually in the Build Back Better Act? ›

The Build Back Better Act will improve access to health care for millions by strengthening the Affordable Care Act, closing the Medicaid coverage gap, expanding Medicare to cover hearing, vision, and dental for seniors, and making investments in home and community-based care.

What is the build back better bill for? ›

The Build Back Better framework will permanently improve Medicaid coverage for home care services for seniors and people with disabilities, making the most transformative investment in access to home care in 40 years, when these services were first authorized for Medicaid.

What is the best clean energy? ›

Wind comes out on top by a wide margin over all the other sources. It is followed in order by geothermal, hydro, nuclear and solar.

Is clean energy really clean? ›

Is Clean Energy Really Clean? All clean energy sources are, by definition 'clean,' however not all renewable energy sources are clean. For example, burning wood from sustainably managed forests can be renewable, but it is not clean since this releases carbon dioxide into the atmosphere.

How can we help clean energy? ›

Contents
  1. Stand With Local Organizations Building The Movement For Inclusive Clean Energy. Related.
  2. Go Solar.
  3. Vote For Solar.
  4. Support Local Businesses That Use Solar Energy. Related.
  5. Inform Your Friends And Neighbors About Their Solar Options.
10 May 2018

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