Inflation Control Law Will Change the U.S. Economy

In February 2009 it was zero — zero — A plug-in hybrid vehicle sold in the United States. There is not a single utility-scale solar installation — not 1 — was connected to the power grid. Climate-busting coal-fired power plants still generate half of all electricity consumed in the United States.

Over the next seven years, much changed. By February 2016, more than 400,000 Americans had purchased Plug-in His hybrid vehicles. Twenty-eight utility-scale solar installations have been connected to the grid and generated enough electricity to replace dozens of coal-fired power plants across the country. In less than a decade, the United States has increased solar capacity 30 times hers. not triple 30folding.

Similarly, the newly enacted Reduce Inflation Act of 2022 is set to unleash a wave of innovation across our economy, transforming markets for American companies large and small that are at the forefront of a clean energy future. This is my prediction, and I’ve seen this kind of change before, so I’m pretty sure of it.

Beyond all the partisan squabbles and legislative battles that produced the Inflation Reduction Act, there is a fundamental truth. Well-designed federal investments that encourage innovation in America have paid off time and time again in the clean energy and clean technology markets.

For example, it wasn’t the only 2009-2016 period that saw impressive growth in electric vehicles and renewable energy in the United States. Rather, this growth was fueled by a series of targeted federal investments, many of which later served as the blueprint for the 2022 Inflation Reduction Act.

Consider the American Recovery and Reinvestment Act of 2009. The law contained a number of provisions aimed at growing the domestic market for electric vehicles and expanding renewable energy. One of those clauses was his modest $2 billion investment in lithium-ion batteries and electric vehicle drive components. The $2 billion provided much-needed start-up and accelerator funding for electric vehicle companies to bring new technologies to market. Dozens of manufacturing plants have also come online, helping to produce the quantity and reliability of batteries and vehicle components needed to support the growing demand for hybrid and fully electric vehicles in the United States. rice field.

Other federal investments have also contributed to the growth of the domestic market for electric vehicles. For example, the 2007 Advanced Technology Vehicle Manufacturing Program provided government financing for early-stage development of fuel-efficient technologies. Financing from this program was critical. That’s because private lenders often refuse to finance unproven electric vehicle technology, preferring to “wait and see” for new technology to pay off. In fact, in 2009, Tesla CEO Elon Musk cited financing from the program as a key step in developing the company’s first all-electric four-door sedan. Its Model S will be the world’s best-selling electric car by 2016.

Beyond electric vehicles, the Recovery Act of 2009 invested $25 billion to expand renewable energy in the United States. Known as the Section 1603 program, the investment allowed energy companies to receive advance payments to build new clean power facilities. This “direct payment” approach has helped smaller energy companies access immediate capital for the development of solar, wind, biomass, and hydropower capacity. Therefore, between 2009 and 2016, more than 104,000 renewable energy projects were launched and funded by Section 1603 programs. By 2016, the majority of all new electricity generated in the United States came from renewable sources.

Today, thanks to the Inflation Reduction Act of 2022, far more ambitious federal investments in clean energy and clean technology will soon materialize. The impressive growth of electric vehicles and renewable energy in the United States from 2009 to 2016 is just a small harbinger of what is to come. Here’s my gist: The market transformations unleashing across the United States are as significant as the ones we’ve seen, and perhaps even more remarkable.

Tony DeFazio is based in Glens Falls Sustainable PR.

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