Biden's Inflation Reduction Act Celebrates One-Year Anniversary, Boosts Clean Energy Investments

The Biden administration Wednesday marked the one-year anniversary of the President's signing of the Inflation Reduction Act, saying the landmark climate legislation is already paying huge dividends, in terms of investment in clean energy initiatives and industries.

Positive Results Amidst Opposition

"The Financial Times and the Wall Street Journal initially call my plan 'Bidenomics'," said President Biden today at a White House ceremony. "I'm not sure they meant it in a totally complimentary way at the time, but guess what? It's working."

Republicans have tried to repeal aspects of the law since assuming the majority in the House in January, but it remains mostly intact and advocates say it’s working in various ways.

"The part that I am most excited about," said Deputy Secretary of Energy David Turk in an interview Tuesday, "is the manufacturing that’s happening now."

Deputy Secretary Turk says the law has already helped generate $130 billion in private sector investment in clean energy industries, such as EV battery manufacturing and photovoltaic (PV) cells.

Economic Boost in Oklahoma

"There is one nugget [of information] out there that the Inflation Reduction Act, by 2024, will cause an eight-fold increase in our domestic solar PV manufacturing," Turk said, "so, why wouldn’t we want to get those jobs here in the U.S.?...That’s a lot of jobs, that’s a lot of communities across Oklahoma and across the country that are going to benefit from those manufacturing opportunities."

Oklahoma has already seen the development of one such opportunity. In May, Italy-based Enel announced plans for a $1 billion solar cell and panel manufacturing plant in Inola. State lawmakers helped incentivize the deal by approving $180 million in state tax rebates, but company officials also acknowledged the importance of the Inflation Reduction Act's federal tax credits.

The project is expected to provide more than a thousand permanent jobs.

"It’s upwards of 140,000 new jobs already caused by the Inflation Reduction Act," Turk stated.

Key Components in the Inflation Reduction Act

The law's key components are:

               -- $386 Billion in clean energy tax credits/grants/loans

                 (EV and Appliance Rebates)

               --Authority for Medicare to negotiate drug prices

                 ($35/month cap on Insulin)

               --Extension of Obamacare subsidies

               --15% Minimum Corporate Tax

Opposition and the Future of Clean Energy in Oklahoma

The Oklahoma delegation has opposed the law from the start, first because they believed it would not reduce inflation, but only make it worse. Second, and perhaps more important, they see the law as undermining the oil and gas industry.

Earlier this summer, Senator James Lankford (R-OK) said in a statement, “As I predicted, the so-called ‘Inflation Reduction Act’ was just a front for progressives to slip through Congress many of their Green New Deal priorities…”

But Secretary Turk believes 'green' could be very good for Oklahoma.

"I think Oklahoma can come out incredibly well in the clean energy economy of the future," he said. "I think the latest number I saw is 47% of your electricity is actually generated from renewables."

On a related topic, Turk said DOE is currently in the substantive review phase of the $7 billion hydrogen hub sweepstakes. So, Oklahoma (which partnered with Arkansas and Louisiana in submitting a proposal for the HALO Hub) and others hoping to be selected for funding should hear something "in a matter of weeks."