The IRA Tax Credits that Matter Most to Republicans
December 2024 - > January 2025
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In this issue:
Lame Duck December Clean Tech Highlights: U.S. - China Graphite Trade Tensions, updated IRA JCT Scores, and IRA Section 48 Final Regs
Government Financing: $57.5 Billion of Clean Tech Funding Awarded and $3.9 Billion of New Funding Opportunities
Happy New Year!
2025 is just getting underway, but let me take you back to August 2024, when a group of 18 House Republicans, led by Climate Solutions Caucus co-Chair Rep. Andrew Garbarino, wrote a letter to Speaker Johnson urging him against repealing the IRA clean energy tax credits. They reasoned that reversing President Biden’s signature climate law would “undermine private investments and stop development that is already ongoing”. They called a full repeal of the IRA “a worst-case scenario” that would waste billions of taxpayer dollars without the benefit of the fruits of those investments.
But the letter did not provide any specifics on which of the IRA’s two dozen clean energy tax credits should be maintained, which (if any) should be scrapped, and how the IRA should ultimately be modified to reflect Republican priorities. 14 of the letter’s 18 signatories were reelected in November and DC CleanTech is profiling all of them - as well as a few additional key Republican representatives - to give you an understanding of which tax credits they might go to bat for in the upcoming reconciliation effort.
14 Republicans voicing support of the IRA may not seem like a lot, especially considering there are 435 elected members of the House of Representatives. But as we discussed in last month’s issue, it’s hard to overstate how narrow the margins in the House will be in the 119th Congress. Ultimately, it may just take 3 or 4 House Republicans to spare any given IRA tax credit from the chopping block.
I see investment and jobs as a leading indicator for Congressional support for any given policy. It’s not easy for representatives to vote against policies that funnel dollars into their districts and provide well-paying jobs for their constituents. So we’re digging into notable investments in their home districts and neighboring counties - and there are some major, multi-billion dollar clean tech investments that would provide thousands of jobs. But investment tells only part of the story. Politicians are influenced by their own unique circumstances, the sentiment of their electorate, and the prevailing political winds in their respective states. We’ll provide an overview of each Representative that takes all of that into consideration, including key committee assignments and past legislation they’ve supported to provide you with a framework of how to engage your elected officials about the issues that matter most to you and your business.
Clean Tech Priorities for Garbarino Letter Signatories
🙋🏼♂️Rep. Andrew Garbarino: New York’s 2nd Congressional District 🗽
💰Topline: More than $1 billion in clean tech investments in his district, with an additional major offshore wind investment pending.
🔵Blue State
Notable clean tech investments:
💨$700 million in local investment, 800 direct jobs for Orsted Sunrise Wind offshore wind farm. Orsted has also submitted a final proposal for its Long Island Wind project on Long Island, which would be even larger than Sunrise.
☀️$298 million for the Long Island Solar Farm, owned by BP and Met Life
☀️$190 million for the Calverton Solar Center, owned by Next Era Energy Resources and National Grid Ventures
🔋$75 million for Key Capture Energy energy storage facility
🚗$2 million Unique Electric Storage for an expanded facility to convert commercial vehicles to electric and hydrogen drive trains.
💨Garbarino’s constituents are also in commuting distance to the South Brooklyn Marine terminal, an $861 million facility supporting the logistics and manufacturing of New York’s offshore wind industry.
National Lab Connection: The NY-02 is also home to Brookhaven National Laboratory, recipient of ~ $700 million in annual funding from the U.S. Department of Energy.
🔑Key Caucuses: Rep Garbarino Co-Chairs the Climate Solutions Caucus and is a member of the Conservative Climate Caucus
Votes and Legislation:
✅Voted for the Infrastructure Investment and Jobs Act
⚡️Cosponsored a resolution recognizing September 23-27, 2024, as National Clean Energy Week.
Notable Policy Positions:
⚡️Sent letter to FERC urging action on regional transmission planning and cost allocation requirements
Most Impactful IRA Tax Credits for Rep. Gabarino’s Constituents:
🙋🏻♂️Rep. David Valadao: California’s 22nd Congressional District 🐻
💰Topline: More than $1 billion in clean tech investments in his district, including several potential/planned solar farms and clean hydrogen facilities.
🔵Blue State
Notable clean tech investments:
🔋$440 million for AES power storage project.
☀️$250 million for Solv Energy 325 MWdc solar power plant
🚗$186 million to refurbish the Faraday Future EV facility in Hanford, CA\
☀️$180 million and 200 construction jobs for Driftwood Solar Park by EDP Renewables
☀️⚡️$20 million for WattEV’s solar-powered microgrid with battery energy storage system rapid charging depot.
🚗$10 million for GreenPower Motor Company
🔑Key Committees and Caucuses: Rep. Valadao serves on the House Committee on Appropriations and the House Committee on the Budget. Rep. Valadao is a member of the House Climate Solutions Caucus and the House Conservative Climate Caucus.
Leading State Sector:
☀️California is the top state for solar power generation and several utility scale solar facilities are located in and around the CA-22.
Votes and Legislation:
✅Sponsored H.R. 1430 Determination of NEPA Adequacy Streamlining Act
Most Impactful IRA Tax Credits for Rep. Valadao’s Constituents:
🙋🏼♀️Rep. Erin Houchin: Indiana’s 9th Congressional District 🌽
Topline: A district with major planned clean tech manufacturing investments, clean tech headquarters, and a major proposed data center campus demanding carbon free electricity.
Notable clean tech investments:
☀️$800 million for Canadian Solar to construct a 5GW solar PV cell manufacturing facility in Jeffersonville, IN. When completed, the project would create 1,200 new jobs.
🚗 $45 million invested by General Motors to increase manufacturing capacity of EV drive unit castings in Bedford, Indiana. This facility employs 710 people.
☀️270 MW of solar power projects near IN-09 are linked to Meta’s $800 million datacenter campus in Jeffersonville.
🔋There are also major battery manufacturing facilities within commuting distance from the IN-09, including Entek’s $1.5 billion facility in Terre Haute and Blue Oval’s (JV between Ford and SK) $5.8 billion facility in Glendale, KY.
🏢Major Corporate HQ:
🚛Cummins Inc, a major manufacturer of engines and generators is headquartered in nearby Columbus, Indiana and several Cummins facilities are located within the IN-09. Cummins has invested in reducing the greenhouse gas emissions of its products, while innovating for a zero-emission future, including initiatives in hydrogen powered trucks. Cummins was awarded a $75 million Automotive Conversion Grant from DOE’s Manufacturing and Energy Supply Chains (MESC) office to invest towards a $150 million project to convert its 360,000 sq. ft. Columbus Engine Plant to house manufacturing for zero-emissions components and electric powertrain systems.
🔑Key Committee: Rep Houchin was recently named to the House Energy and Commerce Committee
Votes and Legislation:
✅Co-sponsored H.R. 4167 Protecting America’s Distribution Transformer Supply Chain Act;
Most Impactful IRA Tax Credits for Rep. Houchin’s Constituents:
🙋🏻♂️Rep. Don Bacon: Nebraska’s 2nd Congressional District 🌽
Topline: The NE-02 is a swing district that is home to several major companies that are deeply invested in the clean energy transition.
⚖️Swing district
Major Corporate HQ:
🏢Berkshire Hathaway, a major investor in renewable energy, transmission infrastructure, lithium production, and rail infrastructure is headquartered in the NE-02.
🌽Green Plains, producing nearly 1 billion gallons of biofuels annually, and a planned producer of Sustainable Aviation Fuel, is headquartered in the NE-02.
👷🏽♀️Kiewit, a major construction and engineering firm that builds renewable energy infrastructure, pipelines, chemical and industrial facilities is headquartered in the NE-02.
🚛Werner Enterprises, a transportation and logistics company providing services across North America is headquartered in the NE-02. Werner recently incorporated a hydrogen powered fuel cell truck into its fleet.
🔑Key Committee and Caucus Membership: Rep Bacon serves on the Agriculture Committee and is a member of the Climate Solutions Caucus and the Conservative Climate Caucus.
Votes and Legislation:
✅Voted for the Infrastructure Investment and Jobs Act
Most Impactful IRA Tax Credits for Rep. Bacon’s Constituents:
🙋🏻♂️ Rep David Joyce: Ohio’s 14th District 🅾️
Topline: The OH-14 is dubbed “Voltage Valley” due to several notable EV supply chain investments .
Notable clean tech investments:
🔋$2.3 billion by Ultium Cells , a JV between General Motors and LG Energy Solutions to construct an EV battery gigafactory in Warren, Ohio, employing 2,200 people.
🪨$435 million planned investment by Graphite One to build a graphite anode manufacturing plant in Niles, Ohio.
🔑Key Committees/Caucus: Rep. Joyce serves on the House Appropriations Committee. He is a member of the Conservative Climate Caucus and House Climate Solutions Caucus.
Votes and Legislation:
🏭Sponsored H.R. 9230, the SECURE Act, to facilitate Carbon Capture Sequestration deployment.
Most Impactful IRA Tax Credits for Rep. Joyce’s Constituents:
🙋🏻♂️Rep. Mike Lawler: New York’s 17th Congressional District 🗽
⚖️Swing district 🔵Blue State
🔋Urban Electric Power’s long duration energy storage pilot plant is located in Pearl River in the NY-17.
🔑Key Committee: Rep Lawler is a member of the House Climate Solutions Caucus and House Conservative Climate Caucus.
Votes and Legislation:
✅Co-Sponsored H.R. 8504 to establish a critical supply chains reshoring investment tax credit for biotech, semiconductors, and aerospace equipment, among others.
✅Introduced bipartisan legislation to reduce agricultural emissions and nutrient pollution
✅Co-sponsored legislation in support of hydrogen and fuel cells
Most Impactful IRA Tax Credits for Rep. Lawler’s Constituents:
🙋🏼♀️Rep. Jen Kiggans: Virginia’s 2nd Congressional District 🐎
💰Topline: More than $10 billion in clean tech investments in the VA-02.
⚖️Swing district 🔵Blue State
Notable clean tech investments:
💨$9.8 billion investment by Dominion Energy to develop the 2.6 GW Coastal Virginia Offshore Wind project.
💨$500 million investment to develop Fairwinds Landing into a maritime operations and logistics center supporting Hampton Roads’ offshore wind sector. The City of Norfolk has received $39.2 million from the Department of Transportation in support of the project.
☀️$250 million investment by AES for the construction of the 240 MW Cavalier solar project.
🔑Key Committee: Rep Kiggans serves on the House Committee for Natural Resources; Vice Chair of Conservative Climate Caucus
Most Impactful IRA Tax Credits for Rep. Kiggans’ Constituents:
🙋🏻♂️Rep. Nick LaLota: New York’s 1st Congressional District 🗽
💰Topline: The NY-01 shares Long Island with Rep. Garbarino’s district, and LaLota’s constituents will be deeply invested in Orsted’s $700 million Sunrise Offshore Wind project there. LaLota’s constituents are also within commuting distance of Brookhaven National Laboratory.
🔵Blue State
💨LaLota’s constituents are also in commuting distance of the South Brooklyn Marine terminal, a $861 million facility supporting the logistics and manufacturing of New York’s offshore wind industry.
🔑Key Caucus: Rep LaLota serves as the Co-Chair to the Congressional Offshore Wind Caucus. Rep. LaLota is a member of the Climate Solutions Caucus and Conservative Climate Caucus.
Votes and Legislation:
✅Co-sponsored the PROVE IT Act to require a study into greenhouse gas emissions intensity of certain products produced in the United States and in certain foreign countries.
✅Co-sponsored legislation to increase revenue streams to states with offshore wind projects
Most Impactful IRA Tax Credits for Rep. LaLota’s Constituents:
🙋🏻♀️Rep. Young Kim: California’s 40th Congressional District 🐻
Topline: The CA-40 is a hotbed of clean tech action, particularly in the residential solar sector.
🔵Blue State
Corporate HQ:
⭐ ️Fusion developer TAE Technologies is located in the CA-40.
🔑Key Caucus: Rep. Kim is a member of the Conservative Climate Caucus and Climate Solution Caucus. Rep. Kim is a member of the Fusion Energy Caucus.
Leading State Sector:
☀️California is the top state for solar power generation and several residential solar installers are based in and around the CA-40. Riverside, located within the CA-40 is among the top 3 cities in the United States in terms of residential solar penetration.
Votes and Legislation:
🪨Sponsored H.R. 7409, the HEATS Act to streamline development of geothermal energy development.
Most Impactful IRA Tax Credits for Rep. Kim’s Constituents:
🙋🏻♂️ Rep Thomas Kean Jr.: New Jersey’s 7th District 🥬
⚖️Swing district 🔵Blue State
Major Corporate HQ:
🔋Panasonic’s North America Headquarters is located in nearby Newark, NJ. As reported in our November 2024 issue, Panasonic is poised to earn $1.34 billion in IRA 45X tax credits in 2024.
🔑Key Committees/Caucus: Rep. Kean was recently selected to serve on the House Energy and Commerce Committee in the 119th Congress. He has also served on the House Transportation and Infrastructure Committee and the House Science, Space and Technology Committee. Rep. Kean is a member of the Conservative Climate Caucus, Climate Solutions Caucus, and Sustainable Aviation Caucus.
Votes and Legislation:
☢️Introduced H.R. 8046 to impose sanctions on Rosatom, Russia’s state owned nuclear company.
🪨Co-sponsored H.R. 7807 to reduce U.S. reliance on China for critical minerals.
Most Impactful IRA Tax Credits for Rep. Kean’s Constituents:
🙋♀️Rep Mariannette Miller-Meeks: Iowa’s 1st Congressional District 🌽
⚖️Swing district
Notable Clean Tech investments:
💨Nordex will restart production at its nacelle manufacturing facility in West Branch, in the IA-01, ramping to 2.5 GW of capacity annually and adding 100 jobs.
🌽The U.S. Department of Agriculture granted Iowa’s biofuel industry $14 million to increase availability of biofuels.
Major Corporate HQ:
🏢Berkshire Hathaway Energy and its Renewables business are headquartered in Des Moines, which borders the IA-01. Berkshire Hathaway Renewables operates more than 5 GW of solar, wind, hydro, and geothermal power resources.
🏢Berkshire Hathaway Energy’s MidAmerican Energy is also headquartered in Des Moines and owns hundreds of wind and solar installations across the state, generating over 27,000 GW/h of electricity in 2022.
🔑Key Committees/Caucus: Rep. Miller-Meeks serves on the House Energy and Commerce Committee. She is the Chair of the Conservative Climate Caucus and is a member of the Climate Solutions Caucus and the Congressional Critical Materials Caucus.
Leading Clean Tech Sectors:
🌽Iowa is the U.S. leader for biofuel production capacity, with 9 plants capable of producing 472 million gallons annually.
💨Iowa is among the top states for wind energy.
Votes and Legislation:
🌽 Sponsored H.R. 10104, the Second Generation Biofuel Producer Credit Extension Act; H.R. 6681, the Renewable Fuel for Ocean-Goings Vessels Act; H.R. 6508, the Flex Fuel Fairness Act; H.R. 3337, the Fuels Parity Act; H.R. 2434, the Next Generation Fuels Act
🪨Co-sponsored H.R. 7807 to reduce U.S. reliance on China for critical minerals.
⚡️Sponsored H.R. 9608, the Limiting Liability for Critical Infrastructure Manufacturers Act.
⚡️Sponsored a resolution recognizing September 23-27, 2024, as National Clean Energy Week.
Notable Policy Positions:
🏭Rep. Miller-Meeks has argued in favor of carbon dioxide pipelines and carbon capture sequestration technology as a way to aid Iowa’s ethanol production industry.
⚡️Rep. Miller-Meeks has pushed for permitting reform that would reduce barriers facing energy projects, including renewable energy.
☢️Rep. Miller-Meeks has spoken in favor of nuclear energy, highlighting its role in U.S. energy security.
Most Impactful IRA Tax Credits for Rep. Miller-Meeks’ Constituents:
🙋🏻♂️Rep Juan Ciscomani: Arizona’s 6th Congressional District 🌵
⚖️Swing District ⚖️Swing State
Notable Clean Tech Investments
🪨$2.16 billion investment to develop Manganese deposit at South 32’s mine bordering the AZ-06. The Defense Department has supported the project with a $20 million grant.
🔋$1.2 billion planned investment by American Battery Factory to manufacture LFP batteries in nearby Tucson.
☀️$210 million for the Babacomari solar farm near Sierra Vista
🔑Key Committees/Caucus: Rep. Ciscomani serves on the House Appropriations Committee. He is a member of the Conservative Climate Caucus and House Climate Solutions Caucus.
Leading Clean Tech Sectors:
☀️Arizona is among the top states for solar power generation
Votes and Legislation:
🪨Sponsored H.R. 8446 the Critical Minerals Consistency Act of 2024
☀️Cosponsored H.R. 5997, the SHINE Act to streamline residential solar permits
☢️Voted for H.R. 6544, the ADVANCE Act, bipartisan legislation that will permit a new generation of nuclear reactors in the United States.
⚡️Cosponsored a resolution recognizing September 23-27, 2024, as National Clean Energy Week.
Most Impactful IRA Tax Credits for Rep. Ciscomani’s Constituents:
🙋🏻♂️Rep. Mark Amodei: Nevada’s 2nd Congressional District 🏜️
🤑Topline: Nevada’s 2nd Congressional District is ranked number 1 in the country for clean tech manufacturing investment, attracting $17.6 billion, according to the Clean Economy Tracker.
⚖️Swing State
Notable Clean Tech Investments:
🔋$9.8 billion invested by Tesla in the NV-02 since 2014, including its 2023 announcement for a $3.6 billion gigafactory in Sparks.
🔋$3.5 billion by Redwood Materials for its Sparks battery campus.
🪨 $2.3 billion investment by Lithium Americas to fund, develop, construct and operate the Thacker Pass facility in Humboldt County, Nevada to supply battery-quality lithium carbonate for the North American critical minerals supply chain. GM obtained a significant stake in Thacker Pass after making a $650 million investment in the project. The project will create 1,000 jobs in construction and 500 permanent operations jobs.
🔋$1 billion planned investment by Lyten for its lithium-sulfur battery production facility
🌽$352 million by New Rise Renewables for sustainable aviation fuel
🔑Key Committees/Caucus: Rep. Amodei serves on the House Appropriations Committee. He is also a member of the Conservative Climate Caucus.
Votes and Legislation:
🪨Sponsored H.R. 3240 the National Strategic and Critical Minerals Production Act
Most Impactful IRA Tax Credits for Rep. Amodei’s Constituents:
🙋🏻♂️Rep. Buddy Carter: Georgia’s 1st Congressional District 🍑
💰Topline: $7.9 billion in clean tech investments in his district.
⚖️Swing State
Notable clean tech investments:
🚗🔋 $7.6 billion and 8,500 direct jobs for Hyundai Motor Group Metaplant America EV manufacturing facility. This includes a $4.3 billion investment for Hyundai’s JV with LG Energy Solution for an EV battery manufacturing facility.
Ⓗ $84 million for Plug Power’s green hydrogen production plant in Woodbine. The facility manufactures 15 tons per day of liquid electrolytic hydrogen utilizing eight 5-MW PEM electrolyzers.
☀️$75 million for the Blackwater 80MW Solar Power Plant
☀️$75 million for Kings Bay Solar Power Plant
☀️$75 million for Fort Stewart Solar Power Plant
🚗$72 million and 180 direct jobs for Seohan Auto Georgia Tier 1 EV supply chain manufacturing facility
🔑Key Committee: Rep. Carter serves on the House Energy and Commerce Committee. He is a Vice-Chair of the Conservative Climate Caucus.
Votes and Legislation:
⚡️Cosponsored a resolution recognizing September 23-27, 2024, as National Clean Energy Week.
Most Impactful IRA Tax Credits for Rep. Carter’s Constituents:
Honorable Mentions
The following Representatives didn’t sign the Garbarino letter, but they hold positions of influence on key committees and may feel inclined to spare certain IRA provisions given major clean tech investments in their districts.
🙋🏼♂️Rep. Brett Guthrie: Kentucky’s 2nd Congressional District 🥃
🤑Topline: Kentucky’s 2nd Congressional District is ranked number 3 in the country for clean tech manufacturing investment, attracting $10 billion, according to the Clean Economy Tracker.
Notable clean tech investments:
🔋$5.8 billion investment by Blue Oval SK, a JV between Ford and SK On to finance the construction of a battery manufacturing plant in Glendale, KY, creating 2,500 jobs.
🔋$2 billion investment by AESC to build a 30 GW battery plant in Bowling Green, KY, creating 2,000 jobs.
🏭 $1.7 billion investment by Nucor for its decarbonized steel plant in Brandenburg, Kentucky.
🔑Key Committee: Rep Guthrie chairs the powerful House Energy and Commerce Committee
Most Impactful IRA Tax Credits for Rep. Guthrie’s Constituents:
🙋🏻♂️Rep. Jay Obernolte: California’s 23rd Congressional District 🐻
🔵Blue State
Notable clean tech investments:
🪨Standard Lithium Mojave Project
🔋☀️ Home to several solar and battery storage projects worth hundreds of millions of dollars
🔑Key Committees/Caucus: Rep. Obernolte serves on the House Energy and Commerce Committee and the House Committee on Science Space and Technology. Rep. Obernolte is the Chair of the AI Task Force. He is also a member of the Conservative Climate Caucus, and co-chair of the Fusion Energy Caucus.
Votes and Legislation:
🪨Sponsored H.R. 7807 to reduce U.S. reliance on China for critical minerals.
Most Impactful IRA Tax Credits for Rep. Obernolte’s Constituents:
🙋🏻♂️Rep. Richard Hudson: North Carolina’s 9th Congressional District 🏀
🤑Topline: North Carolina’s 9th Congressional District is ranked number 2 in the country for clean tech manufacturing investment, attracting $13.9 billion, according to the Clean Economy Tracker.
⚖️Swing State
Notable clean tech investments:
🔋$13.9 billion investment by Toyota in the Toyota Battery Manufacturing North Carolina facility. The plant will create 5,100 jobs and Toyota is committed to sourcing 100% renewable energy to produce its batteries there.
🔑Key Committees/Caucus: Rep. Hudson serves on the House Energy and Commerce Committee. Rep Hudson is a co-chair of the Atlantic Offshore Energy Caucus and a member of the Conservative Climate Caucus.
Votes and Legislation:
☢️Sponsored H.R. 6526 the Advanced Nuclear Deployment Act, bipartisan legislation to facilitate the efficient licensing and deployment of advanced civilian nuclear technologies.
👩🏻🎓Sponsored H.R. 3699 to promote a 21st century energy and manufacturing workforce.
Most Impactful IRA Tax Credits for Rep. Hudson’s Constituents:
🙋🏻♂️Rep. David Kustoff: Tennessee’s 8th Congressional District 🎶
🤑Topline: Tennessee’s 8th Congressional District is ranked number 7 in the country for clean tech manufacturing investment, attracting $6.4 billion, according to the Clean Economy Tracker.
Notable clean tech investments:
🔋$5.6 billion investment by Blue Oval SK, a JV between Ford and SK On to finance the construction of a battery manufacturing plant in Stanton, Tennessee. Ford is seeking to fill 6,000 positions in the region.
🔑Key Committees/Caucus: Rep. Kustoff is a member of the Ways and Means Committee
Votes and Legislation:
🪨Cosponsored H.R. 7061, the American Critical Mineral Exploration and Innovation Act of 2020
🌽Cosponsored H.R. 1542, the Renewable Fuel Infrastructure Investment and Market Expansion Act of 2021
🌽Cosponsored H.R. 1589, the Next Generation Fuels Act of 2021
Most Impactful IRA Tax Credits for Rep. Kustoff’s Constituents:
Lame Duck Clean Tech Update
There were a couple notable clean tech stories from Lame Duck December that were just too big not to flag:
🪨U.S.- China Graphite Trade Tensions: U.S. producers of graphite active anode materials, a key component in lithium-ion batteries, filed a trade action with the International Trade Commission (ITC), alleging Chinese subsidization and dumping of active anode material into the United States.
Buchanan Ingersoll & Rooney PC, the law firm handling the case, estimates dumping margins as high as 920%. The ITC has begun its investigation to determine if the U.S. graphite sector has been materially injured by Chinese subsidization and dumping and will reach a preliminary determination by February 3, 2025. The ITC would then transmit its findings to the Commerce Department.
If both Commerce and the ITC make affirmative final findings of dumping and injury, Commerce would instruct the U.S. Customs and Border Protection to assess duties against imports of active anode materials. The duties would be assessed as a percentage of the value of the imports and are equivalent to the dumping and subsidy margins. For example, if Commerce finds a dumping margin of 920%, U.S. CBP will collect a 920% duty on the entered value of the product at the time of importation into the United States to offset the amount of dumping.
Why it matters: China has a chokehold on the graphite anode active materials market. According to Benchmark Minerals Intelligence, China controls 99% of key supply chain processes for natural graphite anodes, and 97% of portions of the synthetic graphite anode supply chain. While the government has made notable investments to jump start the U.S. graphite anode industry, EV manufacturers and battery makers have been slow to underwrite and purchase domestic supply, preferring to source from cheaper Chinese alternatives. That leaves the U.S. reliant on China for this key component for lithium-ion batteries, which are used for everything from power tools, to EVs, to military drones. Meanwhile, China has flexed its muscles, introducing export controls on graphite exports to the United States.
How we got here: Starting in 2025, any vehicle sourcing critical minerals, like graphite, from China would have been barred from receiving the IRA’s 30D New Clean Vehicle tax credit. But in May 2024, the Treasury Department’s 30D final regulation introduced a two-year “transition rule” that allowed automakers to qualify for the EV tax credit until 2027 while still sourcing graphite from China. The Treasury regulation removed a key incentive for automakers to invest in domestic graphite supply chains.
💰Joint Committee on Taxation Updates IRA Scores: The JCT released its annual tax expenditure report providing estimates of federal tax spending for fiscal years 2024-2028. The report included estimates for IRA tax credit uptake and there were some figures worth noting.
🚗 30D Clean Vehicle and 25E Previously Owned Clean Vehicle tax credits: The JCT figures estimate $2.1 billion in 2024 expenditures for the two credits combined, a major upward revision from the original CBO estimate of $451 million. But the JCT score is still laughably low. Consider that Treasury announced in October that 30D and the 25E previously owned clean vehicle tax credits had already hit $2 billion in point of sale tax credit claims. That puts those credits on pace for over $2.5 billion this year. And as we reported in the DC CleanTech November issue, we anticipate these two credits to top $3 billion in 2024.
🚙45W Qualified Commercial Clean Vehicle tax credit: CBO initially estimated $177 million in 2024 for 45W, which the JCT updated to $1.6 billion. Again, the JCT is headed in the right direction, but, to paraphrase a former Commander in Chief, they completely misunderestimated the popularity of this tax credit. As we reported in November, 45W is on pace for more than $3 billion in uptake this year - largely driven by the ability to claim the credit via standard vehicle leases.
🏭45X Advanced Manufacturing Production tax credit: The JCT revised 45X up to a whopping $9.2 billion in 2024, and then to $16.5 billion in 2025. Now that’s more like it! The original CBO estimate was for a measly $2.5 billion in 2024 - completely unrealistic considering the DC CleanTech report that battery manufacturers alone were on track to claim more than $4.5 billion in 2024 - a figure that could realistically surpass $10 billion in 2025.
🏠 Residential Clean Energy and Energy Efficient Home Improvement tax credits: The JCT revised these credits up to $18.4 billion, a staggering number considering that $8.4 billion was claimed on those two credits in 2023. Note that the $8.4 billion figure absolutely crushed the original official CBO estimate of $2.3 billion.
⚡️Section 48 Guidance: The Treasury Department released final guidance for the Section 48 Energy Investment Tax Credit. Why it matters: The final rules provide clarity for investors in clean energy projects that are grandfathered into the Section 48 tax credits. Starting in 2025, investments will be covered by the updated IRA section 48E tech neutral credit for clean energy projects beginning construction at least through 2033. Stakeholders are still awaiting final guidance for 48E.
Government Financing: December’s Awards
The federal government opened the floodgates in December, unleashing more than $57.5 billion 🤑 in clean tech funding. This is the largest month of funding we’ve tracked, eclipsing the $34 billion of grants, loans, and conditional commitments announced in August, 2024. Here’s the comprehensive rundown of the sectors and recipients that were funded in December:
🔋💦⚡️DOE LPO: $15 billion loan conditional commitment to Pacific Gas & Electric Company (PG&E). If finalized, the loan guarantee for PG&E’s Project Polaris will support a portfolio of projects to expand hydropower generation and battery storage, upgrade transmission capacity through reconductoring and grid enhancing technologies, and enable virtual power plants throughout PG&E’s service area. These infrastructure investments will help PG&E meet forecasted load growth, increase electric reliability, and reduce costs for its consumers across California.
🔋DOE LPO: $9.63 billion closed loan to Blue Oval SK, a JV between Ford and SK On to finance the construction of up to three battery plants (two in Kentucky and one in Tennessee) to produce batteries for Ford Motor Company’s future Ford and Lincoln electric vehicles.
🔋DOE LPO: $7.54 billion closed loan to StarPlus Energy, a JV between Stellantis and Samsung SDI. The loan will finance up to two lithium-ion battery cell and module manufacturing plants capable of producing up to 67 GWh of batteries in Kokomo, Indiana, creating up to 2,800 jobs at the plant.
⚡️USDA: $5.7 billion in funding through the Electric Infrastructure Loan and Loan Guarantee Program to help utility providers and electric cooperatives build and improve electric infrastructure and smart-grid technologies in 23 states.
⚡️USDA: $4.37 billion in clean energy investments through the Empowering Rural America (New ERA) Program. USDA awarded the overwhelming majority of the funding to rural electric cooperatives, including:
Connexus Energy: $170 million to procure renewable hydro, wind and solar, and battery energy storage.
CORE Electric Cooperative: $225 million to procure wind, solar, and battery energy storage.
Georgia Transmission Corporation: $325 million for new transmission lines and upgrades to existing transmission assets.
Nebraska Electric G&T: $200 million to procure wind and solar power.
San Miguel Electric Cooperative: $1.4 billion to procure solar and battery storage.
Seminole Electric Cooperative: $1.3 billion to procure utility-scale solar and battery storage projects.
☢️DOE NE: Up to $3.4 billion for contracts to buy U.S.-sourced low enriched uranium. The following companies were selected to compete for contracts, which will last up to 10 years. Each company will be awarded a minimum $2 million contract.
American Centrifuge Operating, LLC, subsidiary of Centrus Energy
Louisiana Energy Services, LLC, subsidiary of Urenco
⚡️DOE LPO: $2.5 billion conditional commitment for a loan guarantee for a portfolio of projects to Wisconsin Electric Power Company, a utility subsidiary of WEC Energy Group. If finalized, the loan will help finance the addition of more than 1,650 MW of utility-scale renewable power generation and energy storage projects in Wisconsin.Individual projects are expected to include investments in utility-scale wind, solar, energy storage, and hydropower.
☀️DOE LPO: $1.45 billion closed loan guarantee to QCells to finance a solar manufacturing facility in Cartersville, Georgia. We announced the conditional commitment in our September issue, so this $1.45 billion investment is not included in our topline figure for government financing awards.
⚡️EPA: $1.275 billion for 84 Environmental and Climate Justice Community Change Grants to help disadvantaged communities tackle environmental challenges through projects that reduce pollution, increase resilience, and build capacity. Selected projects include solar, wind, battery energy storage systems, microgrid, and EV charging technologies. EPA previously announced $325 million for 21 Environmental and Climate Justice Community Change Grants in July, pushing the total awarded under the program to $1.6 billion. The full list of 105 selections can be found here.
🚗DOE LPO: $1.05 billion closed loan guarantee to EVgo to expand public EV charging infrastructure. We announced the conditional commitment in our November issue, so this $1.05 billion investment is not included in our topline figure for government financing awards.
🏭EPA/DOE: $850 million for 43 projects selected for negotiation that will help small oil and gas operators, Tribes, and other entities across the country to reduce, monitor, measure, and quantify methane emissions from the oil and gas sector.
🪨 DOE LPO: $754.8 million conditional commitment for a loan to NOVONIX to finance construction of a new facility in Tennessee to manufacture synthetic graphite, a critical component used in EV batteries.
🚌EPA: $735 million in Clean Heavy-Duty Vehicles Grant Program funds under the Inflation Reduction Act. The grants will fund 70 applications for an estimated 2,400 new zero-emission school buses and vocational vehicles, as well as eligible infrastructure in 27 states, one U.S. territory, and along 3 Tribes or Tribally-controlled schools.
🪨⚡️DFC: $600 million in clean tech financing in Angola and Zambia along the Lobito corridor, including:
$553 million loan commitment to upgrade the Lobito Atlantic Railway. The loan will support the rehabilitation and operation of the brownfield mineral port in Lobito and an approximately 1,300-kilometer brownfield rail line in Angola running between the Lobito port to Luau on the Angolan border. The project is expected to expand and protect critical mineral supply chains, increase rail transport capacity, and reduce freight transit times and costs.
The commitment of a $40 million loan to Africa GreenCo Group Ltd. to help fund a portion of a liquidity facility aimed at supporting GreenCo’s energy aggregation and trading business as the first energy trader on the Southern African Power Pool.
The commitment of a $3.4 million technical assistance grant to Pensana to conduct feasibility studies to advance development of a rare earth mine and refining facility in Longonjo, Angola, along the Lobito Corridor. Separately, DFC also committed a $3.2 million DFC technical assistance grant to Chillerton in support of the development of a green copper mining project in Kakosa, Zambia, which is also along the Lobito Corridor.
☀️🔋DOE LPO: $584.5 million conditional commitment for a loan guarantee to Convergent Energy and Power to finance a solar photovoltaic system with an integrated battery energy storage system (BESS) and three stand-alone BESS projects across Puerto Rico.
🏭DOE OCED: $500 million in total federal cost share, $7.8 million in phase 1, to the National Cement Company of California, Inc. to produce carbon-neutral cement at the Lebec, California cement plant.
☀️🔋DOE GDO: $365 million to four Puerto-Rico-based teams selected to install solar and battery storage systems to improve community-level energy resilience for vulnerable populations across Puerto Rico.
🏭DOE OCED: $332 million in total federal cost share, $11 million for phase 1 and 2, to ExxonMobil to enable the use of hydrogen at the Baytown Olefins Plant in place of natural gas across high heat-fired equipment using new burner technologies.
🔋DOE LPO: $305.54 million conditional commitment for a loan guarantee to IceBrick Energy Assets I, a subsidiary of Nostromo Energy, Inc to a virtual power plan consisting of up to 193 cold thermal energy storage (TES) installations at commercial buildings across California. The TES cells, which are the main component of the IceBrick systems, will be manufactured entirely in the United States in Texas, Iowa, and California.
🔋DOE LPO: $303.5 million to EOS Energy Enterprises to finance the construction of two state-of-the-art production lines in Pennsylvania that will be able to produce enough long-duration stationary batteries per year to meet the electricity needs of approximately 130,000 homes.
🏭DOE OCED: $282.9 million in total federal cost share, $3.8 million in phase 1, to Vale USA to build a first-of-its-kind iron ore briquette production facility in the U.S. using a low-emissions alternative to traditional iron ore pellets as a feedstock for metallics and steel production.
🏭DOE OCED: $200 million in total federal cost share, $19.7 million in phase 1, to Technip Energies USA to to demonstrate an integrated process to utilize captured carbon dioxide from ethylene production.
⚡️USDA: $194 million to 118 projects to support local economic development projects in Rural Partners Network. Selected projects included hydroelectric, solar, battery, microgrid, and energy efficiency projects.
🏭DOE OCED: $170.9 million in total federal cost share, $5.9 million in phase 1, to the Kraft Heinz Foods Company to upgrade and decarbonize its process heat using sustainable technologies at up to 11 facilities by applying a range of technologies such as heat pumps, electric heaters, and electric boilers in combination with energy efficient and renewable technologies.
☢️EXIM: $103 million letter of intent to Last Energy. If finalized, EXIM would provide debt financing to Last Energy’s SMR project in the UK.
🏭DOE OCED: $99 million in total federal cost share $3.4 million in phase 1, to Orsted to use captured carbon dioxide from a local industrial facility to produce e-methanol and reduce greenhouse gas emissions from hard-to-electrify sectors like shipping.
🏭DOE OCED: $95 million in total federal cost share, $10 million in phase one, to Dow Chemical Company to design and construct a facility on the U.S. Gulf Coast with the intent to capture and utilize approximately 50% to 90% byproduct CO₂ from a large-scale manufacturing process to produce essential components of electrolyte solutions needed for domestic lithium-ion batteries.
🪨DOE OCED: $80 million in total federal cost share, $3.5 million in phase 1, to Freeport Minerals Corporation to demonstrate the technical viability of direct use, geothermal, clean heat to enable low-emission recovery of copper from previously mined material in Arizona.
⚡️USDA: $78.3 million in partially forgivable loans for clean energy projects through the Powering Affordable Clean Energy (PACE) program. Funding went to seven projects that plan to invest in clean power generation by developing new small hydroelectric, solar, and battery energy storage facilities.
🏭DOE OCED: $75 million in total federal cost share, $4.2 million in phase 1 to AMERICAN Cast Iron Pipe Company to electrify its current process by replacing a cupola furnace with four induction furnaces, eliminating coke (derived from coal) combustion, and reducing melt process carbon dioxide emissions by an estimated 95% at its Birmingham, Alabama facility.
🏭DOE OCED: $75 million in total federal cost share, $2.7 million in phase 1, to Gallo Glass Company to install a demonstration hybrid electric furnace to reduce natural gas use by up to 70%, increase recycled content in its glass bottle production process, and demonstrate cradle-togate reductions in carbon intensity of over 40% compared to traditional gas-powered furnaces.
🏭DOE OCED: $75 million in total federal cost share, $1.5 million in phase 1, to Diageo to employ heat batteries to decarbonize the beverage industry. Diageo will partner with Rondo Energy, Inc. and the National Renewable Energy Laboratory to replace natural gas-fired heat with Rondo Heat Batteries, electric boilers, and other thermal solutions.
🌽DOE EERE: $52 million in funding for six university and industry projects to advance the production of low carbon intensity, purpose-grown energy crops critical to accelerating a clean energy bioeconomy.
🔋DOE GDO: $28.7 million to the City of Tallahassee Electric & Gas Utility to deploy a utility-scale battery energy storage system to provide backup power to facilities providing critical services.
🔋DOE EERE: $25 million across 11 projects to advance materials, processes, machines, and equipment for domestic manufacturing of next-generation batteries. Selected recipients include:
AM Batteries, Inc.: $2.8 million
Dakota Lithium Materials: $2 million
Quino Energy, Inc.: $2.6 million
Arkema, Inc.: $2.1 million
Charge CCCV: $2.6 million
American Lithium Energy Corp: $2.6 million
Titan Advanced Energy Solutions: $2.6 million
⚡️DOE OE: $20 million to 9 projects through its Flexible Innovative Transformer Technologies (FITT) funding opportunity announcement to advance key components that will help modernize the grid. The selected FITT projects are:
Clemson University: $2.47 million to integrate medium voltage power electronics and battery storage into a distribution transformer to form a smart, hybrid transformer for abnormal power events.
Eaton Corporation: $2.94 million to research and test a hybrid transformer that will provide benefits within utility distribution networks and industrial sites.
Electric Power Research Institute, Inc: $2.88 million for a Solid State PowerHub Development and Demonstration.
Electric Research and Manufacturing Cooperative, Inc: $1.84 million for the Distribution Transformer Extender (DTE) Project:
GE Vernova Operations LLC: $1.99 million for Full-scale Alternating Current Solid-State Transformer Demonstration (FASST)
GE Vernova Operations LLC: $2.99 million for A Single-Phase Universal Spare Power Transformer for Grid Resilience
Resilient Power Systems, Inc: $1.47 million for Direct Current-as-a-Service SolidFlex Power Hub.
Transforma Energy, Inc.: $1.45 million for Drop-In Replacement Electronically Controlled Transformer.
University of Pittsburgh: $2.5 million for Enabling Technology and Grid-Tied Testbed for Efficient, Flexible, Intelligent Distribution Transformers.
🌊💨DOE EERE: $18 million in marine energy and offshore wind research.
🔋DOE EERE: $17 million for 14 projects to accelerate critical materials innovation while promoting safe, sustainable, economic, and efficient solutions to meet current and future supply chain needs.
⚡️DOE OCED: $16.5 million for Energy Improvements in Remote or Rural Areas:
$9.5 million in total federal cost share, $500,000 in phase 1, to Iowa State University Electric Power Research Center to construct the state’s first utility-scale microgrid in Montezuma, Iowa.
$4.2 million to install air-source heat pumps in 240 tribally owned homes and community facilities on Prince of Wales Island, Alaska.
$2.8 million to implement upgrades to Alaska Village Electric Cooperative power plant infrastructure that will improve efficiency and support the eventual integration of a 525 kW solar PV system and a 990 kWh BESS into its microgrid.
⚡DOE MESC: $15 million to support 57 small- and medium-sized manufacturers across the country to implement energy and efficiency projects, including installing onsite solar and heat pumps, improving lighting and heating, and electrifying industrial equipment and fleets.
⚡DOE OTT: $11 million to winners in two tracks of the Manufacture of Advanced Key Energy Infrastructure Technologies (MAKE IT) Prize to boost clean energy manufacturing deployment.
⚡️DOE EERE: $7 million to four projects to improve planning, siting, and permitting processes for large-scale renewable energy and energy storage facilities across the United States.
🏭DOE FECM: $6 million for a project to explore the transport of carbon dioxide from onshore industrial and power generation facilities to offshore secure geologic storage in Texas state waters.
🌊DOE EERE: $2 million to harness wave energy to produce clean drinking water.
⚡️DOE SCEP: $2 million to support building improvement projects that reduce energy use and generate short and long-term energy cost savings.
⚡️DOE OTT: $1.5 million total to 10 Phase 2 winners of the Solutions for Lasting, Viable Energy Infrastructure Technologies (SOLVE IT) Prize, awarding winning teams $150,000 each for their proposed community-driven clean energy solutions.
💦DOE EERE: $1 million for hydropower workforce development programs.
⚓️U.S. Navy: U.S. Navy SBIR/STTR topics have been released. Clean tech topics include autonomous charging and energy management for large drone fleets, and compact prime power source for unmanned aerial systems. Proposals can be submitted starting on January 8, 2025, and the deadline to submit is February 5, 2025.
⚡️DOE OE: $400,000 to eight winners of the Silicon Carbide (SiC) Packaging Prize Phase 1.
Government Financing: December’s Opportunities
💰The federal government announced more than $3.9 billion in new clean tech funding opportunities in December. Here’s the comprehensive rundown:
🏭DOE OCED: $1.8 billion for the design, construction, and operation of mid- and large-scale commercial direct air capture (DAC) facilities and infrastructure access platforms. Deadlines for both Concept Papers and Pre-Applications are due by January 31, 2025, and full applications due by July 31, 2025. OCED is also planning to host an informational webinar on Monday, January 13 at 2 p.m., ET to discuss the funding opportunity. Register for the informational webinar here
🏭DOE OCED: $1.3 billion to catalyze investments in transformative carbon capture, utilization, and storage technologies. Concept papers are due by March 1, 2025, by 5 p.m., ET, and full applications are due by July 1, 2025, by 5 p.m., ET. OCED is planning to host an informational webinar on January 15, 2025, at noon, ET to discuss the funding announcement. Register for the webinar here.
🏭DOE FECM: $500 million for projects that will help expand carbon dioxide (CO2) transportation infrastructure across the United States. This funding opportunity will provide future growth grants under DOE’s Carbon Dioxide Transportation Infrastructure Finance and Innovation (CIFIA) program. Final submission deadline is January 2, 2026.
⚡️DOE SCEP: $90 million to fund energy improvement projects that lower energy use and costs, improve indoor air quality, and create healthier learning environments in American school facilities. Submissions are due on Thursday, April 3, at 5 p.m.
☢️DOE NE: $80 million to support industry partners developing innovative technologies and approaches to strengthen the HALEU supply chain in the United States. Applications are due by 5:00 p.m. EST on February 26, 2025.
🏭DOE FECM: $48 million to support regional CO2 transport networks that connect sources of CO2 to locations for geologic storage or conversion to value-added products. Eligible applicants include institutions of higher education, for- and non-profit organizations, state and local governments, and tribal nations. Applications are due February 12, 2025
⚡DOE OTT: $32 million for round 2 of the MAKE IT Prize. MAKE IT Prize Round 2, aims to catalyze the development of manufacturing facilities for critical energy technology components, moving facilities from planning to shovel-ready. Manufacturers of components for the following areas are encouraged to visit the website to learn more and read the official prize rules:
Upgrades to the electric grid
Long-duration energy storage
Industrial decarbonization
Carbon capture and storage
Direct air capture
Clean hydrogen
Advanced nuclear power
The first deadline for the prize, for teams to submit a statement of intent, is April 2025. Follow the prize for future updates.
💨DOE EERE: $20 million to improve wind power recycling. Applications are due February 11, 2025.
☀️USAID: $20 million for promoting alternative technologies and fuels to reduce the use of charcoal for cooking in the Democratic Republic of Congo.
⚡️DOE EERE: $18.4 million for lower cost high-voltage direct current circuit breakers, and addressing grid and energy storage system failures. The deadline to apply is February 2, 2025.
☀️DOE EERE: $11 million for research and development, technical assistance, and stakeholder engagement activities that improve the compatibility of large-scale solar facilities with wildlife and facilitate the dual use of land for agrivoltaics. Concept papers are due on February 14, 2025 and full applications are due May 2, 2025.
☢️DOE NE: $10 million to support research and development activities to advance used nuclear fuel recycling technologies. The funding will encourage innovation and competitiveness of domestic used nuclear fuel recycling processes. Applications are due by 5:00 p.m. ET on February 19, 2025.
⚡️DOE CESER: $10 million to support RD&D efforts to build collaborative partnerships that will advance cybersecurity technologies. Applicants are required to apply by Feb. 18, 2025.
⚡USDA: $10 million in grants for energy providers to lower costs for people in rural areas. Funds may be used to finance the acquisition, construction or improvement of facilities serving eligible communities, including renewable energy facilities, energy efficiency improvements, and transmission and distribution facilities. Applications are due by February 28, 2025.
⚡️DOE EERE: $9.865 million to support the collection and analysis of existing pilot program data focused on validating grid-edge technical measures and innovative planning strategies as viable strategies for efficient infrastructure investment. Ideal candidates will have both proven capacity to deliver quality, insightful analysis and have existing access to data of interest. Selected awardees are anticipated to each receive around a $1,000,000 award with no required cost share. Applications due January 9, 2025.
⚡️DOE EERE: $8 million for developing developing standards for High Voltage Direct Current Circuit Breakers (HV DCCB) tp support the protection and interoperability of hardware within Multi-Terminal HVDC (MTDC) transmission systems and allow for seamless interconnection and coordination of HV DCCBs into existing high voltage AC & DC transmission systems. Applications are due February 28, 2025.
⚡️DOE NETL: $4.125 million for a training programs for Grid Scale Energy Storage Systems aims to enhance community safety for utilities with Energy Storage Systems. Applications due by February 2, 2025.
⚡️DOE EERE: $3 million to catalyze regional outreach-focused partnerships to improve Geothermal Heat Pump workforce pipeline development. Applications are due February 12, 2025.
⚡️EPA: $2.5 million to support institutions of higher education and communities take climate and environmental action. The funding opportunity will close on February 25, 2025.
⚡️DOD Air Force Office of Scientific Research: $2.3 million to fund research into the energy resources required for the future integrated employment of Air and Space Forces, for power generation and optimization, and resilience to exposure.
Engage in the Debate
🚢 DOE EERE: Request for Information on Defining Sustainable Maritime Fuels in the United States. Responses are due by February 28, 2025.
☢️DOE ARPA-E: Request for Information on Nuclear Heat for Modular Process Intensification in Refineries and Petrochemical Plants. Submissions are due by January 15, 2025.
⚡️DOE GDO: Accepting comments on National Interest Electric Transmission Corridor Designations.
🤓What we’re Reading (and listening to)🤓
Former SpaceX Engineer Seeks to Help End U.S. Dearth of HALEU
China Tightens Export Control Restrictions on Graphite
China Captures 76% of Global EV Market Share
Trump may tell Congress to Pound Sand over Impoundment
Inside an American Rare-Earth Boomtown
