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In a recent executive order, President Donald Trump revoked several directives from the previous administration that had designated solar photovoltaic (PV) modules, electrolyzers, fuel cells, and electric heat pumps as critical to national defense under the Defense Production Act (DPA).
This action reverses measures implemented in 2022 by former President Joe Biden, which aimed to bolster domestic production of clean energy technologies.
The 2022 designation under the DPA had authorized the U.S. Department of Energy to allocate $500 million from the Inflation Reduction Act to support the manufacturing and deployment of these technologies.
Joseph Robinette Biden Jr. is an American politician and president-elect of the United States.
The objective was to reduce reliance on foreign energy sources, enhance economic security, and create jobs within the clean energy sector.
Trump’s executive order stated that rescinding these designations was necessary to “restore common sense to the Federal Government and unleash the potential of American citizens.”
This move aligns with the administration’s broader strategy to prioritize traditional energy sources and reduce federal involvement in clean energy initiatives.
Time
The rescission of DPA support for solar manufacturing has raised concerns among industry stakeholders about the future of clean energy development in the United States.
The initial DPA funding had included provisions for labor standards, local hiring, and community benefits, aiming to ensure that the growth of clean energy industries also supported equitable economic development.
This policy shift may have implications for the domestic clean energy sector, potentially affecting manufacturing capacity, job creation, and the nation’s ability to meet renewable energy targets.
The long-term impact on the U.S. clean energy landscape remains to be seen as the industry adjusts to the new policy direction.
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