BlueGreen Alliance | Amid Today’s Treasury Guidance for Clean Manufacturing Investments, New Map and Analysis Reveals Gaps to Be Filled in Clean Energy Supply Chains

Amid Today’s Treasury Guidance for Clean Manufacturing Investments, New Map and Analysis Reveals Gaps to Be Filled in Clean Energy Supply Chains

May 31, 2023

WASHINGTON, D.C. – Today the U.S. Department of the Treasury issued guidance that will shape the first portion of $10 billion in funding for clean manufacturing under Section 48C of the federal tax code, also known as the Advanced Energy Project Credit. The Inflation Reduction Act revived and extended this section of the tax code to invest in the establishment and expansion of manufacturing facilities that produce clean energy technologies and reduce industrial emissions.

This program, along with the 45X Advanced Manufacturing Production Credit, is meant to incentivize building and expanding U.S. manufacturing facilities to support more reliable clean energy supply chains. Currently, several critical components for clean energy are either entirely imported or have very little U.S. manufacturing capacity.

To identify the precise U.S. supply chain gaps that need to be filled to support clean energy growth, the BlueGreen Alliance released a comprehensive supply chain analysis of the following industries:

  • Solar

  • Energy Storage and Batteries

  • Offshore and Onshore Wind

  • Electric Grid Components

  • Building Efficiency Products

The analysis includes a downloadable spreadsheet that identifies specific gaps in each of these supply chains, which well-targeted 48C investments could help to fill. The analysis also includes an interactive map of all known U.S. facilities currently manufacturing components for these clean energy supply chains, showcasing the breadth of communities that stand to benefit from 48C investments to expand clean technology manufacturing. For more information about the analysis, a blog post on the methodology of the research, written by Senior Policy Advisor for Manufacturing and Industrial Policy Tom Lewis, can be found here.

Since the enactment of the Inflation Reduction Act in August 2022, companies have announced 46 new U.S. clean technology manufacturing facilities and $200 billion in private investments to manufacture clean energy goods.

Following the Treasury announcement, the BlueGreen Alliance released the following statement by Vice President of Manufacturing and Industrial Policy Ben Beachy:

“While domestic manufacturing capacity is currently limited for certain, critical segments of the wind, solar, battery, and other clean technology supply chains, the Inflation Reduction Act is poised to help bridge the gaps. New and existing facilities nationwide can leverage these new investments and onshore the manufacturing of clean energy goods. Doing so offers the opportunity to reinvest in hard-hit communities hollowed out by deindustrialization, energy transition, and chronic divestment.

“We can no longer hitch our climate goals to vulnerable overseas supply chains marred by labor abuses, pollution, and shipping bottlenecks. With these new investments, we can build our clean energy future on a foundation of good jobs, clean manufacturing, and a more reliable and equitable industrial base.”