The Republican Party’s Energy Priorities: A Complicated Story
As the new Republican-majority Congress takes shape, their energy priorities are coming into focus. Speaker of the House Mike Johnson has made it clear that the party aims to stop attacks on liquefied natural gas, pass legislation to eliminate the Green New Deal, and expedite new drilling permits. However, a closer look at the data reveals a more complex narrative.
Investments in EV Technology: A Red-State Phenomenon
Contrary to expectations, investments in electric vehicle (EV) technology are thriving in states controlled by Republican governors. According to the Alliance for Automotive Innovation, the top 10 states for total investments in EV technology are either solidly red or swing states. This raises questions about the party’s stance on EV incentives and the potential impact on job growth.
The Inflation Reduction Act: A Double-Edged Sword
The Inflation Reduction Act, passed in 2022, allocates approximately $369 billion over the next decade to clean-energy and climate-related projects. While Republicans have railed against the act, calling it wasteful government overreach, some aspects of the legislation have helped the economy. Speaker Johnson has hinted that it would be unwise to “blow up” the IRA, as some provisions have created jobs and driven economic growth.
Clean Energy Jobs: A Growing Sector
The clean energy jobs market is becoming increasingly significant, with over 149,000 jobs created in 2023, accounting for 6.4% of new jobs economy-wide. According to E2’s Clean Jobs America 2024 report, clean-energy jobs have increased by 14% over the past three years, reaching nearly 3.5 million workers nationwide.
The Consequences of Repealing the IRA
Repealing the IRA could have far-reaching consequences, including lost factories, jobs, tax revenue, and up to $50 billion in lost exports. A study by the Net Zero Policy Lab at Johns Hopkins University suggests that U.S. repeal of the IRA would harm U.S. manufacturing and trade, creating up to $80 billion in investment opportunities for other countries, including major U.S. competitors like China.
GOP Lawmakers Face a Dilemma
GOP lawmakers whose states and counties are benefiting from the IRA’s largesse are caught between their party’s stance and the economic realities on the ground. Some, like Rep. Lori Chavez-DeRemer of Oregon, have urged Speaker Johnson not to axe the tax credits that have created good jobs in many parts of the country.
Unions Take a Stand
Unions are also fighting to protect the IRA, CHIPS Act, and Infrastructure Act, which have provisions ensuring that a significant portion of jobs created go to union members or provide prevailing wages and benefits, apprenticeships, and job training to non-union workers. Unionization rates in clean energy have surpassed traditional energy employment for the first time, reaching 12.4%.
A Delicate Balance
As the Republican Party navigates its energy priorities, it must balance its commitment to strengthening U.S. manufacturing and supply chains with the economic realities of the clean energy sector. Repealing the IRA or stifling American companies that are creating jobs could have unintended consequences, including lost jobs, revenue, and competitiveness.
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