On the global journey to net zero, 2023 stands out as a significant year marked by substantial strides and progress for the United States. The Biden Administration and Congress ushered in key changes in the realm of clean energy legislation. At the core of these advancements are the collective efforts of federal agencies and programs, including Department of Transportation (DOT), the Department of the Interior (DOI), the Department of Energy (DOE), the Office of Science and Technology Policy (OSTP), and the Advanced Research Projects Agency-Energy (ARPA-E). In this blog, we discuss the actions taken by Congress, the Biden Administration, and federal agencies, unpacking their enduring impact on shaping comprehensive climate policy. A subsequent blog will look at significant energy policies and progress in the European Union and what 2024 will hold for the U.S. and E.U.
In Congress, the balancing act between economic growth, environmental protection, and regulatory efficiency has remained a persistent hurdle. The divergent ideologies make it difficult to swiftly implement comprehensive clean energy policies. However, bipartisan efforts and innovative solutions hold the key to paving the way for a sustainable future that also prioritizes economic prosperity.
Many Democratic lawmakers are pushing for more rigorous environmental regulations, emphasizing the protection of natural resources and the reduction of carbon emissions. They are likely to support stricter permitting processes, which may slow down construction and energy development projects but enhance environmental safeguards.
On the Republican side, lawmakers often favor streamlining permitting procedures to expedite infrastructure development and energy projects. They argue that regulatory efficiency can spur economic growth and innovation, even as they seek to balance environmental protections.
Despite the ideological differences, in 2023, the legislative efforts of Congress yielded progress for the energy sector. Investments in EV infrastructure, public transportation, grid modernization, renewable energy development, climate resilience, tax incentives, hydrogen hubs, and much more have steered the nation towards global leadership in clean energy innovation.
In 2023, the Biden Administration has implemented numerous laws that were passed in 2021 and 2022 that have amplified the urgency of combating climate change while strengthening the clean energy sector. Notable are the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). These laws designate substantial funding towards clean energy projects, incentives, and grid modernization.
- Infrastructure Investment and Jobs Act (IIJA): Signed into law in 2021, the IIJA stands as a cornerstone legislation that allocates significant funding towards upgrading the nation’s infrastructure. This monumental commitment highlights a dedication to bolstering the clean energy sector and fostering a more sustainable energy landscape.
- Inflation Reduction Act (IRA): Signed into law in 2022, the IRA extends and expands tax credits for clean energy that have been instrumental in incentivizing investments in new technologies. This initiative not only encourages individuals and businesses to adopt solar, wind, and other clean energy solutions but also bolsters the growth and viability of the clean energy industry. The IRA is projected to drive significant reductions in greenhouse gas emissions, foster clean energy innovation, and substantially lower household energy costs. Marking a monumental step forward for clean energy companies poised to benefit from increased investment and incentives.
Federal agencies such as the Department of Transportation, Department of the Interior, Department of Energy, Office of Science and Technology Policy, and Advanced Research Projects Agency-Energy have emerged as trailblazers in combating climate change. For example, investments made by ARPA-E capitalized on new emerging energy research, involving a variety of stakeholders such as government labs, private industry, and universities.
Each agency’s unique contributions, from revolutionizing transportation to spearheading innovation and coordinating collaborative efforts, demonstrate a collective pursuit towards shaping a world powered by clean energy. In 2023, federal agencies continue to lead the charge in developing a future fueled by renewable and sustainable energy sources.
Over the past year, the collective efforts of the Administration, Congress, and Departments have significantly empowered U.S. clean energy companies, fostering the growth of this sector. Investments in renewable energy projects and incentives driving clean energy adoption have fostered an environment for companies to develop and grow.
The surge in clean energy infrastructure and supportive policies have allowed businesses to innovate, expand, and competitively position themselves globally. At Amogy, we are particularly enthusiastic about the formulation of clean energy policies aimed at advancing the ammonia value chain, paving the way for ammonia’s expanded utilization as a fuel source. To learn more about the policies and industry initiatives required to drive the uptake of ammonia in the maritime shipping sector, download our white paper, “Ammonia as a Clean Energy Solution for Maritime Use.”
The transition towards sustainable energy solutions is fostering a new era of public private partnerships, that we will only see thrive in the new year.