Advanced Energy Perspectives

Last month, President Biden and a bipartisan group of senators announced an agreement around the framework of an infrastructure deal. This comes after several rounds of bipartisan negotiations between the White House and the Senate – first with Senator Shelley Moore Capito (R-WV), the ranking member of the committee taking the lead on surface transportation reauthorization in the Senate, and then with a bipartisan coalition led by Senators Kyrsten Sinema (D-AZ) and Rob Portman (R-OH). While there is much to debate in what is – and isn’t – included in the package, what is clear, from a new AEE study, is that the way to get the biggest bang for the federal infrastructure buck is investing in advanced energy.

Today, the United States faces a period of economic anxiety brought about by widening inequality, globalization, and technological transformation, made all the more acute by a global pandemic. This anxiety has heightened political appeals to prioritize domestic industry, combat economic adversaries, and protect American jobs. The advanced energy industry is uniquely positioned to help address this anxiety by creating middle-class jobs throughout the United States in a sector that’s poised for sustained and accelerating growth as the global economy transitions to clean, reliable, affordable resources. But it will take policy leadership to make the United States the arsenal of advanced energy prosperity. Here’s how.

As President Biden hit his 50-day mark in office, his administration remains committed to keeping campaign promises to stimulate economic growth through development of clean energy sources that address the challenge of climate change. With new leadership appointed by Biden, the Federal Energy Regulatory Commission (FERC) is taking a fresh look at the relationship between states and regional wholesale markets. And the Democratic majority in Congress is gearing up for a recovery and infrastructure package that could stimulate investment in advanced energy resources on a large scale. All this adds up to a new day in Washington, D.C., for the advanced energy industry. What that new day looks like was the subject of a recent webinar featuring AEE policy experts and speakers representing advanced energy developers and buyers.

So the United States Postal Service went shopping for what it called its “next generation” of delivery vehicles. But the USPS doesn’t go shopping like the rest of us, especially because, when it talks about “next generation,” the Postal Service means vehicles that it expects to be in service for decades. And especially when it’s doing so at a time when the entire auto industry is making a transition from internal combustion engines to electric drive trains, with automakers declaring an all-EV future and major fleet operators placing orders for all-electric trucks and delivery vans by the hundred thousands. So what can you call it when the USPS places an order for its next-generation vehicles based mostly on last-generation vehicle technology? We call it a missed delivery.

Since taking office on January 20, President Biden has begun to lay out his plan for addressing four intertwined crises facing the country: the public health crisis of the COVID-19 pandemic, the associated economic crisis, climate change, and a legacy of racial injustice traced back to our country’s earliest roots. He has signed a series of executive orders aimed at addressing these crises, including rejoining the Paris Agreement on Climate Change and outlining a whole-of-government response to climate change with a focus on clean procurement, environmental justice, and support for communities dependent on fossil fuel industries. And he has outlined plans to push two legislative packages: the American Rescue Plan, focused on immediate COVID-19 response, and the Build Back Better Plan, focused on economic recovery. While details of the Build Back Better Plan are still forthcoming, at its core is a massive investment in infrastructure, prioritizing clean energy, domestic manufacturing, and union jobs. At AEE, we have some ideas about how to get the most economic bang out of federal bucks by investing in advanced energy.