In a House Oversight subcommittee hearing on Feb. 26, the Inflation Reduction Act (IRA) was hit with the usual swipes from detractors, with some calling it the “green scam”, but China’s solar company benefits were never mentioned.
“We kind of can’t lead on clean energy when we are dependent on China and we are getting our solar panels from them,” said Rep. Lauren Boebert (R-CO-4) during the hearing titled Leading the Charge: Opportunities to Strengthen America’s Energy Reliability.
That was the extent in which China was mentioned at all in the hearing. No one brought up the fact that of all the companies that have invested in new solar projects in the U.S. because of the IRA tax incentives, only one country stands out. At least 8 Chinese companies have announced investments here. Some, like Trina Solar, sold its solar factor in Texas last December, likely because of the prevailing geopolitical headwinds against China.
In September, Trump vowed to cancel all unspent IRA appropriations and went ahead with that on January 20, though this does not impact solar projects. In fact, solar was not even mentioned in the Executive Order. Wind, on the other hand, is in limbo for the next four years.
One of the witnesses in the hearing, Alex Epstein [Testimony], President of a pro-fossil fuels think tank called the Center for Industrial Progress, advocated for the IRAs total upheaval in his opening remarks.
“We need to get rid of all the IRA subsidies but, in particular, what are called the clean electricity ones that dramatically favor unreliable solar and wind,” he said. “Those are the most deadly ones that Congress needs to eliminate immediately, whether it’s through reconciliation or something else.”
He did not mention which clean electricity provisions should be cut. Two of the IRA provisions that he is likely referring to are the Clean Electricity Investment Tax Credit and the Renewable Energy Production Tax Credit.
“The Inflation Reduction Act provides critical funding to accelerate the clean energy transition, and it’s benefiting communities across the country in red states and blue states,” said Dr. Rachel Cleetus [Testimony], Policy Director for the Climate and Energy Program at the Union of Concerned Scientists, a politicized anti-Trump activist group. “The IRA is helping to build domestic manufacturing and supply chains, and is creating good-paying jobs,” she said.
The debate on the day mostly centered on Republicans arguing for a diversified power grid, and concerns that renewable energy mandates were driving up electricity rates. This argument was framed as a problem for manufacturers looking to compete with China, where renewable energy goods like solar are produced, but the country itself is powered by all sorts of fuel sources, including coal and nuclear.
One witness said that the previous administration had so many requirements for labor and permitting to build that “the green energy revolution can’t be built.”
“As much as the IRA is touted as a marquee accomplishment of the last administration, there are 195 new regulations. Forty-five gigawatts of wind, solar, transmission, and others that would have provided for the green energy revolution are either abandoned or will never get built,” said Alex Herrgott [Testimony], Chief Executive Officer and President of The Permitting Institute.
Despite no Republicans on the Committee having voted for the IRA, there appears to be no appetite to upend the main tax credits (like 45X) that are benefiting solar manufacturers, including the big Chinese companies that have expanded or broken ground here because of that law.
No one on the Oversight Committee called for abandoning the IRA, or kicking China solar out of it.
Chinese companies account for 39% of U.S.-based solar module capacity, compared to only 24% for American-owned firms. CPA has supported bipartisan legislation introduced last Congress by former Ohio Senator Sherrod Brown, Bill Cassidy (R-LA), Jon Ossoff (D-GA), and Rick Scott (R-FL) that would prevent Chinese companies from receiving IRA 45X tax credits. CPA supports similar legislation introduced by formerSenator Marco Rubio and Rep. Carol Miller (R-WV-3).
“These investments were made possible by the Inflation Reduction Act, which delivered historic levels of investment in clean energy to my state,” said Rep. Yasmin Ansari (D-AZ-3). “Arizona has gained over 18,000 clean energy jobs and nearly $12 billion in private investment related to the IRA.”
One of those big investments in solar panel manufacturing plants comes from JA Solar, a Chinese solar company and one of the top 10 solar players in the world. JA Solar was added to the infamous Uyghur Forced Labor list in January.
European solar manufacturer MeyerBurger and Cambodia’s NE Solar are also expanding in Arizona since the passage of the IRA.
Republicans on the Committee want to expand fossil fuel use and move away from policy mandates that raise electricity prices. But most of this action is done on the state level, anyway. States like Massachusetts and California, for example, have a 60% renewable energy requirement for electricity, both commercial and residential.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
House Oversight Hearing Slams Inflation Reduction Act, But Ignores China’s Role
In a House Oversight subcommittee hearing on Feb. 26, the Inflation Reduction Act (IRA) was hit with the usual swipes from detractors, with some calling it the “green scam”, but China’s solar company benefits were never mentioned.
“We kind of can’t lead on clean energy when we are dependent on China and we are getting our solar panels from them,” said Rep. Lauren Boebert (R-CO-4) during the hearing titled Leading the Charge: Opportunities to Strengthen America’s Energy Reliability.
That was the extent in which China was mentioned at all in the hearing. No one brought up the fact that of all the companies that have invested in new solar projects in the U.S. because of the IRA tax incentives, only one country stands out. At least 8 Chinese companies have announced investments here. Some, like Trina Solar, sold its solar factor in Texas last December, likely because of the prevailing geopolitical headwinds against China.
The U.S. Solar Supply Chain 2025 – Building a Strong and Resilient American Solar Industry
Read More »The IRA passed along party lines in the House of Representatives on August 12, 2022. It passed in the Senate on August 7. No Republicans voted for the bill.
In September, Trump vowed to cancel all unspent IRA appropriations and went ahead with that on January 20, though this does not impact solar projects. In fact, solar was not even mentioned in the Executive Order. Wind, on the other hand, is in limbo for the next four years.
One of the witnesses in the hearing, Alex Epstein [Testimony], President of a pro-fossil fuels think tank called the Center for Industrial Progress, advocated for the IRAs total upheaval in his opening remarks.
“We need to get rid of all the IRA subsidies but, in particular, what are called the clean electricity ones that dramatically favor unreliable solar and wind,” he said. “Those are the most deadly ones that Congress needs to eliminate immediately, whether it’s through reconciliation or something else.”
He did not mention which clean electricity provisions should be cut. Two of the IRA provisions that he is likely referring to are the Clean Electricity Investment Tax Credit and the Renewable Energy Production Tax Credit.
“The Inflation Reduction Act provides critical funding to accelerate the clean energy transition, and it’s benefiting communities across the country in red states and blue states,” said Dr. Rachel Cleetus [Testimony], Policy Director for the Climate and Energy Program at the Union of Concerned Scientists, a politicized anti-Trump activist group. “The IRA is helping to build domestic manufacturing and supply chains, and is creating good-paying jobs,” she said.
The debate on the day mostly centered on Republicans arguing for a diversified power grid, and concerns that renewable energy mandates were driving up electricity rates. This argument was framed as a problem for manufacturers looking to compete with China, where renewable energy goods like solar are produced, but the country itself is powered by all sorts of fuel sources, including coal and nuclear.
One witness said that the previous administration had so many requirements for labor and permitting to build that “the green energy revolution can’t be built.”
“As much as the IRA is touted as a marquee accomplishment of the last administration, there are 195 new regulations. Forty-five gigawatts of wind, solar, transmission, and others that would have provided for the green energy revolution are either abandoned or will never get built,” said Alex Herrgott [Testimony], Chief Executive Officer and President of The Permitting Institute.
Despite no Republicans on the Committee having voted for the IRA, there appears to be no appetite to upend the main tax credits (like 45X) that are benefiting solar manufacturers, including the big Chinese companies that have expanded or broken ground here because of that law.
No one on the Oversight Committee called for abandoning the IRA, or kicking China solar out of it.
“These investments were made possible by the Inflation Reduction Act, which delivered historic levels of investment in clean energy to my state,” said Rep. Yasmin Ansari (D-AZ-3). “Arizona has gained over 18,000 clean energy jobs and nearly $12 billion in private investment related to the IRA.”
One of those big investments in solar panel manufacturing plants comes from JA Solar, a Chinese solar company and one of the top 10 solar players in the world. JA Solar was added to the infamous Uyghur Forced Labor list in January.
European solar manufacturer MeyerBurger and Cambodia’s NE Solar are also expanding in Arizona since the passage of the IRA.
Republicans on the Committee want to expand fossil fuel use and move away from policy mandates that raise electricity prices. But most of this action is done on the state level, anyway. States like Massachusetts and California, for example, have a 60% renewable energy requirement for electricity, both commercial and residential.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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