Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) announced a bill that includes the single largest climate and energy investment in United States history. The Inflation Reduction Act of 2022 is intended to fight inflation and spur domestic energy production by reducing regulatory barriers and making strategic investments in the clean energy supply chain. With $369 billion in climate, resilience and energy investments, the bill is estimated to cut carbon emissions by 40% by 2030.

The bill represents a huge win for the offshore wind industry. Among many transformative pieces, the package includes: 1) a provision to allow leasing along the continental shelf in areas that were prohibited under an executive order from former President Trump; 2) stipulations encouraging the sourcing of domestically-produced materials for use in clean energy technologies, including turbines; 3) production tax credits to support advanced manufacturing of wind turbine components; 4) increased tax credits for wind energy developments placed in connection to historically disadvantaged communities; and 5) prevailing wages for workers supporting clean energy development and installation.

These provisions are key to building and strengthening the $109 billion offshore wind industry in the United States while ensuring that communities, workers, and the environment reap maximum benefits. If passed, the Inflation Reduction Act will significantly improve American energy security while creating thousands of well-paying clean energy jobs. The Southeast is well positioned to capitalize on this opportunity due to its strong manufacturing workforce, deep water ports, and robust supply chain industry.  

This bill builds on previous commitments made by the Biden Administration to support clean energy development and dramatically reduce carbon emissions. It also creates actionable pathways toward achieving the Administration's goal of 30 gigawatts of offshore wind by 2030. 

Katharine Kollins, President of the Southeastern Wind Coalition, released the following statement regarding the bill: "The Southeastern Wind Coalition is thrilled to see the offshore wind leasing provisions and significant clean energy investment included in the Inflation Reduction Act of 2022. These provisions bring us a step closer to achieving the assurance and certainty that industries need to capture the massive economic and climate benefits of offshore wind. We are looking forward to bipartisan support for this bill on the Senate floor and eager to witness the Southeast make the most of this once-in-a-generation opportunity."

Southeastern Wind Coalition | http://www.sewind.org