By Rich Powell, CEBA CEO

President Donald Trump has made clear in his first days in office that a diverse set of energy sources is needed to meet the increasing demand for electricity in the United States. His recent executive orders acknowledge that the nation needs myriad energy sources and materials — including clean sources like hydropower, geothermal, nuclear, and critical minerals for storage — to ensure a reliable and affordable supply of electricity for consumers and the broader economy.

One objective of these orders is to provide national and economic security and mitigate high energy prices that are especially harmful to lower-income households. An important tool for accomplishing this already exists: 45Y and 48E technology-neutral tax credits for production and investment in new electricity generation.

Technology-neutral tax credits play a foundational role in fostering economic growth and energy security, clearing the path for the Clean Energy Buyers Association’s (CEBA) members to help enable more investment and innovation right here in the United States. The credits will also help keep electricity prices low so foundational and cutting-edge industries do not move abroad and additional electricity costs aren’t passed on to ratepayers.

Another important tool in the new administration’s toolbox is the 45X tax credit that supports a greater stake in the critical minerals supply chain for American companies. That supply chain is currently dominated by China, which processes 65% of lithium, 90% of rare earth minerals, about 75% of cobalt, and 100% of graphite.

• – By paying for 10% of the production cost for extracting, acquiring, processing, purifying, refining, and converting critical minerals, the 45X credit will combat China’s stranglehold on these critical minerals and ensure that the United States has the resources needed to boost national security.
  • – In line with President Trump’s pledge to boost American competitiveness by bringing manufacturing jobs back to the United States, the 45X tax credit has led to private sector investments in 171 new manufacturing projects across the country.
    

With recent announcements in major investments in technology infrastructure, including in data centers for artificial intelligence, these carbon-emissions free sources of energy are needed to meet the demand for these new, job-creating industries that will help facilitate new economic growth. Tax credits for new electricity generation and advanced manufacturing are a major piece of the puzzle and should be maintained.

CEBA and our more than 400 corporate and institutional energy customers and partners look forward to working with President Trump to implement a new supply of electricity generation in the United States for years to come. We also look forward to working with the 119^th Congress to protect and enhance policies that will deliver the reliable, diverse, and affordable energy mix our economy requires.