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The Inflation Reduction Act was signed into law on August 16, 2022, and in the two years since then has been a major driver of progress in U.S. clean technology industries, such as the production of electric vehicles and their components, as well as the production and deployment of wind and solar energy, despite a variety of attempts by Republicans in the U.S. House of Representatives to reduce or repeal the law.
What's interesting about that tactic by GOP representatives is that the IRA has actually benefited red states and Republican congressional districts the most, as a new report from E2.
According to its website, E2, a partner of the NRDC, is “a national, nonpartisan group of business leaders, investors and others who advocate for smart policies that are good for the economy and good for the environment,” and it has a number of impressive policy victories during the last 24 years.
One of the ways E2 helps influence policy is by providing revenues in the form of reports that analyze the economic impact of clean technology policies, such as the recent Clean Economy Works: Two-Year Inflation Reduction Act Analysis.
The summary of the E2 report states the following:
“Forty states and two of the three congressional districts have at least one announcement. The growth of post-IRA projects tracked by E2 is particularly pronounced in Republican-led districts and states in the South.
Nearly 60 percent of the announced projects — representing 85 percent of the investment and 68 percent of the jobs — are in Republican congressional districts, despite the fact that not a single Republican voted for the legislation.”
The summary then goes on to provide some devastating examples of the enormous benefits the IRA has delivered to GOP-run states and districts:
- Red states and Republican congressional districts benefit the most from the IRA. In its entire two-year history, more than half of all projects have been in Republican districts, and 19 of the top 20 congressional districts for clean energy investment are held by Republicans. Nearly 40% of all 435 U.S. congressional districts are home to at least one announced project.
- The top congressional districts for clean energy investment are North Carolina's 9th District with nearly $9.9 billion, represented by Republican Rep. Richard Hudson; Georgia's 11th Congressional District with $6.6 billion, represented by Republican Rep. Barry Loudermilk; and Nevada's 2nd Congressional District with $6.6 billion, represented by Republican Rep. Mark Amodei.
- The top congressional districts that would see the largest growth in clean energy jobs from new clean energy projects are North Carolina's 9th District with 5,660 estimated jobs, represented by Republican Rep. Barry Loudermilk; Nevada's 2nd Congressional District with $5,050 jobs, represented by Republican Rep. Mark Amodei; and South Carolina's 2nd Congressional District, represented by Republican Rep. Joe Wilson.
- The congressional districts with the most projects announced are: Ohio's 9th Congressional District with eight projects, represented by Democratic Rep. Marcy Kaptur; Georgia's 1st Congressional District with six projects, represented by Republican Rep. Earl Carter; North Carolina's 9th Congressional District with six projects, represented by Republican Rep. Richard Hudson; and South Carolina's 5th Congressional District with six projects, represented by Republican Rep. Ralph Norman.
Ouch. This is a great example of how politicians often choose to toe the party line rather than work in the best interests of their constituents, because agreeing with the other party at any time and in any way often results in being shamed and ostracized, perhaps even ostracized. It's ridiculous, but such is the state of American politics. Anyway, if you'd like some factual data on the positive economic impact of the IRA, get the E2 report Clean Economy Works: Two-Year Inflation Reduction Act Analysis here.
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