Biden Invokes Defense Production Act for Clean Energy
President Joe Biden on Monday announced a suite of policy changes to boost domestic production of solar panels—including authorizing use of the Defense Production Act (DPA).
The move, according to a White House press release(Opens in a new window), aims to "rapidly expand American manufacturing" in clean-energy technologies like photovoltaic modules, electrolyzers, and fuel cells.
In deploying the DPA(Opens in a new window)—originally designed to enable the country to produce military equipment and more recently used to speed up COVID-19 vaccine production(Opens in a new window)—Biden is pushing for more homegrown production of solar equipment, and ultimately, streamlined buying for federal agencies.
"Together, these actions will spur domestic manufacturing, construction projects, and good-paying jobs—all while cutting energy costs for families, strengthening our grid, and tackling climate change and environmental injustice," the White House said. "With a stronger clean energy arsenal, the United States can be an even stronger partner to our allies, especially in the face of Putin's war in Ukraine."
The Biden-Harris Administration's executive order also includes temporary duty-free importation of solar cells and modules from Southeast Asia to avoid disruptions to the electric power system. No solar cells or modules imported from Cambodia, Malaysia, Thailand, or Vietnam will be subject to new antidumping or countervailing duties for two years; existing duties on Chinese and Taiwanese imports of solar cells and modules remain in effect.
The Department of Commerce is currently investigating(Opens in a new window) allegations that solar manufacturers evaded tariffs on Chinese-made parts by exporting them through other
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