“Climate Law Benefits: GOP Districts Reap 85%, But Some Remain Opposed”
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“Climate Law Benefits: GOP Districts Reap 85%, But Some Remain Opposed”

This story was originally published by Floodlight, a nonprofit newsroom that investigates the powerful interests stalling climate action.

Ajulo Othow started solar and storage company EnerWealth Solutions seven years ago to get small solar projects on farmland and other places in rural communities in the Southeast where money is tight and the phrase “green economy” is rarely spoken.

In just the last year, Othow said the amount of solar her company has developed went from 2 megawatts of power to 25 — an increase of 1,150 percent because of the Inflation Reduction Act, the massive climate and economic development law enacted in 2022.

“What the Inflation Reduction Act allows us now to do is for everyday people to start to take advantage of this technology,” said Othow, a longtime lawyer in North Carolina’s solar industry and the president of Black Owners of Solar Services.

The IRA is the Biden Administration’s signature climate law. The historic act is the most aggressive climate policy in U.S. history, rolling out billions in tax breaks and other incentives with the goal of cutting economy-wide carbon emissions 40 percent by 2030.

Every congressional Republican voted against the bill, arguing it was nothing more than handouts to prop up climate and social justice programs. Some on the extreme right continue to argue that climate change is a hoax. But now some GOP House members who voted against the IRA are urging their leader to consider saving key portions of it.

A sign that reads Fortescue Arizona Hydrogen in the middle of the desertIRA creates ‘economic revolution’

In fact, it is the red states that overwhelmingly have benefitted from the federal government’s infusion of clean energy money, according to a report released this month by E2, a national nonpartisan group of more than 10,000 business leaders that advocates for a cleaner economy and environment.

Friday marks two years since Biden inked his signature on the IRA. Companies have announced roughly 330 clean energy and vehicle projects since that time, efforts that could create 109,278 jobs and bring in a whopping $126 billion in private investments, if completed, according to the E2 report.

E2’s report breaks down IRA-boosted projects by state, sector and industry as well as by congressional district. It found that “nearly 60 percent of the announced projects — representing 85 percent of the investments and 68 percent of the jobs — are in Republican congressional districts.”

Map of the United States showing locations of IRA projects

Although Ohio Rep. Marcy Kaptur, a Democrat, boasts the largest number of projects — eight — in her district, the next seven congressional districts with the most IRA-subsidized projects are all represented by Republicans — in Georgia, the Carolinas, Nevada and Oklahoma.

“This is what I truly believe is the biggest economic revolution that this country has seen in generations, and it’s because we finally, finally, finally in this country decided to do something about climate change and clean energy,” said Bob Keefe, executive director of E2, during an hour-long online presentation with reporters.

Red state projects proliferate

Among the major projects is the South Korea-based solar manufacturer QCells. Last year it announced a $2.5 billion expansion in Dalton, Georgia, spurring more than 2,500 jobs and helping change a town known as the “carpet capital of the world” into a destination for clean energy manufacturing.

Since 2022, the northern third of Nevada has added more than 5,000 jobs from a $6.6 billion investment in projects such as the Rhyolite Ridge and Thacker Pass lithium mines as the state aims toward becoming the lithium capital of the United States.

A map of the US showing the top ten states for IRA projectsAnd in North Carolina, $19.7 billion has been poured into the state, creating 22 clean energy projects and more than 10,000 jobs in solar, recycling, electric vehicle and battery manufacturing. The investments include a $13.9 billion Toyota Motor North America EV/hybrid battery plant slated to open next year.

E2’s report is based on publicly available information, including news releases and formal government announcements. Roughly one-third of the information did not include how much money was being invested or how many jobs a project was expected to create, E2 stated.

In other words, the impact of the IRA is likely broader than the nonprofit’s tally. That bodes well for environmentalists and clean energy advocates.

Indeed, the QCells project is in the district that is home to the highly vocal GOP Rep. Marjorie Taylor Greene, a climate denier and a fierce supporter of former President Donald Trump as he vies for a second term. Nevada U.S. Rep. Mark Amodei supports MAGA Republicans advocating for increased fossil fuel production in the U.S.

**North Carolina Lawmakers Oppose Change**

North Carolina, led by Democratic Gov. Roy Cooper, aims to reduce CO2 emissions by 40% from 2005 levels by next year. However, the GOP-controlled legislature and congressional delegation often oppose clean energy policies. Despite Cooper’s efforts, the legislature has been using the state budget to weaken environmental protections and shape energy policy.

In 2021, Cooper signed a comprehensive energy bill, three years after his executive order on climate change. Yet, in 2023, lawmakers prevented North Carolina from joining cap-and-trade programs to limit power plant emissions.

Conservative states, particularly in the Midwest and Southeast, are benefiting from the Inflation Reduction Act (IRA). These states, home to major manufacturing operations like automakers transitioning to hybrid or electric vehicles, are seeing economic growth from IRA investments.

**Success Stories from IRA Investments**

Georgia, Nevada, and North Carolina have seen significant IRA investments resulting in job creation and economic growth. North Carolina’s Toyota Battery Manufacturing plant in Liberty, valued at $13.9 billion, benefited from the IRA but made investment decisions based on market factors rather than incentives.

**Republicans Reconsidering Opposition to IRA**

Some Republican lawmakers have expressed caution about repealing parts of the IRA, citing its role in spurring innovation, investment, and job creation. They argue that a full repeal could undermine private investments and hinder development, potentially wasting taxpayer dollars.

However, there has been a decline in projects, jobs, and investments during the second year of the IRA, partly due to election-related uncertainties. Rolling back the IRA could impact working-class individuals in states like Georgia, Michigan, and North Carolina, where these projects are located.

In conclusion, the IRA has had mixed impacts on states’ economies, with success stories like North Carolina’s Toyota plant and concerns about potential rollbacks affecting job creation and investments. It is crucial for policymakers to consider the long-term implications of energy policies on economic growth and environmental sustainability. Further engagement and dialogue are necessary to navigate the complex intersection of energy, economics, and the environment. The content you provided is already concise and clear. If you would like me to rewrite it, please provide more details or specify the changes you would like to see.