White House Pushes Clean Power In America’s Coal Towns

The Biden administration has announced that it will provide incentives to encourage companies to develop renewable energy infrastructure in coal-dependent communities. It plans to establish investment and production tax credits via the Inflation Reduction Act, while the Treasury Department and IRS will offer significant bonuses to companies setting up new clean energy initiatives, particularly in coal communities. The administration argues that this will replace jobs lost as demand for fossil fuels decreases. It also said the measures will boost investment in energy communities, strengthen supply chains and promote the transition to a clean energy economy.

The Energy Department will allocate $450m in funds from the Bipartisan Infrastructure Law to support “clean energy demonstration projects” on sites including former mine land. Another $16m will finance research aimed at creating a refinery that can extract rare earth elements and critical minerals from coal waste. The US is moving away from coal production, with nearly a quarter of its coal power capacity set to be retired by 2029, according to data from the Energy Information Administration.

Opponents of the plan claim that it will reduce the supply of affordable energy and destroy employment opportunities, but the White House says it is part of a “whole-of-government” approach to incentivise green energy production and reduce carbon emissions. Alongside the Inflation Reduction Act and the Bipartisan Infrastructure Law, regulators have introduced new emissions rules for household appliances and granted California special authority to phase out heavy-duty gas trucks in favour of electric vehicles.