As the Obama administration pushes policies that could force some coal plants to close, the Biden administration announced Tuesday morning hundreds of millions of dollars in support of green energy projects in former and current coal towns.
According to a White House factsheet, the funding comes from $450 million from Bipartisan Infrastructure Law. It will be used to fund “clean energy demonstration project” projects on former and current mining areas. The administration estimates that the projects will produce up to 90 gigawatts of clean energy. Inflation Reduction Act, President’s signature climate law could result in roughly 50 GW to 80GW of coal-fired power plants being shut down by 2030.
In a accompanying statement, U.S. Energy Secretary Jennifer Granholm stated that “Deploying clean-energy projects on America’s mining lands will unlock new opportunities to energy communities that have helped fuel our nation for generations,” she said. “Mining communities in America can now access unprecedented amounts of funding through President Biden’s Investing in America program. This will allow them to lead the clean energy future.”
According to the White House, the new funding is in addition to $14.1 billion worth of clean energy investments already issued by the Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization. Analysts estimate that the Inflation Reduction Act will cost taxpayers $1.2 trillion.
According to a press release, in addition to new funding sources, the Treasury Department issued Tuesday guidance granting tax breaks to companies who develop clean energy projects within communities that have been “historically at the forefront” of energy production.
CNBC’s Wally Adeyemo, Deputy Treasury Secretary, stated that the Treasury is working to implement the law. “Economic growth is higher when all communities can reach their full potential.
Daily Caller News Foundation asked the White House for comment but it did not respond immediately.