President Joe Biden allotted $169 million for electric heat pump projects with his emergency authority on the basis of climate change.
This is the first time a president classified climate change as an emergency by utilizing the Defense Production Act, which was established during the Cold War. Now, the money stemming from the Inflation Reduction Act will be divided among 15 sites dedicated to manufacturing the necessary parts and entire units of a variety of heat pumps.
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“The President is using his wartime emergency powers under the Defense Production Act to turbocharge U.S. manufacturing of clean technologies and strengthen our energy security,” Biden’s National Climate Advisor Ali Zaidi said in a statement.
John Podesta, senior adviser to the president for clean energy innovation and implementation, similarly celebrated the move, applauding the president for “treating climate change as the crisis it is.”
However, American Gas Association President and CEO Karen Harbert disagreed with the recent move from the White House, writing in a statement, “We are deeply disappointed to see the Defense Production Act, which is intended as a vital tool for advancing national security against serious outside threats, being used as an instrument to advance a policy agenda contradictory to our nation’s strong energy position.”
“Increased use of natural gas has been responsible for 60% of the electrical grid’s CO2 emissions reductions. This vital tool for emissions reductions and energy system resilience should not be unfairly undermined through misuse of the Defense Production Act.”
Among the facilities, two new factories will be constructed: a Treau, Inc. DBA Gradient plant in Michigan and a Mitsubishi Electric plant in Kentucky. Neither company has announced exact locations yet. Treau will receive over $17 million, and Mitsubishi will receive $50 million toward construction.
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The Energy Department predicts roughly 1,700 jobs will be created in the various projects to promote more heat pump products. All the sites are centered in “disadvantaged communities” for their benefit.
Last year, the Energy Information Administration reported that natural gas was the water and space heating source of about 42% of U.S. residential spaces. The residential sector makes up 15% of overall natural gas consumption. However, heating and cooling across residential and commercial buildings drive more than 35% of the country’s energy consumption.
