Dive Brief:
- President Donald Trump repealed several Biden-era directives and memorandums meant to boost clean energy manufacturing via executive order on March 14.
- Five of former President Joe Biden’s memorandums specifically focused on strengthening domestic and defense industrial bases for clean energy, including supply chains, solar manufacturing, electric heat pumps, platinum group metals, electrolyzers and fuel cells and insulation.
- Two of the memorandums focused on addressing the 2022 infant formula shortage and expanding biomanufacturing and research and development, while other rescinded Biden actions included broadening registered apprenticeships and expanding union jobs.
Dive Insight:
Trump’s executive order rescission is one of multiple actions the president has taken to roll back clean energy development, shifting focus instead to fossil fuels such as oil and gas.
The clean energy rollbacks include pausing funds through legislation such as the Inflation Reduction Act and the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law.
As for the repeal of Biden-era orders on jobs and apprenticeships, it aligns with Trump’s decree to eliminate diversity, equity and inclusion initiatives in the federal government as well as the public and private sectors. Biden’s orders included creating opportunities specifically for underserved communities.
Biden used the Defense Production Act to implement the memorandums, a law that empowers a president to mandate companies ramp up the production of critical goods and services to support national defense.
The mandate includes incentives to expand production, including loans and grants. For example, the Biden administration allocated $169 million for nine projects to expedite the manufacturing of electric heat pumps in November 2023. The money was funded through the Inflation Reduction Act and recipients included Honeywell and Mitsubishi Electric.
The DPA was established in 1950 to support the U.S. in the Korean War. Since then, presidents such as Biden have utilized the legislation, and Congress has reauthorized the law over 50 times since its inception.
The most recent reauthorization occurred in 2018, amid Trump’s first term. However, many of the DPA authorities are set to expire Sept. 30 unless Congress renews it.
The DPA played a huge role during the COVID-19 pandemic. Both Trump and Biden used the law to prioritize the delivery of personal protective equipment and medical supplies, as well as accelerate vaccine development and distribution, according to a February 2024 Bipartisan Policy Center report.
