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Greater Private Investments Will Supplement Federal Dollars Expended in Build America Initiative

Private investments need to support federal money going to infrastructure projects across the United States.

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Photo of Jigar Shah of the Department of Energy

WASHINGTON, June 8, 2023 – American investments in its domestic manufacturing must be accompanied by private investment and ambition, said the director of the Energy Department’s Loan Programs Office Jigar Shah a a Thursday event by nonprofit newsroom Canary Media. 

Currently, private companies are not interested in financing manufacturing loans in the U.S., said Shah. He urged the private industry to show more ambition by investing in infrastructure programs as federal investments come down the pipeline. 

Don’t miss the discussion of the connection between green energy, semiconductor manufacturing and infrastructure investment at Broadband Breakfast’s Made in America Summit on June 27.

The Build America Buy America Act, strengthened as part of the Infrastructure Investment and Jobs Act of 2021, requires that all iron, steel, manufactured products and construction materials used in federally funded projects to be produced in the U.S.

Additionally, Congress passed the Inflation Reduction Act of 2022 which invests $400 billion in federal funding to clean energy and the CHIPS and Science Act which invests $280 billion into U.S. domestic semiconductor manufacturing. Semiconductors are the microprocessors that power all electronic applications. 

These investments, paired with the $1.2 trillion Infrastructure Investment and Jobs Act which invests in various American infrastructure projects, play a central role in the administration’s strategy to revitalize the American industry. They invest in a more sustainable, consistent, and dependable supply chain for the U.S. economy, said Shah. 

Investing in American manufacturing will increase investor confidence that the U.S. is capable of large manufacturing projects, he added. 

By passing these acts, Congress has moved forward to improve American manufacturing, said Shah. It is now up to private industry to make the most of these investments and reinvent themselves to improve American global competitiveness. 

Contributing Reporter Teralyn Whipple, who joined Broadband Breakfast in 2022, studied marketing at Brigham Young University. She has reported extensively on broadband infrastructure, investments and deployment. She has also headed marketing campaigns for several small companies.

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Fiber

Fiber Helps Co-ops to Save on Electric Grid Usage, Saving Money

Fiber can connect city systems to make them more efficient.

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Photo of William Davidson of NextEra Infrastructure Solutions, Sachin Gupta of Centranet, William Graves of MidSouth Electric Cooperative, and Pete Hoffswell of Holland Board of Public Works (left to right)

ORLANDO, August 21, 2023 – Fiber networks can reduce operating costs for electric cooperatives as well as connect residents to the internet, said representatives of electric co-ops on a Fiber Connect panel Monday, claiming it is a good investment. 

Broadband networks allow co-ops to share data that keeps them more efficient on the electric grid, said William Graves, fiber optic network manager at MidSouth Electric Cooperative in Texas. 

High-speed broadband connectivity enables the smart grid, a network that allows for two-way communication between the utility and its customers, to ensure that electricity is being managed in the most efficient way, said Graves.  

Pete Hoffswell, superintendent of broadband services at Holland Board of Public Works in Michigan added that fiber can connect city systems – such as parking meters – to avoid backlog that occasionally occurs on less efficient networks.  

Smart infrastructure will be critical as demand for power increases as use-cases continue to grow for electric vehicle charging, smart home technologies, and more, said Hoffswell. He added that connectivity is more than just connecting renewable energy systems, it is now about building a smart city. 

“Smart cities are full of smart people, smart people want their cities to be smart,” he continued. Consumers will make more demands on network providers and this demand will change the way that the networks operate, he said.  

Hoffswell added that investor-owned utilities can cover a huge space in the co-op broadband space. Co-ops have the necessary capital for large broadband projects and are a good match for fiber, he said.   

William Davidson, director of strategic initiatives at NextEra Infrastructure Solutions in Florida, said that providing fiber services to customers provides incremental value to the cooperative. He added that cooperatives have the unique ability to be patient with long-term projects that take years to break even.

Some experts have touted electric co-ops as the ideal grantee for the $42.5 billion BEAD program – which funds are expected in 2024 – because they are well suited to build public owned networks that then can either be operated by the co-op or leased to private providers.  

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Advanced Energy

Debt Ceiling Law Doesn’t Change Administration Priorities on Semiconductors, Advanced Energy and Broadband

With government action, America can reindustrialize itself, bolster national security, revive left-behind places and reduce carbon emissions.

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WASHINGTON, June 2, 2023 — Perhaps the greatest surprise of the debt ceiling deal passed Thursday night by the Senate (and on Wednesday by the House) is that it leaves unscathed the Biden administration’s three top domestic priorities: the Inflation Reduction Act (August 2022), semiconductor promotion in the CHIPS and Science Act (July 2022), and the Infrastructure Investment and Jobs Act (November 2021).

Together, these measures will invest more than $2 trillion of federal funds into American manufacturing, infrastructure (including broadband) and advanced energy.

REGISTER FOR THE MADE IN AMERICA SUMMIT

As Broadband Breakfast’s Made in America Summit takes shape, we encourage you to register now to attend this important event on Tuesday, June 27, in Washington. The summit’s four sessions will explore the intersection of these vital big-picture topics:

  • (R)e-building Energy and Internet Infrastructure
  • Semiconductor Manufacturing and U.S.-Chinese Tech Race
  • Challenges to Reorienting America’s Supply Chain
  • Making Cleaner Energy and Enhancing Green Industry

The Inflation Reduction Act invests billions of dollars in clean energy projects that work to limit carbon emissions and other pollutants, including solar, wind, nuclear, clean hydrogen and more. But will its investments in clean energy founder on the lack of infrastructure deployment, or by delays in federal, state and local permitting? This session will also consider the intersection of “smart grid” infrastructure, long-haul and local, and the synchronicities between the broadband and energy economies.

• Lori Bird, U.S. Energy Program Director and Polsky Chair for Renewable Energy, World Resources Institute
• Xan Fishman, Director of Energy Policy and Carbon Management, Bipartisan Policy Center
• Quindi Franco, Assistant Director, Government Accountability Office
• Robert Glicksman, Professor of Environmental Law, George Washington University Law School
Other panelists have been invited

The CHIPS and Science Act provides $280 billion in funding to spur semiconductor research and manufacturing in the United States. Semiconductors are key components of consumer electronics, military systems and countless other applications, making a domestic supply chain critically important — particularly amid an increasingly hostile technological race with China. How successful will efforts be to bring semiconductor manufacturing to America?

• Gene Irisari, Head of Semiconductor Policy, Samsung
• Shawn Muma, Director of Supply Chain Innovation & Emerging Technologies, Digital Supply Chain Institute
• Maryam Rofougaran, CEO and Co-Founder, Movandi Corporation
• Rishi Iyengar (moderator), Global Technology Reporter, Foreign Policy
Other panelists have been invited

The Build America Buy America Act, part of the Infrastructure Investment and Jobs Act, established a domestic content procurement preference for all federally subsidized infrastructure projects. Although waivers of Buy America requirements have been proposed for certain projects — such as Middle Mile Grant Program recipients — it appears unlikely that these will be extended to initiatives such as the Broadband Equity, Access and Deployment program, despite requests and warnings from industry leaders. Although fiber-optic cable production is on the rise, significant issues remain in America’s semiconductor and electronic equipment supply. How will these issues be addressed in broadband and other infrastructure projects?

 Panelists to be announced

The Inflation Reduction Act establishes requirements for the use of American-made equipment in clean energy production. How will those requirements impact green energy development? How will the resulting projects interact with other ongoing infrastructure initiatives? What will it take for America to establish itself as a clean energy superpower?

 Panelists to be announced

Early-bird registration of $199 until Friday, June 9 + government and Broadband Breakfast Club rate.

Check back frequently to see updates on the Made in America Summit event page.

REGISTER FOR THE MADE IN AMERICA SUMMIT

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Advanced Energy

Lawmakers Debate Clean Energy’s Role in Resolving Supply Chain Fragility, China Concerns

The U.S. accounts for just 10 percent of electric vehicle production and 7 percent of battery production.

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Screenshot of Rep. Morgan Griffith from the House Energy & Commerce Committee livestream

WASHINGTON, May 23, 2023 — As historic federal investments in infrastructure, manufacturing and clean energy begin to take effect, House lawmakers on Tuesday clashed over the best response to shared concerns about competition with China and the instability of domestic electricity sector supply chains.

Tuesday’s hearing, convened by the House Oversight and Investigations Subcommittee, came just one day after the Department of Energy announced that it would no longer be awarding a $200 million grant to Texas-based battery company Microvast, following intense scrutiny from Republican lawmakers over the company’s ties to China.

Subcommittee Chair Morgan Griffith, R-Va., praised the decision but expressed continued skepticism about the department’s vetting processes — emphasizing the absence of Office of Manufacturing Director David Howell, who declined an invitation to testify.

By failing to appear at the hearing, “the Department of Energy not only refused to provide transparency to this committee, but they’re refusing to be transparent to the American people, who deserve every assurance that their tax dollars are not being funneled to China,” said Rep. Cathy McMorris Rodgers, R-Wash., chair of the full Energy and Commerce Committee.

But Committee Ranking Member Frank Pallone, D-N.J., argued that the award reversal was proof that the department “is taking its stewardship of taxpayer money very seriously.”

Pallone also blamed the Republican majority for Howell’s absence, claiming that the hearing had originally been planned for June and that department officials were working to coordinate the schedule “when all of sudden the date changed earlier this month to today.”

The proposed Microvast award would have been part of a $2.8 billion investment in battery manufacturing funded by the Infrastructure Investment and Jobs Act of 2021, intended to accelerate and strengthen a domestic supply chain. The United States currently accounts for just 10 percent of global electric vehicle production and 7 percent of battery production capacity.

By contrast, China produces three-quarters of all lithium-ion batteries and is home to the majority of production and processing capacity for several key battery components. China was responsible for half of the growth of the electric vehicle market in 2021, according to a recent International Energy Agency report.

While the Biden administration has taken steps to bolster U.S. manufacturing through the IIJA and the Inflation Reduction Act of 2022, Republicans have broadly criticized this approach — particularly the IRA’s focus on clean energy.

Because of the current manufacturing imbalance, the administration’s emphasis on electric vehicles will largely benefit China rather than the U.S., argued Diana Furchtgott-Roth, director of the Heritage Foundation’s Center for Energy, Climate and Environment.

“Heavily subsidizing renewable energy and shoveling money in the form of financial awards out the door is not the solution,” McMorris Rodgers said. “These policies undermine our energy security and financially burden Americans already struggling with high cost of living — and would leave us even more reliant on China.”

However, a study commissioned by Third Way and Breakthrough Energy indicated that these pieces of legislation, alongside the CHIPS and Science Act of 2022, are “fostering investments in and a reshoring of the clean energy supply chain and the associated manufacturing base,” said Ellen Hughes-Cromwick, senior resident fellow for the climate and energy program at Third Way.

Hughes-Cromwick urged lawmakers to allow time for supply chain restructuring, saying that policy stability over multiple years is crucial to allow companies to make sustainable adjustments.

In order to achieve domestic clean energy goals, Congress should first modernize permitting, said Jeremy Harrell, chief strategy officer at ClearPath.

“The single largest mover of private sector investment is regulatory certainty,” Harrell claimed. “Never has the phrase ‘time is money’ been more appropriate — developers can only build new energy infrastructure as fast as federal, state and local governments can permit them, and right now that’s not fast enough.”

Learn more about clean energy infrastructure and the U.S.-China tech race at Broadband Breakfast’s Made in America Summit on June 27.

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