Commentary: True Price of Scrapping Inflation Reduction Act

TL/DR –

President-elect Donald Trump has nominated Chris Wright, chief executive of Liberty Energy, as secretary of Energy and Doug Burgum, North Dakota Governor, as secretary of the Interior. Notably, North Dakota is a major producer of both fossil fuels and renewable energy. Burgum will also chair a newly established National Energy Council, potentially using his experience to guide energy policy and counter calls to repeal the Inflation Reduction Act, which could weaken America’s energy security and hinder domestic manufacturing and job growth.


Trump Nominates Oil and Gas Supporters for Energy and Interior Departments

President-elect Donald Trump nominates Chris Wright, Liberty Energy’s CEO, for secretary of Energy and Doug Burgum, North Dakota Governor, for secretary of the Interior. Both are strong supporters of oil and gas and will shape America’s energy policy.

Liberty Energy, a large hydraulic fracturing company in North America, and North Dakota, a renewable energy leader, exemplify the nation’s diverse energy landscape. North Dakota, a major fossil fuel producer, also generates over a third of its electricity from wind energy and leads in carbon capture, hydrogen production, and other energy technologies.

Burgum’s Energy Strategy Influence

Burgum will chair the newly formed National Energy Council and will play a pivotal role in shaping national energy strategy. His experience with North Dakota’s “all of the above” energy approach can guide the incoming administration and new Republican Congress in responding to calls for repealing the Inflation Reduction Act. Reversing this law could undermine America’s energy security and impact domestic manufacturing and job growth.

Industrial sites across America, particularly in Republican and rural communities, are being repurposed into clean energy hubs, driven by IRA investments. Examples include Novonix’s advanced battery plant in Chattanooga, Tennessee, Qcells’ solar manufacturing complex in Georgia, and Form Energy’s grid-scale battery factory in a former steel mill in Weirton, West Virginia.

IRA: A Catalyst for Industrial Renaissance

The IRA, the largest climate and clean energy legislation in U.S. history, is sparking an industrial renaissance. It also represents the most ambitious industrial policy in decades, driving nationwide job creation and manufacturing. With over $130 billion already allocated for 340 major clean energy projects in two years, according to Environmental Entrepreneurs, the impact is clear.

The IRA also counters competition from overseas manufacturing, particularly China, by rebuilding domestic supply chains. It links tax credits to U.S. sourcing requirements, creating a complete production ecosystem on American soil. An example is the electric vehicle battery industry, where companies like Novonix in Tennessee and Livent are expanding their facilities with IRA incentives.

The IRA’s approach rewards the domestic production of crucial energy technologies like hydrogen, nuclear, solar, and geothermal. It incentivizes clean electricity generation, decarbonizing our grid while enhancing our energy security. It stands in contrast to past climate legislation, which relied on penalties for polluters.

IRA Results and Future

Without Republican support, the Biden administration implemented the IRA through an apolitical process. The results are evident: Republican districts received three times as much clean energy investment as Democratic ones. Now, communities nationwide are transforming into hubs of innovation and economic growth, rekindling the spirit of World War II factories that fueled the nation’s effort. The upcoming administration and Congress face the decision: continue supporting IRA and secure America’s economic leadership or abandon it and risk industrial revival.


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