Department of Energy Office of Policy’s 2023 Year-end Review: Clean Energy Jobs Jump, Tax Credits Roll Out, and Communities Across the Country Tap Into the Clean Energy Economy

By Gina Coplon-Newfield, Chief of Staff, Office of Policy, U.S. Department of Energy 

Happy New Year! In 2021 and 2022 Congress passed and President Biden signed into law the Bipartisan Infrastructure Law (BIL), the Chips & Science Act, and the Inflation Reduction Act (IRA) – three of the most consequential bills ever passed to accelerate bold action on climate and domestic jobs. Reflecting upon 2023, we marvel at how much progress was made on starting to implement these game-changing bills. Here at the U.S. Department of Energy’s Office of Policy, we provide to the DOE Secretary and others policy analysis on electricity systems, buildings and industry, mobility, climate, energy jobs, and energy security. Below is just a snapshot of some of our most notable areas of progress in 2023 that are top of mind as we leap into 2024. 

Celebrating and Anticipating Progress of the Inflation Reduction Act & the Bipartisan Infrastructure Law  

DOE has announced more than $80 billion through IRA and BIL, including funding in 2023 related to batteries, weatherization, electricity transmission, heat pumps, and electric vehicle charging stations. DOE also made many investments to strengthen grid resiliency, including in hard-hit locations such as Puerto Rico. Meanwhile, we are seeing that a true renaissance in domestic clean energy manufacturing is starting to take hold. Indeed, since President Biden took office, there have been hundreds of private sector announcements to build or expand clean energy manufacturing facilities, totaling more than $180 billion across more than 40 states – promising tens of thousands of domestic jobs. These announcements are in the solar, offshore wind, battery, and electric vehicle manufacturing arenas alone. See our online interactive map we launched in 2023 that tracks these announcements.  

On the IRA one-year anniversary last August, Office of Policy was pleased to publish “Investing in American Energy: Significant Impacts of the Inflation Reduction Act and Bipartisan Infrastructure Law on the U.S. Energy Economy and Emissions Reductions.” The analysis shows that by the end of this decade, BIL and IRA will lead to blockbuster results, positioning the U.S. to: 

• Save American families up to $38 billion on electricity bills 
• Reduce U.S. net greenhouse gas emissions 40% below 2005 levels by 2030 
• Strengthen U.S. energy security by reducing net crude oil imports by nearly 60% 
• Reduce industrial and manufacturing emissions up to 40% below 2005 levels 
• Double the share of American electricity generated by clean sources to 80% 
• Accelerate the electrification of the American vehicle fleet, with share of zero-emission light-duty vehicle sales reaching up to 65% 

This analysis, paired with additional research, was included in our U.S. government voluntary supplement to the Fifth Biennial Report to the U.N. Framework Convention on Climate Change submitted recently to the U.N. in time for COP28 in Dubai. At COP, the U.S. co-led and partnered with other countries on a variety of domestic and global initiatives announced, ranging from pursuing a global tripling of nuclear energy capacity by 2050, a global tripling of renewable energy by 2030, a doubling of the global annual rate of energy efficiency improvements by 2030, and commitments to reduce methane-related emissions and to transition away from fossil fuels.  

Clean Energy Jobs Grew in Every State  

According to our 2023 U.S. Energy and Employment Report (USEER), the energy workforce added almost 300,000 jobs from 2021 to 2022 (+3.8% growth), outpacing the growth rate of the overall U.S. workforce, which grew by 3.1%. Clean energy jobs increased in every single state and grew 3.9% nationally. With the President’s goal of an electric grid run on 100% carbon-free sources by 2035 and a net-zero economy by 2050, clean energy jobs are expected to see continued growth in every pocket of America. 

Our Energy Jobs team established DOE’s 21st Century Energy Workforce Advisory Board, a group of independent experts that advise the Secretary of Energy in developing a strategy to support and develop a skilled and equitable energy workforce to meet the changing needs of the U.S. energy system. We know that part of the key to success will mean employers providing workers with skilled apprenticeships and prevailing wages – as incentivized by the Inflation Reduction Act. We are also working to pair, when possible, DOE funding with Community Benefits Plans, an innovative tool to integrate quality jobs and community needs. And we worked to lift up the opportunities provided by workforce hubs and the voices amplified by unions that provide their workers with stability, training, and family-sustaining jobs. 

Spreading the News on Abundant Tax Credit Opportunities  

This past year ushered in a bounty of opportunities for businesses, consumers, non-profit organizations, Tribes, and others to tap into extraordinary savings in the clean energy economy. From solar panels for city buildings to electric heat pumps for homes, from wind turbine manufacturing projects that create good-paying jobs to loans for battery companies, abundant savings opportunities are now available through tax credits, loans, grants, and more. Thanks to the IRA, these incentives last for at least a decade. Alongside colleagues at the White House, U.S. Department of the Treasury, and Internal Revenue Service, we supported the rollout of more than 20 public notices providing guidance on how to take advantage of these benefits. These tax credits are associated with electric vehicles, solar and wind facilities in low-income communities, clean hydrogen, energy efficient homes, clean energy manufacturing, and much more. 

Office of Policy leaders spent time in 2023 gathering with stakeholders to share how Tribes, states, companies, government entities, and organizations can start accessing IRA and BIL incentives. For example, we worked with partners to organize Advancing Towards 100% Clean Energy: A State-Federal Summit in May 2023. The summit focused on how states and the federal government can work cooperatively to accelerate states’ efforts to decarbonize. It attracted nearly 200 attendees, including more than 130 state officials from around the country.   

Clean Energy Projects Revitalize Economic Prosperity in Communities 

Federal energy policy is revitalizing economic development across the United States. Our experts worked closely with the Energy Communities Interagency Working Group to drive economic revitalization and clean energy development in hard-hit coal communities. With the passage of the IRA, communities, site owners, and developers can now access new loan guarantees and tax credits to redevelop and repurpose legacy energy assets in energy communities. DOE partnered with the U.S. Department of Treasury and the Interagency Working Group on Coal & Power Plant Communities to provide the eligibility map for the Energy Community Tax Credit Bonus, which applies a 10% bonus for clean energy projects located in energy communities. 

We also have enjoyed tracking how the clean energy economy is benefiting communities. From the number of energy jobs to DOE home efficiency funding in any given state, our fact sheets released when the Secretary travels to new locations provide a snapshot into how federal clean energy investments are supporting communities. Here is one 2023 Wisconsin example. 

A Grid That is Clean and Reliable 

Office of Policy continued its work with other DOE offices in 2023 on electric system reliability, analyzing data and advising decision-makers on how today’s and tomorrow’s grid will and should perform. In short, as we shift to a fully clean electric grid, the United States has the tools and technologies needed to ensure a clean power system that is reliable and affordable. In 2023, DOE published “On the Path to 100% Clean Electricity” with 10 tangible actions. We know climate change will increasingly strain our grid, thus deepening the need for community resilience. Office of Policy is pleased to support the new National Climate Resilience Framework as announced by the White House in 2023. 

Looking Onward to 2024 

This past year marked incredible progress on the U.S. clean energy policy implementation front. We at the Department of Energy’s Office of Policy remain grateful for the opportunity to serve Secretary Granholm and the American people as we collaborate with colleagues within and outside of government. In 2024, we look forward to further advancing IRA and BIL implementation and seeing these incredible policies bear more fruit. We are eager to produce more analysis and domestic policy guidance related to energy emissions, reliability, prices, security, manufacturing, and the system’s impact on and opportunities for the nation.