On Monday, the Biden administration announced over $6 billion in grants to industrial decarbonization projects in sectors ranging from steel to concrete to chemicals to, uh, macaroni. I talk about the grants and what they mean with Rebecca Dell of ClimateWorks and Evan Gillespie of Industrious Labs.
Both good knowledgeable guests. One quibble I recalled, and it's in the transcript where Evan sez that aluminum production was powered by "cheap, dirty power..." Actually a lot of it was "clean" hydro, right in the Pac NW, and some in TVA territory starting in the 40s. For various reasons the power mix and prices in both places changed, more smelters closed every decade, starting in the 90s I think, despite plenty of political rhetoric that America should not import so much of a "strategic" material.
According to one historical article on the web, at one point 3000 MW of baseload hydro was allocated to aluminum in the NW. So we'll see how it goes with getting a smelter's worth of new "clean" electricity in Kentucky.
I am 100% sure that there is accountability. In the same way that there was meticulous writing of the IRA , so too will there be accountability of where each dollar is spent. These companies have to apply for the grant or tax credit and say exactly what they will do if they are successful in getting the seed money.
Oh I'm sure there are a bunch of GOP House and "think tank" staffers who will aim their proctoscopes at these projects and contracts looking for the tiniest sniff of "corruption" or "failure." I'm not aware of many non-profit, NGO types making steel or concrete or even beer so, yeah, "for-profit" outfits are where the billions gotta go.
Fantastic podcast! It’d be interesting to compare this with what the EU’s Innovation Fund (that’s funded by its carbon price) is supporting. A $4.3 billion call for proposals is closing in the next week, and US-based companies are of course eligible for support.
Both good knowledgeable guests. One quibble I recalled, and it's in the transcript where Evan sez that aluminum production was powered by "cheap, dirty power..." Actually a lot of it was "clean" hydro, right in the Pac NW, and some in TVA territory starting in the 40s. For various reasons the power mix and prices in both places changed, more smelters closed every decade, starting in the 90s I think, despite plenty of political rhetoric that America should not import so much of a "strategic" material.
According to one historical article on the web, at one point 3000 MW of baseload hydro was allocated to aluminum in the NW. So we'll see how it goes with getting a smelter's worth of new "clean" electricity in Kentucky.
What oversight and accountability is built into these billions of free taxpayer dollars (grants) going to large for-profit corporations?
Biden loves throwing big money around, most often without accountability and oversight
I am 100% sure that there is accountability. In the same way that there was meticulous writing of the IRA , so too will there be accountability of where each dollar is spent. These companies have to apply for the grant or tax credit and say exactly what they will do if they are successful in getting the seed money.
Oh I'm sure there are a bunch of GOP House and "think tank" staffers who will aim their proctoscopes at these projects and contracts looking for the tiniest sniff of "corruption" or "failure." I'm not aware of many non-profit, NGO types making steel or concrete or even beer so, yeah, "for-profit" outfits are where the billions gotta go.
Great podcast guys!
I was trying to find where that funding came from. Was it part of the IRA?
Yes!
Fantastic podcast! It’d be interesting to compare this with what the EU’s Innovation Fund (that’s funded by its carbon price) is supporting. A $4.3 billion call for proposals is closing in the next week, and US-based companies are of course eligible for support.