The White House recently announced that it will use the Defense Production Act (DPA) in order to expand the production of solar panel components, according to a Washington Examiner report.
Additionally, the White House stated in a press release that it would utilize emergency authority to establish a two-year "bridge" prohibiting the implementation of additional tariffs so that solar companies have access to imports of solar products as manufacturing expands.
The Biden administration cited climate change and power grid issues as justification for invoking the DPA.
"While President Biden continues pushing Congress to pass clean energy investments and tax cuts, he is taking bold action to rapidly build on this progress and create a bridge to this American-made clean energy future," the press release stated, "Today, President Biden is taking action to authorize the use of the Defense Production Act (DPA) to accelerate domestic production of clean energy technologies, including solar panel parts."
Under the DPA, the solar panels will be acquired and distributed through the Department of Energy (DOE).
The DOE will also provide funding for the manufacturing of photovoltaic modules, which are an essential component in the manufacturing of solar panels, along with construction equipment and heat pumps.
The Commerce Department is currently mulling the introduction of new tariffs on solar panel imports.
According to the Washington Examiner, Biden's recent invocation of the DPA, would result in a partial exemption of these tariffs.
Jennifer Granholm, secretary of the Energy Department, stated in a DOE press release that President Biden had utilized the DPA to help the U.S. "take ownership of its clean energy independence."
"For too long the nation’s clean energy supply chain has been over-reliant on foreign sources and adversarial nations," Granholm stated.
In addition, Granholm noted that with the additional DPA authority, the DOE could help expand green industries while strengthening the nation's economic stability, generating well-paying jobs, and decreasing energy costs.
