Energy Day: Solar Panel Production Capacity Quadrupled Since IRA, China Week EV Law, and Oil Majors Prepare for Francine

Since the introduction of IRA, the solar industry has added 75 gigawatts of new capacity to the grid, representing 36% of all solar capacity.

Why is this important: The solar industry’s rapid growth comes as solar and wind are expected to lead power generation growth over the next two years, with the Biden administration prioritizing domestic solar production to compete with Chinese solar companies. But America’s production capacity still lags far behind China’s, with the communist state’s annual capacity set to reach 1,100 GW by the end of 2024. In addition, a second Trump administration could scupper further investment in solar, with the former president pledging to halt all IRA spending.

“The solar and energy storage industry is turning federal clean energy policy into action, rapidly creating jobs and driving economic growth in all 50 states, especially in key states like Arizona, Nevada and Georgia,” said SEIA President and CEO Abigail Ross Hopper said in a written statement. “We are currently producing historic amounts of solar energy in America and will soon have enough domestic module production to meet nearly all U.S. demand for years to come.”

However, residential solar continues to decline, with only 1.1 gigawatts installed in the second quarter — down 10% quarter-over-quarter and 37% year-over-year. California is driving this decline due to policy changes in the state as well as high interest rates nationally. Read more from Nancy here.

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ELECTRIC VEHICLE BILL AT CHINA WEEK AT HOUSE OF REPUBLICANS: House Republicans will spend this week voting on bills that disadvantage China — among them a bill aimed at barring Chinese electric vehicles from receiving federal incentives.

A bit of background:In May, the Treasury and Energy departments finalized rules that would give automakers relief from mineral sourcing requirements — recognizing that it would take years for manufacturers to compete with Chinese companies. Although the rules would leave only 20% of electric vehicles eligible for the incentive, many China hawks have criticized the Biden administration for what they say are loopholes that would allow China to receive U.S. federal funds.

Bill introduced by Rep. Caroline Miller would seek to close those loopholes. Specifically, the legislation would deny credits to electric vehicles made with battery components from a foreign entity of concern — which includes countries like China, Russia or North Korea. The measure would also require the Treasury Department to align its definition of an FEOC with the Commerce Department’s. Republicans argue that the Treasury definition was more favorable to China and that a foreign billionaire could benefit from electric vehicle subsidies as long as his ties to the Chinese Communist Party or other governments were not made public.

The bill will be considered by the House Rules Committee on Monday. It is expected to be considered later this week.

GULF OIL MAJORS PREPARE FOR FRANCE: Oil and gas producers in the Gulf of Mexico are evacuating workers and curtailing drilling in preparation for Tropical Storm Francine as the weather system moves across the South.

Companies that are changing course: According to Reuters AgencyExxon Mobil said it had halted production and moved workers from its Hoover offshore production platform. Shell said it would halt drilling operations at its Perdido and Whale offshore platforms as the storm passed through the area. Chevron and Occidental Petroleum also announced plans in preparation for the storm.

Why it matters: The storm is moving through Texas and Louisiana at dangerous speeds — and would put liquefied natural gas export facilities and plants at risk. Offshore facilities in the Gulf account for about 15% of total U.S. oil production and 2% of natural gas production. Read more here.

EXCLUSIVE – CASSIDY AND CAPITO TO BE HONORED AT LAMP SUMMIT: Republican Party Senators Bill Cassidy from Louisiana and Shelley Moore Capito from West Virginia will be recognized this week with the Joseph Rainey Empowered Leadership Award for Lifetime Achievement during the LAMP National Summit hosted by the Joseph Rainey Center for Public Policy.

The awards were given because both senators have pushed energy security and energy independence legislation during their terms in Congress. Capito currently serves on the Environment and Public Works Committee, and Cassidy currently serves on the Energy and Natural Resources Committee.

Several other high-profile guests are expected to attend this week’s summit, including South Carolina’s Lt. Gov. Pamela Evetteformer Capitol Police Chief Steven Sundformer EPA administrator Andrew Wheelertechnological founder Nate MorrisUtah County Commissioner Amelia Powers Gardner, and representatives of the Republican Party. Debbie Lesko from Arizona and Chuck Edwards from North Carolina.

Sarah Hunt, Rainey Center president, said Cassidy and Capito “have worked tirelessly on behalf of the principles we believe in.”

SPOTTED: BILL ON THE HILL: Cassidy is trying to drum up support for his pollution fee initiative with a new video that highlights voters’ concerns about China, as the bill struggles to gain Republican support.

Details: The Louisiana Republican spoke to local voters in Washington about his bill that would impose a fee on products imported from countries with high greenhouse gas emissions — namely China — and aims to protect domestic producers from competition from China and other countries with more lenient environmental standards. In explaining his bill to voters, he portrayed it as a measure to prevent jobs from going overseas, reduce emissions and hit China economically to prevent it from bolstering its military.

“My Foreign Pollution Charges Act begins to hold China accountable for its lack of environmental standards,” Cassidy said. “It will level the playing field, bring jobs back to the United States and give China less money to build up its military. That’s a win, win, win, not a lose, lose, lose.”

Reactions: The people in the film seemed to support this initiative,

“That’s great – I don’t know a single person who wants to see more jobs go to China,” said one voter.

However: Cassidy will also need support from his Republican colleagues to help push the bill forward. But many conservatives are skeptical of any measure that could be described as a carbon tax, which they say would increase costs and contradict Republican messaging on inflation.

While it is the first GOP proposal to link climate change policy to trade through carbon adjustment fees, Cassidy insists it is not a carbon tax.

Another Republican on the bill list: Senator. Lindsey Graham.

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Callie Patteson contributed to this newsletter.