Repeal of Ga. act could put energy projects, jobs at risk
ATLANTA, Ga. (Atlanta News First) - Georgia Sen. Raphael Warnock is sending a stern warning to his colleagues in Congress about the impacts of repealing the 2022 Inflation Reduction Act (IRA).
ed as the nation was still reeling from the COVID-19 pandemic, the act was meant to provide federal money and tax credits for infrastructure development, including projects on clean energy.
In recent years, Georgia has positioned itself as a leader in the electric vehicle, solar and clean battery industries, thanks in part to the legislation, said Warnock.
“We are part of this emerging battery belt with battery technology. We are a real player in the solar space,” Warnock said. “I hope that at the end of the day, cooler heads will prevail and we’ll continue to build on this rather than talking about undermining it.”
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Any day, Congress will make a decision on the IRA and its future. Warnock says a repeal of the legislation could mean the loss of 42,000 jobs in Georgia’s clean energy sector, and an estimated $26 billion in future investment.
“I think that’s a sad day and poor public policy,” Warnock said.
Warnock also notes in his report that the majority of Georgia’s new clean energy projects – 71% and over 50 in number – are in the state’s red districts.
“Ironically, Republican districts are disproportionately benefiting from this,” he said. “The folks in those communities, I tell you, are enjoying what’s happening and they’re excited.”
Many – but not all – Republicans in Congress say the IRA is expensive and not yielding the results it promised on jobs and investments. In a statement to Atlanta News First, Georgia Gov. Brian Kemp said the state was doing just fine before the IRA, and would without it too, especially on EV projects.
“The e-mobility space was already growing in Georgia before the federal government’s intervention,” said Kemp spokesman Garrison Douglas in the statement. “The future of the IRA is to be decided by Congress, but Governor Kemp’s focus remains on working with our partners to ensure they continue to thrive and create good paying jobs for hardworking Georgians.”
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Kemp’s office says 54 out of the 59 e-mobility projects announced by the state of Georgia, totaling more than $27.7 billion in investments, were either announced prior to the IRA becoming law or connected to a project announced prior to the IRA becoming law.
Some industry leaders have also taken his side, saying the IRA isn’t necessary to clean energy success in Georgia.
“Consumer preferences — not politics or government politics — dictate Hyundai’s business decisions,” said Jose Muñoz, CEO of Hyundai. “Hyundai has never invested in the U.S. based on incentives.”
But a repeal of the IRA would also impact Georgia citizens interested in living a greener life. Repeal would put at risk millions in tax credits that Georgians used after the IRA ed to purchase energy-efficient appliances. That could mean businesses that make, sell and install the energy-efficient devices will also lose business.
Warnock says it’s not a partisan issue.
“It’s not red or blue, it’s green,” he said. “It would be foolhardy to undermine this. In fact, the conversation itself is creating the kind of uncertainty that business doesn’t like.”
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