Biden's Energy Projects Delayed, New EV Funding Announced

A recent analysis reveals that approximately 40% of projects initiated under President Joe Biden’s significant industrial and climate infrastructure spending bills are currently on hold. The Financial Times investigation indicates that out of projects valued at up to $100 million, a staggering $85 billion have been delayed for months or even years. This situation underscores the challenges faced in converting substantial subsidies into tangible construction, highlighting a critical failure in the Biden administration's efforts to implement necessary permitting reforms. Senator Joe Manchin, during negotiations for the Inflation Reduction Act, reached an agreement with Senate Majority Leader Chuck Schumer to introduce a permitting reform proposal. Manchin emphasized that such reforms are vital for unlocking the full potential of the law and its associated subsidies. However, the lack of progress in this area has contributed to the stagnation of numerous projects, raising concerns about the administration's ability to deliver on its ambitious infrastructure goals. In a related development, the Department of Energy is allocating $50 million to red and purple states to assist small- and medium-sized suppliers in transitioning to the electric vehicle (EV) supply chain. Notably, Michigan and Ohio, both pivotal swing states in the upcoming election, are set to receive substantial funding, which Democrats may leverage to appeal to auto workers. Additionally, the Department of Agriculture is pushing for less stringent tax credit requirements for sustainable aviation fuel, as current guidelines may hinder participation from ethanol and corn producers in the expanding market.