House Energy Committee Explores Industrial Climate Policies in CLEAN Future Act | Article

Cement, iron, steel—the industrial sector produces goods and raw materials present everywhere in our everyday lives. Over 22 percent of U.S. and global climate emissions are from the industrial sector, which spans hundreds of industries—from chemicals to aluminum—and relies on a large quantity of energy and heat. This wide-ranging diversity, combined with its global nature, makes the industrial sector particularly challenging to decarbonize.

On March 18, the House Committee on Energy and Commerce held a hearing, The CLEAN Future Act: Industrial Climate Policies to Create Jobs and Support Working Communities, about how to reduce greenhouse gas emissions from the industrial sector. Members of Congress and witnesses outlined key steps the federal government can take to bolster industrial decarbonization, invest in clean manufacturing infrastructure that would promote American manufacturing competitiveness and create good-paying union jobs, and support workers and communities impacted by the transition to a clean energy economy.

Buy Clean, Build Clean

The federal government’s purchasing power can significantly impact greenhouse gas emissions. According to Dr. Rebecca Dell, director of the Industry Program at ClimateWorks Foundation, nearly half of all cement and a fifth of steel are purchased with tax dollars. Title V of the CLEAN Future Act (H.R.1512) includes a federal Buy Clean program that would leverage public procurement to incentivize the development and use of low-emission materials, strengthening U.S. manufacturing competitiveness and expanding the market for clean products.

The Buy Clean program would set performance targets to reduce greenhouse gas emissions from construction materials and products used in federally-funded projects. Making materials more sustainable and less polluting would not necessarily raise project costs. For example, cement contributes the largest share of emissions in public construction but only accounts for one percent of the total project cost. “Because it’s such a small portion of the total cost, even if clean cement is more expensive than conventional cement in the near term, it won’t significantly change the overall cost of infrastructure,” Dell said.

Members and witnesses also highlighted the Climate Star program, which would identify and promote cleaner products through voluntary labeling and federal procurement requirements. Jason Walsh, executive director of the BlueGreen Alliance, stressed the importance of establishing an interagency transparency and disclosure program, stating that it would “enhance the quality and availability of data used to calculate emissions of eligible materials and strengthen our understanding of the competitiveness of U.S. manufacturers across industries.”

Kevin Sunday, director of Government Affairs at the Pennsylvania Chamber of Business and Industry, offered words of caution when launching a program like Buy Clean.

“It's imperative that regulatory policy doesn't end up offshoring key industries like refining, steel, cement, concrete, aggregates, and timber—all resources that we're going to need regardless of what the energy mix looks like,” Sunday said.

“An Accelerator for Innovation”

Large-scale investment in innovation is critical to modernize infrastructure without contributing to the climate crisis. Title VIII of the CLEAN Future Act would establish the Clean Energy and Sustainability Accelerator, which would capitalize $100 billion to help states, cities, communities, and businesses transition to a clean energy economy. Bob Perciasepe, president of the Center for Climate and Energy Solutions, described the initiative as “an accelerator for innovation.”

The Accelerator would mobilize public and private funds to provide financing for clean energy technologies and infrastructure, climate resilience, and industrial decarbonization. According to Perciasepe, the federal government’s move to establish the Accelerator would also send a strong market signal to the private sector, driving further investments.

Underlying the discussion was a central focus on prioritizing justice and equity when mobilizing funds and resources. The witnesses came out in support of the Act’s requirement to commit 40 percent of funds to environmental justice communities. “We strongly support the prioritization of investments in the Accelerator to disproportionately impacted communities,” Walsh stated.

Centering Workers and Communities in Transition

Communities with strong economic ties to fossil fuels are already experiencing a large burden from the energy and economic transition. The CLEAN Future Act's Title X would establish an executive office of the president, an interagency task force, and a stakeholder advisory committee on energy and economic transition to ensure the federal government makes helping impacted communities a priority. The legislation would also create a program to provide financial assistance to local governments that have lost significant revenue due to the energy transition. The Act would also fund one-stop, community-based organizations that would help local communities access federal funding opportunities and provide technical assistance.

Walsh’s testimony spoke to the need to prioritize investments to workers and communities most in need. “It is absolutely critical that we link job training and workforce development with economic development and diversification. It doesn't do any good to train people for jobs that aren't there,” Walsh said.

Acting in Synergy: Policies Supplementing the CLEAN Future Act

Speakers framed the CLEAN Future Act as an initiative that could work in synergy with other industrial policy proposals to further accelerate the sector’s decarbonization. Walsh urged “additional enhanced loan and grant funding” for the wide-scale deployment of emission-reducing manufacturing processes. Committee Chairman Frank Pallone (D-N.J.) proposed additional initiatives that could accelerate decarbonization, such as expanding block grant funding for states to promote industrial efficiency, driving low-carbon heat innovation, and mobilizing financial incentives for low-carbon renewable thermal technologies like geothermal green hydrogen.

Overall, the hearing witnesses supported the CLEAN Future Act’s provisions that would drive industrial decarbonization, invest in American clean infrastructure, and center workers and communities in transition.

“Fragmented policies that apply only to certain locations, technologies, or kinds of business classes will result in uneven approaches,” Perciasepe said. “Federally-faced financial incentives, such as those in the CLEAN Future Act, will really help accelerate the innovation that we need in the industrial sector.”

Author: Celine Yang