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US Inflation Reduction Act passed by Senate allocates $369bn for clean-energy programs

The Inflation Reduction Act passed on Sunday by the US Senate includes $369bn in investments to advance America’s clean-energy programs, including offshore wind development and projects to reduce emissions at the country’s maritime ports.

Three billion dollars have been earmarked over a five-year period for port electrification. The funds cannot be used to automate container terminals.

The American Association of Port Authorities said the grant program “will signal to equipment manufacturers and private investors that this electrification technology at ports will be ubiquitous in the coming years.”

The bill includes $40bn to accelerate clean-energy manufacturing. It extends an investment tax credit of 30% for offshore wind that was set to expire in 2025 and overrides President Trump’s 2020 executive order banning offshore development in the southern Atlantic Ocean for 10 years.

“This unprecedented investment in clean energy will supercharge America’s clean energy economy and keep the United States within striking distance of our climate goals,” said Heather Zichal, CEO of American Clean Power.

Liz Burdock, president and CEO of the Business Network for Offshore Wind, said in a statement: “The Senate’s passage of the Inflation Reduction Act is a watershed moment in America’s renewable energy transition. The bill’s $40 billion investment in domestic clean energy manufacturing and shipbuilding is an important down payment that will unleash the vast potential of offshore wind and localise a supply chain on American shores creating thousands of good-paying jobs.”

The bill will go to the House of Representatives, which is expected to quickly pass it, then on to President Biden to sign it into law.

Kim Biggar

Kim Biggar started writing in the supply chain sector in 2000, when she joined the Canadian Association of Supply Chain & Logistics Management. In 2004/2005, she was project manager for the Government of Canada-funded Canadian Logistics Skills Committee, which led to her 13-year role as communications manager of the Canadian Supply Chain Sector Council. A longtime freelance writer, Kim has contributed to publications including The Forwarder, 3PL Americas, The Shipper Advocate and Supply Chain Canada.


  1. Regardless of the rights or wrongs of this Act – increased Government spending has never reduced inflation

  2. “Across the board, we found almost no effect of government spending on inflation. For example, in our benchmark specification, we found that a 10 percent increase in government spending led to an 8 basis point decline in inflation. Moreover, the effect is not statistically different from zero.” St. Louis Fed.

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