AMCEE White Paper 06.21

MAY 2021
THE CURRENT
STATE OF U.S.
ENERGY POLICY:
A defining moment for the future of U.S. energy independence,
environmental impact, and economic investment.
“We can buy electric car batteries from Asia or

we can make them in America. We can install
wind turbines from Denmark or we can make
them in America. We can allow other countries
to corner the market on carbon reduction
technologies like Carbon Capture Utilization
and Storage, or we can put our workers in
good paying jobs manufacturing and installing
those solutions in America.”
Secretary Granholm, Department of Energy

January 27, 2021 [1]
CONTENTS
02
SUMMARY
03
THE STATE OF AMERICAN CLEAN
ENERGY SUPPLY CHAINS
05
ENERGY POLICY OUTLOOK FOR THE
BIDEN ADMINISTRATION
07
CLEAN ENERGY OVERVIEW
09
CLEAN ENERGY TECHNOLOGIES
17
A VULNERABLE CLEAN ENERGY SUPPLY
CHAIN
24
CONCLUSIONS
25
BIBLIOGRAPHY
SUMMARY
The clean energy sector is growing rapidly due to high demand from the energy sector, rapid
innovation in clean technology, broad recognition of the need to reduce greenhouse gas emissions,
and presently, a strong advocate in the Oval Office. The pivotal shift in government leadership,
combined with the passage of the Energy Act of 2020 and strong market demand, has created
remarkable momentum for a transition to clean energy. The United States, however, has a clean
energy challenge: We do not manufacture much of the clean energy components required for the
transition to a clean energy economy. We have been extremely reliant on other nations — some of
whom are increasingly hostile to U.S. interests — for imported clean energy technology. According to
BloombergNEF, China dominates 75% of all solar modular capacity and 60% of lithium battery
component manufacturing [2]. For those manufacturers in the U.S. that are producing clean energy
technology, the playing field for those companies and their workers is not level. Foreign clean energy
technology competition is often heavily subsidized, in many instances employing dirty fossil fuel
technology to support expansion, and in some abhorrent cases, uses forced labor.
The U.S. and China are participants in what is rapidly becoming a technological Cold War. China is
massively subsidizing its clean energy companies and state-owned enterprises in an attempt to
control the marketplace [3]. In one example, China has utilized illegal subsidies in polysilicon and
solar cell production to undercut American manufacturers, even with tariffs in place. Additionally, any
clean energy infrastructure which passes through a Chinese supply chain likely has been touched by
the forced labor of hundreds of thousands of Uyghur peoples in Xinjiang province [4]. The Biden
administration has taken preliminary steps to distance American clean energy from Chinese
malfeasance, but new policies which emphasize and enable a full transition to clean energy
independence is necessary.
At AMCEE, we are on a mission to ensure Americans can rely on an American supply chain and
infrastructure system to provide electricity from clean, responsible sources, manufactured in America.
We also strive to advocate for American jobs and a strong American economy. As clean energy
becomes an increasingly important part of the global economy, it is crucial to stake support behind
American innovation and manufacturing. The federal government has a responsibility to support the
manufacturing, research, and development of American clean energy technology, after decades of
subsidizing and incentivizing the fossil fuel sector. This support is also necessary for facilitating a
smooth transition from an overall reliance on fossil fuels for electricity and energy production.
AMCEE PAGE 02
Under the Trump administration, blanket deregulations shaped the
direction of many policy decisions, especially those of energy policy.
Eliminating environmental and health regulations to aid the fossil fuel
industry was not only backward-looking but also ineffective in helping to
bolster the industry. Specifically, the Trump administration sought over 74
separate executive actions to weaken environmental protections —
actions that may have propped up executive profits but did little to restore
jobs lost not to policy but long-term market shifts [5].
Many Trump-era policy decisions did not align with states’ energy
interests, and contrary to their intended impacts, federal-level policy
efforts brought no relief to the coal industry, which saw its share of U.S.
energy generation plummet by more than 22% in the first three years of
the administration [6]. Moreover, Trump-era policy not only failed to help
traditional fossil fuel industries but also stymied the growth and
development of the American clean energy sector. Focusing on fossil fuel
development blinded the Trump administration to the growth of the clean
energy industry, hindering the United States’ development as a potential
global leader in clean energy production and missing a huge opportunity
for American job growth [7]. Despite rapidly falling costs for renewable
energy technologies and robust, reliable domestic supply chains, the
Trump administration approved fewer federal renewable energy projects
than during the Obama administration’s first term eight years prior.
Additionally, the Trump administration erased the entire office of
renewable energy permitting for the Bureau of Land Management and
eliminated clean energy development plans [8].
China, meanwhile, was forward-looking. While the Trump

administration hindered clean energy research and development,
deployment, and the construction of clean energy infrastructure, Chinese
manufacturers tightened their grip on the clean-energy supply chain.
Chinese state-owned enterprises grew, outcompeting their own domestic
private companies in an effort to artificiallyfalsely drive down prices of key
energy technology. This led Chinese manufacturers to flood the global
markets with cheap, and often lower-performing clean energy technology.
Additionally, Chinese-owned and operated mining companies and
refiners further cornered the market on rare earths and other key
materials needed for batteries. The result has been a race-to-the-bottom
on cost —- often to the detriment of American manufacturing workers -
with cheap Chinese imports of clean energy tech flooding the U.S. market.
AMCEE PAGE 03
The Trump administration sought to dampen these impacts with a
blunt tool it would use repeatedly: tariffs. In one case, the White House,
acting independently of Congress, instituted import tariffs on solar cells
and polysilicon, key components of solar cell production. This was
motivated chiefly by the president’s desire to establish a tough stance on
China, and marginally to provide a lifeline to U.S. manufacturers [9].
Additionally, the Trump administration banned the importation of bulk
power electrical equipment necessary for electrical grid expansion and
reform for fear of cybersecurity threats from foreign competitors [10].
While the tariffs and import bans complicate China’s ability to undermine
competitors and flood the market with cheap technology, the tariffs do
little to establish clean energy independence and assist American
manufacturers and their workers [11].
One of the positive policy outcomes during the Trump administration for
clean energy manufacturers came in the final days of his presidency, with
the passage of the Energy Act of 2020. The act is the first major update to
U.S. energy policy in over 13 years and represents a tangible effort to
secure energy independence and mitigate climate change by establishing
a pathway to incorporate clean and innovative energy infrastructure into
the U.S. energy economy [12]. Contradictory to much of Trump’s rhetoric
and policy positions, the bill establishes a legal framework to support
clean energy research, development, and integration into the evolving
energy landscape [13].
AMCEE PAGE 04
ENERGY POLICY OUTLOOK FOR
THE BIDEN ADMINISTRATION
The Biden administration marks a new political era sparking a strong relationship between
policy, science, and the climate crisis. President Biden declared benchmarks for the U.S. to establish
net-zero emissions by 2050, and to rely on a carbon-free power grid by 2035 within his first week in
office [14]. These significant declarations, coupled with a promise to supply $400 billion to clean
energy innovation over the next ten years, emphasizes the commitment the Biden administration is
making to clean energy in America [15]. The rhetoric President Biden employs in discussing new
U.S. energy policy centers around mitigating climate change and creating clean energy jobs. This is
a shift from the Trump administration’s emphasis on re-creating coal jobs and denying climate
change, a shift that signifies an alliance with the American consensus [16].
President Biden has made sweeping efforts to transition from Trump-era policy and bolster the
U.S. clean energy economy while fighting climate change. Many of Biden’s initial actions address his
campaign commitments to reducing carbon emissions, buying American-made goods, and creating
American jobs [17]. In addition to domestic-focused actions, the Biden administration has also
highlighted the importance of securing a clean energy supply chain and strengthening national
security. In his first address to Congress, on April 22, 2021, he noted, “There's simply no reason why
the blades for wind turbines can't be built in Pittsburgh instead of Beijing” [18].
Biden’s efforts include a strong call to action to purchase American manufactured goods and
infrastructure through his ‘Buy American’ executive order. This order represents an effort to lead by
example, stipulating that government-led efforts must purchase electric vehicles and clean energy
infrastructure and that these should be made in America [19]. This effort indirectly encourages
domestic job growth, and in order to directly increase job growth, Biden has ordered the
modernization of federal infrastructure to incorporate clean energy into buildings and projects. In
order to further focus national resources on a transition to a U.S. clean energy economy, the Biden
administration has also halted subsidies for fossil fuels [20]. To address foreign threats to a secure
clean energy supply chain, Biden has also ordered the climate crisis to become a key part of national
security and foreign policy, reacting to China’s rampant growth in the clean energy manufacturing
sector seen during the Trump administration [21].
AMCEE PAGE 05
ENERGY POLICY OUTLOOK FOR
THE BIDEN ADMINISTRATION
The Energy Act of 2020 aligns in many ways with the goals of the Biden administration. It
provides much-needed support to American clean energy manufacturers and creates a supporting
framework for the Biden administration to successfully pivot clean energy policy away from Trump
administration positions. Included in the act are provisions to investigate China’s control over key
resources, and their infractions against human rights and environmental quality [22]. Additionally,
the act encourages domestic job growth in the energy sector in the form of grants supporting wind
and solar technician training programs and grid modernization efforts in the bill also extend to rural
infrastructure, ensuring job prospects reach across the country [23]. Additionally, the act provides
sweeping updates across many energy industries, including fossil fuels and nuclear power.
Research mandated by the act on carbon-capturing technologies and nuclear energy best-practices
will continue to require American talent, from research to on-site application [24].
President Biden has centered his clean-energy pledges on expanding U.S. clean-energy jobs,
manufacturing, and generation. President Biden’s policy ambitions for a clean energy economy are
centralized on growing U.S. clean energy jobs, production, and generation. These policy ambitions,
however, are jeopardized due to the current Chinese-dominant supply chain, which is rampant with
state-subsidized and cheap technology, built on the back of forced labor and fossil fuels [25, 26]. The
Biden administration has maintained tariffs on China established by the Trump administration and
more readily integrated energy and climate considerations into national security [27]. While Trump
supported domestic fossil fuel exploitation, cheaper Chinese clean energy technology acted as a
boon to U.S. clean energy installers, as Chinese goods continued to undercut American goods.
However, any amount of reliance upon China for American decarbonization and clean energy
development limits the prospects and intentions of Biden administration policies.
AMCEE PAGE 06
Ending U.S. dependence on fossil-fuel-derived energy through the
adoption of clean energy technologies is the only way to not only meet
new emissions benchmarks but also combat climate change. However,
understanding what ‘clean energy’ is, and how the sector’s most
promising technologies work and currently fit into energy systems, is
necessary for understanding its economic implications. ‘Clean energy’ is
an umbrella term that encompasses any form of energy generation that
does not emit greenhouse gasses or harmful particulates as a byproduct
[28]. ‘Renewable energy’, is constantly replenished either endlessly, like
solar and wind, or within a short period of time, like biomass or biofuel
[29]. Renewable energy which has the smallest impact on the
environment is considered ‘Green energy’. Solar is a source of green
energy generation, but large-scale hydropower is not, as if interferes in
natural systems and impacts the source from which it generates [30]. To
summarize, all green energy is both renewable and clean, and nearly all
renewable energy is clean.
Natural gas is often labeled as an alternative, clean fuel. However,

natural gas is a fossil fuel that still heavily contributes to carbon
emissions. Compared to the burning of coal and fuel oil, natural gas
releases less carbon, however, over 100 pounds of CO2 are released per 1
MMBTU (1 million Btu or about 28 cubic meters of natural gas) [31].
Natural gas extraction has become increasingly harmful to the
environment as large wells have been tapped and hydraulic fracturing
(fracking) is employed to break apart smaller reserves [32]. In 2018,
natural gas leaking from tapped wells alone accounted for at least 29% of
total US methane emissions and 3% of total GHG emissions [33].
Methane is over 25 times more potent than CO2 and the sheer amount
that escapes from disused natural gas wells is unknown [34]. Natural gas
is a serious contributor to carbon emissions and cannot be paired with
true, clean sources of energy.
AMCEE PAGE 07
As clean energy sources are further integrated into U.S. energy
consumption, benefits to public health increase. No harmful pollutants are
released as clean energy sources generate electricity. The polar opposite
is the case with fossil fuel sources, and some of the most harmful
pollutants are incredibly small soot particles. At just 2.5 microns in size,
these particulates cannot be easily filtered out by the human body [35].
Long-term exposure to these pollutants contributes to countless health
issues, from asthma to cancer, and causes between 100,000 and 200,000
premature deaths in the U.S. each year. The economic costs associated
with fossil fuel produced pollution is upward of $880 billion annually,
compounded through health care costs and reduced economic growth
[36]. Transitioning from fossil fuel energy generation to clean energy
sources not only reduces a deep economic strain on the health sector but
also reduces premature and unnecessary deaths in America.
Within the last year, the economic outlook for clean energy has proved
remarkable. For the first time, more electricity was generated from
renewable sources than from coal [37]. This highlights the growing
monetary and environmental costs associated with coal and the market
preference for clean energy. In addition to renewables overcoming coal,
wind power also surpassed hydropower, displaying a trend towards
greener energy within the clean energy sector [38].
AMCEE PAGE 08
SOLAR POWER
If all the sunlight that reaches Earth could be collected for 1.5 hours, it would supply global energy
consumption for a whole year [39]. Solar energy is the most widely abundant source of energy and
can be collected in two ways. The most recognizable way is through photovoltaic (PV) cells, or solar
panels, that transform sunlight directly into electricity. Another way to transfer usable energy from
the sun is by focusing sunlight to provide intense heat, called concentrating solar-thermal power
(CSP). At a utility scale, this method works like traditional power plants by creating steam to turn
turbines. At a household level, this method can be used to heat water or air [40].
Throughout the last decade, the solar market has grown yearly by an average of 49% [41]. Solar is
easily integrated into the current power grid through industrial-scale solar farms and private
installation to household power meters. There are over 2 million solar installations across the
country providing 88 gigawatts, equal to the powering of over 16 million homes, to Americans [42].
While the market and demand for solar has increased year over year in the U.S., our global market
share in solar infrastructure manufacturing has decreased by 80%. In the years of the Trump
administration, the U.S. solar industry was almost completely reliant upon imports, mostly from
Taiwan or China, of silicon wafers, cells, and PV modules [43]. U.S. solar manufacturers have
announced plans to add nearly 10 gigawatts of domestic production capacity over the last few
years, but more PV infrastructure manufacturing must return to the U.S. to ensure growing demand
is met [44].
AMCEE PAGE 09
WIND POWER
Wind energy has been harnessed by human beings for millennia, however, transferring that
energy into electricity is a relatively new technology. Ironically, the electrification of rural America,
which took place throughout the first half of the 1900s, brought an end to many traditional uses of
harnessed wind power such as pumping water and powering machinery [45]. It was not until the
1970s’ oil shortages that the federal government began to invest in and support innovation in the
wind industry [46].
Today, wind power is now the largest source of renewably generated energy in the U.S. The
industry has grown 15% every year for the last decade and is responsible for the creation of over
100,000 jobs [47]. The cost of wind energy does not fluctuate thanks to the generated electricity
being sold at a fixed, long-term price. This is necessary to account for the natural fluctuation of
cycles of wind [48]. Today wind accounts for more than 8% of US electrical generation and remains
a necessary step towards U.S. clean energy independence [49].
Domestic wind turbine manufacturing is robust in the U.S., spread between over 500 manufacturing
facilities across the country. Over 80% of tower components manufactured in the U.S. are
domestically installed [50]. However, as demand for both onshore and large offshore wind projects
increase, U.S. manufacturers face the growing risk of foreign manufacturers supplying cheaper
towers while receiving large subsidies at home. It is essential that U.S. manufacturers receive
support in both innovations, to supply large turbines necessary for offshore wind, and
manufacturing, to stay competitive with foreign suppliers [51].
AMCEE PAGE 10
CLEAN HYDROGEN AND FUEL CELLS
Hydrogen is a clean fuel that only creates water as it transfers energy. Hydrogen fuel can be
produced not only from energy generated by natural gas and nuclear, but also biomass, solar, and
wind, qualifying it as a source of clean and green energy [52]. Hydrogen fuel can be produced
through a thermal process, which heats hydrocarbons, like natural gas or gasified biomass, with
steam, to separate hydrogen from other elements. The cleaner way to produce hydrogen is through
the process of electrolysis [53]. Electrolysis can be run off of renewably generated energy and
separates water into oxygen, which is released, and hydrogen, which is stored as fuel. Hydrogen
fuel can even be produced through microbial organisms photosynthesizing or microbes breaking
down organic matter [54].
Hydrogen fuel transfers energy into electricity in fuel cells. Fuel cells combine hydrogen and oxygen
to create an electrochemical reaction, which primarily releases an electric charge, and byproducts
water and heat [55]. The hydrogen fuel cell market still has significant progress to make, as only
250 megawatts of electricity are produced by 161 large-scale hydrogen fuel cell systems across the
country [56]. However, hydrogen fuel cells have found their way into the automobile market and are
creating a consumer basis in California, where the only hydrogen refueling infrastructure currently
exists [57]. The U.S. is the largest manufacturer of fuel cells in the world and the industry generates
around one billion dollars in revenue yearly. There is growing competition in foreign markets,
however, as the technology evolves, costs go down, and demand increases [58].
AMCEE PAGE 11
BATTERIES AND ENERGY STORAGE
Almost as important as clean energy generation is the ability to reliably store that generated
electricity, and deliver it where it is needed in an accessible form. As wind and solar energies
become further integrated into the current power grid, a method of storing their generated energy,
complementary to their integration, will be essential to 24/7 reliable energy delivery [59]. Batteries
are necessary to supply stored electricity when the sun does not shine and the wind does not blow.
Currently, 95% of the US power grid relies on pumping water to higher elevation reservoirs, which
store potential energy to later be collected through hydropower generation [60]. This system turns
traditional hydropower into the equivalent of a massive battery storing large amounts of energy.
The cost of utility-scale battery storage fell by nearly 70% between 2015 and 2018 and is
continuing to become more reasonably priced [61]. The same innovations in lithium-ion technology,
the technology which nearly all rechargeable batteries utilize, that benefit the growing EV sector,
provide similar price reductions and innovations to the utility-scale battery industry [62]. Across the
country, utility battery storage systems are replacing natural-gas-fired ‘peaker’ power plants, which
supply bonus electricity when demand increases. In California, Florida, and New York, this
technology is proving to be a cleaner and more efficient way of providing electricity to thousands of
homes [63].
Large, utility-scale batteries are not the only supporting infrastructure for clean and renewably
generated energy. Behind-the-meter (BTM) batteries are small-scale commercial or residential
batteries that store energy on-site to supplement demand on the power grid [64]. These batteries
can store excess energy during low-demand times, or they can store on-site energy generated from
residential or private solar installations [65].
AMCEE PAGE 12
BATTERIES AND ENERGY STORAGE
The main competitor to lithium-ion batteries in both scalability and efficiency are vanadium-
flow batteries. Vanadium-flow batteries represent an energy storage technology that is experiencing
steady innovation. They operate similarly to a fuel cell and only create electricity when two
electrochemical solutions are mixed [66]. While there is more vanadium than lithium in the Earth’s
crust, vanadium has a higher cost to obtain, which currently hinders the development of the
technology. However, there is consistent innovation and vanadium-flow is a technology that
promises a longer and safer life than traditional lithium-ion technology [67].
The U.S. has experienced strong success in battery innovation, however, much of that innovation is
offshored to be manufactured. Many U.S. companies choose China as a home for manufacturing
sites and suppliers of necessary minerals. This offshoring takes place because of the lowered cost of
manufacturing in China, but it jeopardizes a reliable American supply chain [68]. As batteries
become essential to advancing a clean energy economy, many companies are working to reshore
the manufacturing and sourcing of key battery technologies. President Biden made a review of the
U.S. battery supply chain a key component of national security concern within a month of being
inaugurated [69].
AMCEE PAGE 13
ELECTRIC VEHICLE INFRASTRUCTURE
A growing consideration of the clean energy economy is the electric vehicle (EV) charging
infrastructure. While traditional vehicles have a fuel tank, EVs have charging ports to supply
electricity to batteries for storage. These charging points can receive three different kinds of
electrical input, separated into levels [70]. Level one charging is the equivalent of plugging an EV
into a house electrical socket and delivers a range of 2-5 miles per 1 hour of charging. Level two
charging can run from a household but requires the installation of a special electrical outlet or
converter [71]. Level two can supply 10-20 miles of range per 1 hour of charging, which is typically
enough to supply a full range to an EV charged overnight. Level three charging, direct current (DC),
or fast charging, can supply an EV with 60-80 miles of range in 20 minutes [72]. This powerful
method of charging requires a special external module, typically found along busy traffic corridors,
which converts grid-supplied AC into DC before charging the EV [73].
EV charging is expanding quickly. Methods of wireless charging for EVs are becoming more
widely available, as are universal fast charging ports [74]. However, household charging, basic level
one and two charging is expected to remain the market leader into the next decade, providing
60%-80% of energy [75].
AMCEE PAGE 14
GEOTHERMAL ENERGY
Geothermal power plants generate electricity by pumping water or steam through

geothermal reserves in the Earth’s surface and then extracting the super-heated and pressurized
gas to the surface, where it turns a turbine and powers a generator [76]. The U.S. generates the
most electricity from geothermal energy, at 3.5 gigawatts, enough to power over 3.5 million homes
[77]. Utility-scale geothermal plants are spread throughout the Western U.S. where subsurface
temperatures are highest, making production efficient and cost-effective [78]. Turbines and
equipment necessary for geothermal plants are manufactured around the world, centralized in
Japan, Israel, and the U.S. While the U.S. has a significant piece of the supply chain in geothermal
manufacturing, it still imports necessary turbine infrastructure as clean energy demand increases
and new plants are built [79].
AMCEE PAGE 15
SEMICONDUCTORS AND SMART TECHNOLOGIES
Semiconductor technology and clean energy development go hand-in-hand. Acting as

rectifiers, semiconductors smooth sporadic electricity generated from sources like solar or wind
allowing it to be integrated into the grid easily [80]. Semiconductors, especially silicon
semiconductors, are necessary for this function because their high efficiency compared to other
materials, limits the amount of electricity lost to heat. In this capacity, semiconductors essentially
translate renewable energy into useful electricity. Semiconductors translate when energy is or isn’t
flowing, and are necessary components in devices like smart meters which can then share that
digital information wirelessly and in connection to the overall grid [81]. These abilities allow a deeper
understanding of how clean energy interacts with traditional energy sources on the power grid and
allows for smooth incorporation and integration.
The U.S. currently controls around $193 billion, or 48%, of market share revenue in the
semiconductor industry. However, China is aiming to dominate the evolving semiconductor supply
chain by investing over one trillion dollars into technological and manufacturing innovation [82].
Another cause for concern to a secure U.S. chain is the industry reliance upon a Taiwanese
company, Taiwan Semiconductor Manufacturing Corporation (TSMC), as the company owns over
51% of the foundry market and produces the most advanced semiconductor chips. Taiwan’s
precarious geopolitical position creates added strain on a U.S.-China relationship, especially as
China continues to dedicate resources to seize control of the market [83].
AMCEE PAGE 16
A VULNERABLE CLEAN ENERGY
SUPPLY CHAIN
Renewables are expected to contribute 50% of global electricity generation throughout the
next 30 years, and understanding the current and ever-evolving supply chain of clean energy
will remain essential to maintaining a strong and effective U.S. power grid [84]. Today, many
resources required to produce clean energy infrastructures, like mineral resources and labor,
are highly concentrated in China. Between 50% and 70% of lithium and cobalt, both
necessary for electric vehicle batteries, is refined in China, and over 85% of rare earth
materials are processed in China [85]. Additionally, over 70% of solar panels, a third of wind
power, and half of all electric vehicles are produced in China [86].
This concentration places a serious squeeze on the supply chain and reflects the risks
associated with the devastating oil crises the US faced in the 1970s [87]. There is significant
risk in a country existing as a sole or majority supplier of minerals or components required
for clean energy production. This risk is heightened even further when a stable trade future
is uncertain [88].
AMCEE PAGE 17
SUPPLY CHAIN
FOREIGN STRAIN TO A CLEAN
ENERGY ECONOMY
China looms as the fiercest and most concerning competitor to

U.S. interests in the clean energy sector. However, this head-to-head
competition between China and the U.S. is not new to Chinese clean
energy industry manufacturers. Chinese solar cell manufacturers ran
German manufacturers, once regional leaders, out of business [89]. The
U.S. must seek a strong foothold in the global energy economy as it shifts
to a clean energy economy. If not, U.S. energy development will be at the
whim of Chinese manufacturers’ dictating cost and supply of necessary
technology and infrastructure [90].
Clean energy generation has the potential to upend current power

dynamics, creating a vacuum where energy leaders once sat. Oil-rich
economies, like those of the Middle East and Russia, are already
weakening as their main sources of GDP loses value and an established
global economy surrounding fossil fuels destabilizes [91]. Now, 75% of the
world economy has a decarbonization timeline, which is only achievable
through clean energy, and such a broad demand creates diverse and
robust competition [92]. More countries have access to clean energy
generation than access to extractable fossil fuels which could create a
more balanced market of energy production. However, any country which
secures control over the manufacturing of energy infrastructure will
redistribute the global power dynamic and could then dictate other
nations’ transition to clean energy [93].
AMCEE PAGE 18
SUPPLY CHAIN
FOREIGN STRAIN TO A CLEAN
ENERGY ECONOMY
In an attempt to secure a commanding position in this

redistribution of power, China has dedicated immense resources and
finances at the expense of human rights and World Trade regulations [94].
China’s Belt Road Initiative (BRI) is a motivator for much of the country’s
foreign investment interest [95]. To gain influence and approval within the
nations China wishes to connect through the BRI, state-owned banks
back large-scale energy projects, only 25% of which are based on
generating clean energy. Clean energy projects often require more
monetary investment, more government oversight, and have longer
project lifespans than exploitation of fossil fuel resources [96]. In an effort
to quickly industrialize, developing nations are often more interested in
the cheaper options provided by fossil fuels, and China is willing to
finance them. These fossil fuel plants financed by China account for 3.5%
of global energy emissions. As long as China is willing to sacrifice global
emissions levels for garnering favor in countries through investment, the
U.S. clean energy economy will struggle to grow beyond our borders [97].
AMCEE PAGE 19
SUPPLY CHAIN
FORCED LABOR AND
ENVIRONMENTAL EXPLOITATION
In addition to financing energy projects, China has made
numerous strategic purchases of production sources of minerals and
resources crucial to manufacturing clean energy infrastructure. Through
the purchasing of cobalt mines in Africa and cornering the production of
polysilicon for solar cells, China has bottlenecked the clean energy
economy [98]. By dominating the supply chain from mineral extraction to
battery or solar cell production, manufacturing clean energy technology
independently from China is extremely difficult. However, this bottleneck
has been created through Chinese government influence. Chinese
companies have received incentives and subsidies from their government
to encourage steep growth as quickly as possible, putting a near-
impenetrable corner on the market [99].
Through the consolidation of small and diverse state-owned operations

(SOEs) into massive state-owned enterprises, China has driven clean
energy technology prices down to eliminate foreign and private
competition [100, 101]. The perpetuation of SOEs in China is fueled by
banks favoring the guaranteed investment of backing the safer venture an
SOE poses versus a privately owned enterprise. This inhibits China’s own
private companies from developing innovative solutions to clean energy
problems. By undercutting the private and foreign market so deeply, China
has dulled natural competition [102].
Infractions against human rights and the environment to facilitate

production are growing issues facing a clean energy supply chain, which
create ethical dilemmas for the U.S. in its efforts to develop a strong clean
energy economy. Two-thirds of the world’s cobalt, necessary for EV battery
production, comes from the Democratic Republic of the Congo (DRC) [103].
Child labor in the cobalt refinement process is common throughout the
region. Many large tech and EV companies have instituted policies to avoid
products stemming from child labor, yet some cannot fully trace their
supply chain due to sourcing minerals and technology from China, which
owns and operates mines in the DRC and has been recorded buying cobalt
and copper from markets supplied through child labor [104].
AMCEE PAGE 20
SUPPLY CHAIN
FORCED LABOR AND
ENVIRONMENTAL EXPLOITATION
Within their borders, China is currently holding nearly 1
million Uyghur people in concentration camps where forced labor is
commonplace [105]. A vast majority of the world’s polysilicon, a key
ingredient in solar cells, in addition to a majority of China’s solar cell
production, stems from the region of Xinjiang, where these camps exist.
The U.S. legislature acted quickly to prevent the importation of goods
from Xinjiang, however, that placed a strain on solar cell prices [106]. This
strain highlights the necessity for solar cells and other clean energy tech
to be produced and sourced from within the U.S.
In addition to a disregard of human rights, Chinese efforts to force

control over the clean energy sector include direct environmental harm.
China still accounts for half of the global coal consumption and 30% of
global greenhouse gas emissions [107]. While China seeks to build its
clean energy infrastructure production, in 2020 its construction of coal-
fired power plants was the highest it has been in five years. Including
newly planned coal-fired plants, Chinese coal usage accounts for 90% of
global consumption [108]. While China publicly prioritizes clean energy, it
continues to rely on dirty fossil fuels to achieve its growth. The external
costs associated with Chinese clean energy technology negate the intent
of a transition to a clean energy economy reliant upon China.
AMCEE PAGE 21
SUPPLY CHAIN
DOMESTIC SUPPLY CHAIN
CONCERNS
In addition to serious foreign concerns, the U.S. domestic
supply chain faces growing threats from a digitally integrated power grid,
the shifting impacts of climate change, and previously unforeseen issues
highlighted by the COVID-19 pandemic. As a clean energy supply chain
becomes further digitized and connected to Internet of Things technology,
vulnerability to cyber-attacks also increases. In May of 2020, former
President Trump signed an executive order preventing interference in
supplied products for the power grid by foreign countries [109]. This
highlights the growing risk associated with energy infrastructure products
and digital technology connected to the grid that originates from outside
the country. Current regulation of the manufacturing standards and safety
certification of energy grid products is nonexistent [110]. Yet, as
information technology (IT) and operational technology (OT) converge,
the vulnerability and perceived threat of cyber attacks on the power grid
continues to increase.
A potent example of unexpected climatic impact on energy

infrastructure was the Texas winter storm of early 2021, which caused vast
power outages throughout the state. This storm highlighted pressing
issues in the power supply chain related to climate change and renewable
energy sources. As climate change continues to impact weather patterns
and seasonal extremes, demand fluctuations for power will often mirror
this volatile path [111]. Texas’ grid failure serves as a reminder that a lack
of adequate energy storage from renewable sources, compounded with a
lack of preparation for shifting power demands due to climate change can
jeopardize the reliability of the energy supply chain [112].
AMCEE PAGE 22
SUPPLY CHAIN
DOMESTIC SUPPLY CHAIN
CONCERNS
The COVID-19 pandemic brought the domestic staffing of a
transforming energy economy to the forefront of supply chain concerns
[113]. Barriers from the COVID-19 pandemic prevented companies from
completing jobs that facilitate the supply chain, resulting in a cascade of
effects including damage to the production of solar PV cells and wind
turbines [114]. In addition to staffing and manufacturing impacts due to
the COVID-19 pandemic, demands on the power grid also shifted
significantly. With more people home, fluctuations of where, when, and
how much electricity is needed, unaligned energy demand from
traditional patterns and expectations [115]. Deferments of maintenance or
updating of parts for the power grid also add to the concern. As more
deferments pile up, the chance of sweeping outages and larger issues
arise [116].
AMCEE PAGE 23
CONCLUSIONS
For the U.S. clean energy economy to strengthen, our understanding of current policy,
economic, and supply chain influences must strengthen first. While China’s leaping efforts to
control the clean energy market from mining to manufacturing pose the most significant
threat to a secure and reliable U.S. clean energy economy, especially now the Presidential
administration is in full support of American clean energy innovation. The U.S. cannot blindly
accept China’s unethical approach to clean energy development. Their influence over the
market is at the expense of people, the planet, and their own private companies.
China has used a global effort to transition to clean energy as an excuse to expand its
influence without restraint through the guise of mitigating climate change. By establishing
the Chinese industry as an indispensable part of the clean energy supply chain, they can in
turn influence market prices, availability, and a nation's prospects of energy independence.
Relying on China for clean energy development is relying on forced labor and increased
carbon emissions. To transition from a reliance upon the Middle East for a source of energy
to reliance upon China would be a mistake for U.S. lawmakers when resources and
pathways exist to develop and employ American-made clean energy technology.
AMCEE PAGE 24
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AMCEE PAGE 25
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AMCEE PAGE 25
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MAY 2021

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