5 Wins for Clean Energy Innovation in Biden’s Budget
Originally published on the NRDC Expert Blog.
The Biden administration’s 2022 budget released on Friday includes major funding increases for important Department of Energy (DOE) programs to drive clean energy innovation, address the climate crisis, and build a strong and equitable economy. These funding increases complement the investments proposed in the President’s American Jobs Plan (AJP). Now it’s up to Congress to pass AJP and write a government funding bill that reflects the President’s proposals.
Below are five components of the budget that would accelerate clean energy innovation and redirect DOE programs toward our greatest challenges and opportunities.
1. Historic Funding Increases for Clean Energy
The budget includes $4.7 billion in regular-year funding for DOE’s Office of Energy Efficiency and Renewable Energy (EERE), a $2 billion (or 65%) increase from 2021. EERE houses the agency’s efforts focused on heavy industry, building decarbonization, clean transportation technologies, and renewable power. These programs are underfunded relative to the need for investment and the opportunity to build out domestic clean energy industries. The administration’s budget would give these programs a much-needed funding boost.
The budget also ramps up funding for other clean energy programs at DOE and establishes a new Advanced Research Projects Agency — Climate with initial funding of $500 million, of which $200 million is at DOE.
2. Demonstrations & Deployment to Round Out the Innovation Portfolio
The budget emphasizes funding for demonstration projects and deployment of climate solutions, a welcome pivot from the Trump DOE’s narrow focus on early-stage research and development. The new Office of Clean Energy Demonstrations, funded at $400 million, fills a critical gap in DOE’s efforts to commercialize newer, better clean energy technologies, reduce costs, and address barriers to widespread deployment. The $300 million for Build Back Better Challenge grants will help bring the benefits of clean energy to more communities. And the focus throughout the budget on research, development, demonstrations, and deployment will better equip DOE to accelerate clean energy innovation at the scale necessary.
3. Bringing Clean Energy to More Communities
DOE should play a critical role ensuring that more communities see the benefits of technologies like renewable energy, energy efficiency, and electric vehicles. Strong community engagement practices and funding for clean energy projects to benefit low-income, pollution-burdened, and energy transition communities and communities of color can help DOE meet these goals.
The budget includes several new programs to bring clean energy to more communities. For example, it proposes to prioritize the new Build Back Better Challenge grants for marginalized, overburdened, and energy transition communities. It also appears to expand the Weatherization Assistance Program — one of the only existing efforts focused on low-income communities — to enable more households to access funding for cost- and energy-saving retrofits, though the details on the expanded program are not yet clear.
The budget also indicates that EERE’s goal is to accelerate a just, equitable clean energy transition. This explicit focus, while just a start, is an important shift. Historically, EERE and most other offices at DOE have not been designed to support equity and environmental and energy justice.
4. Procurement and Funding to Decarbonize Heavy Industry
Technologies to clean up industrial facilities like steel mills and cement plants are critical to addressing the climate crisis. But these sectors have long been a major gap in DOE innovation efforts. The budget acknowledges that decarbonizing heavy industry should be a focus for both EERE and the Office of Fossil Energy and Carbon Management. This focus is a great first step toward building out a strong federal industrial sector program. As Congress turns the President’s proposals into a detailed appropriations bill, we hope to see large funding increases for the Advanced Manufacturing Office, funding for large-scale demonstrations at industrial facilities, and support for DOE to expand its heavy industry efforts to include electrification, hydrogen, circular economy measures, novel processes, and carbon capture and storage.
The budget also includes more details on the industrial-sector decarbonization efforts proposed in the American Jobs Plan, including, notably, funding to procure low-carbon materials. The federal government is a top purchaser of industrial products like steel and cement for the construction of roads, bridges, buildings and other projects. Government procurement is thus a critical lever in creating early markets and sustained demand for cleaner materials, alongside direct investments to help ensure U.S. industry is making the cleanest products on the market.
To better leverage procurement to drive innovation, the federal government should support efforts to create a reporting system that helps manufacturers account for all the carbon associated with producing a range of industrial products, and require that all construction projects receiving federal funds take climate pollution and labor protection into account when awarding contracts. We urge Congress to include funding in the FY22 budget for the federal government to support these priorities. Doing so will ensure we capture the significant emissions reduction opportunities associated with switching to lower-carbon materials in projects funded by the American Jobs Plan.
5. Support for State, Local, and Tribal Governments
Action from states and municipal governments is critical to meeting our climate goals; increasing clean energy; and driving adoption of innovative technologies, policies, and business models. Federal funding is necessary to support states and cities in these endeavors, but current programs lack the budget to meaningfully support them.
The budget proposes several new programs to support states and cities, including Build Back Better Challenge grants for states and a new Local Government Energy Program. The success of these programs will depend on the details, but it is promising to see new efforts to support states and cities in the budget. Moreover, these programs build on the block grant funding proposed in the American Jobs Plan to provide an influx of support for states to advance clean energy, building electrification, and efficiency.
The budget also includes funding increases to support tribal nations to advance clean energy. Households on tribal lands lack access to electricity at extremely high rates and often face high costs to connect to the electricity grid. The budget proposes a six-fold increase in funding for the Office of Indian Energy (a $100 million increase) to support American Indian and Alaskan Native nations, including to help address energy access and energy poverty.
Federal clean energy programs have already helped foster a revolution in technologies like solar panels, wind turbines, and electric vehicle batteries. Now, we have an opportunity to accelerate clean energy innovation to improve, demonstrate, and deploy the technologies and strategies we need to combat the climate crisis. With the right funding and policies, we can do so in a way that creates strong economic growth rooted in the industries of the future, addresses inequalities in our energy and economic systems, and cuts pollution in places that have borne the brunt of it in the past. President Biden’s energy budget is a major step toward realizing these goals, and Congress should pass a government funding bill that incorporates these proposals and brings the benefits of clean energy to communities across the country.
![Here's our first look at the Genesis GV70 EREV [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/10/First-Genesis-GV70-EREV.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Genesis is gearing up to introduce its first extended-range electric vehicle (EREV), the GV70. Ahead of its debut, the Genesis GV70 EREV was spotted in Korea, offering a closer look at the upcoming SUV.
Genesis prepares for its first EREV, the GV70
The luxury automaker is celebrating its 10th anniversary with a slate of new EVs, hybrids, and extended-range electric vehicles (EREVs) set to arrive over the next few years.
During its CEO Investor Day last month, Hyundai revealed plans to launch several new Genesis vehicles, including its first EREV.
First up will be the Genesis GV70 EREV, promising to deliver over 1,000 km (620 miles) of driving range. The electrified SUV will still run on a 100% electric motor, but a small gas engine acts as a generator to charge the battery when it becomes low, thereby extending the driving range.
Although the Genesis GV70 EREV isn’t due out for another year or so, we are already getting our first look at the new extended-range electric SUV.
The folks at HealerTV spotted the new vehicle parked in South Korea, giving us a better idea of what to expect when it arrives.
Although it’s still covered in camouflage, you can see it’s nearly identical to the current gas-powered GV70. At least from what we can see, the front and back ends look about the same.
We also got a sneak peek at the interior, which also appears to be essentially unchanged. Genesis just introduced an updated interior and exterior design on its current vehicle lineup, so no major changes are expected.
Since it’s still a prototype, the design could change by the time it hits the market, which is expected in December 2026.
Genesis will launch its first hybrid next year, the GV80 SUV, which is expected to be followed by the GV70 EREV later in the year. Following that, at least two new luxury SUVs will join the lineup, based on the Neolun (pictured on the left) and X Gran Equator concepts (pictured on the right).
The Neolun is expected to arrive as the Genesis GV90, an “ultra-luxe” flagship electric SUV, while the X Gran Equator will be an off-roader.
Genesis plans to expand into up to 20 European markets while boosting brand sales in the US with its new lineup. By 2030, the luxury brand aims to sell 350,000 vehicles globally.
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Austin-based Base Power just raised $1 billion in Series C funding to accelerate its mission to modernize the Texas grid, one home battery at a time.
Addition led the round, with support from existing and new investors. The fresh capital will help Base scale up operations, grow its team, and build out domestic manufacturing to meet surging demand for resilient, distributed home batteries.
Base Power is a licensed electricity provider operating in Texas’s deregulated electricity market, and it functions as a virtual power plant (VPP). Its model is simple but transformative: customers pay a monthly fee for energy, installation, and a home battery – no rooftop solar required. When the grid is up, Base’s networked batteries help stabilize it; when it goes down, the battery keeps the lights on at home.
“The chance to reinvent our power system comes once in a generation,” said Zach Dell, Base Power’s CEO and cofounder. “We’re scaling the team to make our abundant energy future a reality.”
In under two years, Base has already deployed more than 100 megawatt-hours (MWh) of residential battery capacity, making it one of the fastest-growing distributed energy platforms in the US. The company’s rapid growth has been fueled by organic customer demand, partnerships with major homebuilders like Lennar, and collaborations with forward-thinking utilities.
Base Power currently serves homeowners across the Dallas–Fort Worth, Houston, and Austin regions, and plans to expand nationwide. To support that growth, the company is building its first factory, an energy storage and power electronics manufacturing hub at the former Austin American-Statesman printing press site in downtown Austin.
The company also recently qualified for Texas’s Aggregated Distributed Energy Resource (ADER) program, which allows distributed batteries to participate directly in the grid market. That means extra reliability for the state and lower costs for customers through shared revenue from grid services.
“The only way to add capacity to the grid is by deploying hardware — and we need to make that here in the US, ourselves,” said Justin Lopas, Base’s COO and cofounder. “This factory in Austin is our first, and we’re already planning for our second. We’re building the tools and systems to reindustrialize America and reinvent the grid.”
Electrek’s Take
Texas’s grid struggles, from heatwaves to winter blackouts, make Base Power’s model timely. Linking home batteries to a virtual power plant offers home backup and grid support. (I was part of a VPP in Vermont, and I can’t stress enough how great it is, especially in power outages.)
With $1 billion in new funding and a planned Austin factory, Base aims to scale fast. For context, Tesla deployed over 31 GWh of storage in 2024, but that figure includes utility-scale Megapacks as well as residential Powerwalls because Tesla didn’t separate out the two in its report. Sunrun’s VPPs now include 20,000+ customers across nine states, and it supplies significant grid support in California. Base’s 100 MWh so far is much smaller, but as a licensed electricity provider, not just a technology platform, its focused Texas rollout and participation in the state’s ADER program could position it as a nimble challenger in the growing VPP space.
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GM is ending plans for a program that enabled its dealers to extend the $7,500 tax credit for new Chevy, GMC, and Cadillac EV leases beyond the September 30 deadline. Instead, it has another plan to keep the savings going.
GM ends $7,500 EV tax credit and plans its own savings
After the $7,500 federal tax credit for electric vehicles expired at the end of September, GM was among the automakers planning to extend the incentive through leasing.
That will no longer be the case after the automaker suddenly reversed its decision. According to Bloomberg, GM will not extend the credit for EVs that were in transit to dealers ahead of the September 30 deadline.
Instead, GM will provide about $6,000 from its own pockets for a limited time to continue supporting electric vehicle leases.
A company spokesperson confirmed that “GM worked on an extended offer for the benefit of our customers and dealers,” adding “After further consideration, we have decided not to claim the tax credit.”
The savings will last until the end of the month. The spokesperson said in an email that “GM will fund the incentive lease terms through the end of October.”
GM and Ford announced programs last week that involved buying EVs through their financing units, which would enable them to qualify for the $7,500 tax credit. The companies would then use the funds to extend the credit through leasing.
A source close to the matter told Reuters that GM decided to end the program after Republican Senator Bernie Moren urged the end of the loophole that enabled the $7,500 credit to be passed on through leasing.
The announcement comes after GM delivered a record of over 66,500 electric vehicles in the third quarter. Through September, GM sold 144,668 EVs, more than double the amount it sold in the same period in 2024.
The Chevy Equinox EV is now the best-selling non-Tesla EV in the US, while Cadillac ranked as the top luxury electric vehicle brand in Q3.
Ford, Jeep maker Stellantis, and BMW are still planning to extend the credit for those EV leases for at least another few months. GM was expected to extend the offer until the end of the year.
GM already has one of the most affordable EVs in the US with the Chevy Equinox EV starting at under $35,000. In 2026, it will face a wave of new lower-priced EVs, including the new Nissan LEAF, which will start at under $30,000. General Motors is betting on more affordable EVs, including the 2027 Chevy Bolt, to gain a bigger share of the market over the next few years.
Interested in testing out one of GM’s electric vehicles for yourself? From the Chevy Equinox EV to the Cadillac Escalade IQ, you can use our links below to see what’s available near you.
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