Local Opinion: Inflation Reduction Act offers a road beyond price volatility

Russia’s invasion of Ukraine made it clear that the U.S. energy economy is not immune to outside influence. Putin has weaponized energy, and getting prices under control for consumers will require getting on a safer path by investing in domestic solutions and clean energy innovation.

Whether in Ukraine, Iran, or Venezuela, geopolitical uncertainty half a world away has led to gasoline price spikes in Arizona and nationwide. The reality is the price of oil is set on the world market, so we’ll always be vulnerable to price spikes. Since last year, oil prices increased more than 65% and gas surpassed an unprecedented average price of $5 per gallon. While prices have recently fallen from this peak, Americans are still hurting at the pump and need relief.

The newly-announced Inflation Reduction Act from Sens. Chuck Schumer and Joe Manchin provides that very relief for consumers. We need Sens. Kyrsten Sinema and Mark Kelly to support this package.

The high inflation rate hurts Arizona families and our state’s economy. Fortunately, incentives for electric vehicles (EV) could eliminate by 2027 as much oil demand as the U.S. imported from Russia last year. The Inflation Reduction Act extends EV tax credits for 10 years and provides incentives for domestic manufacturing, assembly, and processing of these vehicles and the batteries that power them.

It’s time we declare our independence from world oil markets. We need to invest in American-produced clean energy and Arizona can drive this shift.

Our Tucson-based company, Ampcera Inc., is an innovator of leading technologies for solid state electrolytes, which are a core component of next generation batteries, such as solid-state batteries. Our technology helps make batteries in EVs safer, more efficient and more stable, to enable drivers to get more mileage out of every charge.

As co-founder and CEO of Ampcera, I envision a safer path forward in energy and transportation. Innovations like ours are critical to making EVs more economical and faster to charge, so more families can finally get away from the pain at the pump. While all industries face supply chain challenges right now, innovations are helping address that problem with homegrown high-tech materials made right here in Arizona.

Arizona, along with other mountain states, is experiencing the highest rate of inflation in the country, as Arizona businesses and consumers struggle to deal with escalating costs, including gas prices that exceed the national average.

The Inflation Reduction Act provides $369 billion in investments to speed up the transition to a clean energy economy and save Arizona consumers significant amounts annually. Moody’s reports investments of this scale will ease long-term inflation through job creation and reduced energy costs. Rocky Mountain Institute projects clean energy tax credits similar to those in this package would reduce utility bills $5 billion by 2024, and Rhodium Group estimates these policies would reduce energy costs 12-14% for households by 2030.

The bottom line is that these investments are anti-inflationary.

Passing this package matters even more with jobs on the line. Over 3,000 jobs in Arizona are related to EVs, in addition to almost 5,000 jobs in manufacturing and servicing zero-emission trucks and buses. The Inflation Reduction Act can help us pick up speed and show the country that Arizona is one of the best places to manufacture, make, and drive an EV.

Arizona’s clean energy and manufacturing businesses have benefited from Sens. Sinema and Kelly’s leadership, especially in driving the Bipartisan Infrastructure Law forward last year. Our senators know we can’t stand by while geopolitical crises wreak havoc on our economy. A vote to send the Inflation Reduction Act to the president’s desk is what Arizonans need right now to lower prices, boost energy efficiency, and accelerate EV deployment.

Arizona families and businesses need relief, and we need it now.