BIOMASS HUB

Stacy Feldman of Solve Climate reports that “the U.S. should act fast to build up the country’s manufacturing industry for renewable energy systems or risk losing green jobs to China and other low-wage nations, according to a new report by advocacy organization Apollo Alliance and Good Jobs First, a labor-oriented research group.”

The report (pdf) recommends fixing the nation’s renewable energy stimulus funding so recipients who relocate operations overseas are forced to repay their hefty government handouts.  According to the report:

If America continues to import 70 percent of the clean energy systems and component parts demanded by new investments in renewable energy, it stands to lose out on an estimated 100,000 manufacturing jobs between now and 2015, and potentially a quarter million manufacturing jobs by 2030.

The report is sure to give credence to calls on Capital Hill to reform provisions under the Recovery Act that are “stimulating” companies that are sending jobs overseas.

A key issue in the debate is the section 1603 grant under the American Recovery and Reinvestment Act, which currently applies to renewable energy projects, such as wind, solar, geothermal, and biomass, that are placed in service before 2011 or for which construction began in 2009 or 2010.  The credit acts as a key lifeline to the emerging renewable energy industry, which requires significant capital and time to build out specific projects.

Senator Schumer (D-NY) and the other sponsors are upset that a significant portion of the grants paid so far have gone to non-U.S. companies, citing a supposed dependence on foreign-made equipment as evidence that the program is not sound policy and should be limited to projects using American-made equipment and producing jobs in America (see Blood Boiling on Capital Hill). In its current form, if a project qualifies, the Treasury Department is required to pay the 1603 grant.  Senator Schumer’s proposal would make payment of the grant subject to the discretion of the Treasury Department.

Along with Sen. Arlen Specter (D-PA), the senators introduced a bill (S. 3069) that would put a “buy American” provision on all projects getting government money under section 1603.

More on the story here.

Image: Flickr/Thomas Hawk