Renewable Energy Solar Energy Wind Energy Geothermal Energy Bioenergy Hydropower

Senate Proposal Could Hurt US Wind Industry

March 4, 2010 | 11 Comments

Do you like this news?

Bookmark

Feed

Washington, D.C., United States [RenewableEnergyWorld.com] This week, U.S. Senator Chuck Schumer (D-NY) introduced legislation that, if passed, would restrict any renewable energy project that uses less than 100% U.S. made components from receiving tax payer subsidies and grants.

The proposed moratorium and legislation would kill this effort and destroy the momentum for one of the few industries that has been creating jobs and economic growth.

The proposal is a reaction to the 600-megawatt (MW) wind farm that is being developed in Texas by China's Shenyang Power Group, Texas-based Cielo Wind Power and the U.S. Renewable Energy Group applying for a stimulus grant.

Schumer and cosponsors Sens. Sherrod Brown (D-OH), Bob Casey (D-PA) and Jon Tester (D-MT) also wrote to Treasury Secretary Timothy Geithner asking him to stop all grant payments from the ARRA until the "loophole" allowing foreign companies to apply for funding could be closed. The Senators also said that of the US $2 billion in program funds that have already been spent, 79% has gone to creating jobs overseas.

The wind industry has recieved most of this $2 billion, and the American Wind Energy Association (AWEA) struck a defiant tone in its opposition to Schumer's proposal.

“At a time when the construction unemployment rate is nearly 25% and the manufacturing unemployment rate is 13%, this proposal would cost 50,000 American workers their jobs. The truth is, by law, Recovery Act grants can only be used to finance projects that are being built in the United States. This proposal would torpedo one of the most successful job creation efforts of the Recovery Act, which has already preserved half of the 85,000 American jobs in the U.S. wind industry," said Denise Bode, AWEA's CEO. "Rather than adopt policies that will kill American jobs, Congress should enact policies that will create jobs by encouraging manufacturers to invest in U.S. plants."

The Recovery Act has been creating jobs by helping finance new U.S. wind energy projects that have broken ground or been completed since the Act was passed.

AWEA also said that Schumer and his allies are using flawed data to justify the move. More than half of the value of wind turbines used in U.S. wind projects is domestically produced, and that percentage is increasing every year as more turbine makers build U.S. manufacturing capability according to AWEA's numbers.

Bode also said that the proposed moratorium and legislation would kill this effort and destroy the momentum for one of the few industries that has been creating jobs and economic growth.

Wind Power

11 Reader Comments

Comment
1 of 11

Anonymous

March 4, 2010

Let's get this on the right track so we can limit subsidies to 25% to foriegn companies.

Comment
2 of 11

mike-holly-17241

March 4, 2010

This legislation is so ridiculous on so many levels I don't even have the time to list all the reasons: make renewable projects impossible for small business (whose funding sources have already been decimated by the bailouts), anti-competitive, protectionism, start of a trade war, kill economic growth, start a depression, etc. etc. Just go away Schumer!

Comment
3 of 11

HarrieldTeague

March 5, 2010

us land, us built, us owened, us shearholders, us labor

Comment
4 of 11

peter-denholm-171603

March 5, 2010

Some of our leaders decided that competition will produce the best America. I think this is true about our technical infrastructure. And with this competition that has been allowed for some time now, I think 99% of our products have some parts made over seas. So let the Chinese generators go in. I think there is enough energy business for all of us. General Electric will not be hurt by this. We never have enough energy so lets go with it, and stop the fighting.

If the Chinese generators are not the quality we want for energy generation, they may fail and be removed later. Or if they are selling too low, we can put tariffs on them, which probably is what happened already.

Is the coal industry influencing this legislation, they still want all of the energy business. We do have 1,000 years coal reserves in the world today. But judging from the rate of growth in the world, I think we need it all, coal, wind, geothermal, solar.....I don't see a competition between energy sources, but competition between ideas and egos.

Comment
5 of 11

reginald-cook-136378

March 5, 2010

The Chinese require that 85% of wind turbine content installed in China be manufactured locally, thus forcing wind turbine manufacturers to manufacture with Chinese labor. This provision also guarantees the emergence of Chinese wind turbine companies at scale, from which they can emerge into the worldl market. This is how Syenyang achieved the scale to get here.. How the AWEA's support for policies giving Chinese companies, born in an 85% local content environment, access to US stimulus funds to be in America's best interest is beyond me. Then there is the little matter of Chinese currency manipiulation, which give them another 50% advantage. Fronting for foreign jobs/technology a la AWEA is what has gotten us into the dire economic straits we are now in.

Comment
6 of 11

douglas-prince-175356

March 5, 2010

Anonymous and Reginald are on the right track here. Give them 25%, maybe 20%, in subsidies, and ONLY on construction. Nothing on development, O&M, labor, or material upgrades. Create jobs that create product in this country. And these are not small businesses we're talking about. These are huge multi-nationals. How the hell else did they get to our shores? Subsidize American-owned and operated small biz all you want, but when these big boys start wading ashore, pull back those funds.

Comment
7 of 11

raymond-x-nolan-74997

March 5, 2010

Hey guys & girls,
I'm an independant wind energy developer in the USA. If I'm lucky enough to get the right location with the right commercial grade wind energy bursting out all over the place I'll be using which ever manufacturer has the right price and the right terms and conditions for the sale of their commercial wind products. If an out of the country price is lowest, I'll show it to one or many american manufacturers and tell them that if they can match or beat that price I'll do business with them. If they make it worthwile, I'll go with them. I think the term used is "horse trading" when you get down to it. Ray

Comment
8 of 11

Green-Builder-Scotty

March 7, 2010

The typical Chinese foundries producing the same parts produce 20 times
more particulates and nearly 35 times more carbon monoxide than
foundries in the US. In fact, China is now the largest source
of both sulfur dioxide (SO2) and carbon dioxide (CO2) in the world Found at:http://stlouisrenewableenergy.blogspot.com/search?updated-min=2009-01-01

Build Green,Support the Place you Live: Buy American made Products
Scotty, St Louis "Renewable Energy" Missouri http://www.stlouisrenewableenergy.com

Comment
9 of 11

john-dye-169531

March 8, 2010

Lowest price should not be the only consideration, particularly for energy projects that purport to be "green." But it seems that Shumer is using a hammer where a lever and clear instructions are needed.

Comment
10 of 11

Sail-34

March 9, 2010

Why should we go deeper into debt for China to make a profit? The middle man gets richer too, shame on you at tax payer expense. We are killing our auto industry, our manufacturing industry by going low quality, high quantity while penalizing our industry with EPA laws, good laws. Lets be totally fair and US industry will win. Agree with most up there - Max 15 - 25% foreign produced with subsidity money. The idea is to develope OUR industry and jobs, not China's. Comply with "Buy American" LAWS!!!!! GE makes good turbines, they are US are fas as I know.

Comment
11 of 11

feeltheenergy

March 10, 2010

for me as someone who lives in europe it seems like an reverse tactic too the buy chinese stipulation some months ago. And this from the country who said recent times before that the market will be the decision maker.
In Germany is the second biggest player in wind from Denmark and it is good cause other companies have to do more and be better than them and let quality and not the country where the companies come from make the the decision. GE is and will be the biggest player in the US and also make big business in germany because of the quality. And all companys create thousands of jobs and no one talks from which country they coming from.
Maybee the states should looking too Canada and their programme, where the turbine makers must work together with local companies. This seems to be an good way for all.

Add Your Comment

Registered users, please make sure to Sign-In. We and others want to know your ideas and opinions. If you are not yet Registered -- it's quick and easy. Just click below.
Thanks!