Senate Finance Committee Includes Green Jobs, Renewables In Stimulus Package
- the renewable electricity production credit
- solar, fuel cell, and microturbine credits
- energy-efficient building deductions and credits;
- the high-efficiency appliances manufacturing credit
- stripper well depreciation credit
- energy-efficient home retrofitting credit
Full details are available here.
Last Friday, 33 senators sent a letter to the Committee leadership urging support for renewable energy, energy efficiency, and green jobs incentives.
According to the Sierra Club, by today the number of Senators was up to forty:Senators who have expressed support for the inclusion of the renewable energy incentives include: Cantwell, Snowe, Wyden, Smith, Klobuchar, Kerry, Sununu, Sanders, Dole, Boxer, Johnson, Allard, Salazar, Mikulski, Stabenow, Murray, Dorgan, Brown, Bayh, Clinton, Collins, Specter, Menendez, Thune, Feingold, Dodd, Levin, Obama, Brownback, Coleman, Murkowski, Feinstein, Schumer, Stevens, Lautenberg, Leahy, Akaka, Kohl, Roberts, Grassley, Bingaman, and Domenici.
The Economic Stimulus Act of 2008
Modification Energy Package part of package passed by committee.
| Provision | Approx Cost (billions) |
| PTC (Sec. 45) | 3.0 |
| Solar (residential & business, including fuel cells, microturbines) | 0.13 |
| CREBs ($400m allocation) | 0.2 |
| Commercial buildings | 0.15 |
| Efficient homes (new) | 0.06 |
| (exp. 12/07) Efficient homes (existing) | 1.5 |
| (exp. 12/07) Efficient appliances | 0.32 |
| Percentage Depletion (marginal wells and stripper wells) | 0.25 |
| TOTAL | 5.57 |
1. Production Tax Credit (Section 45). Extends placed-in-service deadline for qualifying electric generating facilities (wind, biomass, geothermal, etc.) for one year. Estimated cost is $3b/10.
2. Solar, fuel cell, microturbine credits (Sections 48 and 25D). Extends Section 48 (30% investment credit for solar and fuel cell property, 10% credit for microturbines) and Section 25D residential solar credit for one year. Cost is approx. $130m/10.
3. Clean Renewable Energy Bonds (CREBs). Provides $400m in new CREBs issuance, at estimated cost of $206m/10.
4. Appliances Manufacturer Credit. Extends manufacturer credit for high-efficiency appliances for two years through 2009, at cost of approximately $323m/10.
5. Energy-Efficient Existing Homes. Extends 10% investment tax credit for energy-efficient home retrofits (windows, heating and cooling equipment, etc.) through 2009, at estimated cost of $1.5b/10.
6. Energy-efficient Commercial Buildings: Extends deduction for energy-efficient commercial buildings for one year, at estimated cost of $153m/10.
7. Energy-efficient New Homes. Extends credit for energy-efficient new homes for one year, at estimated cost of $61m/10.
8. Percentage depletion for marginal wells. Extends suspension on the taxable income limit for purposes of depreciating a marginal oil or gas well through 2009, at estimated cost of $247m/10.
ASES: One in Four U.S. Jobs Could Be in Green Sector by 2030
The American Solar Energy Society unveiled a new report today in a briefing with Sen. Ken Salazar that says that 40 million U.S. jobs by 2030 in renewable energy and energy-efficiency (RE&EE) could be created if policymakers commit to growing the sector.
If U.S. policymakers aggressively commit to programs that support the sustained orderly development of RE&EE, the news gets even better. According to research conducted by the American Solar Energy Society (ASES) and Management Information Services, Inc. (MISI), the renewable energy and energy efficiency industry could—in a crash effort—generate up to $4.5 trillion in revenue in the United States and create 40 million new jobs by the year 2030. These 40 million jobs would represent nearly one out of every four jobs in 2030, and many would be jobs that could not easily be outsourced.
Continue reading for more excerpts.
Germany has about one-fourth the gross domestic product and population of the U.S., but has more RE jobs (214,000 vs. 194,000). RE employment in Germany has increased 36 percent in two years. We don’t even know how much RE employment has increased in the United States, because—until now—no one has estimated actual RE employment.
Despite some job losses, the net effect within a carbon-constrained energy economy is positive, creating roughly five jobs for each job lost. Because unionization rates are higher on average in more energy-intensive industries, the positive effect on union jobs is not as strong, but it is still true that four union jobs are created for every three lost.
A second implication of these results is the importance of revenue recycling. Much of the negative impact of carbon/energy taxes is based on the assumption that the revenue will not be recycled through cuts in other taxes. It is critical, therefore, that the pricing policy be accomplished either by permits that are sold or by energy taxes, not through permits that are given away to industries at no cost (i.e., “grandfathered” to existing companies).
If we fail to invest in RE&EE, the United States runs the risk of losing ground to international RE&EE programs and industries. If we refuse to address policy and regulatory barriers to the sustained, orderly development of the RE&EE industry, other countries will take the lead and reap the economic and environmental benefits. For the United States to be competitive in a carbon-constrained world, the RE&EE industry will be a critical economic driver.
Green Collar Jobs: Why Renewable Energy and Energy Efficiency are Economic Powerhouses
The Environmental and Energy Study Institute (EESI) and the American Solar Energy Society (ASES) invite you to a briefing at which a groundbreaking new report will be released entitled Renewable Energy and Energy Efficiency: Economic Drivers for the 21st Century. This report from ASES is the nation’s first comprehensive study of the tremendous economic impact of these industries. It aims to answer the questions: how big are the renewable energy and energy efficiency industries and how large are they forecasted to grow? How many jobs and what types of jobs do they create? What are the economic development implications? The briefing will address these questions, as well as provide a special case study, and explore the important policy implications of this powerful research.
Speakers- Sen. Ken Salazar, (D-CO), Member, Senate Energy and Natural Resources, Agriculture, Nutrition and Forestry, and Finance Committees
- Brad Collins, Executive Director, American Solar Energy Society
- Drew McCracken, Director, Washington Office of the State of Ohio
- Roger Bezdek, Ph.D, President, Management Information Services, Inc.
While policymakers consider how to tackle climate change and energy policy, the study to be released shows that renewable energy and energy efficiency can offer the economic opportunity of the century – but only if we take advantage of this huge opportunity. Today, these industries generate 8.5 million jobs and nearly $1 trillion in annual revenue in the United States, and they contain some of the fastest growing sectors in the economy. Among the study’s findings are: if the country fails to invest in renewable energy and energy efficiency, it runs the risk of losing ground to global competitors. If policy and regulatory barriers to the sustained development of the industry are not addressed now, other countries like Germany, Denmark, and China will take the lead and reap the economic benefits. However, this new report also illustrates the tremendous opportunity for the United States to harvest these green collar jobs and how these industries, with the correct support, are poised to be economic powerhouses for the 21st century.
This briefing is free and open to the public. No RSVP required. For more information, contact Neal Lurie at the American Solar Energy Society at nlurie@ases.org or 303.443.3130×105 or Leanne Lamusga- EESI, llamusga@eesi.org or 202-662-1884.
The efficacy of the domestic energy industry, focusing on its available workforce to meet our nation's growing needs
The purpose of the hearing is to receive testimony on whether domestic energy industry will have the available workforce – crafts and professional – to meet our nation’s growing energy needs and if gaps exist, what policies the Congress should take to address these gaps.
Panel 1- Ms. Emily DeRocco, Department of Labor
- Ms. Patricia Hoffman, Department of Energy
- Ms. Andra Cornelius, Workforce Florida
- Mr. Norm Szydlowski, Colonial Pipeline
- Mr. Paul Bowers, Southern Company
- Dr. Ray Stults, National Renewable Energy Laboratory
- Ms. Carol Berrigan, Nuclear Energy Institute
- Mr. Jim Hunter, International Brotherhood of Electrical Workers
Climate Youth Invade Capitol
© 2007 Ben Wikler
The youth activists introduced the 1Sky platform and asked for a commitment to the goals of making green jobs, strong emissions cuts, and no new coal top climate legislation priorities. They also called for 100% auction of pollution permits, and for an energy bill with the Senate 35 MPG standard, the House renewable energy standard, the Green Jobs Act, and no coal or nuclear subsidies.
Youth and Climate Change
On Monday thousands of young energy and climate leaders will descend on Capitol Hill to send a message to Congress: we must pass the energy bill before Congress (HR 3221) so we can begin the transition towards a cleaner, safer, more prosperous future without oil dependence or global warming.
The day of events starts with several of these leaders appearing before Chairman Edward J. Markey and the Select Committee on Energy Independence and Global Warming. Chairman Markey and those testifying will then travel to the West Lawn of the Capitol to meet thousands of supporters who will call for more green jobs, more renewable energy, and higher fuel economy standards, among other clean energy measures.
Congress is currently considering energy legislation that would raise fuel economy standards for America’s vehicles to 35 miles per gallon by 2020, increase the use of renewable energy, and create millions of new “green collar” jobs.
Witnesses- Billy Parish, Energy Action Coalition
- Brittany R. Cochran, Environmental Justice and Climate Change Initiative
- Cheryl Lockwood, Alaska Youth for Environmental Action
- Katelyn McCormick, Students Promoting Environmental Students
- Mike Reagan, California PIRG
Green Collar Jobs: Building a Just and Sustainable Economy
- Carleton Brown CEO, Full Spectrum, LLC
- Majora Carter Executive Director, Sustainable South Bronx
- Sadhu Johnston Chief Environmental Officer, City of Chicago
- Van Jones, President and Founder, Ella Baker Center for Human Rights
- Bracken Hendricks, Senior Fellow, Center for American Progress
A new wave of green investment is sweeping our nation’s cities, driven by policies from green building laws, to renewable energy standards, to the mayors’ climate pledges. Reorienting our antiquated urban and energy infrastructure around the platforms of efficiency, sustainability and reduced greenhouse gas emissions represents perhaps the preeminent engine for innovation, job creation, and economic productivity growth in coming decades. While federal policy remains in a stalemate, America’s cities are taking the lead in promoting a cleaner and more secure energy future – seizing the enormous opportunity afforded by the exploding “green” economic sector to rebuild communities, regional economies, and people’s lives.
With billions of dollars poised to flow into cities in the form of green investment, a movement is growing to ensure that the new green economy builds local businesses and creates good jobs for those who need them most. The question people are asking is: “who will get the green jobs of the future?” Around the country, cutting edge businesses, community activists, and forward-thinking elected officials are making good on the promise of green cities to expand economic opportunity and build career ladders into family-supporting green jobs with living wages.
This panel of national experts on “green collar jobs” and environmentally-oriented economic development comes at a critical moment for our city and our nation, as we grapple with how to leverage emerging policies on green building, clean energy, waterfront restoration, and climate change as an opportunity to reinvest in jobs, skills, and local businesses, even as we rebuild our neighborhoods and restore aging infrastructure. These experts will tell their concrete stories of how community groups, developers, and city governments are forging a better path forward into a green, equitable, and prosperous economy.
9:00am to 10:30am Admission is free.
A light breakfast will be served.
Center for American Progress 1333 H St. NW, 10th Floor Washington, DC 20005 Map & Directions
Nearest Metro: Blue/Orange Line to McPherson Square or Red Line to Metro Center
For more information, please call 202.682.1611.
Biographies
Carleton Brown is founding partner and Chief Operating Officer of Full Spectrum of NY. He oversees the development and deployment of high performance and sustainable building technologies and strategies in Full Spectrum’s developments and insures that all projects meet appropriate performance and quality standards. Based on a belief that all communities regardless of race, ethnicity or income are entitled to a sustainable future, Mr. Brown and his team have become market leaders throughout the US in restructuring urban investment to create green, economically sustainable and equitable urban habits that value cultural diversity. Carlton Brown is a 1973 graduate of Princeton University – School of Architecture and Urban Planning. He has served on numerous business and governmental boards, and is currently a member of NYC Mayor Bloomberg’s Sustainability Advisory Board.
Majora Carter is connecting poverty alleviation & the environment in ways that benefit both concerns, demonstrating Clean-Tech solutions for our most persistent urban public health & global climate concerns. By creating positive physical environments, demonstrating cool and green roof technologies, working to replace an under-utilized expressway with local-value driven development, and the Bronx Environmental Stewardship Training program, she is creating a skilled green-collar workforce with personal & economic stakes in their urban environment. Majora was born, raised, and continues to live & work in the South Bronx, an environmentally challenged community. She founded Sustainable South Bronx in 2001 to fight for Environmental Justice through innovative, economically sustainable projects that are informed by community needs. She earned a 2005 MacArthur Fellowship for her vision, drive, and tenacity as an urban revitalization strategist; and in 2007 was named one of Newsweek’s “Who’s Next in 2007”, NY Post’s 50 most influential women in New York City, Vibe Magazine’s New Power Generation, and awarded the National Audubon Society’s Rachel Carson Award.
Sadhu Johnston is Chief Environmental Officer for the Mayor’s Office in the City of Chicago. As Mayor Richard M. Daley’s Chief Environmental Officer, Johnston is responsible for oversight of all City of Chicago environmental initiatives, helping to implement Mayor Daley’s commitment to green economic development. Prior to serving in this capacity, Johnston served as the Commissioner of the City of Chicago Department of Environment (DOE). He was appointed by Mayor Richard M. Daley in July of 2005 after serving as the Assistant to the Mayor for Green Initiatives. His responsibilities as commissioner included the overall management of the Department of the Environment, which administers programs to protect and restore Chicago’s natural resources, reduce waste, clean up brownfields, promote energy efficiency and reliability, educate the public about environmental issues, and enforce the City’s environmental protection laws. Prior to working for the City of Chicago, Sadhu served as the Executive Director of the Cleveland Green Building Coalition. Sadhu is quoted as saying “My role is to bring the department of environment into each department.”
Van Jones is working to combine solutions to America’s two biggest problems: social inequality and environmental destruction. Van co-founded the Ella Baker Center for Human Rights, which is now headquartered in Oakland, California. In June 2007, the City of Oakland adopted a proposal from the Ella Baker Center and the Oakland Apollo Alliance to create a “Green Jobs Corps” to train youth for eco-friendly “green-collar jobs.” Now the Center is working with the Business Alliance for Local Living Economies (BALLE) to create the country’s first-ever Green Enterprise Zone, to attract environmentally sound industry to Oakland. At the national level, Van and the Ella Baker Center helped to pass the Green Jobs Act of 2007, as Title 1 of the U.S. House energy package. When signed and authorized, this path-breaking, historic legislation will provide $125 million in funding to train 35,000 people a year in “green-collar jobs.” Van is also the founding president of “Green For All,” a national campaign for green-collar jobs and opportunities.
Bracken Hendricks is a Senior Fellow with the Center for American Progress where he works on the issues of climate change and energy independence, green jobs, infrastructure investment, and economic policy, with a focus on broadening progressive constituencies and message framing. Bracken was the founding Executive Director and is currently a National Steering Committee member of the Apollo Alliance for good jobs and energy independence, a coalition of labor, environmental, business and community leaders dedicated to changing the politics of energy independence. Hendricks served as a Consultant to the Office of the President of the AFL-CIO and as an Economic Analyst with the AFL-CIO Working for America Institute. He has been a member of Pennsylvania Governor Ed Rendell’s Energy Advisory Task Force, the Cornell University Eco-Industrial Round Table, and the Energy Future Coalition. He is also a philanthropic advisor to the Wallace Global Fund on matters of Civic Engagement and Democratic Participation. Hendricks serves on the board of Green HOME, a Washington DC based non-profit promoting green building in affordable housing.
Green jobs created by global warming initiatives 2
- Sigmar Gabriel, Federal Minister for the Environment, Nature Conservation and Nuclear Safety, Germany
- Congressman Richard K. Armey PhD, Chairman, FreedomWorks
- Jerome Ringo, President, Apollo Alliance
- Dr. Wayne Winegarden, Partner, Arduin, Laffer & Moore Econometrics
- Carol L. Berrigan, Director, Industry Infrastructure, Nuclear Energy Institute
- Vinod Khosla, Founder, Khosla Ventures
- Daniel Kammen, Director of the Renewable and Appropriate Energy Laboratory, University of California, Berkeley
- Dr. Kenneth Green, Visiting Fellow, American Enterprise Institute for Public Policy Research
- David Blittersdorf, Founder, NRG Systems, Inc.
- Mark Culpepper, Vice President of Strategic Marketing, SunEdison
- Donald Gilligan, President, National Association of Energy Service Companies
- Paul Renfrow, Vice President, OGE Energy Corp.
- Dorothy Rothrock, V.P. Government Relations, California Manufacturers & Technology Association
2:22 PM Armey Environmental regulations would probably create shift from the private sector where freedom reigns to the public sector where command and control reigns. Whatever we do with concerns for the environment relates to energy, electricity, fossil fuel energy. These are among the highest linkage factors in the economy. There will be reduced output and reduced job opportunities. I found myself going back to Armey’s Axiom Number One: the free market is rational, the government is dumb. The market has a history that leads people to best utilize and effectively conserves resources. Government policy generally leads you in exactly the opposite direction. Look at how dramatically obscene agriculture policy is.
2:28 PM Boxer One of my most famous constituents is here. Dick talked about the private sector and capitalism, a perfect introduction to Vinod Khosla. Tell us what you think we should be doing with global warming.
Khosla I come before you not to make an environmental case but an economic one. I believe climate change legislation is good for our economy and our national security. I believe in free markets in a level playing field. We need to start mitigating our risks. We spend over $300 billion on oil imports. Should we spend more money lining the pockets of Hugo Chavez and those who fund terrorism? The uncertainty around climate change legislation is hurting the US economy. Delayed investment, job creation reduce our competitiveness. Solar CIP creates 20 times as many jobs as a coal-fired plant.
2:35 PM Ringo I’d like to suggest seven investment priorities. 1) Clean R&D, such as power storage. Solar PV were invented in the US but commercialized and built abroad. 2) Early commercialization of new technologies. 3) Congress needs to provide market certainty to renewable energy producers. 4) Incentives for clean energy components. 5) Green building retrofitting. 6) Carbon-cap policy must level the playing field to apply to importers. 7) Education and training initiatives. From Iraq to New Orleans, the tragic consequences of our excessive dependence on fossil fuels is driven home every day.
2:41 Winegarden I examined the impact of cap-and-trade on the US economy. Cap-and-trade legislation creates a few green jobs but destroys more jobs. Fossil fuels currently account for 86% of our energy consumption. In the short term, limiting greenhouse emissions only by limiting energy supplies. Energy supply shocks caused a 2% reduction in the US economy. Regardless of one’s position on the climate change consensus, cap-and-trade is an inferior price instrument. Price volatility decreases economic efficiency. Failure to achieve universality greatly reduces its environmental impact but the economic impact will remain the same. Dow Chemical and the aluminum industry have been moving industry out of countries with higher energy costs. The costs of reducing carbon emissions are by no means trivial. Cap-and-trade is wrong. However, if appropriately constructed, a policy with a carbon tax and a reduction in marginal income tax rates would be good.
2:46 Berrigan Any credible program to reduce greenhouse gases must include nuclear energy.
2:52 Sanders My impression is that you’re creating many small-business capitalists by allowing people to sell solar power back into the grid.
Gabriel Thousands of new jobs are being created in East Germany by companies including American companies creating solar wafers. You have the right to put the energy you produce back into the German grid. You get money for your energy production.
Sanders How many homes have this arrangement?
Gabriel Some hundred thousand. It’s a growing number. Some use geothermal, some use photovoltaic, some use wind.
2:58 Inhofe Dick, Dingell has proposed a gas tax. I’m not in favor of it. I think it’s a more honest way of doing it, not a cap-and-trade system.
Armey The early research in economic externalities was really part of the government’s failure to establish the proprietorship of the environment. I like about the Dingell proposal is that it sets a price. Cape Wind is clearly a governmental NIMBY problem. Same with nuclear. It is because of government regulation we’ve never developed the low-sulfur coal, in fact putting them into parks. The market encourages the genius of the private sector. The problem with cap and trade is where do you make the initial allocation? I say give them to Medicare. Let Medicare peddle them to the private sector. My guess is politicians will decide who are our best friends, for a politically defined redistribution of the wealth.
Inhofe Isn’t a carbon tax more honest than cap and trade?
Winegarden Absolutely. Taxes are a negative incentive. They need to be balanced out by a positive incentive by cutting marginal tax rates.
Los Angeles Global Warming Forum: Local Challenges and Opportunities
The 2007 Los Angeles Global Warming Forum will take place Thursday, August 16th at Cal State LA from 9:00am – 3:00pm.
Participants at the forum, which is being organized in collaboration with California State University, Los Angeles, will discuss the impacts of global warming on local resources, highlight local and regional initiatives to mitigate impacts, and discuss economic opportunities associated with taking action to improve energy efficiency. Also, exhibitors will display new energy efficiency strategies and new technologies at an expo.
On August 2nd, the House passed The Green Jobs Act of 2007, legislation introduced by Solis to invest in work force training for the green economy. The bill was passed as part of the House Democratic leadership’s energy reform bill – H.R. 3221, the New Direction for Energy Independence, National Security, and Consumer Protection Act.
Cal State University, Los Angeles Golden Eagle Ballroom (3rd floor) 5151 State University Drive, Los Angeles, CA 90032
- Congresswoman Hilda L. Solis (CA-32), member of the House Select Committee on Energy Independence and Global Warming
- Former Assemblywoman Fran Pavley
- Mayor of Long Beach, Bob Foster
- Van Jones, director of the Ella Baker Center for Human Rights
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