The American Clean Energy and Security Act (H.R. 2454) passed June 29 by a vote of 219 to 212 in the U.S. House of Representatives could benefit alternative-energy development and reduce global warming pollution, according to its supporters.

Rep. Marcy Kaptur (D-Toledo) voted for H.R. 2454 after she succeeded in adding a key amendment that would create a new regional marketing authority with $3.26 billion in lending authority that could benefit the Great Lakes region.

Kaptur said the authority would be used to develop alternative energy sources and spur economic development in the Great Lakes region. The amendment also authorizes $25 million in fiscal year 2010 (starting Oct. 1, 2009) to implement its provisions.

“This amendment provides much needed regional equity. The federal government has been subsidizing infrastructure and economic development in other parts of the country since the New Deal. Now it’s our turn,” Kaptur said. “With the Midwest taking the brunt of the economic crisis, my priority was to bring our region additional tools to create jobs and promote energy independence.

“It’s a tough fight, but our voice is finally getting heard,” she said. “Our region’s economy is still struggling. We needed to level the playing field and have the federal government as a full partner.”

Opponents not convinced

However, not everyone is convinced that the benefits of the bill outweigh the costs and potential loss of jobs in the United States, according to opponents of H.R. 2454.

“The House of Representatives passed a bill that will establish the largest national energy tax in history and eliminate 2 million jobs across our country,” said Congressman Bob Latta (R-Bowling Green) in a statement about H.R. 2454. “I have firmly opposed cap and trade, also known as cap and tax, since the legislation was first introduced.”

Cap and trade, also known as emissions trading, is an administrative approach to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. The government would set a cap or limit on the amount of pollutant that can be emitted with companies being issued emission permits that would allow a specific amount of pollutants.

The goal is to steadily reduce carbon dioxide and other greenhouse gas emissions economy-wide in a cost-effective manner, according to the Center for American Progress. Initial estimates of the Congressional Budget Office project that such a cap and trade program could generate from $50 billion to $300 billion with 10 percent of that revenue to be allocated to help offset costs to affected industries.

Latta believes that under cap and trade, jobs will be shipped overseas where the United States already competes with countries such as China and India, who have lower energy, labor and manufacturing costs. China and India will continue to steal American jobs because they have made it clear that they will not follow any policy similar to cap and trade, Latta said.

“Cap and tax is bad for our small businesses, farmers, manufacturers and every American family. Americans deserve better policy from Congress,” Latta said.

During the congressional debate, House Republicans introduced the American Energy Act, which Latta co-sponsored. This legislation would immediately lower energy prices, create jobs and reduce our dependence on foreign sources of energy, specifically oil from the Middle East, Latta said.

Energy trust

The American Energy Act would create a Renewable and Alternative Energy Trust Fund to provide funding for energy programs authorized by federal law, including biomass, hydroelectric, clean coal, solar, wind, geothermal and other forms of renewable energy.

“To meet the demands of H.R. 2454 for a clean and secure energy future, the costs of generating that clean and secure energy must be competitive with fossil fuels,” said Robert Collins, UT professor and developer of photovoltaic technologies.

“The Wright Center for Photovoltaic (PV) Innovation and Commercialization is developing second and third generation PV technologies to meet these demands. This involves lowering the cost of thin film PV on glass, metal and polymer substrates through automated manufacturing and process development — technologies of considerable strength in Northwest Ohio — and the development of third generation materials that combine high efficiency and low cost,” Collins said.

Mark Erickson, COO of Buckeye Silicon, also said that cost effectiveness and energy-conversion efficiency will determine what solar materials or products will meet the requirements of the legislation.

Buckeye Silicon recently began operations in Toledo and is considering several sites in the area for a permanent location while operating out of the Center for Alternative Energy incubator at UT.

“The House passed the strongest measure in U.S. history to cut pollution while putting our economy back on track. It is time to diversify our energy resources and expand clean, pollution-free solar energy in the U.S.,” said Rhone Resch, CEO of the Solar Energy Industries Association.

“This bill will give more Americans the opportunity to install solar on their homes and businesses, spur development of utility-scale solar while creating tens of thousands of high-paying domestic jobs,” Resch said.

The development, production and installation of solar energy have grown substantially in this area. The Regional Growth Partnership estimated that nearly 10,000 employees working at firms in the Toledo region that contribute to photovoltaic and solar cell development and manufacturing by the end of 2008.

This entry was posted on Friday, July 3rd, 2009 at 12:00 am and is filed under Toledo Business Link.
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