Wind Energy Success Story at Risk with 54,000 American Jobs in the
Balance
Location: Washington, DC
Author: Ellen
Carey
Date: Friday, December 16, 2011
A new study released this week finds that with stable tax policy the
wind industry can create and save 54,000 American jobs in the next four
years, including growing the wind manufacturing sector by one third to
46,000 American manufacturing jobs. This will keep the wind sector on
track toward supporting the 500,000 jobs by 2030 projected in a report
by the U.S. Department of Energy during the George W. Bush
administration.
“We have made a significant investment during the last three years
creating several hundred jobs for the state of Illinois to support the
wind industry domestically”
The report completed by Navigant finds that if Congress allows the
Production Tax Credit (PTC) for wind to expire, jobs in the wind
industry will be cut in half, meaning a loss of 37,000 American jobs and
a one third cut to American wind manufacturing jobs, while private
investment in the industry would drop by nearly two thirds. Meanwhile,
extending the PTC will create 17,000 American jobs, Navigant finds.
“American manufacturing jobs are coming back, with tens of thousands of
new jobs from wind power,” said Denise Bode, CEO of the American Wind
Energy Association (AWEA). “But these jobs could vanish if Congress
allows the Production Tax Credit to expire, in effect enacting a
targeted tax increase, and sending our jobs to foreign countries.
Congress must act now to keep this American manufacturing success story
going.”
With the support of a stable PTC, wind energy is powering one of
America’s fastest growing manufacturing sectors. Over the last six
years, U.S. domestic production of wind turbine components has grown
12-fold to more than 400 facilities in 43 states, shifting manufacturing
jobs from overseas back to the U.S.
The Navigant study finds that wind energy’s geographically diverse
manufacturing base would spread job gains around the country. States
that would see significant job and private investment gains from a PTC
extension include Colorado, Texas, Iowa, Illinois, Pennsylvania,
California, Oregon, North Dakota and Ohio.
“We have made a significant investment during the last three years
creating several hundred jobs for the state of Illinois to support the
wind industry domestically,” said Terry R. Royer, CEO of Winergy Drive
Systems Corporation. “With the uncertainty of the PTC extension, we are
seeing the hesitation of our customers to make continued commitments for
orders in late 2012 and 2013. An immediate extension is needed to
support the investment we have made in our operations and secure the
jobs that have been created.”
But, with a job-killing tax increase on the horizon and the PTC's future
uncertain, businesses are hesitant to plan future US wind projects,
American manufacturers have seen a drop in orders, and layoffs have
already started. For the purposes of the American wind industry
manufacturing sector, which needs lead time to make its products, the
PTC effectively expires at the end of this year.
Bipartisan legislation recently introduced by Representatives Dave
Reichert (R, WA-08) and Earl Blumenauer (D, OR-03) seeks to grant a
four-year extension to the existing Production Tax Credit (PTC) for wind
energy (H.R. 3307, the “American Renewable Energy Production Tax Credit
Extension Act”). This legislation has garnered the support of 36
cosponsors including 11 Republicans.
This legislation recently received the endorsement of a broad, coalition
of more than 370 members, including the National Association of
Manufacturers, the American Farm Bureau Federation, the Edison Electric
Institute, the Western Governors’ Association, the United Steelworkers
and many members of the environmental community. A four-year PTC
extension also has the support of the bipartisan Governors’ Wind Energy
Coalition comprised of 23 Republican and Democrat Governors from across
the U.S.
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