US falters in clean energy race
Renewable energy loans were revoked by US lawmakers on Tuesday as a result of financial difficulties at the state level.
Last Tuesday, US President Barak Obama and the House of Representatives approved a USD$26.1 billion emergency funding bill which removed 'guaranteed loan' funding from clean energy programs.
This election-year has seen continuing legislative debates over state funding. State democrats, facing a need for budget cuts coinciding with November's re-elections, initiated emergency funding legislation designed to help them preserve the jobs of thousands of teachers, police and firefighters. The filibuster ended when the legislation was finally passed.
This move marks a reverse in renewable energy policy. Just last month, Obama had guaranteed loans amounting to US$1.85 billion to two new solar companies, Abengoa Sola and Abound Solar Manufacturing, under the US Recovery Act. The loan guarantees for Abound Solar manufacturing would have provided 5,000 construction jobs in Colorado and 280 megawatts of renewable energy.
"Already, I've seen the payoff from these investments," Obama said. "I've seen once-shuttered factories humming with new workers who are building solar panels and wind turbines; rolling up their sleeves to help America win the race for the clean energy economy."
Clean energy funding has been cut before. Funding was decreased one year ago by US$2 billion to help pay for an automobile recycling initiative. In addition, the Senate has stalled legislation to tax carbon emissions and set a renewable electricity standard.
Renewable energy groups responded to the funding cuts by sending letters to legislators. Rhone Resch, the president and CEO of the Solar Energy Industries Association (SEIA) wrote Obama on Monday. In the letter he stated that the cuts could cause many fledgling solar businesses to collapse, and be sent 'into a tailspin that will be difficult to reverse'.
Several Democratic members of the Senate have criticized the decision, including former US Vice President Al Gore. Gore accused the president of making an incorrect assessment of the importance of renewable energy. A joint letter by many heads of solar and wind industry associations was sent to house speaker Nancy Pelosi late last week to which she responded that there are parts of the bill which she didn't support and which she hopes can be amended. "I hope we can make that up in another way", she stated.
A spokeswoman for the SEIA has announced that the organization will lobby for the cuts to be reversed next autumn when Congress is in session.
The cuts have led many energy experts to warn that the US will fall far behind other countries in developing clean energy wind, solar, and biofuels. US Commerce Secretary Gary Locke said on Saturday,
"There's too much capital sitting on the sidelines for lack of an energy policy. The longer we wait, the more that others, whether it's China, Germany and other countries, will be moving ahead."
Author: Cristina Brooks | Climate Action
Image: Dave Dugdale Solardave.com | Flickr
