The Apollo Alliance And a Clean Energy Economy

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The Apollo Alliance And a Clean Energy Economy

Last week, the Apollo Alliance  was thinking about what would it look like if the U.S. had a long-term national economic development policy to grow the clean energy economy. As the Senate debates comprehensive clean energy and climate legislation and the issue of green jobs becomes increasingly important, now is the ideal time to start developing a comprehensive economic development policy. Because whether we're talking about lithium-ion battery producers or wind turbine component manufacturers, the industries of the clean energy future need clear direction - and support - from the U.S. government if they are going to be able to compete and thrive in a low-carbon global economy.
In an effort to understand what types of measures should be included in a U.S. clean energy economic development policy, Apollo interviewed academics, businesspeople, labor leaders, investors and economic development professionals throughout the United States to get their best ideas. Read the full article, Economic Development: The Missing Link in a National Clean Energy Policy.
Most proposals for a national clean-energy economic development policy start with the need for federal policies that increase demand for clean energy. These might include putting a price on carbon (through a carbon tax or "cap and trade" program), adopting a national renewable energy standard, implementing national building and appliance energy efficiency standards, or encouraging small-scale renewable energy projects through a national feed-in tariff.
Many experts believe the federal government should offer incentives to persuade clean-energy companies to set up facilities in the United States, a practice that is commonplace in other parts of the world. "Many countries offer financial investment incentives - but in the U.S., we don't," said Clyde Prestowitz, president of the Economic Strategy Institute and a former Reagan administration trade and investment counselor.
Another policy often described as essential to a clean-energy economic development policy designed to support a domestic clean-energy manufacturing industry is a local content requirement. Without such a requirement - also called a 'Buy American' policy - most clean-energy manufacturing companies will likely locate overseas.
"It matters where you make things," said Bob Baugh, executive director of the AFL-CIO's Industrial Union Council. In the case of wind turbines and solar, 70 to 80 percent of the cost itself is in the product, not the installation. That means you have to have a strategy and a policy that says you'll do it here."
To read about the many other policy proposals discussed in this article, go to ApolloAlliance.org. For a shorter version of the article, check out my blog post on the Campaign for America's Future website.
Federal Government Releases Initial Data on ARRA Spending and Job Creation
On Thursday, the federal government released the first data on American Recovery and Reinvestment Act (ARRA) spending and job creation. It reported that $16 billion in federal contract funds have been awarded, representing two percent of the stimulus package. The spending has resulted in the retention or creation of more than 30,000 jobs.
This report only covered ARRA contracts, not ARRA grants, loans, and entitlements/tax expenditures. Much more data will be released at the end of October. For reactions about whether the data release lives up to Obama administration promises, check out the STAR (States for a Transparent and Accountable Recovery) Coalition website.

The Apollo Alliance is still analyzing the government data that was released to learn about the impact of ARRA funds on clean energy job creation. But we have already collected many case studies of ARRA funding that has helped clean energy companies and workers, and created programs that will help consumers save money on their energy bills. Here are just a few examples:
*Simonton Windows of Parkersburg, W.Va., announced in August that it had extended offers to rehire 402 seasonal and full-time workers - 263 in West Virginia and 139 in Illinois - who were laid off by the company last winter, and that it is set to hire 55 additional employees in the near future. The reason is the increased demand for energy-efficient windows from consumers who qualify for tax credits under ARRA to improve the energy efficiency of their homes.
*United Streetcar of Portland, Ore., a subsidiary of Oregon Iron Works, has built the first American-made streetcar in over half a century. United Streetcar has a deal in place to build six streetcars for Portland, as part of the expansion of its streetcar system, and is on the verge of signing a contract to build seven more streetcars for Tucson, Ariz. The expansion of the Portland streetcar system is being made possible, in part, by an ARRA grant from the Federal Transit Administration.
*Cardinal Fastener & Specialist Company of Bedford Heights, Ohio, was a traditional manufacturer, producing large-diameter, high-tensile strength bolts for construction projects and heavy equipment makers. Now that the company makes bolts for wind turbines, it should see an uptick in business as a result of ARRA grants that are being awarded to renewable energy producers. As ARRA cash makes its way to energy producers who are building new wind farms, these producers will purchase wind turbines from turbine manufacturers, and the manufacturers will in turn purchase bolts from Cardinal.
*The City of Portland, Ore., is using the Energy Efficiency and Conservation Block Grant funds it received through ARRA as seed money to start Clean Energy Works Portland, a revolving loan fund that will enable Portland residents to improve the energy efficiency of their homes with no up-front costs and pay for the improvements through their utility bills. Improvements available to homeowners during the program's pilot phase, which will cover 500 homes, include insulation, air sealing, duct sealing, and improvements to space heating and water heating systems. Fifty-five direct jobs will be created by the pilot program, with many more expected after the pilot phase.
Read about other success stories in the clean energy economy on our Signature Stories page.
California Conference on the Stimulus Draws Crowd, Despite Stormy Weather
One of the biggest storms to hit Northern California in more than 40 years didn't put a damper on the "California Conference on the Stimulus: Renewing the Economy Through the Building Trades," held at Stanford University in Palo Alto, Calif., this Tuesday. The conference was designed to help small businesses, businesses from disadvantaged areas, and women-owned and minority-owned businesses get practical information about opportunities in the green economy and develop partnerships with larger businesses and labor unions. It was presented by the Apollo Alliance and the Beyster Institute of UC San Diego's Rady School of Management and Progress Through Business, and sponsored by the State Construction and Building Trades Council of California and Harrell Remodeling.
Approximately 100 participants attended panels on green building in California, and market trends and financing opportunities. Attendance was also high at break-out sessions on job quality, training and the stimulus, and connecting small businesses to big businesses and financing. Presenters included government, labor, nonprofit and investment leaders.
Notes on the conference presentations will soon be available at the conference website.
You can keep track of the quickening pace of state and federal action on clean energy policy on our Apollo Blog and Daily Digest.
And how about joining us on Twitter?
Take care and talk to you again next week.
Yours,
Andrea Buffa
Senior Writer and Policy Associate
Apollo Alliance
buffa@apolloalliance.org

------------------------------------------------------------------------------------------------------------We need clean Green Energy for America for the 21st Century!
Dennis Spisak
Mahoning Valley Green Party
Ohio Green Party
www.ohiogreens.org
www.votespisak.org/thinkgreen/