Schumer Vows to Block Stimulus-Funded Wind Project That Would Create Jobs in China
Since Chinese wind farms—like this one in northern China—use turbines built in China, Sen. Schumer wants US energy projects to rely on parts built in the US. (image: danishcarbon.dk)
On Wednesday HeatingOil.com reported that Americans are growing more and more concerned over Chinese efforts to invest in US renewable energy projects. This week a debate broke out over China’s role in a wind power project in Texas. Many Americans are concerned that most of the jobs that would be created by this project will go to China. The rancor of this debate is further compounded by the possibility that this project may be partially funded with some of the $22 billion set aside from the economic stimulus package for clean energy projects and job development.
This debate has now caught the attention of New York Senator Charles E. Schumer. According to the New York Times, the Senator is calling on President Obama to deny the use of stimulus money for projects that would largely require manufacturing outside of the US. Schumer went on to reference a study by the Investigative Reporting Workshop at American University, which found that “84 percent of ‘green’ stimulus funding has thus far gone to foreign companies.” Stating that the stimulus money “is supposed to create jobs in America,” the Senator vowed that he would introduce legislation to prevent such funding if actions are not taken.
Adding more fuel to the fire of this debate are China’s domestic policies concerning renewable energy projects and job development. According to Time, foreign companies have complained that they are hindered from conducting business in China due to the government’s subsidy programs and local content requirements. In March China authorized subsidizing 50 percent of certain solar power projects and up to 70 percent in remote areas. For wind power, the New York Times reports that China has a 70 percent local content requirement—meaning that 70 percent of all manufacturing associated with a project must be done in China—although these requirements were eased to some degree last week. Nevertheless, many foreign companies feel that such policies make attempts to breach the Chinese renewable energy market virtually pointless.
Arguing that the Texas wind project would not have progressed as far as it has if the United States had protectionist policies like those of China, Walt Hornaday, president of Cielio Wind Power (a partner in the Texas wind project), asserted that “international partnerships are essential to the development of low cost renewable energy in America.” In addition, Cappy McGarr, a partner with the US Renewable Energy Group, argues that the potential benefits to Texas from the wind project are being underestimated.
So while it remains to be seen how the Obama administration will respond to Senator Schumer’s call, some involved in the controversial Texas wind project—who ought to know—worry that action taken to promote US jobs could in fact prevent any renewable energy projects from breaking ground at all.
