Mr. Speaker, President Obama recently unveiled a new plan to reduce foreign oil imports by one-third over the next decade, which is timely given the instability sweeping across oil producing countries in the Middle East. To achieve that…
Mr. Speaker, President Obama recently unveiled a new plan to reduce foreign oil imports by one-third over the next decade, which is timely given the instability sweeping across oil producing countries in the Middle East. To achieve that goal necessarily involves more fully developing renewable energy which his Administration and the Congress are committed to achieving. In my district, I am pleased that over a dozen new solar and solar-related companies have opened in the last three years, creating hundreds of jobs while reducing our reliance on foreign sources and protecting our environment.
The Department of Energy's Loan Guarantee Program is a critical factor in our country's effort to be a world leader in renewable energy. I would like to place in the Record a recent article in the Huffington Post on the importance of DOE's loan guarantee program and the potential loss of thousands of megawatts of bankable electricity and the tens of thousands of jobs if it is not allowed to continue.
A Win-Win for Clean Energy
(By Uwe T. Schmidt)
The nuclear tragedy in Japan and the disturbing upheaval in
Libya and the Middle East have dominated the headlines, but
it also serves as a haunting reminder that America's own
energy security may be in peril unless we accelerate efforts
to more fully develop energy alternatives that are reliable,
safe and sufficient to meet our future needs.
Achieving energy independence has been a laudable but
daunting goal since the first energy crisis in 1979.
Fortunately, the Obama administration and Congress have
embraced policies intended to spur investment and development
in renewable energy projects, but it will take a major effort
by the private sector and the support of government at all
levels.
The private sector is doing its part. They have invested
heavily in new, innovative technologies, assembled the
engineering and technical support, arranged the necessary
financing, and have been engaged at all levels to secure the
Federal and local permitting and ultimately the requisite
utility and distribution outlets.
Solar Trust of America (STA) is one of many American
companies that are investing millions and utilizing proven
technology to achieve California's ambitious goal of 33
percent renewable energy by year 2020. Such goals are
unlikely without private-public collaboration. It is our job
to harness the solar potential in areas like STA's thermal
solar project site near Blythe in Southeastern California,
utilizing our parabolic trough technology that will
ultimately produce 1,000 megawatts of bankable electricity
that is sufficient to supply 300,000 households with
electricity, avoiding over 2,000,000 tons of carbon dioxide
emissions.
Our business model is unique in that it encompasses the
entire American-based supply chain that involves engineering
and technology specialists, financing through private equity
funds, creating new demands for steel and other metals,
project development and construction of the facilities, and
management and operation of the plants.
Finally, it is a job producer. The first two of our four MW
Blythe plants will employ 1,000 union construction jobs,
another 7,500 supply chain jobs throughout the country, 100
on-going plant operations and post construction positions
and, of course, the residual economic benefits to the local
communities.
What is the government's role and how can it partner with
STA and other companies to achieve these goals? Congress
previously authorized a renewable energy loan guarantee
program which is vital to securing the necessary financing to
build large scale, sophisticated solar power plants and other
renewable projects.
Without it, U.S. companies will be confronted with the
sudden reversal of a national policy that two years ago
encouraged them to invest in energy alternatives. Our Blythe
plant is one of several major solar projects that has
advanced through a diligent DOE review process for over a
year and has met all the Federal and state permitting
requirements.
STA and other solar companies have commenced preliminary
site work just as Congress is considering legislation that
would all but eliminate the loan guarantee program.
Ironically, the House of Representatives passed a spending
bill last month that would delete the loan guarantee program
for renewable and clean coal technologies but left untouched
loan guarantees for building nuclear plants.
This is not a government grant but simply a guarantee to
facilitate the financing on loans to bring advanced
technology to the market. Every dollar appropriated by
Congress to DOE's Loan Guarantee Program spurs $13 dollars in
private investments and indeed whatever taxpayer funds are
involved are repaid in full with interest.
The DOE loan guarantee is a ``win-win'' for government and
the companies involved and will not only advance the cause of
energy independence but will create hundreds of thousands of
jobs across the country.
Yet all this is at risk if Congress rolls back the program
and put into jeopardy the enormous amounts of private capital
already committed and the tens of thousands of sustainable
jobs involved in the construction and operation of the
plants. Apparently there are no guarantees when the Congress
acts in a politically charged atmosphere.
For our nation to fully develop renewable energy, it is
clear that neither the private sector nor government can do
it alone. It requires a partnership.
As we advance into this new millennium, it is now
understood that our raw resources are finite, the planet is
fragile, and that energy consumption to sustain growth
globally is our greatest challenge. The answer to all this is
renewable energy. There are no boundaries or limits to what
we can accomplish if we work together.