Massive New Energy Technology Job Growth Only Possible with Renewable Energy Tax Credit Extension, McNerney Says

Press Release

A national transition towards large-scale use and production of clean energy technology would not only reduce heat-trapping pollution, but would create an entire spectrum of good-paying jobs in the United States, but only if investment and production tax credits are extended, a congressional committee heard today.

The Select Committee on Energy Independence and Global Warming, of which Congressman Jerry McNerney (CA-11) is a member, welcomed experts on clean energy and economic development to discuss the job growth potential through the continued and expanded use of renewable technologies in the United States.

"The testimony heard today confirms what I have been saying all along. The renewable energy industry in the United States is poised to create hundreds of thousands of new jobs over the next few years. But none of it will happen, and in fact existing clean energy technology jobs will be lost, if we do not extend the investment and production tax credits," Rep. McNerney said.

"As someone who spent my career in wind energy, I know firsthand how critical production and investment tax credits have been in spurring renewable energy use and production. These tax credits helped turn a once fledgling portion of the energy sector into a major player," Rep. McNerney continued. "I also know the flip side and the negative consequences when these tax credits lapsed in the past."

Blair Sweezey, the senior director of solar markets and public policy for Silicon Valley-based Applied Materials, noted that his company has expanded rapidly in the solar sector in recent years. Sweezey testified that if the renewable energy tax credits are extended that the solar field alone will generate 55,000 jobs and $45 billion in economic investment. He also noted that the consequences for not renewing the tax credits would be a loss of 40,000 solar jobs through 2009.

Vic Abate the vice president of renewable energy at General Electric offered similar testimony, saying, "The expiration of the tax credits would have a devastating impact on the wind industry."

Abate said that if the production tax credits expire, GE will see a 90 percent drop in wind installations beginning in 2009.

Renewing the investment and production tax credits leads to a much rosier picture, as all of the witnesses noted there would be massive new investments in the renewable energy sector. An expansion of renewable energy use and production will require a workforce with a wide range of skill sets to research, design, and engineer new systems as well as to manufacture, install, and maintain cleantech investments.

A recent study by Environmental Entrepreneurs, a non-partisan community of businesses professionals dedicated to protecting the environment while expanding economic prosperity, found that tremendous job growth potential does exist.

Bill Unger, partner emeritus with the Mayfield Fund and a member of Environmental Entrepreneurs, testified at today's hearing that Environmental Entrepreneurs predicts between 400,000 and 600,000 cleantech jobs could be created by 2010.

Mark Tholke, the Regional Project Development Manager for wind energy company, enXco with facilities in San Ramon and Tracy, reinforced the findings of other new energy technology economic impact studies.

According to Tholke, "Wind power provides more jobs per unit of energy than non-renewable technologies. In a new wind installation, approximately 80 to 100 workers are involved in the construction phase alone."

Tholke's comments were reinforced at today's hearing by both Abate and Sweezey. The two spoke not just about renewable energy job growth in engineering, design and sales, but also of the specific impact on the manufacturing sector in the United States, the story of whose job losses have been well documented. Where now a good deal of the manufacturing of solar and wind components takes place overseas, Sweezey said that as demand in the U.S. grows, more manufacturing will take place domestically. "It makes sense to location production near the end use point," he said.

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