The $1.5 billion would be
drawn from $6 billion that Congress provided to help companies
developing renewable energy and transmission projects afford
fees linked with Energy Department loan guarantees.
Harry Reid plans to bring the
state aid bill, which includes cash for teachers and Medicaid,
to the floor tomorrow, the Nevada Democrat's spokeswoman said.
Democrats failed to get 60 votes for cloture yesterday when the
Congressional Budget Office said $5 billion of the bill was not
paid for, nixing any chance for Republican support.
SEIA
immediately responded, “It is our understanding that DOE has
asserted that even after these cuts there are adequate funds
available in the Section 1705 Loan Guarantee Program to provide
assistance to pending applications that are expected to qualify.
With dozens of projects pending - and two DOE solicitation
deadlines still to come - we are extremely concerned that this
assertion may not take into account all relevant facts.”
The fact that this happened on the Senate floor under
democratic leadership and the Obama administration is beyond
belief. You may remember we have a Presidency where one of the
three policy planks is green jobs and energy transformation. The
United States DOE is moving away from commercialization and
putting more focus on what they call “high impact” R&D. As one
leading renewable energy CEO stated to me, “we're reverting back
to ‘we in the government know what's right’ not those in the
private sector.”
The renewable trade organizations are asking the Senate, “to
request that DOE immediately provide a full and complete
accounting of the total loan guarantee amounts requested in
pending applications, conditional awards, unconditional awards
and whether DOE intends to conduct future solicitation -- such
transparency will provide a full and accurate picture of the
impact of a $1.5 billion cut in the Loan Guarantee Program.”
But the situation is more serious than that, and the community
may need to remind the administration, that driving
manufacturing scale-up and aggregating markets are going to
drive down the cost of high-value energy efficiency and
renewable energy more than any internal government R&D.
As envisioned in the American Recovery and Reinvestment Act, the
Section 1705 Loan Guarantee Program was to provide loan
guarantees for an estimated $60 billion worth of new renewable
energy generation, renewable property manufacturing and
transmission facilities. Last summer, $2 billion was used to
fund an extension of the “Cash for Clunkers” program. With
today's rescission, a total of $3.5 billion has been eliminated,
representing private sector investment of $30 to $35 billion.
A July 26th NY Times article,
“Nuclear Energy Loses Cost Advantage” by Diana S. Power
highlights a new study that concludes: “solar photovoltaics
have joined the ranks of lower-cost alternatives to new nuclear
plants.” John O. Blackburn, a professor of economics at Duke
University in North Carolina, and Sam Cunningham, a graduate
student, wrote the paper, “Solar and Nuclear Costs - The
Historic Crossover.”
According to the researchers, this crossover occurred at 16
cents per kilowatt-hour (kWh). Power quotes Mark Cooper, senior
fellow for economic analysis at Vermont Law School's Institute
for Energy and Environment: “While solar power costs have been
declining, the costs of nuclear power have been rising
inexorably over the past eight years.”
And by way, these positive economics also apply to the entire
portfolio of high-value energy efficiency and renewable energy
technologies.
We are at a crossroads as we enter the second decade of the
twenty-first century. We are seeing Europe, India and China
taking advantage of this historic opportunity to build energy
access for the entire world without the air and water pollution,
greenhouse gas emissions and water intensity of conventional
energy generation and production. How ironic would it be that
again the U.S. failed to rise up and take advantage of this
historic opportunity?
Washington policymakers of either party need to be reminded that
they were actually elected to lead. Dropping the existing clean
energy loan guarantees begins a repeat of what has dominated
U.S. energy policy for the past four decades - seasaw energy
policies that created such steep peaks and valleys that newer,
more promising cleantech industries stagnate and fail. This
results in our country being left with the conventional energy
technologies and the entire suite of economic, environmental and
national security baggage that is tied to them.
Our response should be more than SEIA’s polite, excuse me, “we
request that DOE immediately provide a full and complete
accounting of the total loan guarantee amounts requested in
pending applications, conditional awards, unconditional awards
and whether DOE intends to conduct future solicitation.”
Instead, every Board member, CEO, investor, customer and
advocate for a cleantech future should shout “Hell no!” We need
our policymakers to stick with the program. Let’s tell them not
to start the same old erratic energy policies and relegate the
cleantech industries — for the third time — to some
green toy that is waved around on the campaign trail.