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Tuesday, Oct. 22, 2024
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Feds, energy company dispute SOC report

Clean energy money may go abroad

The American Wind Energy Association and the Department of Energy called a report written in the School of Communication’s Investigative Reporting Workshop false.

The Feb. 8 report was part of the “Blown Away: America’s billions for clean-energy jobs are flying overseas” series by the Workshop, that said that President Barack Obama’s stimulus package did not generate green jobs in the United States and instead sent money overseas.

Of the $2.1 billion allocated through the American Recovery and Reinvestment Act to green energy plants, $1.7 billion, or 79 percent, has gone to foreign-owned companies, according to the report.

The American Wind Energy Association released a statement on Feb. 11 that listed direct excerpts from the investigation and stated that they were wrong.

“ABC/AU: ‘The study found that nearly 80 percent of that money has gone to foreign manufacturers of wind turbines,’” the AWEA said in the statement, quoting the Investigative Reporting Workshop study. “Fact: 100 [percent] of the Recovery Act money goes to wind projects built in the United States.”

The investigation “could not be further from the truth,” according to the AWEA.

Matt Rogers, a senior adviser to the Energy Department, also challenged the investigation’s data was incorrect.

“Every dollar from the Recovery Act is going to create jobs for American workers here in the United States,” Rogers said in an interview with ABC News, which coordinates with the Workshop in the investigation.

Russ Choma, a journalist at the Workshop, said that there are examples that support the investigation’s claim that jobs from the stimulus package are going overseas. One is the Chinese company A-power, which would receive $450 million in stimulus money to help build a $1.5 billion Texas wind farm using Chinese turbines.

“The deal would create dozens of jobs in the [United States] and thousands in China,” Choma said.

There are no provisions on the number of jobs that must be created in order for a company to receive the green stimulus money, he said.

“If you have a green energy plant completed, you can ask for 30 percent of the investment from the government,” Choma said.

Citing an economic model created by the Renewable Energy Policy Project, Choma said that about 6,000 jobs have been created overseas, while a few hundred jobs were created in the United States.

Among 20 wind farm projects completed in the United States, 1,800 turbines were built — 1,200 from overseas and 600 domestic, according to Choma.

Also, some of those wind farm projects were completed even before the stimulus package was passed, which means that they received the stimulus money without creating jobs, he said.

Choma said the Obama administration is changing its policy.

The administration announced that it would give out $2.3 billion in tax credits for both domestic and foreign manufacturers, based on how many jobs would be created in the United States. Another $5 billion would be given out as soon as Congress approves the request, Choma said.

Larry Sawers, an AU professor of economics, said that the investigation shows that the United States is behind in participation in the market for green energy.

“[The investigation] just shows how terrible we are in getting into green evolution, and we are behind the curve,” Sawers said.

You can reach this staff writer at news@theeagleonline.com.


Section 202 hosts Connor Sturniolo and Gabrielle McNamee are joined by fellow Eagle staff member and phenomenal sports photographer, Josh Markowitz. Follow along as they discuss the United Football League and the benefits it provides for the world of professional football.


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