A few weeks ago this blog posted about Senator Charles Schumer’s (NY) plans to try and prevent stimulus money from going to a wind turbine project in West Texas because the turbines would be constructed in China. At the time, Schumer stated that Energy Secretary Steven Chu should, ‘“reject any request for stimulus money unless the high-value components, including the wind turbines, are manufactured in the United States.’ The West Texas project will reportedly create over 2,000 manufacturing jobs in China and more than 300 in Texas. The disparity highlights Schumer’s concerns that American money be used to boost the American economy.”Schumer had threatened to introduce legislation to prevent stimulus money from going to foreign companies building renewable energy projects in the US unless the Obama administration intervened in the West Texas project. Now, as Julie Schmit reports for USA Today online, the companies planning the wind farm have said they would build a US plant to make turbines which, the company estimates, could result in the employment of roughly 1,000 people.
Schmit does note that the company has not said when the plant, which will “. . . be one of the biggest in the U.S. for wind turbines . . .” will be constructed, or if the West Texas wind farm will use turbines from the new U.S. plant.
Schmit reports that the several foreign countries are seeing stimulus dollars heading their way in order to provide the parts need for the 14 U.S. wind farms that were funded through the American Recovery and Reinvestment Act. Schmit writes:
“In September, the U.S. government announced almost $1 billion in stimulus funds for 14 U.S. wind farms. Eighty-eight percent of the funds went to subsidiaries of foreign firms developing the farms, industry data show. Four of the farms use turbines from U.S.-based companies General Electric and Clipper Windpower. The rest use turbines made by companies with global headquarters in Spain, Japan, India and Germany, data from the American Wind Energy Association show.”
Energy Secretary Chu has defended the funding awards, saying “the companies that supplied turbines to the funded farms had U.S. plants and that the farms are in the U.S., creating local installation jobs and tax revenue. He cited industry statistics that 53% of the value of turbine parts installed under the program were American-made.”
No word yet on whether the West Texas project will move forward or not. Those developing the project maintain that without the stimulus funds the project will not go through.
To read the Schmit article click here.
To read a previous US Agriculture & Food Law and Policy Blog post on the wind farm and Senator Schumer click here.
Posted: 11/23/09
