In a nationally broadcast speech last week, President Obama announced his $447 billion American Jobs Act plan. Unlike prior speeches, he didn’t mention clean-energy jobs once, but if you read between the lines, there are areas where the sector could gain.
Putting that aside for a moment, it is also worth noting President Obama’s decision to omit traditional energy from his jobs plan. This is despite Labor Department figures (and Wall Street trends) that show the oil and gas industry (along with the technology sector) has been creating jobs as the economy has been losing them. Since the recession started in December 2007, the U.S. economy has lost 105,000 jobs. Meanwhile, the oil and gas sector has worked to add 20,300 new American workers. Perhaps the President believes he should leave well enough alone.
Meanwhile, the clean energy is on an upward trend as well. In fact, clean energy jobs grew 8.3 percent between 2003 and 2009, nearly double the rate of the economy overall.
The Obama jobs plan could continue to help cleantech economy growth and energy jobs creation in a number of ways – most indirect.
Infrastructure Investment. A direct investments of $50 billion to modernize America’s decaying infrastructure, including support for major new energy projects such as smart grid and transmission as well as transit and rail projects.
In addition, the proposed first National Infrastructure Bank, capitalized at $10 billion, would leverage at least $100 billion in private capital investment, financing new plants and new projects to boost American competitiveness. Off-shore wind projects are one example of stalled clean energy infrastructure, with no projects built to date. But there are 488 megawatts of new projects already permitted. The backlog could be cleared with seed capital from the new infrastructure bank. (It is worth noting that the offshore wind industry created 60,000 jobs between 2004 and 2008 in Europe.)
Modernizing pubic schools. Upgrading 35,000 schools and classrooms to relieve overcrowding can save energy as well. Making schools more energy efficient and using recycled materials would create thousands of construction and manufacturing jobs. (Materials used in building energy retrofits are 90 percent made in America and 91 percent of typical companies involve are small businesses.)
Extending 100 percent expensing in 2012. Extending 100 percent expensing will allow firms to take an immediate deduction on investments in new plants and equipment. This measure doesn’t single out clean energy but does allow plants to modernize through advanced practices such as “co-generation,” which uses waste heat to cut costs for manufacturers even as it cuts pollution.
While Republicans won’t like much of the Obama Jobs Plan, let’s hope they can find enough common ground to move job growth to the front burner of the U.S. agenda and perhaps salvage some of the public distain that has brought the Congressional approval rating down to a mere 6 percent.
