[CTC_TRADE] Sen. Sherrod Brown escalates Chinese wind turbine controversy

[Karen Hansen]

Democratic senators are trying to block the Energy Department from using
stimulus funds to subsidize wind-energy projects that use foreign-made
turbines. One target is a proposed wind-energy project in Texas where the
backers plan to use wind turbines made with Chinese components. The senators
said in a statement that the clean-energy grant program has paid out more
than $1 billion to foreign manufacturers.

Dr. Chu said he will "work with people in Congress to explain the
subtleties" to them.

Energy Secretary Opposes Suspending Stimulus Grants

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By JOSEPH B. WHITE

SANTA BARBARA, Calif.-Energy Secretary Steven Chu said Friday that an effort
by Democratic lawmakers to block federal stimulus grants for energy projects
that use foreign-made hardware could cost U.S. jobs.

"There are unintended consequences by just coming out and saying, Buy
American," Dr. Chu said. "I do not want a moratorium. We have 9-10%
unemployment. You do not want to stop these projects if 2/3 [of the
hardware] is American and 1/3 is foreign." In remarks on the sidelines of
the conference, Dr. Chu said he will "work with people in Congress to
explain the subtleties" of the global wind-energy market.

A group of Democratic senators earlier this week proposed legislation to
block the Energy Department from using stimulus funds to subsidize
wind-energy projects that use foreign-made turbines. One target is a
proposed wind-energy project in Texas where the backers plan to use wind
turbines made with Chinese components. The senators said in a statement that
the clean-energy grant program has paid out more than $1 billion to foreign
manufacturers.

"The point of the stimulus was to create jobs in America, and to turn down
this opportunity to strengthen domestic manufacturing of wind turbines,
solar panels and other clean-energy technology defies common sense," Sen.
Charles Schumer's office said in a statement Friday.

Dr. Chu, during an appearance at The Wall Street Journal Eco:Nomics
conference here, said congressional demands that the Energy Department not
fund projects that use foreign-made technology could force a halt to
projects that promise to create U.S. jobs.

The flareup over wind energy is the latest in a series of problems the
administration has faced because of congressional efforts to mandate that
stimulus funds go to purchase only U.S.-made goods. The Buy American demands
have exacerbated trade frictions, and slowed down the progress of some
stimulus projects.

On other issues, Dr. Chu defended the administration's decision to abandon a
plan to construct a nuclear-waste repository at Yucca Mountain, Nev., and
said the facility as planned would have run out of room in a couple of
decades as more nuclear plants were built.

"Rather than wringing my hands.let's go forward and do something better," he
said. The administration's decision has drawn fire from big utilities who
are concerned that they could face constraints in developing new nuclear
power plants if there is no long-term waste storage in the U.S. Dr. Chu
expressed confidence the industry will ultimately support what he called " a
fresh look" at the problem.

Dr. Chu also said he wants Congress to pass a strong bill to put a price on
carbon this year, and said reducing greenhouse-gas emissions is "an economic
opportunity" to develop clean-energy technology in the U.S.

"China is moving $9-10 billion a month...they want to be a leader in this
new technology. It's ours to lose, but we could blow it," Dr. Chu said. He
said U.S. businesses can adapt to higher energy prices by becoming more
efficient and adopting new technology. 

 

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