No time to abandon investment in clean energy

2011 is shaping up to be the year of construction for clean energy projects in the United States, and the loan guarantee program is generating thousands of potential construction and permanent jobs. It makes no sense to destroy a program that will put 50,000 American’s to work and is ramping up America’s production of advanced biofuels, solar power, wind and geothermal energy as well as other clean energy sources and technologies.

The DOE renewable energy loan guarantee program is critical to America’s economy, energy security and competitiveness. The loan guarantee program is the key link between producing innovative technologies – which America does better than anyone else in the world – and developing a world-leading clean energy industry to deploy those technologies commercially to generate jobs, exports, and economic growth. Moreover, the program currently represents the best and often only way to cross the barrier from developing clean energy technologies to deploying those technologies commercially here in the U.S. and around the world. If allowed to continue, projects funded in part by this program will be generating tens of thousands of construction and permanent jobs, especially in many of our economically hard hit states.

This is further reinforced by a Pew Research and Bloomberg, New Energy Finance report that found the U.S has fallen to third place behind China and Germany in terms of investments in clean energy. Just a couple of years ago America was number one. Backtracking and creating further uncertainty about the future of the loan guarantee program threatens America’s clean energy future and encourages investors and technology developers to take their money and technology to China where the economics are better because of policies business can count on.

If members of Congress are serious about economic and job growth and reducing dependence on foreign oil, they ought to recognize the importance of this program. Projects that have received loan guarantees represent an estimated 58,000 direct and indirect jobs across 19 states and the remaining not-yet-allocated loan guarantee commitments represent another 35,000 jobs. 

There is no reason America shouldn’t be harnessing its own renewable resources to produce cleaner-burning domestic energy. The longer we drag our feet and allow short-term worries to overshadow long-term needs, we are inviting history to repeat itself. Now is the time to take the handcuffs off domestic renewable energies and invest in our energy future.

Jim Macias is the President and Chief Executive Officer of Fulcrum BioEnergy, a leader in converting municipal solid waste into ethanol.

Brooke Coleman is the Executive Director of the Advanced Ethanol Council (AEC), a group of companies leading the development and commercialization of advanced ethanol technologies. Fulcrum is a member of the AEC.