President Obama announced on Friday awards of $2.3 billion in Recovery Act funds to go towards new clean energy manufacturing across the U.S.
“Building a robust clean energy sector is how we will create the jobs of the future,” said Obama. “The Recovery Act awards I am announcing today will help close the clean energy gap that has grown between America and other nations while creating good jobs, reducing our carbon emissions and increasing our energy security.”
The $2.3 billion, awarded in the form of tax credits, is being allocated on a competitive basis. Projects are assessed based on the following criteria: commercial viability, domestic job creation, technological innovation, speed to project completion, and potential for reducing air pollution and greenhouse gas emissions.
The Department of Energy also considered additional factors including diversity of geography, technology and project size, and regional economic development. The funding will provide a 30% tax credit for investments in 183 manufacturing facilities for clean energy products in 43 states.
“The world urgently needs to move toward clean energy technologies, and the United States has the opportunity to lead in this new industrial revolution,” said Energy Secretary Steven Chu. “Today’s awards will create new jobs and jumpstart the industries we need to both solve the energy problem and ensure America’s future competitiveness.”
The White House says that the Recovery Act investments for advance energy manufacturing facilities will generate more than 17,000 jobs. When matched by private funding of as much as an expected $5.4 billion, up to 41,000 additional jobs are likely to be supported.
“There is no greater priority for this Administration than getting Americans back to work,” said Treasury Secretary Tim Geithner. “The awards announced today, together with the more than $5 billion in private sector capital spurred by our investment, will drive significant growth in the renewable energy and clean technology manufacturing sectors, good jobs, an energized private sector marketplace and a leadership role for the U.S. in these crucial high-growth markets.”
Qualifying manufacturing facilities include the production of solar, wind, geothermal, and other sources of renewable energy. Because the program generated far more interest than anticipated, the Energy Department and Treasury have a substantial backlog of technically acceptable applications.
Instead of turning down worthy applicants who are willing to invest private resources to build and equip factories that manufacture clean energy products in America, the Administration has called on Congress to provide an additional $5 billion to expand the program.
“By investing in innovative clean energy manufacturing projects like these, we are not only creating good jobs now, but helping lay a new foundation to keep America competitive in the 21st century economy,” said Vice President Joe Biden. “This is what the Recovery Act is all about.”
Sources:
The White House
Department of Energy
