Environmental Engineering Reference
In-Depth Information
theeconomygoingagain,thefederalgovernmentconvertedthistoacashgrantinlieuof
tax credits, known as the 1603 Treasury Program.
This program changes the timing of when energy developers can claim incentives, by
allowing them to take federal grants in lieu of their incentives later when they file their
taxes. One positive effect of this change in timing is that it has provided the liquidity
neededforfurtherdevelopmentofenergyprojects—thinkworkingcapitalforsmallbusi-
nesses. It has truly been a success: as of the end of 2011, the 1603 Treasury Program has
financed more than 22,000 solar projects around the country, totaling $1.5 billion, which
drove more than $3.5 billion in private investments in 47 states. Overall the program has
leveraged more than $22 billion in private-sector investment for a range of energy tech-
nologies in all 50 states. It sounds like the cash grant is a successful strategy, right?
So why are our representatives risking all of this job-creating momentum by allowing
the program to expire? The cash grant basically fell victim to shenanigans in Congress
at the end of 2011, when the House and the Senate couldn't agree to pass anything more
than emergency spending bills. We've now forgotten the details of their petty fights, but
amongthecollateraldamagewasarequesttoextendthe1603TreasuryProgramthatwas
left on the chamber floor. As a result, the tax equity market going into 2012 was uncer-
tain,puttinganadditional37,000direct,indirect,andinducedjobsatstake—theestimate
of how many more people would be employed in the solar industry with a one-year ex-
tension of this one program.
To allow the program to lapse was akin to raising taxes on the solar industry—an ac-
tion that would significantly hamper its growth. A survey of the US Partnership for Re-
newable Energy Finance estimates that the end of the cash grant program will shrink the
total financing available for solar projects by 52 percent in 2012 alone—just as the de-
mand for solar is increasing. Congress should have extended this policy that creates jobs
in a technology-neutral manner without picking winners but encouraging the continued
development of clean energy, which is what an increasing number of Americans want.
We the People must exhort our politicians to stand with solar and support entrepreneurs
who are finding a way to build their businesses and grow the solar economy, despite the
on-again, off-again assistance from government.
While waiting for our elected officials to follow the will of the people, we can also
votewithourfeet,andindeedweare.LinkedIn,whichhassomeoftherichestdataabout
careerpathsandopportunities, wasaskedtoanalyze its7million USmemberswhohave
switched industries during the past five years. The growth in the “Renewables and the
Environment”categorywas56.8percent—almostoffthechart.TheInternet,onlinepub-
lishing,andwirelesstechnologywerethenextclosest,butthesefieldsdidn'tbeat30per-
cent growth. Clean energy has the jobs of the present and the future.
