Levin Introduces Legislation to Move Economy Past Fossil Fuels

Rep. Sander Levin (D-MI), Ways and Means Committee Chairman, Tuesday announced the introduction of legislation designed to both spur the manufacturing sector and move the nation’s economy beyond fossil fuels, according to a press release from the congressman’s office.

The Domestic Manufacturing and Energy Jobs Act of 2010 will “accelerate a new era of American manufacturing and innovation,” Levin says.

The bill would provide $6.5 billion in tax credits for American taxpayers that build or renovate manufacturing facilities that create advanced energy equipment. According to Levin, that portion of the bill alone will encourage $22 billion in investment in domestic manufacturing and renewable energies.

“As the world moves toward renewable energy and a greener economy, it is necessary to accelerate a new era of American manufacturing and innovation,” Levin said in a press release.

State and local governments would be provided with incentives to encourage investment in renewable energy products on residential properties, such as solar panels, geothermal heat pumps and solar-powered water heaters.

The legislation would also provide incentives for renewable fuel production in the transportation industry. To decrease dependence on foreign oil, tax credits would be provided for electric and hybrid vehicles and domestically produced biofuels.

Overall, the bill is set to cost $25 billion over the next 10 years. Unfortunately, if this bill is anything like the stimulus package, it could do more to spur manufacturing in the green energy sector overseas than it does in America.

A February study conducted by ABC News and the Investigative Reporting Workshop found that of over $2 billion spent on wind energy projects through the stimulus package - enough to power 2.4 million homes - eight of every $10 went to a foreign company.

The Investigative Reporting Workshop estimates, stimulus funding for wind projects have created roughly 6,000 manufacturing jobs overseas and only hundreds in America.

At the time of the report, stimulus funds had paid to create 1,807 wind turbines to fuel American homes, businesses, schools and other buildings. Just 588 of those were manufactured domestically, according to the report.

The largest grant - $178 million - for a wind farm in Texas, went to a bankrupt Australian company that outsourced the manufacturing to a Japanese company, the report found.

“With the U.S. government as a full, active and effective partner, the private sector can expand our green manufacturing capacity, ensuring that these jobs and products will be created in the U.S., competing globally and protecting our environment. The governments of other countries are racing ahead to dominate in this area,” Levin said.