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Carl Pope

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Will the Tea Party Destroy an American Industry to Weaken President Obama?

Posted: 07/15/2012 4:46 pm

Four years ago I picked up a good news/bad news local paper in Duluth.

Good was the major revenue growth for the Port of Duluth -- importing wind turbines, in addition exporting taconite iron ore (to places where those wind-turbines are made.) Bad was that instead of the taconite being made into steel for turbines in the U.S. ports the ore freighters pass -- Chicago, Gary, Detroit, Cleveland, Erie, Buffalo -- it went to China, and the turbines themselves were imported from Europe.

But while I was in Brazil last week some much better news appeared -- Brazil this year is importing hundreds of wind turbine blades on freighters from Duluth. Great Plains demand for wind power had grown so much that LM Wind Power had built a turbine blade factory in Grand Forks, N.D., and Duluth was exporting not only taconite, but turbine blades. Now the Grand Forks blades have found an export market -- yet another proof that manufacturing follows markets, and that if the U.S. keeps building demand for energy innovation products, we can built a mighty manufacturing economy behind those markets.

That theme brings me to Cleveland this week, for a two day "Making it Here" conference cosponsored by the Blue-Green Alliance and the Great Lakes Wind Network. The topic -- reviving American energy manufacturing. The keynote speaker, Lou Schorsch, the CEO of ArcelorMittal Steel's U.S. operations, reminds the audience of why manufacturing is so important -- its jobs pay better, it generates far more innovation than other sectors, it provides a middle class pathway for workers without college degrees, and manufacturing innovation is the key to cutting our energy and material waste and consumption.

And it's not wages that hold us back: Germany, a high wage country with strong environmental standards, has the largest percentage of its GDP from manufacturing of any major country -- 20 percent.

Schorsch has five recommendations for a manufacturing revival in the energy sector:

  • Improving the economy by avoiding the fiscal cliff, by funding infrastructure and by regulating effectively.
  • Adopting an intelligent, pragmatic approach to addressing climate change.
  • Making industrial energy efficiency the focus of policy initiatives even in an era of fiscal constraint.
  • "Beware the false prophets of tax reduction."
  • Recognize that "things will still be made of things."

Former Colorado Governor Bill Ritter emphasizes the need for government leadership if the factories are going to keep coming back. And former American Council on Renewable Energy President Michael Eckhardt tells the story of how unintended but badly designed policy initiatives created the perfect storm that led to Chinese domination of solar and wind -- beginning with a U.S. Defense Department Decision in 1987 that renewable energy technologies were not important for national security.

Overall, the mood at the conference is optimistic -- the business and civil leaders there believe that the U.S. has the technological innovation, work force, and resources (including cheap natural gas) to regain our leadership -- if we can get policy right.

But that's a big IF. We're meeting in Cleveland -- and hundreds of miles to the East, outside the manufacturing orbit that surrounds this "North Coast" City, politics is getting ready to reverse the Duluth success story.

Wind energy has been one of the fastest growing sectors of the American economy, even during the Recession. One of the key financing tools for wind developers, the Production Tax Credit, expires at the end of the 2012. (Equivalent financial mechanisms for coal, oil and gas, of course, do not expire -- they got theirs first.) And in spite of bi-partisan support from members of Congress from wind leadership states like Colorado, the Tea Party Republican Leadership seems determined to let the PTC expire to hurt Obama's re-election chances.

As a result factories are shutting down, thousands of workers are being laid off, and the market dynamic that brought wind manufacturing to Grand Forks is unraveling. Thoughtful representatives and senators have tried everything -- the bills they propose are supported by members from both parties, pay for themselves, and do nothing more than continue a great American success story. Colorado Senator Mark Udall has spoken to the Senate every day since May. "It is one thing for Congress to take the time to consider a new proposal and have an open, honest debate, but the Production Tax Credit is widely supported, will create jobs and has already helped our economy grow," Udall said in his first speech.

The extension has the support of Texas business leaders an oil company (BP), and governors all over the country -- but nothing has swayed the determination of the Tea Party to block anything that might help the nation's economy on Barack Obama's watch.

This week, environmental organizations including the Sierra Club, American Wind Energy Association and The Pew Charitable Trusts are asking Americans to contact their elected officials and encourage them to renew the wind energy PTC and protect tens of thousands of green jobs. Yesterday, the Sierra Club launched a new series of high saturation television, radio and online ads, highlighting those Republicans who have failed to act to renew the PTC for wind energy. The cable television and radio ads will run in eastern New Hampshire, Scranton, Pa., and Las Vegas media markets throughout the next three weeks.

Yet in spite of this ground swell, another version of a PTC extender failed to get to the Senate floor this week -- and economists warn that extending the credit after the election, which seems to be the plan of many Republican leaders, will be too late for the factories and jobs.

This behavior is unprecedented -- and unpatriotic. Business, workers and communities -- and our environment -- are being needlessly and severely harmed, simply to make a political point. No Congress in my lifetime has acted this way, however badly a president's opponents loathed him. Voters should not forgive members of Congress who hurt the country to help their electoral chances -- and do so intentionally. But voter accountability for politicians won't save the jobs and livelihoods that are going down all over America this summer in the wind supply chain.

A veteran leader in the environmental movement, Carl Pope is the former executive director and chairman of the Sierra Club. Mr. Pope is co-author -- along with Paul Rauber -- of Strategic Ignorance: Why the Bush Administration Is Recklessly Destroying a Century of Environmental Progress, which the New York Review of Books called "a splendidly fierce book."

 
 
 

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HUFFPOST SUPER USER
kroyall
12:33 AM on 07/20/2012
If industrial wind power made any economic sense no political group could "destroy" it. It needs to be able stand on its own without taxpayer subsidies and mandates from government. It can't so the wind industry will destroy itself when the subsidies run dry.
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HUFFPOST SUPER USER
Eugene Berkovich
Unapologetic Socialist
01:09 AM on 07/30/2012
Unless there is a powerful political groups that stands against it. Let's see - who would be the group to suffer the biggest loss were we able to implement a nationwide wind power solution? The Big Oil lobby. So, what we have is two potentially powerful financial groups fighting each other. One has the White House behind it, the other the Big Oil's revenues.
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HUFFPOST SUPER USER
Michael Case
Grab your gun and bring in the cat.
01:10 AM on 07/30/2012
you mean like the oil industry? The coal industry?
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HUFFPOST SUPER USER
TheTightwireGuy
Attempting to balance reason and passion
04:23 PM on 07/18/2012
Many Tea Partiers are religious conservatives who believe that if it takes destroying the US economy in order to have a GOP president nominate the next few SCOTUS justices, so be it. Because they believe that if America allows abortion and/or gay rights, the American people deserve to suffer. Sad but true.
12:47 AM on 07/18/2012
Darn those coal miners who got themselves laid off so they could be added to the unemployment numbers just to make President Obama look bad. Why couldn't they get jobs making wind turbines and blades? Oh! Those jobs have been outsourced to China. Then why couldn't they get jobs making PV solar panels? Oh! Thos jobs have been outsourced to China too. Isn't there anything made in the USA without Chinese content? Oh! The electric power in the US is too expensive and is making the cost of producing anything in this country more expensive than manufacturing it overseas and shipping it here. But I thought the price of natural gas is low. Doesn't that help? Oh! Utilities must produce 20-30% of their power from "renewable energy" that is many times more expensive than traditional forms of power and EPA is trying to find a way to kill natural gas as they are doing to coal. What about biomass? Oh! EPA mandated 15% of gasoline contain ethanol made from mostly corn - food for people and for livestock and a feedstock for many industrial chemicals. And with the drought, the corn harvest will be only a fraction of normal. WHAT WERE WE THINKING WHEN WE AGREED TO THAT! GOD HELP US ALL!
11:43 PM on 07/17/2012
I always like to read the posts where Obama increases the debt. As a poster pointed out, GW did not put the wars in the budget and Obama did. What is our biggest cost? Defense. Ask the Republicans why they keep forgetting that - and the tax cuts that were supposed to create jibs- it really gets tiring to hear the same lame story because the Republicans have nothing else to offer.
11:35 PM on 07/17/2012
I live in Duluth. We have an abundance of clean water and air. The mines here use wind power. I saw the turbine blades coming in and was appalled to learn they were made overseas. I wonder when we are going to get some brains. There are some people in this country that don't belong here and they aren't the illegal immigrants. The illegals appreciate the work they get. You can kick the Tea Partiers out any time and their representatives with them. They need to learn what true representation of all people are and the value of the freedom they now possess. Maybe some time in Syria would help.
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Mudpie maker
Research Everything!
09:23 AM on 07/30/2012
Like Cravaack who doesn't even live here!
GWBear
Reality focused educated progressive
06:31 PM on 07/17/2012
Destroy an industry? - that's nothing! Their radical, reckless, extremely ideological, and obstructionist policies have already done much to destroy the entire country! ANYTHING is fair game if it will take Obama down!
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HUFFPOST SUPER USER
MrBIgp
If I'm wrong, please show me
12:52 PM on 07/17/2012
The Tea Party isn't capable of destroying the wind industry. If the wind industry cannot survive without subsidies, it isn't the Tea Party's fault.
HUFFPOST SUPER USER
Bonnie FrucheyMossing
01:10 AM on 07/30/2012
Then explain to me why we must continually subsidize the oil and gas industry. The majority in the House won't even, ever, consider excising those from the budget. I'm guessing the wind industry just doesn't line their pockets well enough.
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HUFFPOST SUPER USER
MrBIgp
If I'm wrong, please show me
12:45 PM on 07/17/2012
Unlike Mr. Pope, I don't presume to be an expert on other people's motivations. Isn't it possible that the Tea Party opposes wind turbines because they are a waste of money?
HUFFPOST SUPER USER
wgbastos
01:04 PM on 07/17/2012
No
HUFFPOST SUPER USER
A1percenttaxpayer
10:25 AM on 07/17/2012
Why are we wasting our money on wind turbines it costs hundreds of times more than fossil fuels and nuclear.
06:49 PM on 07/17/2012
Fossil Fuels are destroying the environment and Nuclear reactors are infinitely less destructive but are expensive & freak out people because of some Three Mile Island , Chernobel and the Japanese reactors that were destroyed by the earthyquake. Utilizing many different energy sources garauntees flexibility and allows decentralized power generation . Weather can sometimes can sometimes destroy power distribution systems and having local power is one way to get around that.
12:56 AM on 07/18/2012
Yea! ALL OF THE ABOVE, uh, except for coal, and not so much natural gas either, and definitely not biomass because that burns too. And no nuclear power because it sounds too much like nuclear weapons and has zoomies and we won't allow electric rate increases to upgrade the safety of these plants. Yea, lets all volunteer to pay lots more for electric power from wind and solar (manufactured in China) so we can save the planet - the heck with the people who live on it. Is there a viable solution or only excuses.
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HUFFPOST SUPER USER
Seiso Ngwenya
08:52 AM on 07/17/2012
These tea party guys want to make it difficult for any black person who will run for office in the future. They know that if they can make Obama fail they will use O's failures to discredit any black person saying we tried a black person before and the country was extremely weakened economically, internationally . Yet it would have been their inability to compromise. Do you think that Murdock guy from Indiana will pass anything proposed by Obama and the democrats.
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HUFFPOST SUPER USER
Seiso Ngwenya
08:43 AM on 07/17/2012
The article is spot on .
10:03 PM on 07/16/2012
Can't speak for anyone else, but I will do ANYTHING to weaken obama.
ThinkCreeps
Seriously, it's time.
10:12 AM on 07/17/2012
You can barely speak at all.

Brain damage has consequences, I guess.
12:16 PM on 07/18/2012
Ouch. That hurt. I still have a vote and lots of money, sport.
05:35 AM on 07/18/2012
Why?
HUFFPOST SUPER USER
2pence
ignorance should not be contagious
09:47 PM on 07/16/2012
Oil and Coal industries are the owners of too many politicians. "Drill baby drill" is a pledge among the Republican/TPers; actually it more like brain washing of susceptable citizens who dislike change in the status quo. I have personally heard far too many GOP supporters decry renewable energy as an un- democratic attempt to deny them freedom and impose a socialist energy agenda on America. Does the idiocy never end?
01:02 AM on 07/18/2012
I think those receiving "gazillions" of subsidies for alternate energy who then use some of that money to fund politicians who are willing to give more subsidies, have much more money to contribue to politicians than certainly the coal industry whose companies are going bankrupt. Follow the money in that circular loop for your culprits. Will the idiocy never end?
HUFFPOST SUPER USER
2pence
ignorance should not be contagious
07:09 AM on 07/18/2012
Alternative energy is a policy that should be persued. Oil and coal are not sustainable, environmentally or economically. In the world of DC politics funding pols is a business, a business out of control since Citizens United. If America is to stay viable we must seek other forms of enrgy. I noted the mentality of those fight against changes to the status quo of energy forms. Renewable energy is a national and domestic priorty as it would lower trade deficits, stop the use of "presumptive wars", i.e., Iraq, remove us from the Iran/Israel conflict from the energy protection perspective to global peace. ininiatives. We are in a global economy that is evolving and vying for energy supplies; we are becoming too dependent on the mentality that America is and will always be number one. That thought process is hubris, not policy sanity.
HUFFPOST SUPER USER
Blackstone3
09:27 PM on 07/16/2012
I read this article with great interest until the 5 recommendations for manufacturing revival. The author is an idiot and anyone who actually believes those 5 recommendations is a retard. You want manufacturing to be revived, get rid of free trade. Pump up import duties. Stop giving subsidies for "English Literature" and "Art History" majors and open up vocational schools. Reduce the environmental job killing bs from the EPA. Otherwise, just apply at MickyD's.
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Carl Pope
Executive Director, Sierra Club
12:37 PM on 07/21/2012
Just to clarify, those were not my five recommendations for manufacturing -- they were Lou Schorsch's -- Lou is the head of Arcellor-Mittal Steel. He probably knows a fair amount -- more than I -- about the topic. And we should not be deluded that what we have is free trade -- no such thing. We have trade agreements written for the banks, by the banks and of the banks -- agreements which do indeed throw manufacturing under the bus. But "free" they ain't -- they are thousands of pages of special interest deals long, and they are a big part of our problem.
HUFFPOST SUPER USER
Blackstone3
03:36 PM on 07/21/2012
I knew that those 5 recommendations were not yours. I also completely agree free trade bills are drafted to help banks and by extension large companies. I also acknowledge the special interests in all of those free trade pacts. To that extent we are on the same page, except I continue to find those 5 recommendations a joke. We need to support American manufacturing. That will take tariffs and other protectionist measures. They will cause goods to increase in price. But it will generate jobs, and a lot of them. Japan and Korea undertook years of protectionist measures to develop their "home grown" manufacturing base. We need to swallow our pride and do the same thing.
Please note that no party or major party candidate supports this idea. Why is that?
HUFFPOST SUPER USER
Jim Pasterczyk
Banned!
06:52 PM on 07/16/2012
Something I'm sure the "drill baby, drill" people don't know is that there is no law requiring that crude produced in the US be refined or used in the US. It just goes onto the world market to the highest bidder, which should please their free market hearts but also confuse their rabid beliefs on American exceptionalism.
HUFFPOST SUPER USER
Blackstone3
09:33 PM on 07/16/2012
Listen idiot, forget the "not going to be used in the USA" bs. We already owe $16 Trillion in debt. What did you think we were going to pay that back with genius? Selling plastic trinkets to visitors at the Great Wall? We will also end up selling off America's copper, iron, coal, and gas to boot. Seriously, how did you propose paying all of that money back? Selling young girls and boys to the Arabs? Expanding pot production? Running Mexicans out of meth and doing it ourselves? Liberals are so stupid it is painful. They spend money year after year after year and have no plan on paying it back. Then they get surprised that we have to sell things off. Grow up.
HUFFPOST SUPER USER
Jim Pasterczyk
Banned!
03:29 AM on 07/17/2012
Hopefully selling either finished products or agricultural goods, but whoever thinks that because it's pumped here it'll stay here is under a misapprehension. Liberals spending money year after year after year? It's mostly the GOP's debt.

http://en.wikipedia.org/wiki/National_debt_by_U.S._presidential_terms

http://en.wikipedia.org/wiki/United_States_national_debt

Grow up yourself.
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HUFFPOST SUPER USER
MrBIgp
If I'm wrong, please show me
12:16 AM on 07/17/2012
US exports of crude oil and refined products is minuscule - a few thousand barrels a day compared to 10 million barrels a day imported.

http://205.254.135.7/dnav/pet/pet_move_exp_dc_NUS-Z00_mbblpd_a.htm
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HUFFPOST SUPER USER
MrBIgp
If I'm wrong, please show me
12:39 PM on 07/17/2012
Oooops - Brain F*rt. Exports of crude oil ARE minuscule, but exports of refined petroleum products are major. Sorry.