Keven Peterson reflects on “Clean Energy Jobs Act” now before state legislators

February 7th, 2010 |

Author: vilas

Misleading Legislation

It’s no surprise jobs – or the lack of jobs – is the foremost issue on the minds of everyone. In fact, a Pew Research Center public opinion poll showed job creation and the economy are Americans top priorities at 81% and 83%, respectively. Wisconsin alone had approximately 440 people per day become unemployed in 2009.

Instead of introducing an incentive package encouraging employers to locate, hire, and remain in the state, the Wisconsin Democrat leadership and Governor Doyle are proposing Senate Bill 450 and Assembly Bill 649 commonly called “The Clean Energy Jobs Act.”

Key provisions of the bill are 25% renewable energy by 2025, a low carbon fuel standard, and adoption of California Low-Emission Vehicle Standards. Although its title camouflages the proposal as a jobs bill, “The Clean Energy Jobs Act” is actually a by-product of Governor Doyle’s Global Warming Task Force.

Exactly as it reads, the 25% by 2025 provision mandates utilities produce 25% of their electricity from renewable resources like wind power. In order to meet this mandate, the Public Service Commission estimates 400 megawatts of renewable energy will have to be brought online each year for 16 years.

A cost benefit analysis conducted by the non-partisan Beacon Hill Institute at Suffolk University in Boston concluded the 25% by 2025 renewable mandate would cost in excess of $16 billion. The majority of this money would come from your wallet in the form of higher utility bills.

Furthermore, Wisconsin does not have the in-state wind potential to meet a 25% renewable standard. Therefore, a majority of the $16 billion will be spent in Iowa, South Dakota, Minnesota, and other states.

Couple higher utility bills with paying more money at the gas pump. The low carbon fuel standard, a Wisconsin specific fuel standard, will ban or restrict the use of corn ethanol and Canadian crude derived from oil sands. According to the George C. Marshall Institute in Virginia, this provision will increase the cost per gallon of gas by 61 cents.

Imitating California does nothing to create jobs, but illustrates the bill’s true intent as Governor Doyle’s and legislative Democrats’ global warming initiative. The proposal mandates Wisconsin adopt the requirements specified under California’s Low Emission Vehicle Program. The annual cost to consumers in Wisconsin would be over $350 million. Moreover, it would add approximately $1,000 to the cost of each new car sold.

Supporters of “The Clean Energy Jobs Act” say that it will create 15,000 “green” jobs. But, countering the “green” claim, the Beacon Hill Institute study estimates in excess of 43,000 private sector jobs will be lost in Wisconsin because of higher energy costs, or for every job gained, we’d lose almost 2.9 jobs.

A study performed in Spain by the Universidad Rey Juan Carlos in March 2009 shows similar numbers. Spain, often lauded as the model for a green energy economy, has lost 2.2 private sector jobs for every temporary government subsidized green job created. According to the Bureau of Labor Statistics, that country’s unemployment rate right now is nearing 20%.

Wisconsin cannot afford the “Clean Energy Jobs Act”. Already this session we have seen government grow at the expense of the private sector. The Department of Workforce Development reported in November of 2009, for the first time in state history, Wisconsin now has more government jobs (438,200) than manufacturing jobs (435,800).

As a legislature, it is our responsibility to create an employment environment which encourages family sustaining job retention and growth, not produce misleading legislation that chases businesses to other states.

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Respectfully,