A clean way to energize job creation

The need for clean energy sources is a familiar theme, but something important has been added.

Unexpectedly, President Barack Obama said in his State of the Union address that the United States should build more nuclear power plants, and he followed through with a request to Congress to triple the level of loan guarantees so that utilities can obtain financing from private banks at less cost. This month, he announced government loan guarantees for a nuclear project in Georgia.

This presents an opportunity to accelerate the shift toward a clean energy economy while strengthening the nation's manufacturing base and generating jobs. It can go a long way toward revitalizing the economy provided we take certain actions.

At the top of that list would be fostering an environment for innovation in manufacturing. Given our country's history of breakthroughs in science and technology, it might seem unnecessary to talk about the need for innovation. But today, our dominance is being challenged, and the most serious competition is coming from Asia. China, India and other Asian countries are getting better at fostering technological entrepreneurship. They have adopted more flexible approaches that spur innovation.

In the United States, most of the components for wind turbines and nuclear power plants are imported. A case in point is wind-turbine manufacturing. Although wind energy was the second biggest source of new electricity generation in the United States in 2009, trailing natural-gas turbines, the domestic wind-manufacturing sector declined, resulting in job losses.

China is the world's largest manufacturer of solar panels.

We need to meet this challenge head-on. To the extent that production passes to foreign manufacturers, or even to America's own companies operating abroad, we pay a price in lost investment, lost factories and lost jobs.

What is to be done?

For starters, we must drop the misguided idea that it is wrong for the U.S. government to help the private sector, yet morally acceptable for manufacturers in other countries to rely on their governments for financial support - and to promote their government-financed advances in energy technology and develop plans for their use in exports.

We need tax incentives, especially for companies that produce highly sophisticated components for energy systems, including several dozen that are based in Florida. Enabling them to invest in innovative technology is not only important to the stimulation of domestic economic expansion and job creation, it is equally important for maintaining the global competitiveness of U.S. companies.

So far, a total of $2.3 billion in investment tax credits for advanced energy manufacturing has been awarded to companies. The White House has announced a plan to provide $5 billion in new tax credits for manufacturers that make clean energy products such as electric vehicles, wind turbines and solar panels. The tax credits are worth up to 30 percent for each project and will leverage private capital for a total investment in excess of $15 billion in high-tech U.S. manufacturing. Because manufacturing is the engine that drives economic expansion and many jobs would be created, Congress should approve the proposed tax incentives.

There is simply no better way to stimulate the growth of well-paying jobs than to build domestic manufacturing capabilities for clean energy projects.

Especially with nuclear energy, the market is large and growing.

According to the International Atomic Energy Agency, there are about 438 operating nuclear plants worldwide, and another 374 plants are either scheduled or under construction.

This is expected to create a market worth up to $935 billion, and it would more than double the energy supplied by nuclear technology, the agency says. In the United States, nuclear energy is on the cusp of a major expansion.

Electric companies are gearing up to build nuclear plants in Georgia, South Carolina, Tennessee, Maryland and other states to meet a projected increase in demand for electricity and to replace aging fossil-fuel plants. Nearly 30 additional nuclear plants are planned. Government loan guarantees for construction of the first few nuclear plants are expected to be issued shortly.

When Florida's economy begins to recover and demand for electricity grows, we are likely to move forward again on nuclear plant construction. Expanding and extending loan guarantees will make new nuclear plants available as a clean energy source to help meet the growing electricity demand here in Florida as well.

We have an unprecedented opportunity to expand the supply chain for the energy manufacturing base in the United States, not only for nuclear energy but also for solar and wind energy. In the process, energy manufacturers can contribute substantially to domestic job creation, economic development and the reduction of greenhouse gas emissions.