This is the last week before summer break, and then we get to pay them to go out and campaign. Indications are that they are scrambling to finish their budget targets, but the budget itself might not be completed until September. The Blue Cross package (which I have not paid one whit of attention to) looks stuck until after the election. They did manage to get the Great Lakes Compact/water withdrawal legislation done, and they do deserve some applause for that. Clap, clap. Sincerely.
But as far as creating jobs in Michigan? You know, that thing that Mike Bishop promised us would be the focus of this year's legislative session? Ask yourself, what one industry is enjoying explosive manufacturing growth. What one industry has captured the nation's attention in the wake of rising energy costs and global warming. What one industry is a perfect fit for Michigan's natural resources and manufacturing workers and facilities. Figure it out?
Apparently, that one industry is the one that the Legislature is going to leave behind in the rush to get out of Dodge. From MIRS-
Until last weeks' shenanigans in the Senate, the renewable energy portion of the package might have been ready to move soon. Now, however, the whole package seems to be on hold. The market reform portion of the package was already stuck in the mud and now the entire package looks like fodder for lame duck.
Michigan will miss out on the jobs that are being created as we speak, jobs that are going to states such as Ohio and others that have moved forward with policy that attracts alternative energy manufacturing-
Over the past three years, the U.S. wind industry has enjoyed a relatively stable policy environment. The federal production tax credit (PTC), the primary economic driver for wind, has been in place without interruption since August 2005 -- after being extended for two years in the energy policy act of 2005, and extended for one additional year (through 2008) at the end of 2006. In addition, more than 10 additional state renewable energy standard (RES) programs have been put into place, bringing the total number of states with an RES to 26 plus the District of Columbia. During that time, total wind capacity grew by 150% and the annual market size more than doubled.
U.S. manufacturers previously unfamiliar with renewables are finding a demand for their existing output (e.g., bearings) in the wind industry while other companies are tweaking their products and retooling their facilities to serve the wind industry and take advantage of this growing market.
It is no coincidence that over the same period, the U.S. found its stride — in this case, that stride being a rapid clip — in expanding domestic manufacturing capacity for wind power components. Dozens of new manufacturing facilities serving the wind industry have been brought online across the U.S. the last few years.
This next paragraph just screams "we can do this stuff in Michigan", and they go on to cite our own K & M Machining and Dowding Manufacturing as examples of companies that are already getting in the game.
Growth in U.S.-based manufacturing has not been limited to just the turbine assembly companies and manufacturers of major wind components. Wind power's supply chain is reaching straight down through the underpinnings of U.S. manufacturing, spurring expansion in domestic capacity for producers of basic products and materials that are needed in multiple industries. Perennial suppliers to the automotive and other major heavy-equipment industries — such as steel providers, foundries, and fabricators — are now serving wind energy, providing raw materials, metal castings, and machining for wind turbines.
Not to mention gear boxes and other various components that go into wind energy. Suppliers currently can't keep up with demand. And besides the danger of losing out to other states in this race, we might lose out to global competition as well.
Any sign of wavering policy support for wind in the U.S. could quickly shift wind component manufacturing out of the country and into the global market, severely damaging the golden opportunity to expand this nation's manufacturing production capacity and create jobs.
Seeing wind's impact on their economies, many U.S. states are doing their utmost to keep that from happening. States such as Iowa, Pennsylvania, Michigan, and Ohio have been quick to seize the wind opportunity, creating task forces and outreach plans to find ways to capture wind component manufacturing interest from companies both abroad and within their state borders. Since 2005 Iowa alone has successfully enticed wind energy companies to locate at least a half-dozen new major manufacturing facilities in the state, luring thousands of jobs to the Hawkeye State. As for Ohio, Gear Technology magazine notes that "from castings for gearboxes, to tension bolts, to pitch control system, Ohio companies are already manufacturing key components for this rapidly growing industry." To capitalize on those resources, the state's energy office recently established a wind industry supply chain outreach effort, the need for which was further enhanced with the recent passage of a state RES.
Ohio, Iowa and Pennsylvania have all passed their renewable energy standards. As we have mentioned time and time again, investment is going to the states with a RPS in place - and most states have stronger requirements than ours will be, which, as is stands as passed by the House, is 10% by 2015. Senate Republicans are even balking at that. Ohio laughs at us.
Unfortunately, our standards not strong enough according to the American Wind Energy Association - and they won't even move to get it done before they leave for break.
Or will they? My hope is that that statement is proven wrong before the end of this week. A long time ago, the governor suggested splitting the RPS from the rest of the package, and perhaps these people will come to their senses and at least pass this little portion and get Michigan on the map and attract attention from some major manufacturers. Or, we can fall further behind, waiting until the end of the year or later, and someday people will wonder why we didn't take advantage of this golden opportunity. That would be tragic - and for a Legislature that has been met with constant criticism for their lack of action on important issues, this will go down as their greatest failure when someday the totals are added up and the money and jobs are found elsewhere.