March 26, 2009 CONGRESSIONAL RECORD — SENATE S3891 present—and all the support staff who success in baseball, our national pas- leader in advanced energy manufac- have helped them succeed—I extend my time. turing. warm congratulations on this 50th an- f Mr. BAUCUS. I thank my colleague niversary. CREDIT FOR INVESTMENT IN from New Mexico, the chairman of the f ADVANCED ENERGY FACILITIES Energy and Natural Resources Com- mittee, for his dedication to this issue. TRIBUTE TO LOUISVILLE Mr. BINGAMAN. Mr. President, I rise I am pleased to have worked with Sen- SLUGGER for a colloquy with the chairman of the ator BINGAMAN, the chairman of the Fi- Finance Committee, Senator BAUCUS, Mr. MCCONNELL. Mr. President, I nance Subcommittee on Energy, Nat- to discuss section 1302 of the American rise today to pay tribute to a fine Lou- ural Resources, and Infrastructure, on Recovery and Reinvestment Act, isville product that is recognizable this new incentive. And I whole- around the world and to the wonderful ARRA, which the President signed into heartedly agree with Senator BINGA- company behind it that is still knock- law on February 19, 2009 (Public Law MAN that we cannot allow the United 111–5). That section establishes a new ing it out of the park after 125 years. States to miss the opportunity to add tax credit, known as the section 48C Hillerich & Bradsby Co., makers of the thousands of green manufacturing jobs. credit, for investment in advanced en- famous Louisville Slugger, has made This new tax credit for investment in ergy facilities. over 100 million bats since 1884. advanced energy facilities will level Legend has it that the company’s I am very pleased that ARRA estab- the playing field so that the U.S. can first bat was made by 17-year-old John lishes this new credit. Because until compete for these jobs, and I was A. ‘‘Bud’’ Hillerich in his father, J.F. now, all of our investment tax credits pleased to include it in my chairman’s Hillerich’s, woodworking shop, after for renewable energy technologies have mark when the Finance Committee local baseball star Pete Browning been concentrated downstream that is, considered this legislation. broke his bat. Bud invited him to the at the commercial or individual con- shop and handcrafted a new one on a sumer level. While those incentives Under section 1302 of ARRA, the steam-powered lathe. have created some U.S. jobs, such as in Treasury Secretary is authorized to The next day, after Browning got installation, most advanced energy award total credits of up to $2.3 billion three hits in three at bats, baseball technologies that are installed in the for qualifying projects. Within 180 days players from all over the region began United States continue to be manufac- of enactment, the Treasury Secretary, to visit the Hillerich shop. From this, tured overseas. One major driver for in consultation with the Secretary of the Louisville Slugger was born. this overseas manufacturing is the sig- Energy, is required to establish a pro- The company has remained family nificant tax incentives that other gram to consider and award certifi- owned for five generations, and in that countries offer. For instance, Malaysia cations for projects that qualify for the time has become the most iconic brand and the Philippines offer solar photo- credit. The bill enumerates selection in the game of baseball. Players from voltaic manufacturers income tax holi- criteria that the Treasury Secretary T-ball to the Major Leagues all have days, for 15 years in the case of Malay- shall take into consideration. The Fi- used Louisville Sluggers, including sia, while Germany offers them up to 50 nance Committee developed these cri- such greats as Lou Gehrig, Joe percent of investment costs. As a re- teria with the Energy and Natural Re- DiMaggio, Jackie Robinson, and Babe sult, the U.S. is far behind, and is fall- sources Committee, and through the Ruth. Ruth personally gave bat makers ing further behind, in ‘‘clean tech’’ Chair, I would like to ask Senator at the company specifications for the manufacturing. According to one re- BINGAMAN to explain the criteria and Louisville Slugger bats he would use to cent study, Japan represents 45 percent clarify how Congress intends the ad- hit his record 60 home runs. of global solar cell production while ministration to implement this credit. In 1996, after operating elsewhere, the United States accounts for just 9 Mr. BINGAMAN. I thank the Sen- Louisville Slugger baseball bats came percent. And European manufacturers ator. At the outset, I note that this home to Louisville, as Hillerich & now account for more than 85 percent credit is a product of the Senate; it was Bradsby Co. placed their executive of- of the global wind component market. not included in the preconference legis- fices, wood bat plant, and a museum in But just as the U.S. is losing ground lation that was passed by the House. downtown Louisville, just 10 blocks in advanced energy manufacturing, we Overall, we intend the credit to pro- away from where Bud Hillerich made can anticipate rapid near- to mid-term mote the manufacture of property the first Louisville Slugger in 1884. The growth in domestic demand for renew- that, until recently, has not been wide- Louisville Slugger Museum & Factory able energy technologies. This demand ly deployed in the United States. In is now one of the major tourist attrac- will be driven by numerous factors, in- particular, the credit is intended to tions of Louisville, with more than 2 cluding last year’s extension of the benefit manufacturers of property (in- million visitors since its opening. commercial and residential investment cluding component parts of property) If any of my colleagues happen to be tax credits through 2016; extension by that (a) harnesses renewable resources in Louisville, my hometown, and want ARRA of the production tax credit to produce energy; (b) enhances the ef- to visit the Louisville Slugger Museum through 2013—2012 for wind; and declin- ficient use of energy derived from con- & Factory, it is very easy to find. Just ing product costs; anticipated enact- ventional or renewable resources; or (c) look for the 120-foot-long giant Louis- ment of national requirements for re- reduces greenhouse gas emissions from ville Slugger bat that marks the build- newable electricity deployment; and energy produced by conventional re- ing’s entrance. Every kid in town anticipated enactment of a market- sources. knows where to find the world’s biggest based system or tax to limit carbon bat and knows it marks the spot where emissions. But under the status quo, Treasury’s creation of transparent you can tour the factory and actually the corresponding growth in domestic scoring criteria will be critical for effi- see a Louisville Slugger being made. demand would largely have been satis- cient delivery of the allocated credit Today, Hillerich & Bradsby Co. manu- fied by imports. amount, which, in turn, will drive effi- factures more than 1 million wood bats For that reason, I worked with my cient deployment of private capital. a year, as well as aluminum bats, for friend from Montana, Senator BAUCUS, The new section 48C requires the professional and amateur use. to establish in ARRA the first tax cred- Treasury Secretary to make awards For millions of fans, the word ‘‘Lou- it for investment in advanced energy only to projects for which there is a isville’’ will always evoke the satis- facilities those that manufacture prop- reasonable expectation of commercial fying crack of a bat and the celebration erty that enables Americans to harness viability. Commercial viability pri- of a home run. This is thanks to the renewable resources to generate en- marily considers readiness for deploy- Louisville Slugger. The 2009 baseball ergy, to make energy efficient im- ment. It also considers capital require- season marks the Louisville Slugger’s provements, and to reduce greenhouse ments to reach end-consumers in a 125th anniversary, and I know all my gas emissions. I thank Senator BAUCUS cost-effective manner. Projects that colleagues join me in congratulating for sharing my commitment to putting have immediate and fungible markets Hillerich & Bradsby Co. for 125 years of our country on the path to being a and are positioned to compete in those

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In the How very sad our country has come to this. ability the Secretary should consider case of property that conserves or more We seem to be able to help everyone else in the potential scale of market applica- efficiently deploys energy, such as the world but not our own citizens. tions, and therefore the project’s smart grid and metering technologies, Everyone in the news keeps saying it will broader impact. or that reduces greenhouse emissions, not do any good for years if we start drilling In allocating credits, section 48C di- the appropriate measure is levelized and building refineries. Well, we have to rects the Secretary to consider five ad- cost of measured reduction in energy start somewhere and sometime. Foreign countries are virtually taking our oil re- ditional factors. consumption or greenhouse gas emis- First, the Secretary shall consider sources and we are standing by and letting it sions, which factors the cost per kilo- happen. What is so hard to understand about projects that will provide the greatest watt of energy saved or ton of carbon our dilemma? It affects our source of food domestic job creation, both direct and captured. Section 48C mentions the and many other vital areas that are urgent indirect, during the credit period. Be- ‘‘full supply chain’’ and, in the case of to our very survival. Let us bring back our cause of their potential to catalyze ad- reductions in energy consumption or capability to support ourselves by reacti- ditional growth, ARRA’s stimulus ob- greenhouse gas emissions, the Sec- vating our nuclear capabilities. We have the jective will be maximized if the pro- retary should also consider emissions technology and even some facilities that gram supports emerging sectors and were up and running. Why did not we stick reductions in other parts of the supply with a good thing when we were using it? technologies. Accordingly, the Sec- chain that are enabled by the applicant As far as drilling and the environmental- retary should consider job creation es- project. ists are concerned, since when do the minor- timates that include some evaluation Finally, the legislation directs the ity control the majority? Granted, we need of the potential breadth and scale of Secretary to consider projects that to protect the environment but we all know the property’s applications, including have the shortest project time from it can be done along with doing what we need job creation potential of the property’s certification to completion. ARRA’s to do to survive. What good is it to be so rad- supply chain, distribution, installation, overarching goal is to create jobs as ical and prevent every effort to improve our stability if no one is around to enjoy it? and maintenance. quickly as possible; the credit is in- Second, the Secretary shall consider Think about it. tended to benefit firms that are able to SHIRLEY, Boise. projects that will provide the greatest move quickly and with certainty. net impact in avoiding or reducing air Through the Chair, I would like to I appreciated your letter and am happy to pollutants or anthropogenic emissions ask Senator BAUCUS to confirm his be able to share how difficult it has become of greenhouse gases. Emissions from agreement with my description of for me, as a single mother who works in both the manufacturing project’s oper- these factors. Boise, but lives in Middleton. Every day, my salary is reduced because of the additional ations and the installed energy prop- Mr. BAUCUS. I most certainly agree erty should be considered. Applicant costs of commuting to work. Additionally, with the Senator’s description and I my home and water are heated by propane, projects should be compared to the ex- thank him for his collaboration in de- so making it thru this past winter was espe- isting most-likely alternatives, and veloping this robust new tax credit. cially difficult. I had to call on my church also to alternative new competing leaders for assistance 3–4 times to pay the f property. We expect that the Treasury propane bills. The $600 stimulus check issued Secretary will consult with the Depart- IDAHOANS SPEAK OUT ON HIGH by the government was not even enough to ment of Energy in estimating direct ENERGY PRICES cover the cost for one bill. I had to come up greenhouse gas emissions on a lifecycle with the additional $180 shortage on my own. Mr. CRAPO. Mr. President, in mid- basis for applicant projects. Addition- Needless to say, the stimulus check did not June, I asked Idahoans to share with ‘‘stimulate’’ much of anything. ally, the Treasury Secretary shall en- me how high energy prices are affect- We are in a national crisis, and something sure that any potential project has re- ing their lives, and they responded by must be done now. My husband walked away ceived all Federal and State environ- the hundreds. The stories, numbering from our family approximately three years mental authorizations or reviews nec- ago, leaving me with four children and two well over 1,200, are heartbreaking and essary to commence construction of mortgages to pay on less than $25,000 per touching. While energy prices have the project. year income. I cannot afford to file for di- Third, the Secretary shall look to dropped in recent weeks, the concerns vorce because my funds are so limited—so I projects that have the greatest poten- expressed remain very relevant. To re- am just stuck. I do not want to lose my home, but that is becoming more of a poten- tial for technological innovation and spect the efforts of those who took the opportunity to share their thoughts, I tial outcome each day. It breaks my heart to commercial deployment. This criterion see the things I have worked my whole life will ensure that tax credits are di- am submitting every e-mail sent to me through an address set up specifically for slowly dwindle away. So much for the rected to those projects that have the ‘‘American Dream’’. greatest opportunity to catalyze new for this purpose to the CONGRESSIONAL I feel powerless and frustrated much of the technologies, and thus multiply the tax RECORD. This is not an issue that will time as I have to choose whether to buy fuel credit’s impact. The Secretary might be easily resolved, but it is one that de- to be able to go to work, or buy food for my implement this standard by preferring serves immediate and serious atten- family. It is just a vicious circle. Please tell our elected officials that we need their help projects that are first- or second-of-a- tion, and Idahoans deserve to be heard. Their stories not only detail their now! kind, or that employ significantly im- GRACE, Middleton. proved technologies—i.e., those that struggles to meet everyday expenses, will achieve significant improvements but also have suggestions and rec- Thank you for your letter. Yes, we are in cost or technology performance rel- ommendations as to what Congress can scared at the direction our economy has ative to existing solutions. do now to tackle this problem and find taken, which all appears to be caused by the Fourth, the Secretary shall prioritize solutions that last beyond today. I ask horrendous rise in gasoline prices—and who unanimous consent to have today’s let- do we blame for this—Congress, of course! projects that have the lowest levelized How can you sit by and let the oil companies cost either of generated or stored en- ters printed in the RECORD. There being no objection, the mate- rake in billions of dollars in profits through ergy, or of measured reduction in en- pure greed. I have never liked overregulation ergy consumption or greenhouse gas rial was ordered to be printed in the of business, but I think now they need some emissions. Because it takes into ac- RECORD, as follows: regulating, as do all those who are profiting count the installed system price and First of all thank you for all your efforts by this miserable situation. associated costs, such as financing and to help the people of Idaho and the USA. We are on a fixed income: Social Security, operation, levelized cost of energy is an We have a disabled daughter that lives on small pension (that never changes) and a a very small income. We subsidize her in- 401K saved while working—which by the way accepted and common metric for com- come monthly and daily. It is all she can do is shrinking due to the stock market prob- paring the cost of generating energy or to make ends meet. We are retired and on lems. The only thing that can be done about saving energy across properties. In the fixed income. Even before these terrible gas our income would be a decent cost-of-living case of property that generates or price increases and using ‘‘level pay’’ for rise in the Social Security next January.

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