REINVIGORATING THE ECONOMY THROUGH STIMULUS LEGISLATION: OPPORTUNITIES FOR ALL HEARING BEFORE THE SELECT COMMITTEE ON ENERGY INDEPENDENCE AND GLOBAL WARMING HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION JANUARY 15, 2009 Serial No. 111–1 ( Printed for the use of the Select Committee on Energy Independence and Global Warming globalwarming.house.gov U.S. GOVERNMENT PRINTING OFFICE 62–183 WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Mar 15 2010 00:17 Dec 15, 2010 Jkt 062183 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 E:\HR\OC\B183.XXX B183 tjames on DSKG8SOYB1PROD with HEARING SELECT COMMITTEE ON ENERGY INDEPENDENCE AND GLOBAL WARMING EDWARD J. MARKEY, Massachusetts, Chairman EARL BLUMENAUER, Oregon F. JAMES SENSENBRENNER, JR., JAY INSLEE, Washington Wisconsin, Ranking Member JOHN B. LARSON, Connecticut JOHN B. SHADEGG, Arizona HILDA L. SOLIS, California GREG WALDEN, Oregon STEPHANIE HERSETH SANDLIN, CANDICE S. MILLER, Michigan South Dakota JOHN SULLIVAN, Oklahoma EMANUEL CLEAVER, Missouri MARSHA BLACKBURN, Tennessee JOHN J. HALL, New York JERRY MCNERNEY, California PROFESSIONAL STAFF GERARD J. WALDRON, Staff Director ALIYA BRODSKY, Chief Clerk THOMAS WEIMER, Minority Staff Director (II) VerDate Mar 15 2010 00:17 Dec 15, 2010 Jkt 062183 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 E:\HR\OC\B183.XXX B183 tjames on DSKG8SOYB1PROD with HEARING C O N T E N T S Page Hon. Edward J. Markey, a Representative in Congress from the Common- wealth of Massachusetts, opening statement .................................................... 1 Prepared statement .......................................................................................... 3 Hon. F. James Sensenbrenner, Jr. a Representative in Congress from the State of Wisconsin, opening statement .............................................................. 5 Hon. Earl Blumenauer, a Representative in Congress from the State of Or- egon, opening statement ...................................................................................... 6 Hon. John Shadegg, a Representative in Congress from the State of Arizona, opening statement ................................................................................................ 7 Hon. John Hall, a Representative in Congress from the State of New York, opening statement ................................................................................................ 8 Hon. Jay Inslee, a Representative in Congress from the State of Washington, opening statement ................................................................................................ 8 Hon. Emanuel Cleaver II, a Representative in Congress from the State of Missouri, opening statement ............................................................................... 9 WITNESSES Hon. Michael A. Nutter, Mayor, City of Philadelphia .......................................... 10 Prepared statement .......................................................................................... 14 Hon. Douglas Palmer, Mayor, City of Trenton ...................................................... 28 Prepared statement .......................................................................................... 31 Mr. Van Jones, President, Green for All ............................................................... 39 Prepared statement .......................................................................................... 42 Ms. Denise Bode, CEO, American Wind Energy Association .............................. 48 Prepared statement .......................................................................................... 51 Dr. David Kreutzer, Senior Policy Analyst, Heritage Foundation ...................... 55 Prepared statement .......................................................................................... 74 Answers to submitted questions ...................................................................... 108 Mr. Trevor Houser, Visiting Fellow, Peterson Institute for International Eco- nomics, Director, Energy and Climate Practice, Rhodium Group LLC ........... 80 Prepared statement .......................................................................................... 83 Answers to submitted questions ...................................................................... 114 SUBMITTED MATERIALS Hon. Edward J. Markey, letter of January 14, 2009, from the U.S. Green Building Council ................................................................................................... 117 (III) VerDate Mar 15 2010 00:17 Dec 15, 2010 Jkt 062183 PO 00000 Frm 00003 Fmt 5904 Sfmt 0486 E:\HR\OC\B183.XXX B183 tjames on DSKG8SOYB1PROD with HEARING VerDate Mar 15 2010 00:17 Dec 15, 2010 Jkt 062183 PO 00000 Frm 00004 Fmt 5904 Sfmt 0486 E:\HR\OC\B183.XXX B183 tjames on DSKG8SOYB1PROD with HEARING REINVIGORATING THE ECONOMY THROUGH STIMULUS LEGISLATION: OPPORTUNITIES FOR ALL THURSDAY, JANUARY 15, 2009 HOUSE OF REPRESENTATIVES, SELECT COMMITTEE ON ENERGY INDEPENDENCE AND GLOBAL WARMING, Washington, DC. The committee met, pursuant to other business, at 2:20 p.m. in room 2172, Rayburn House Office Building, Hon. Edward J. Mar- key (chairman of the committee) presiding. Present: Representatives Markey, Blumenauer, Inslee, Larson, Solis, Herseth Sandlin, Cleaver, Hall, Sensenbrenner, Shadegg, Walden, Miller, Sullivan, and Blackburn. Staff present: Danielle Baussan, Jonathan Phillips. The CHAIRMAN. For that purpose, I welcome back the members of the select committee for the first hearing of a new year. The be- ginning of a new year often prompts people to appraise the pre- vious 12 months and, sensing the promise of a fresh start, resolve to improve over the next 365 days. Though some New Year’s reso- lutions have a habit of going in one year and out the other, Con- gress cannot weaken its resolve to address two of the most impor- tant issues before the Nation, restoring the economy and fighting climate change. Over the past year, the U.S. economy suffered through a market meltdown, a foreclosure crisis, and volatile oil and commodity prices. During this time, 2.6 million U.S. jobs were lost; the South- east suffered a serious drought; and a coal ash catastrophe in Ten- nessee created more environmental damage than the Exxon Valdez oil spill. We must prevent 2009 from having a similar summary. The Obama administration has outlined an economic stimulus plan to revive the economy through tax incentives and millions of jobs in renewable energy, infrastructure improvements, increased State and local aid, and improving the energy efficiency of build- ings. These initiatives offer an unprecedented opportunity for green collar jobs and environmental reform to be the backbone of a stronger economy. Just this past week, it was reported that a sustainable building supply company, Serious Materials, is working with a bankruptcy court to buy a traditional window factory that closed last Decem- ber. The company is trying to rehire 300 workers who were laid off with 3 days notice. Congress and the administration must support these efforts on a national scale. (1) VerDate Mar 15 2010 13:11 Dec 16, 2010 Jkt 062183 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 E:\HR\OC\B183.XXX B183 tjames on DSKG8SOYB1PROD with HEARING 2 The stimulus package cannot be a plan to dig ditches or create a couple of pork ridden specialty projects. These greenbacks should yield green results for all. A stimulus package focused on more effi- cient and renewable energy can result in greater labor intensity and higher wages than investing in oil production. This is not robbing Peter to pay Paul. The Center for American Progress predicts a net increase of jobs created if Congress sup- ports expanding the renewable energy and energy efficiency indus- tries. As the stimulus plan is adopted, it must reflect short-term and long-term benefits, direct infusion to States and localities, and kick-start economic and energy development. Energy efficiency and weatherization can be deployed immediately through existing skill sets and technology. Tax incentives can encourage greater invest- ment and employment in renewable industries, while smart grid development can sustain a national network of long-term perma- nent employees. A green economy didn’t get us into this mess, but it can get us out. The promise of a green economy can be met in every State, in every demographic. It is estimated that 30 percent of jobs created or sustained through the stimulus bill will be in construction and manufacturing, with another large share in the retail, hospitality, and mining industry. These sectors employ many low- and middle- income workers who have been hardest hit by the recession. Technological advancements and corporate investment opportuni- ties can augment these economic gains. Congress and the adminis- tration must seek ways to find a green economic tide that lifts all boats. Some people may look forward to the new year as a new start on old habits, but we cannot afford to overlook the opportunity to strengthen the economy by developing a globally competitive indus- try for renewable energy, restoring our failing infrastructure, and increasing environmental and energy security. This is one resolu- tion we cannot and will not break. Let me turn and recognize the gentleman from Wisconsin, Mr. Sensenbrenner, for his opening statement.