Stabenow introduces bill aimed at boosting clean-energy manufacturing jobs

U.S. Sen. Debbie Stabenow, D-Lansing, on Monday introduced a new bill aimed at boosting manufacturing by providing tax incentives tied to clean energy jobs.

The American Jobs in Energy Manufacturing Act of 2021, which Stabenow wrote with U.S. Sen. Joe Manchin, D-West Virginia, would allocate $8 billion for a 30% tax credit available to manufacturers that retool, expand or build new facilities "that make parts and technologies needed to reduce carbon emissions," according to a news release.

"Transitioning to a clean energy economy creates significant opportunities for Michigan to put people to work in good-paying jobs in industries that are key to combating the climate crisis," Stabenow said in a statement. "Unfortunately, we have fallen behind countries like China, and the COVID-19 crisis has exposed gaps in our domestic manufacturing."

The legislation, she said, is intended "to address our supply chain shortages and drive investment in clean energy, automotive and battery manufacturing." By way of example, she noted that wind turbines typically contain thousands of individual parts.

"We can manufacture every single one of those in Michigan, and in West Virginia and Missouri and Ohio and so on," she said. "We don't have to have China doing the majority of solar panels or the majority of battery cells. ... We can do that here, and these are great-paying jobs. They are union jobs. It's a matter of taking the great skills that people have ... and saying, "OK, now let's do this.'"

Companies eligible to apply for the proposed tax credit include those making batteries, electric and fuel cell vehicles, semiconductor chips (a recent shortage of which has snarled global auto production and caught the attention of the Biden administration), components to produce renewable energy, carbon capture and others, according to the release.

Much of the supply chain for automotive semiconductors is based in Asia. Market forces tied to the pandemic have resulted in automakers around the world facing a shortage of the crucial components, prompting them to cut vehicle production.

"We're seeing shifts shut down temporarily and people being laid off because of a semiconductor component that we ought to be making in the United States so that we are not dependent on a company in Taiwan," Stabenow said. "This bill is an example of getting this production in the United States." 

Half of the allocated funding would be set aside for projects in communities where coal mines or coal plants have closed and which did not receive the 48C tax credit that was created in 2009 and which this program essentially would expand.

Stabenow noted that about 130 companies received the tax credit offered through the 48C program more than a decade ago.

The proposed legislation also would "provide assistance to applicants and create jobs where they're needed most," according to the release. It spells out new guidelines and technical assistance for projects in communities that did not receive the 48C advanced energy manufacturing tax credit.

The bill has been endorsed by a number of environmental, labor and manufacturing organizations, as well as by the three Detroit automakers, Stabenow's office said, including the National Wildlife Federation, Sierra Club, United Steelworkers, and the Alliance for Automotive Innovation, among others.

Matt Blunt, the Republican former governor of Missouri and president of the American Automotive Policy Council, joined a virtual news conference announcing the legislation to express the trade association's support for the bill. 

"Certainly Ford and GM and Stellantis are committed to the innovation and investments that will keep American auto manufacturing at the cutting edge of a very competitive global auto industry," he said. "Ford, GM and Stellantis are all committed to making the investments that are necessary to build the next generation of vehicles right here in America, and this legislation will clearly assist their efforts to do that."

Sen. Steve Daines, a Montana Republican, on Monday signed on as a co-sponsor of the bill. And Stabenow, who sits on the Senate finance committee, said other finance committee members, including chairman Sen. Ron Wyden, an Oregon Democrat, as well as the Biden administration are "supportive."

jgrzelewski@detroitnews.com

Twitter: @JGrzelewski