[UPDATED] Fernandez: Green Tax Credits 'Critical'

He says there is a "huge market" for renewable energy with a full spectrum of employment opportunities.

Fernadez touched on alternative energy businesses and other items during a speech this week in Indianapolis.

Source: Inside INdiana Business.

Text of Speech to the Indianapolis Rotary Club

Thank you, Michael, for that kind introduction. You have been a great teacher, mentor and friend.

President Blade, I really appreciate you and the Rotary Club hosting me this afternoon.

It’s great to be back in Indiana and to see so many familiar faces – Boy it’s wonderful to be home again.

Indiana is where my roots are. I was raised here.

I know what folks have been going through here in Indiana as a result of the recession. But Hoosiers are resilient. And the common sense attitudes we share are far too often in short supply in Washington.

Growing up in Kokomo, I witnessed these characteristics – true American characteristics – first hand. My father was a UAW auto worker in Kokomo. Growing up, the fluctuations in the auto industry were challenging for my father, my family and for everyone else there. But we persevered. And Kokomo persevered - diversifying, innovating and living up to its “City of Firsts” motto.

And, as Mayor of Bloomington from 1996 to 2003, I was witness to the American innovative spirit as the city’s economy thrived despite facing significant changes arising from the new global economy.

We survived the significant loss of traditional manufacturing jobs by capitalizing on our region’s strengths.

These experiences, personal and professional, I think, give me a perspective that I hope helps inform our work in Washington. Seeing and experiencing the impacts of economic downturns up close and personal, fuels the sense of urgency I take to my job every morning. And I know President Obama and our entire team shares this sense of urgency.

When President Obama took office we were hemorrhaging 750,000 jobs a month. The financial crisis put our economy into a tailspin. And, on top of the recession and fiscal crisis, the Midwest was grappling with the near collapse of the domestic auto industry.

President Obama took decisive action. Even before taking office, he supported legislation to prevent the total collapse of our financial system. As President, he pushed through the Recovery Act which included tax cuts for 95% of Americans, major tax cuts to spur new investments and job creation, assistance for state and local governments for critical infrastructure and education. He led the efforts to restructure GM and Chrysler. With millions of jobs at stake, with the future of so many families and businesses on the line, the President made the tough decisions to prevent the country from slipping into an even deeper crisis.

Now, to state the obvious, not all of these decisions were popular. But they were the right thing to do and we’re starting to see progress. An economy that was shrinking is now growing. The economy is adding jobs again – we’ve had six consecutive months of private sector job growth.

Here in Indiana, we’re seeing the wisdom of these investments.
Let’s start with the Recovery Act. A key part of the Recovery Act program was designed to unleash private sector investment, especially in renewable energy, advanced battery and vehicle manufacturing.

Last week, the President visited Holland, Michigan for the groundbreaking of a Compact Power advanced battery plant funded by the Recovery Act. This new plant is just one of nine such clean-energy facilities creating advanced batteries for electric vehicles funded as part of the Recovery Act’s $2.4 billion battery grant program.

This is one more investment in a long line of Administration efforts to revitalize the Midwestern economy, including similar investments in Delphi, Vela Gear Systems, Navistar, and THINK in Indiana.

In Indiana, the Department of Energy awarded over $156 million in grants and tax credits. These investments include:
• $39 million grant to Navistar to manufacture electric trucks;
• $16.9 million 48C tax credit to a company called THINK for an electric car manufacturing plant that will employ 415 workers in Elkhart by 2013;
• $11 million tax credit to Vela Gear Systems in Indianapolis to build a plant to produce advanced wind turbine parts. The facility will produce large precision gear sets designed specifically for the wind industry; and
• $89.3 million grant to Delphi for the automotive power electronics manufacturing facility in Kokomo.

Additionally, the Department of Energy awarded $400 million in loan guarantees to Abound Solar, a Colorado-based company that is converting the abandoned Gertag facility in Tipton into a solar panel manufacturing plant which will create 850 jobs.

How many of you have seen the massive wind farm along north I-65 in Benton County? Yep, the Recovery Act’s tax credits were the catalyst for the investments by Vestas, the company making those wind turbines.

Together, these public investments have sparked major new private investments at a time when business growth has been constrained by the access to capital issue. New jobs for Hoosiers are being created. And America is now in the game for global leadership in these critical renewable energy/clean tech markets.

Those of you here today know all too well that not too long ago the outlook for the domestic automotive industry in Indiana, the Midwest, and indeed the country was very bleak.

GM’s and Chrysler’s collapse would have been devastating to the United States automotive industry, and states that depended on these plants. Multiple suppliers throughout Indiana would have closed shop, further increasing job losses due to the recession. Some folks argued the government should stay out it and let nature take its course. Thankfully, the President and the majority of Congress disagreed.

The government-assisted restructuring of GM and Chrysler allowed the American automotive industry to survive while mitigating the potential economic devastation of a complete industry collapse. And now, these companies are beginning to rebound.

Since the restructuring, employment in the auto industry has expanded by 60,000 jobs. From Bedford, to Kokomo, to Ft. Wayne, we’ve seen major new commitments by domestic auto companies. New capital investments are being made and new jobs are being created here in Indiana.

As I said before, the Recovery Act and the support for GM and Chrysler were not universally popular. A number of politicians not only said “no” but even took legal action to block these programs. Fine, but as the President said last week in Michigan, these folks should go to Kokomo, Benton County, Ft. Wayne, Tipton, Bedford – and explain to the workers benefiting from these investments how things would have been better for them if we had not taking these actions.

Our efforts are bearing fruit. But clearly, much work remains. The economy is growing again and new jobs are being created, but at too slow a pace to reduce the anxiety and concerns of our citizens.

That’s why the President is pushing Congress to support his legislative package to support new tax credits for small businesses and the extension of unemployment benefits. And yes, we need Congress to pass energy legislation to reduce our dependency on foreign oil while unleashing tremendous growth opportunities for new innovative renewable energy companies and employment for millions of Americans.

The competitive global economy of the 21st Century presents some of the greatest economic, social and environmental challenges in America’s history. This dynamic calls for a new framework for sustained economic growth.

The investments I highlighted today were supported not with a goal to create yet another government program. The goal is to unleash private investment and innovative entrepreneurs that will fuel economic growth and create tomorrow’s jobs.

Success is essential for Indiana. And our nation’s future depends on it.

Again, I want to thank you for the invitation to be here today.

Thank you.

Source: U.S. Economic Development Administration