Sensenbrenner Urges President to Reverse Export-Import Bank Ruling
|
|
Category: Government CommitteesType: News
Source: U.S. House Committee on Energy Independence and Global Warming
Party: Republican
Date: Tuesday, June 29th, 2010
Washington, D.C. -Rep. Jim Sensenbrenner, R-Wis., ranking Republican on the House Select Committee on Energy Independence and Global Warming, today urged President Obama to reverse a recent U.S. Export-Import Bank ruling that will prevent new jobs from being created in Wisconsin and several other states.
"Denying jobs to American workers is no way to address climate change or energy independence," Sensenbrenner said. "The Administration has made clear that it's environmental agenda is more important than job creation. We need to pursue solutions that promote both."
The U.S. Export-Import Bank's rejection last week of nearly $600 million in loan guarantees for Reliance Power Ltd.'s coal-fired power generation station in India will prevent Wisconsin-based Bucyrus International Incorporated from creating in excess of 1,000 jobs, according to the company's chief executive. With the loan guarantees, Bucyrus International would have supplied mining and energy equipment to the plan and created at least 300 jobs in the Milwaukee area.
"The reduced spending from these job losses will ripple much wider-all the result of a single flawed decision stemming from a failed climate policy," the letter said.
The chairman of the Export-Import Bank cited the Administration's "commitment to transition away from high-carbon investments" as a factor in denying the loan guarantees. The Departments of State and Treasury recommended that the bank reject the loan guarantees.
The bank's actions won't prevent India from moving forward with the project, the letter said. The decision merely ensures that an American manufacturer will be cut out of the project. Reliance Power will likely turn to China to supply equipment for the project. The process of manufacturing the equipment in China will actually produce more emissions than if the equipment was manufactured in the United States, the letter said.
"We've traded American jobs for higher emissions," the letter said. "The coal plant will still be built, but the U.S. has forfeited the chance to ensure that it will be built with lower emission technologies. The mining equipment will still be manufactured, but it will likely be built in China where the associated emissions are much higher."
"We can and will diversify our energy portfolio and increase U.S. energy independence, but we must do so with common sense, and we must do so in a way that creates U.S. jobs and strengthens the U.S. economy," the letter said.
Please click here to view the letter.
####
There are currently no comments for this story. Be the first to
add a comment!
Click here to add a comment about this story.
