Senator Chuck Schumer Attempting to Block Federal Funds From Chinese-Backed Wind Farm

About a week ago, we told you about a joint venture between Chinese and American companies to build a huge wind farm in Texas, using Chinese turbines, and funded by Chinese banks, as well as loans and grants from the U.S. government. Up to speed? Good. The story seemed pretty cut and dry, but nothing ever really is, especially when it's China and the U.S. and $1.5 billion. Senator Chuck Schumer, from New York, is seeking to make sure that no federal stimulus funds earmarked for clean energy development go towards this project. His reasoning? The turbines will be made in China. Says the New York Times:

''The idea that stimulus funds would be used to create jobs overseas is quite troubling,'' Schumer wrote in a letter to be sent Thursday to Energy Secretary Steven Chu. The senator urged Chu to reject any request for funds from the Texas project.

''The purpose of the (stimulus program) was to jump start the economy to create and save jobs -- American jobs,'' the senator wrote. ''Yet the Texas wind farm project would create an estimated 2,000-3,000 clean energy manufacturing jobs in China. ... American taxpayer dollars should not be used to finance those Chinese jobs.''

Now, the issue here is that the United States simply doesn't make a whole lot of wind turbines. So, for this project to go forward, they've probably got to be built overseas. Regardless, Senator Schumer has a press conference today to explain why he feels how he does. Meanwhile, there has already been a little bit of public backlash over the outsourcing of turbine building. This has caused Cappy McGarr, a managing partner with U.S. Renewable Energy Group, a private-equity company and a partner in the Texas wind deal, to argue that this deal is not bad for America, but quite the opposite.

“Many of the parts for the turbines will be made by General Electric, an American company,” Mr. McGarr said. “The people of Texas will directly benefit through major increases in tax revenue to support schools, fire departments, and local governments. This wind farm will also generate millions of dollars in royalties for Texas landowners over the next 25 to 30 years.”

I understand the argument that China places pretty extreme restrictions on imported goods, so it seems unfair that we're playing with different rules, but I'm of the opinion that almost any steps towards going green with our energy supply are good ones. And if we can't build the turbines here right now, well, we've got to let China do it, while building an industry for it here at home. Also, let's not forget that China is footing the bill for over a billion dollars of this – more than 2/3 of the cost. You've got to figure they want something out of it.

photo credit: Freedom to Marry's flickr photostream/Creative Commons