Oregon’s green energy incentives come under criticism for lack of jobs data

Oregon’s green energy incentives come under criticism for lack of jobs dataAt 10.4 percent unemployment, Oregon’s unemployment rate is higher than most other states, meaning that the number of jobs created by any state subsidy or incentive is likely to face increased scrutiny.

This past weekend The Oregonian published “How many jobs from Oregon's green energy incentives? No one knows.”

The article reported that Oregon’s Business Energy Tax Credit (BETC), which has supported numerous clean energy developments like wind farms and solar manufacturing plants, did not track how many jobs the credits created. But other reports, particularly “The Greening of Oregon’s Workforce” by the Oregon Employment Department Workforce and Economic Research Division shows that as of 2008, the state had a total of 51,402 green jobs.

One of the problems was that the tax credit was first developed over 30 years ago. “The Business Energy Tax Credit was created in 1978. It was designed to get businesses to invest in renewable energy and energy efficiency in Oregon,” said Energy Department spokesperson Diana Enright.

At that time, the projects weren’t required to give jobs figures.

The state changed how the Department of Energy implements projects under the tax credit. It now offers the credits for three types of projects, Enright said.

Projects must fit under one of three categories: Renewable Resources, Energy Conservation or Renewable Energy Resource Equipment Manufacturing. In addition, they’re administered under a tiered process. The upper two tiers, for larger projects, are under competitive review and require applicants to file jobs-projection data and more, she said. The changes will help the state track more accurately how many jobs are created by the incentives.

Solar manufacturing jobs have been tracked since 2009 by the Oregon Business Development Department. The solar manufacturing industry is employing a total of 1,482 people at SolarWorld, Solaicx and Sanyo. The majority of positions—1,140—are at SolarWorld. The opening of two new solar plants will create nearly 600 more manufacturing jobs, according to the department. SoloPower is expected to add 500 positions, and Solexent is expected to add 94 jobs when it opens its plant.

The manufacturing jobs have a multiplier effect, according to the business department.

According to a department document, “In January 2011, an IMPLAN analysis was conducted on those renewable energy manufacturing projects that had been completed, received pre-certification, or were still pending. Those projects were projected to create more than 1,840 direct manufacturing jobs. In addition, the indirect and induced jobs from those projects were projected to result in nearly 7,000 jobs.”

The positions will also generate about $610 million more in wages, according to the analysis. They will also generate more than $32.6 million in annual income taxes. The analysis did not include the short-term construction jobs created by building the plants, the department said.

Pictured: The SoloPower manufacturing plant outside of Portland, Ore.