Congressman Sam Farr wants to ensure Solargen Energy’s proposal
for a 420-megawatt power plant in Panoche Valley creates jobs in
San Benito County and that hundreds of millions of dollars in
prospective stimulus money for capital start-up costs funnel back
into the local economy.
Congressman Sam Farr wants to ensure Solargen Energy’s proposal for a 420-megawatt power plant in Panoche Valley creates jobs in San Benito County and that hundreds of millions of dollars in prospective stimulus money for capital start-up costs funnel back into the local economy.
While Congress is on a short break, Farr spoke in a phone interview Friday about the Solargen project and the federal program – with up to nearly $300 million to the company – which would help finance capital costs on the $1.2 billion project.
It would come from a federal stimulus-driven program designed to spur rapid growth in a domestic industry that has lagged compared with renewable energy expansion overseas. There is a year-end deadline for alternative energy companies to apply for the funds, once and if projects are approved at the local level, but legislation has been introduced to extend that time frame.
“The real issue is, recovery for whom?” Farr said. “Is the recovery for the rest of the country or is the recovery for San Benito County?”
Farr offered his perspective on the Solargen Energy proposal – its environmental impact report is going through a 45-day review period – and he stressed how county leaders should ensure its economic benefits are focused in San Benito County. He also noted regarding the potential stimulus funds, and especially considering the area’s dismal economy, that those dollars need to go toward reinvesting in this county.
He pointed out the high unemployment rate and asserted, “There ought not be a dollar spent in that county that does not help that county.”
Farr contended that it is not just about potential tax revenue. Rather, more important is the number of local jobs created by a large-scale solar farm. Regarding the revenue possibilities, such alternative energy projects are exempt from just about all taxes. Solargen, though, previously has noted its willingness to pay the county $1 million annually for a certain number of years to help offset the tax exemption and pay for services necessary if the proposal goes through. Solargen also has touted that many jobs would be created both through construction and ongoing maintenance of the proposed plant.
The congressman, who is up for reelection in November, acknowledged there are roadblocks to recovery in this region, such as the inability for local contractors to win bids on stimulus-funded projects. He also noted how many of the suppliers are overseas. That same day, President Obama had urged leaders to consider a $5 billion initiative to promote renewable energy manufacturing in the United States.
That issue has cropped up with the Solargen project because the company has a deal in place for a Taiwanese manufacturer to provide up to half of the panels. He believes the Chinese have dominated the panel industry but said the U.S. can “recapture” it.
“They’ve taken the step and sort of own the panel industry right now,” Farr said.
Still, despite that dilemma, Farr had strong words about remaining cautious with the stimulus money in San Benito County.
“Again, I don’t want San Benito County to be taken advantage of because a company has access to all the stimulus money, unless, indeed, it stimulates San Benito County.”
Farr when interviewed incidentally had been on his way to a press conference and open house to announce the contractor selected to design and construct the new $8.5 million visitor center, using stimulus dollars, near the west entrance of Pinnacles National Monument in Monterey County.
