You鈥檝e probably read reports elsewhere that the $2 trillion coronavirus relief bill is听鈥溾澨齜etween environmental groups and heavily polluting industries.听There鈥檚 no meaningful investment in clean energy and no incentive for industries to clean up their acts, but on the other hand, the oil industry isn鈥檛 getting its request for $3 billion in taxpayer money.听The trouble is, there is historical precedent for a massive taxpayer-funded bailout like this one. And that comparison is not flattering for this latest stimulus.听
Back in 2009, the economy was in dire condition. To assist struggling industries, the government pumped out $831 billion in aid, bailing out established sectors like the car industry, but also investing in the economy鈥檚 future. to Tesla helped that company leap ahead of foreign competition, and become the world鈥檚 preeminent maker of electric cars. Massive solar energy plants, wind farms, and geothermal energy facilities .听
The renewable energy stimulus component of the American Recovery and Reinvestment Act (ARRA) was controversial, and took longer to pay for itself than听forecasted, but it was also . By 2017, it had created hundreds of thousands of high paying new jobs, in an innovative new industry, right here in the United States. In 2016, by the energy efficiency, solar, wind, and alternative-vehicle industries鈥攁lmost five times as many as work in fossil fuels. Americans, such as construction workers, benefited from contract or part-time work created by those green businesses that were made possible by the stimulus. Those jobs came to workers in all 50 states.听
Today, if you drive an electric car, have solar panels on your roof, or have clean energy delivered to your home, you have the听ARRA to thank. It helped spur a foundational shift in our economy toward听a more sustainable future, all while helping create听.
It also worked to reduce emissions. Total electrical power generated in this country remained essentially the same between 2008 and 2010, yet . fell from 5,392 million metric tons in 2009听to 5,269 million metric tons in 2018, despite the growing economy.听
All of that progress was not enough to meaningfully address climate change. But it was at least a powerful illustration of the ability of an economic stimulus to achieve results that move our economy toward听environmental sustainability. If nothing else, the 2009 relief bill听should have served as a great example or template for this most recent relief bill, demonstrating that jobs can be created and industries can be bailed out, even while taking action on climate change鈥攁nd that doing so can create economic growth of unprecedented size and duration. Sadly, that lesson has not been learned.听
One example of where the fails is in its bailout of airlines. While the act provides , that money comes without any environmental requirements. Democrats in the House of Representatives that would have required airlines accepting the money to cut their carbon emissions in half over the next 30 years, and tried to create a $100 million fund for research that would help make it possible. But, due to objections by Republican lawmakers, that requirement and that R&D fund were removed.听
Airlines are responsible for 听and five听percent of our country鈥檚 gross domestic product. It鈥檚 essential that the industry be saved, but could doing so without an economic incentive to innovate be denying our country an opportunity to create a Tesla of the skies? Fifty-eight billion dollars is a lot of money, and as the ARRA demonstrated, that massive scale can be used to generate value for taxpayers beyond simply a short-term bailout.听
CARES also sets aside a $500 billion pot of money to provide loans, grants, and other financial aid to as-yet-unspecified businesses and industries. No environmental conditions are currently attached to that money, and recipients of it will be determined by the Trump administration, . As the act itself demonstrates, and as the administration鈥檚 troubled history with climate change denial and rampant environmental harm听cautions, it is unlikely any forethought will be applied to how that money is dispersed听or who gets it.听
This stimulus听is especially shortsighted in its lack of funding for renewable energy. Not only do renewables provide those more than 3 million jobs described above, but the pandemic-caused collapse of our economy comes at a particularly bad time for industries like wind energy. Many wind听projects currently in progress in this country are relying on a Production Tax Credit (PTC) to secure financing. To take full advantage of the current PTC program, eligible projects听must be completed by the end of this year.听Due to supply chain issues and other economic factors caused by the pandemic, many of those projects are now at risk of missing that deadline, which .
Tens of thousands of jobs in the solar industry may be threatened due to a similar combination of expiring tax incentives, supply chain issues, and stay-at-home orders. It鈥檚 estimated that the total green economy鈥攚hich includes sectors like solar panel installation, electric car production, and renewable energy鈥, and employs four percent of our total workforce. With so much money and so many jobs threatened, it seems likely that separate legislation will be needed to provide financial aid to these businesses. In fact, the solar and wind power industries are .听
Ayana Elizabeth, the founder of , described this lack of foresight as, 鈥渞e-entrenchment鈥 to . 鈥淲e just simply can鈥檛 afford that now,鈥 she told the website. At a time when consumer demand and market forces were beginning to enable significant advancements in tackling climate change, the CARES Act works against those forces to disproportionately shore up the finances of major polluters, enabling them to continue business as usual for the foreseeable future. So while the CARES Act may bail out our economy, may aid hospitals, and may provide a minimal lifeline to individuals, the one thing it does guarantee is that, when we do eventually emerge from this crisis, the climate crisis will still be waiting for us.