[Congressional Record Volume 157, Number 101 (Friday, July 8, 2011)]
[Extensions of Remarks]
[Page E1268]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2012

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                               speech of

                       HON. CHRISTOPHER P. GIBSON

                              of new york

                    in the house of representatives

                        Thursday, June 23, 2011

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 2219) making 
     appropriations for the Department of Defense for the fiscal 
     year ending September 30, 2012, and for other purposes:

  Mr. GIBSON. Mr. Chair, I rise today to address an important issue 
affecting the domestic renewable energy industry. As the House 
continues consideration of the Department of Defense Appropriations Act 
of 2012, it is important to carefully examine the Department's 
investment in renewable energy products, and what effect their 
investments have on the U.S. economy.
  The U.S. Department of Defense is required to abide by the Buy 
American Act when purchasing goods and equipment, including solar 
panels. However, the Department is utilizing alternative financing 
vehicles, such as Power Purchase Agreements, PPA's, to fund renewable 
energy technology installations on its bases and buildings. Under such 
agreements, a private developer finances, installs, and maintains the 
solar installation for the life of the technology and leases the power 
to the military facility. This financing structure is beneficial to the 
Department, as it allows the Department to meet its renewable energy 
goals, requires no upfront capital costs, and allows a private entity 
to take advantage of tax incentives not available to government 
purchasers, all with little risk to the taxpayer.
  However, PPA's allow the private entity to purchase the solar 
technology and the Buy American Act does not apply. This is a loophole 
in the Buy American Act that foreign manufacturers, in particular 
highly subsidized Chinese solar panel manufacturers, have quickly 
exploited to deploy foreign-made solar technology on U.S. government 
property.
  For this reason, DOD should review their procurement and payment for 
power policies. These decisions impact the U.S. solar industry, and our 
nation's energy security. Installing highly subsidized foreign solar 
technology on DOD property or a facility owned by the Department had 
the unintended consequence of pushing domestic solar manufacturing 
technology offshore and puts our nation in the position of remaining 
dependent on foreign energy resources. We must ensure our military does 
not unintentionally transition our country from one dependent on Middle 
East oil to one heavily reliant on Chinese renewable energy. I look 
forward to working with my colleagues on this important issue.

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