Thursday, January 21, 2010
Media / Woods Inquisitive Reporters Spoil Phil's Sunny Day
Posted by Jeff Woods on Thu, Jan 21, 2010 at 1:07 PM
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Damn those pesky reporters. They do know how to spoil a party. The governor threw a little media event today to celebrate landing yet another solar energy company for Tennessee. Economic and Community Development Commissioner Matt Kisber acted as the master of ceremonies, heaping praise on his visionary boss and generally enjoying the moment.
"Once again, in spite of the clouds and rain outside, we can say the sun is shining on Tennessee," Kisber beamed, himself just a little ray of sunshine. But then afterward, reporters insisted on asking a few questions:
When will the company break ground? (Answer: we don't know.) How many people will the company hire once the plant opens? (Maybe 50 or 75, a few less than 250 jobs promised in the press release.) And oh yes, what's the value of all the unspecified economic incentives the state is offering this company to move to Tennessee?
As you will note in the following transcript, Kisber did a tap dance, refusing to give a dollar figure before finally tossing out "a ballpark" for a portion of the state's infrastructure costs. (As much as $30 million.) The governor finally dismissed the whole incentives issue as "nothing special."
This announcement might be cause for celebration, but how can we know if we don't know the cost?
Q: Do you see the solar energy industry as your legacy, governor?
Bredesen: I hope there's several different things people will consider. ... It's very clear to me alternative energy and solar energy I think in particular is going to be a place to be. It's going to create a lot of jobs and lot of opportunities in the years ahead. I don't know exactly which technologies, whether it's these people's technology or something else or how it's going to develop over time. I think the idea of getting out in front of this and making this an attractive place and trying to get a critical mass of these industries coming together makes an awful lot of sense. I think we've made some huge progress or the past year and a half and I think the years ahead are going to see this really blossom.
Q: There are many different kinds of green energy. Are you worried that you're putting too much into solar?
Bredesen: Well, there's different kinds, and remember we also have a substantial marker down on biomass ethanol, the switchgrass things. We've put a substantial investment in that. You can't be everywhere at once, but those sure seem like two awfully sound areas to be for the years ahead.
Q: Governor, your press release references two different tax credits and two different other forms of assistance. What's the value of these incentives?
Bredesen: I'd have to ask Matt to answer that question for me.
Kisber: They qualify for our existing suite of incentives, both from the clean energy toolkit as well as from job creation. As they invest, they'll earn credits and, as they hire, they'll earn credits. So it really is nice the way we structure these. They are earned as the activity takes place. As they grow, they'll earn additional credits. It's hard to estimiate.
Q: Well, what about your commitment to the infrastructure development?
Kisber: Well, again, as they grow, we've committed to be sure they have the infrastructure, both the electrical infrastructure and the other utility infrastructure, and as they stage that growth, we'll deliver on that. Overall, as they get into future phases, we'll have to enhance that electrical infrastructure in particular. And so we've committed to doing that. Over the total life of the project, if you get all phases, I think the electrical infrastructure could be in the ballpark of $20 million to $30 million.
Bredesen: Let me make a point, I believe it's correct here. Matt, correct me if I'm wrong. What is being done here, it's not something we're taking to the General Assembly as a separate deal. It's consistent with the laws that have been passed and taking advantage of those things which the legislature has put in place. One of the things Matt did was to go to the legislature and move some of these kinds of new energy companies into the same kinds of advantages we've been giving industrial companies for a long time. So there's nothing special. The other thing I'd emphasis is that over time I hope a lot of money goes into this because the company grows to be a very big company. But Matt's been really good about structuring this so there's not that much of a commitment on the front end. It's not here's a bunch of money and we hope you do well. It's a matter of let us get you started and as you do better we'll be partners with you as you continue to grow. It's kind of show us the jobs and show us the investment before we show you all the money. I think it's a very sound way to go about it.
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