‘Buy American’ solar rules threaten tit-for-tat (San Francisco)

“Buy American” provisions that could be attached to government-funded stimulus projects have foreign solar panel manufacturers scurrying to set up U.S. facilities — and worrying that countries like China might follow suit.

Earlier this month, Sen. Charles Schumer (D-N.Y.) and four other Democratic Senators proposed legislation that would halt stimulus funding for renewable energy projects that source products from abroad. They claim the stimulus has already funneled $1 billion to foreign companies, costing the United States 100,000 jobs by 2015.

Several Chinese companies with U.S. headquarters in the Bay Area, including Yingli Green Energy Americas and UpSolar, have said they will build manufacturing facilities here in part because of “Buy America” clauses in the American Recovery and Reinvestment Act and in rules that govern other financing programs.

But it’s a potentially treacherous line to toe, said Steve Chadima, a spokesman for San Francisco-based Suntech America.

“There’s the catch 22. It may look like … that will encourage more companies to build more factories in the U.S.,” Chadima said. “But the problem with this whole thing is escalating protectionism. We’re trying hard to work with the Chinese government to not include a ‘Made in China’ clause for Chinese government-funded projects.”

Read the full story in the San Francisco Business Times.