President Obama visited my home state of Iowa yesterday, on Earth Day, to highlight his administration’s energy agenda, including reduced greenhouse emissions, increased renewable energy production, a cap-and-trade emissions reduction program, and the creation of an advanced energy innovation industry as a pillar of the US economy. See the AP article.

Obama at Newton, Iowa factory

Obama at Newton, Iowa factory

Obama used the town of Newton, Iowa and the Trinity Structural Towers factory there as an example of the potential for clean energy businesses to replace jobs lost in mature manufacturing industries. The Maytag appliance factory in Newton — now inhabited by Trinity with 90 employees — once employed 4,000 people before closing entirely as manufacturing shifted overseas.

This is only one example, but it does illustrate the gap between America’s past manufacturing heyday and the size of today’s clean energy industry, even considering the potential growth of the latter. We certainly need these new jobs in order to replace those recently lost, particularly in the auto industry. But how do we encourage the manufacturing of these new clean energy innovations to occur in the US rather than overseas? Will clean energy companies make their global operations decisions any differently than hundreds of other industries already have, shifting production to low-cost countries like China?

I hope so. This is not only an employment issue but a national security issue. We need control of local clean energy resources to replace our dependence on petroleum from the Middle East.

I am excited to hear that a cap-and-trade program might finally emerge in the US. As I’ve written before, until carbon emissions impose a cost on emitters commensurate with the impact of the emissions on the climate, none of our ambitious goals to cut energy consumption and increase renewable energy usage will be feasible.

Obama’s speech barely addressed the piece of the clean energy economy that will have the greatest impact on the state of Iowa — biofuels. Iowa already produces large amounts of corn-based ethanol, but most agree that ethanol derived from food crops is not a long-term solution. Moving forward, advanced liquid biofuels will be essential to reduce petroleum consumption, as many applications, particularly diesel engines, cannot typically not be replaced with batteries and electric motors. Future biofuels, such as cellulosic ethanol, will grow into a huge section of the agricultural economy, and agriculture is certainly Iowa’s backbone.

I look forward to watching these initiatives move forward. Let’s see what Congress does next.