With all the stories about China dominating the solar photovoltaics (PV) manufacturing sector, you might not think that America is a net exporter of solar products. But it is — to the tune of $1.8 billion. That’s a $1 billion increase over net exports documented in the solar sector last year.

In fact, a report released this morning from GTM Research and the Solar Energy Industries Association found that the U.S. has a $247 million trade surplus with China.

U.S. imports in 2010 were estimated at $1.4 billion, while exports were estimated to be between $1.7 billion – $2.0 billion based on the availability of data for capital equipment sales. This made the U.S. a net exporter of solar goods to China by $247 million to $539 million. Imports came predominantly from modules ($1.2 billion), while exports were driven by capital equipment ($708 million to $1 billion) and polysilicon ($873 million).

Solar isn’t just about the module. When looking at polysilicon production, equipment for manufacturing lines, power electronics, solar hot water tanks, and any number of other domestically-produced products, the U.S. actually offers a good-sized contribution to the global market.

The 2011 Solar Energy Trade Assessment is a follow up from last year’s report, which found U.S. net exports in 2009 were worth $723 million.

The $1 billion surge in net exports came during a year when the U.S. solar market grew by over 100%. Due to the successful Treasury Grant Program and Loan Guarantee Program that made it easier for developers and manufacturers to finance facilities, the solar sector grew faster than ever before.

And all that solar — particularly solar PV — brings immense value to the domestic economy.

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By the end of this year, solar PV production capacity will be at 50 GW (50,000 MW), up from 100 MW in 2000. That’s reason to celebrate on this International Solar Day.

But it’s also important to remember the implications of that growth. Solar PV manufacturing uses all kinds of toxic chemicals and materials that should be recycled. Many solar companies have take-back programs that minimize waste. But independent groups have called for mandatory recycling of panels.

Greentech Media had a piece on the issue this week:

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A wind turbine blade is unveiled during the opening of the Vestas blade factory in Colorado.

The United States has historically been a leader in invention and innovation; however, our leadership in manufacturing has fallen dramatically, hurting our ability to compete on the global stage. With the dawn of a new era in the energy sector, America has a unique opportunity to grow its economy and create new jobs while reducing emissions and combating climate change.

A new report on low-carbon innovation written by Bracken Hendricks, Lisbeth Kaufman and Sean Pool of the Center for American Progress outlines how this transition may unfold.

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As the Senate trio of Kerry, Graham, and Lieberman announced that comprehensive green economy legislation will be unveiled April 26, ten Rust Belt Democratic senators outlined their principles for manufacturing-related provisions. Led by Sen. Sherrod Brown (D-OH), the senators say that “leadership in the new clean energy economy” is a “contest that America cannot afford to lose”:

A strong manufacturing base is crucial if the United States is to build the clean energy technologies of the future and achieve energy independence. It is essential that any clean energy legislation include a package of provisions that strengthens American manufacturing competitiveness, creates new opportunities for clean energy jobs, and defends against the threat of carbon leakage by maintaining a level playing field for domestic manufacturers.

These “Brown Dog” senators — Brown, Debbie Stabenow (D-MI), Carl Levin (D-MI), Robert Casey Jr. (D-PA), Arlen Specter (D-PA), Mark Warner (D-VA), Claire McCaskill (D-MO), Evan Bayh (D-IN), Kay Hagan (D-NC), Robert Byrd (D-WV) — have been among the most skeptical of Democrats about climate legislation, raising spurious concerns that limits on coal and oil pollution would harm their states’ economies. They finally appear to have turned the corner, recognizing that being shackled to the dirty fuels of the past is the true threat to the future of American manufacturing jobs.

Their list of policy prescriptions for “how to bolster manufacturing jobs and ensure the global competitiveness of American industry” falls into three broad categories — investment, economic protection, and harmonization with existing law — including total preemption of existing state and federal law. In many cases, the language is sufficiently vague (the word “should” appears 17 times) to allow for some flexibility. Here’s a summary of their “plan to address the challenges that face manufacturing”:

– Investment: The Brown Dogs call for a comprehensive suite of clean-energy “financial assistance mechanisms” including a “manufacturing revolving loan fund” and “tax incentives to encourage capital investments in efficiency and clean energy technology.” They also request “substantial federal support” for “low-carbon industrial technologies,” which is not defined. All such programs should “recognize and prioritize the use of domestically produced products and materials.”

– Economic Protection: The Brown Dogs want legislation that will “contain costs for manufacturers while ensuring emissions reductions and incentives for clean energy investments, by including a firm price collar, sufficient offsets, a regionally equitable distribution of allowances, reasonable emissions targets and timetables, and a pathway for the development, demonstration, and deployment of carbon capture and sequestration technologies.” They also request a “phase-in” for industrial pollution, presumably before being subject to mandatory pollution reductions, and “allowance rebates” directed to “efficiency and low-carbon energy investments” for energy-intensive, trade-exposed industries. Finally, the Brown Dogs call for border tariffs on products from countries that do not limit their global warming pollution, and economic support and training for workers and communities.

– Harmonization and Preemption: Putting themselves at odds with other Democratic senators and with states-rights advocates, the Brown Dogs say that new “federal laws should prevail” over “existing state laws and initiatives” and “supersede existing federal law and avoid overlapping regulations.” Any international agreement should “preserve our nation’s ability to take unilateral border actions to prevent carbon leakage, and “all major economies should adopt ambitious, quantified, measurable, reportable and verifiable national actions.”

These senators misguidedly believe that preempting state efforts and existing Clean Air Act permitting provisions would help industry instead of providing the regional and jurisdictional flexibility necessary for our complex economy. This request puts them in direct conflict with the states who have taken the lead on clean energy policies, who have no interest in being forced to dismantle successful programs to build a green economy. Hopefully they will learn that there is a better path that respects states’ rights and the predictable, existing framework of the Clean Air Act.

It will also be a challenge for legislators to devise green industrial policy that meets the economic protection conditions laid out without providing windfalls to legacy polluters. The purpose of clean energy policy should be to reset the terms of competition to reward efficiency, innovation, and job creation — not to give taxpayer subsidies to corporate polluters who refuse to invest in the future.

That said, these ten senators represent a significant portion of the conservative Democratic energy bloc, their embrace of green economic policy is a major transformation. Their knowledge and passion for rebuilding American industry can result in stronger policy — and the necessary votes to block a partisan, polluter-driven filibuster.

In a C-SPAN interview today, Rep. Artur Davis (D-AL) attacked green economy legislation, claiming it would “wreak havoc” on Alabama’s manufacturers. Even though a record-breaking heatwave has killed a woman in his state this week, the dynamic congressman now running for governor in Alabama explained his plan to vote against the Waxman-Markey American Clean Energy and Security Act (H.R. 2998/H.R. 2454) today by arguing it would destroy his state’s fragile economy:

– “This bill is still going to wreak havoc with the manufacturing sector in some parts of the country.”

– “The Senate, for example, is not considering cap and trade. The cap and trade provisions are the ones that frankly would damage the manufacturing sector short term and have a lot of other unpredictable consequences on our economy.”

— “When we’re in the midst of a deep recession, we need to make sure we’re not making a dramatic change that could cost us jobs in the short term, because many states simply can’t afford to lose more jobs.”

– “This is the wrong time for cap and trade, this is the wrong time to impose a renewable electricity standard on the Southeast.”

Watch it:

Davis is wrong. In fact, the Senate is continuing to work on cap-and-trade legislation for passage this fall. Furthermore, Davis seems not to understand that states like Alabama need the clean-energy economy to recover from the Bush-Exxon recession.

A Clean-Energy Economy Will Create 29,000 Jobs In Alabama. The Waxman-Markey American Clean Energy and Security Act (H.R. 2454), the EPA found, will “create strong demand for a domestic manufacturing market for these next generation technologies that will enable American workers to serve in a central role in our clean energy transformation” and “play a critical role in the American economic recovery and job growth.” A report from the Center for American Progress and the Political Economy Research Institute “finds that Alabama could see a net increase of about $2.2 billion in investment revenue and 29,000 jobs based on its share of a total of $150 billion in clean-energy investments annually across the country. This is even after assuming a reduction in fossil fuel spending equivalent to the increase in clean-energy investments. [EPA, 4/20/09; PERI, 6/18/09]

Waxman-Markey Directs Billions Of Dollars To Energy-Intensive Manufacturing. The Waxman-Markey American Clean Energy and Security Act (H.R. 2454) includes cost containment provisions, allowances for worker assistance and training, investments in clean energy technologies, a new clean energy deployment agency, and billions of dollars in direct assistance to trade-vulnerable and other industries. [Committee on Energy and Commerce, 6/9/09]

A Renewable Electricity Standard Would Reduce Costs In Alabama. The Energy Information Administration projects that a renewable electricity standard of 25 percent by 2025 — much stronger than the one in the Waxman-Markey legislation — would drive electricity costs down by more than 10 percent in Alabama and throughout the Southeast, as utilities move away from increasingly expensive coal to renewable biomass. [EIA, 4/09]

Alabama Is Especially Susceptible To Global Warming Damages. As a coastal state, Alabama is highly vulnerable to the devastation of hurricanes, which will increase in intensity as the oceans warm and sea levels rise. Rainfall is expected to decrease, increasing the rate of devastating droughts like that of 2007. By the end of the century, Alabama will have deadly heat waves over 90 degrees for more than four months every year. [U.S. Global Change Program, 2009]

Davis claims to support clean energy reform, but he opposes any effort to limit the carbon pollution responsible for global warming. Like the House Republicans, Davis is in denial.