UPDATE 1-NY, Virginia, Maryland push for green jobs

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By Joan Gralla

NEW YORK Jan 12 (Reuters) - The push for green jobs as a way to protect the environment while addressing rising unemployment gained momentum on Monday with the governors of New York, Virginia and Maryland announcing initiatives.

New York Gov. David Paterson said he has approved a contract between the state's power authority and Alcoa (AA.N) under which the aluminum maker will build a new $600 million plant and keep its upstate facilities open in return for low-cost electricity.

The long-term agreement will protect 900 North County jobs and keep a key private employer in the region for decades, Paterson said in a statement.

New York is one of a number of states trying to turn green energy into the same sort of economic engine as bio-research and other technical endeavors that are often linked to universities.

The New York Power Authority will provide Alcoa with 478 megawatts of low-cost hydropower for 30 years, a point Gov. David Paterson said showed the effectiveness of his clean energy program.

"This contract signifies how the strategic use of the state's clean energy resources can be used to retain one of upstate New York's most significant manufacturers and employers," Paterson said in a statement.

In Virginia, Gov. Timothy Kaine said he has proposed several pieces of legislation that would promote clean energy in his state.

These include a bill to expand incentive grants for makers of solar panel equipment to other manufacturers of low and no-carbon energy sources.

"The grants will be available to new and expanding businesses producing goods and equipment for energy efficiency, as well as solar, biomass, wind ... and other clean energy sources," he said in a statement.

Kaine is also proposing a biofuels incentive grant, that would increase funding for biofuels that are produced from sources other than food.

The governor is further proposing tax credits for individuals and companies that install solar photovoltaic, solar thermal and small wind systems as well as tax exemptions for renewable energy equipment.

Maryland Gov. Martin O'Malley said he is introducing six bills to promote the state's green legislative agenda. O'Malley has created a 21-member task force to study ways for the state to promote environmental technology and protect farmlands, forests and waterways from the pressures of a growing population.