Stimulus deal reached. Here’s what’s green in it.

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"Stimulus deal reached. Here’s what’s green in it."

A final deal was reached on a $789 billion stimulus plan (see NYT here). One of the best pieces of news is that the $50 billion in fraudulent budget gimmickry on behalf of the nuclear industry was axed, as I posted last night.

There’s also a 3-year extension of the production tax credit for wind and other renewables, which will be crucial to Obama meeting his goal to “double the production of alternative energy in the next three years.” And there’s an expanded tax credit for plug in hybrids, which will be critical for Obama to meet his goal of one million plug-ins by 2015.

The conferees did put back $400 million for DOE’s ARPA-E program, which in normal circumstances would be mostly duplicative of existing DOE R&D programs (see “Note to media on ARPA-E“). But it is new money, and will give Steven Chu something to chew on quickly.

Speaker Nancy Pelosi (D-CA) has distributed a fact sheet on the conference report on the American Recovery and Reinvestment Act. Here are the details on what’s green in ARRA (and I’ll also post the science and tech stuff):

Clean, Efficient, American Energy: To put people back to work today and reduce our dependence on foreign oil tomorrow, we will increase renewable energy production and renovate public buildings to make them more energy efficient.

Smart Grid/Advanced Battery Technology/Energy Efficiency

o Provides a total of $30 billion for such initiatives as a new, smart power grid, advanced battery technology, and energy efficiency measures, which will create nearly 500,000 jobs.

o Transforms the nation’s electricity systems through the Smart Grid Investment Program to modernize the electricity grid to make it more efficient and reliable.

o Supports U.S. development of advanced vehicle batteries and battery systems through loans and grants so that America can lead the world in transforming the way automobiles are powered.

o Helps state and local governments make investments in innovative best practices to achieve greater energy efficiency and reduce energy usage.

o Spurs energy efficiency and renewable energy R&D.

Tax Incentives to Spur Energy Savings and Green Jobs

o Provides $20 billion in tax incentives for renewable energy and energy efficiency over the next 10 years.

o Includes a three-year extension of the production tax credit (PTC) for electricity derived from wind (through 2012) and for electricity derived from biomass, geothermal, hydropower, landfill gas, waste-to-energy, and marine facilities (through 2013).

o Provides grants of up to 30 percent of the cost of building a new renewable energy facility to address current renewable energy credit market concerns.

o Promotes energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

o Provides a tax credit for families that purchase plug-in hybrid vehicles of up to $7,500 to spur the next generation of American cars.

o Includes clean renewable energy bonds for State and local governments.

o Establishes a new manufacturing investment tax credit for investment in advanced energy facilities, such as facilities that manufacture components for the production of renewable energy, advanced battery technology, and other innovative next-generation green technologies.

Landmark Energy Savings at Home

o Provides $5 billion for landmark provisions to improve the energy efficiency of more than 1 million modest-income homes through weatherization.

o This will save modest-income families on average $350 per year on their heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits to HUD-Assisted Housing

o Provides a total of $6.3 billion for increasing energy efficiency in federally-supported housing programs.

o Specifically, establishes a new program to upgrade HUD-sponsored low-income housing (elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

o Also invests in energy efficiency upgrades in public housing, including new windows, furnaces, and insulation to improve living conditions for residents and lower the cost of operating these facilities.

All in all, an impressive down payment on the transition to a clean energy economy.

Here’s the science and tech stuff (which includes ARPA-E):

Transform our Economy with Science and Technology: To secure America’s role as a world leader in a competitive global economy, we are renewing America’s investments in basic research and development, in training students for an innovation economy, and in deploying new technologies into the marketplace. This will help businesses in every community succeed in a global economy.

Investing in Scientific Research (More than $15 Billion)

o Provides $3 billion for the National Science Foundation, for basic research in fundamental science and engineering — which spurs discovery and innovation.

o Provides $1.6 billion for the Department of Energy’s Office of Science, which funds research in such areas as climate science, biofuels, high-energy physics, nuclear physics and fusion energy sciences — areas crucial to our energy future.

o Provides $400 million for the Advanced Research Project Agency-Energy (ARPA-E) to support high-risk, high-payoff research into energy sources and energy efficiency in collaboration with industry.

o Provides $580 million for the National Institute of Standards and Technology, including the Technology Innovation Program and the Manufacturing Extension Partnership.

o Provides $8.5 billion for NIH, including expanding good jobs in biomedical research to study diseases such as Alzheimer’s, Parkinson’s, cancer, and heart disease.

o Provides $1 billion for NASA, including $400 million to put more scientists to work doing climate change research.

o Provides $1.5 billion for NIH to renovate university research facilities and help them compete for biomedical research grants.

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9 Responses to Stimulus deal reached. Here’s what’s green in it.

  1. MikeB says:

    Joe, do you know if the PHEV vehicle purchase tax credit was extended to include motorcycles & trikes? Some of the neatest new ultra-high efficient (100mpg+) vehicles over the next couple of years are being designed with 3 wheels, mostly to reduce the testing overhead for cars. I was disappointed to find that last year’s PHEV credit didn’t apply to these vehicles.

  2. Jim Mc says:

    Joe,
    Did the 30% tax credit for solar move to a 30% Grant from the DOE as was one proposal? And if so, does it apply for non-profit and govt. entities?

  3. Brian M says:

    Joe,

    It appears that the conference decided to leave the cap on residential solar thermal, geothermal, and wind.

    The senate version had the following:

    “The proposal removes the $2000 cap on the 30 percent credit for solar thermal and geothermal property, as well as the $4000 cap on small wind property.”

    Can you confirm that this provision was removed?

    Brian

  4. Rick C says:

    MikeB,

    Last I heard 3 wheeled vehicles like the Myers Motors NMG and the 2 wheeled, and very hot looking, Vectrix motorcycle would be included in the bill. There are credits for up to 10% of ev conversions up to $40,000.00. So you’d get $4,000.00 as a credit provided it was a ‘qualified’ conversion. There’s a sub-section somewhere in the bil on what they mean by qualified. This is in there to prevent the ev snake oil charlatans from squandering for those of us who are seriously into EV’s and plug-in hybrids.

  5. Sasparilla says:

    Is Utility Decoupling still in there? (I don’t know if it got dropped by the Senate) Anyone know?

    This can’t get moving fast enough. Nice to see they gave NASA some additional money for climate change research and in general.

    [JR: I believe it is.]

  6. A new report by Lord Stern and his cronies suggests that the international community thinks very highly of these investments. They’re spending spending the money effectively, where it will do the most good in the shortest amount of time.

    ::::: Though I bemoan the lack of support for rail… :::::

  7. So how do we get funding from ARPA E for

    (1) a low power but efficient engine capable of operating as an range extending engine in an efficient plug-in; it would use an Atkinson cycle approach, and/or

    (2) a low power diesel engine with a catalytic converter capable of eliminating NOx (based on proclaimed Argonne technology) so that high efficiency could be achieved, and

    (3) an articulated high efficiency vehicle that takes advantage of airship technology to almost eliminate aerodynamic drag, and

    (4) household level cogeneration technologies based on the efficient vehicle (3) with engines (1) or (2), such technologies including heat using methods involving heat coupling from vehicle to household, space heating systems, water heating, clothes drying, and absorption cooling.

    Hey, number (3) has six wheels in the present form I envision, so how does that fit into the subsidy game?

    How might we actually make a government program work, and not just perpetuate and enhance research by the administrators, as was the case with SBIR, whether it was a DARPA or other DOD sponsored topic?

    Hope springs eternal in the hearts of fools? (I forget who said that.)

  8. Steve M says:

    This Bill “Repeals Penalty for Subsidized Renewable Energy Financing”, does this mean that in New York State we would get the 30% tax credit taken off the solar system, before the NYSERDA Rebate is applied. $9/watt X 4kW = 36,000. $10,800 off for 30% Fed tax credit? then the State grant of $12,000 and then $5,000 off for NY State tax credit. so $8,200 total or would it still be a $7,200 Fed tax credit and $11,800 total? We were unclear with its wording. Also are tax exempt customers able to take advantage of the Renewable Energy Grant?