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Obama recovery plan signed into law

Yesterday US President Barack Obama signed his $789 billion economic stimulus package into law during a visit to Colorado.

“The investment we’re making today will create a newer, smarter electric grid that will allow for broader use of alternative energy. This investment will place Smart Meters in homes… It’s an investment that will save taxpayers over $1 billion by slashing energy costs in our federal buildings by 25%; save working families hundreds of dollars a year on their energy bills by weatherizing over 1 million homes,” he said.

Plans to modernize the country’s electrical grid, integrate demand-response equipment and implement smart grid technologies will get $4.5 billion, with additional funds made available for loan guarantees.

Making buildings more energy efficient also represents a major effort with $5 billion going towards the Weatherization Assistance Program, and a further $4 billion to retrofit public and low-income housing.

Federal buildings also get a $4.5 billion injection to turn them into high-performance green buildings, which combine energy efficiency and renewable energy. The US navy and marine corps will also get $100 million for energy conservation and alternative energy projects.

The raft of measures includes $16.8 billion for the Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE).

The tenfold increase in funding will support the organisation’s research, development and deployment activities, including $50 million to increase the energy efficiency of information and communications technologies.

Funding of $400 million will be used to establish the Advanced Research Projects Agency – Energy (ARPA-E), which will support innovative energy research.

Significant funds will go towards developing electric vehicles with $2 billion being made available to manufacturers of advanced battery systems and components, such as advanced lithium-ion batteries and hybrid electric systems.

The new legislation will also encourage the construction of high-speed rail links across the country to reduce air and road traffic.

Individuals and businesses should also benefit from a raft of tax breaks aimed at encouraging energy efficiency and renewable energy measures, as well as the next generation of electric vehicles.

In particular, the extension of production tax credits (PTCs) for renewable energies until the end of 2012 has been welcomed by the industry as one of the longest periods of regulatory stability in the US.

“This is exactly the kind of action and short-term follow up from the new administration we have been calling for from the industry,” says Ditlev Engel, president and CEO of wind energy specialist Vestas.

“Previously, the PTC extensions were only one or two years constituting big risk and uncertainty for both investors and manufactures like Vestas. So we regard this development as a major positive development in the US market,” explains Peter C. Brun of Vestas.

For further information:
www.whitehouse.gov
www.eere.energy.gov/
www.vestas.com/

18 February 2009

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