The U.S. Senate on Monday passed President Obama’s $838 billion economic stimulus package, drawing praise from environmental and cleantech industry groups. However, all were quick to point out that the Senate’s version of the bill falls short of the support offered in the House of Representatives’ version.
The Senate allotted approximately $86 billion for the cleantech sector, versus $100 billion from the House, according to estimates compiled by analysts Ardour Capital Investments.
More notable is what went missing from the proposed Senate stimulus plan. Among key provisions left out of the Senate plan were:
- Direct funding for project developers eligible for the Investment Tax Credit (ITC) and Production Tax Credit (PTC).
- Extension of ITC and PTC carryback period
- $20 billion for school construction, with a heavy focus on green buildings
Solar installers would be most affected by stricken provisions. Solar lobbyists, who have been pushing for direct financing in lieu of a tax credit, had succeeded in the House, winning the inclusion of a temporary grant program for ITC and PTC projects. Initially, the Senate extended the ITC and PTC carryback period as an alternative to a grant program, but later removed the provision
Wind installers are also affected by the stricken provisions, but they benefit from a 3-year extension on the PTC which is included in both versions of the bill and is almost certain to become law.
Withdrawn provisions may see new life in compromise conference. The House and Senate are now negotiating a final package to send to the president. Capitol Hill watchers expect a compromise to be signed into law next week.
Below is a breakdown comparing Senate and House versions of cleantech funding in the stimulus package.
Stimulus Bill Comparison: Energy Provisions
Energy Technology Tax Credits – House $19.96b / Senate $18.88b
Three-Year Production Tax Credit Extension (PTC) – $13.14 / $13.14
Tax Credits for Improvements to Energy Efficiency on Existing Homes – $4.28 / $1.90
Removal of Limitations on Investment Tax Credit (ITC) – $0.87 / $0.87
Additional Qualified Energy Conservation Bonds – $0.80 / $0.08
Additional Clean Renewable Energy Bonds (CREBs) – $0.58 / $0.58
Temporary Permission to Claim the ITC Instead of the PTC – $0.22 / $0.22
Tax Credits for Installation of Alternative Fuel Pumps – $0.05 / $0.53
Increased R&D Credit – $0.02 / $0.02
Grant Program for ITC and PTC NA NI
Tax Credits for Two- or Three-Wheeled Low-Speed Vehicles – Not included (NI) / $0.12
Accelerated Depreciation for Smart Meters – NI / $0.02
Carbon Capture and Sequestration Monitoring – NI / $0.00
Advanced Energy Investment Credit – NI / $1.40
Energy Technology Spending – $53.75b / $43.25b
Electrical Grid Investments – $11.00 / $11.00
Renewable Energy Loan Guarantees – $8.00 / $8.50
Local Government Energy Efficiency Block Grants – $6.90 / NI
Federal Buildings Energy Improvements – $6.70 / $2.50
Low-Income Home Weatherization – $6.20 / $2.90
Housing and Urban Development Efficiency Improvements – $2.50 / NI
Carbon Capture and Sequestration Projects – $2.40 / $1.60
Energy Technology Research Grants – $2.00 / $2.60
Advanced Battery Loans and Grants – $2.00 / $2.00
Scientific Research, Department of Energy – $1.90 / NI
Energy Efficiency Grants and Loans for Institutions – $1.50 / $1.60
Replacement of Federal Vehicles – $0.60 / $0.30
Industrial Efficiency Projects – $0.50 / NI
Advanced Buses, Trucks for Local Governments – $0.40 / NI
Department of Defense Energy Research – $0.35 / NI
Smart Appliances Rebates – $0.30 / NI
Diesel Emissions Reduction – $0.30 / NI
Electric Transportation Grants – $0.20 / $0.20
Energy Efficiency and Conservation Grants – NI / $4.20
Near-Zero Fossil Fuel Research and Development – NI / $2.00
Clean Coal Initiative – NI / $1.00
State Energy Programs – NI / $0.50
Alternative Fuel and Fuel Cell Vehicle Research Grants – NI / $0.35
Navy Energy Construction and Improvements – NI / $0.49
Department of Defense Energy Conservation Investment Program – NI / $0.12
Biorefinery Assistance – NI / $0.20
Rural Energy for America Program – NI / $0.05
Energy-Related Military Construction and Upgrades – NI / $0.61
VA Hospitals_Energy-Related Construction – NI / $0.33
Stimulus Bill Comparison: Environmental and Indirect Cleantech Provisions
Water and Environment Spending – $18.27b / $21.00b
Clean Water State Revolving Fund – $6.00 / $4.00
Corps of Engineers (Environmental Cleanup) – $4.50 / $4.60
Drinking Water State Revolving Fund – $2.00 / $2.00
Rural Water and Waste Disposal – $1.50 / $1.40
Reducing Wildfires Threats – $0.85 / $1.20
Superfund Hazardous Waste Cleanup – $0.80 / NI
Bureau of Reclamation (Rural Water and Recycling Projects) – $0.50 / NI
Nuclear Waste Cleanup – $0.50 / NI
Watershed Infrastructure – $0.40 / NI
NOAA Habitat Restoration – $0.40 / NI
Cleanup at Closed Military Bases – $0.30 / NI
International Boundary and Water Commission – $0.22 / NI
Leaking Underground Storage Tanks – $0.20 / NI
Brownfield Grants – $0.10 / NI
Bureau of Reclamation Funding – NI / $1.40
Environmental Cleanup of Weapons Production and Energy Research Sites – NI / $6.40
Indirect Cleantech Spending (undiscounted)- $42.36b $14.64b
School Construction (Energy Efficiency Improvements) – $20.00 / NI
Purchases of New Buses and Other Transportation Equipment – $6.00 / NI
Public Housing Capital Fund (Energy Efficiency Improvements) – $5.00 / $5.00
Jobs Training and Employment Services (Green Jobs) – $4.00 / $3.40
National Science Foundation – $3.00 / $1.20
HOME Investment Partnerships (Green Technologies) – $1.50 / NI
Low-Income Home Energy Assistance – $1.00 / NI
Veterans Medical Facilities (Energy Efficiency Improvements) – $0.95 / NI
Native American Housing Block Grants (Energy Efficiency Improvements) – $0.50 / NI
NASA Climate Change Research – $0.40 / NI
Self-Help and Assisted Homeownership Program (Energy Efficiency Improvements) – $0.01 / NI
Department of Defense Facility Improvements (Energy Efficiency Improvements) – NI / $3.20
NASA funding for Environmentally Friendly Aircraft – NI / $0.20
National Oceanic and Atmospheric Administration Funding – NI / $1.00
National Institute of Standards and Technology (Green Technologies Research) – NI / $0.31
Department of Energy and Science Laboratory Infrastructure – NI / $0.33
Indirect Cleantech Spending (discounted) – $8.47b $2.93b
Source: American Recovery and Reinvestment Act of 2009 (ARRA); House of Representatives Committee on Ways and Means Summary ARRA; House Committee on Appropriations Report on ARRA; Senate Finance Committee Report on ARRA; Senate Committee on Appropriations Report on ARRA.
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There could be no better investment in America than to invest in America becoming energy independent! We need to utilize everything in out power to reduce our dependence on foreign oil including using our own natural resources. Create cheap clean energy, new badly needed green jobs, and reduce our dependence on foreign oil. The high cost of fuel this past year seriously damaged our economy and society. The cost of fuel effects every facet of consumer goods from production to shipping costs. After a brief reprieve gas is inching back up. OPEC will continue to cut production until they achieve their desired 80-100. per barrel. If all gasoline cars, trucks, and SUV’s instead had plug-in electric drive trains, the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota. There is a really good new book out by Jeff Wilson called The Manhattan Project of 2009 Energy Independence Now.
I agree with Sherry that investing in becoming energy independent is a great idea. However probably the worst way to get there is to have the Federal Government do the investing. If an investment makes sense, then private industry and private capital should be used. Having the Federal Government involved ensures inefficiency. Do you want your alternative energy industry run like the United States Post Office? The best answer is to have the Federal Government become a consumer of renewable energy. Did you know that the Federal Government does not have a centralized office or position of government sustainability? The Federal Government is actually lagging behind other industries. They’ve hardly even glanced at their supply chain. Yet they are going to make decisions regarding capital infusion, tax breaks and handouts to promote greater sustainability . I think Presdient Obama should clean up his own house first before he starts borrowing money to clean up other people’s houses.