U.S. Congress Passes $787 billion Stimulus Bill
By:
Mike Nasi and Travis Wussow
Friday, February 13, 2009, Congress passed a $787 billion stimulus package designed to jump-start the U.S. economy. President Obama has signaled that he would sign the bill immediately upon arrival at his desk. There are a number of very important items in the bill which are likely to impact your business.
Timelines for appropriations
The bill is designed to provide funding for projects that are "shovel ready"; that is, ready to be implemented immediately. President Obama's stated goal is to create jobs as quickly as possible in order to boost consumer spending and consumer confidence. The final version of the bill implements this goal by setting deadlines for all appropriations: Unless otherwise indicated by a specific provision, all funding made available by the bill will expire on September 30, 2010.
Businesses, states, local governmental entities, and individuals should act quickly to position themselves to receive grants of stimulus funding or the funding will expire.
General Provisions
- "Buy American" provision that requires the use of American iron, steel, and manufactured goods whenever economical and consistent with international trade agreements
- Requirement that competitive bid and grant procedures be used
- All appropriations will expire at the end of the current fiscal year unless otherwise designated
Energy Efficiency and Renewable Energy Programs—$16.8 billion total
- $3.2 billion for energy efficiency and conservation block grants to States
- $2.5 billion for applied research, development, and demonstration and deployment activities for renewable energy technology
- $5 billion for the Weatherization Assistance Program
- $2.1 billion for competitive grants to States with green building energy codes for residential and commercial buildings
- $2.0 billion for grants for the manufacturing of advanced batteries
Fossil Energy Research and Development
- Note: The stimulus bill appropriates the $3.4 billion as a block grant to the Department of Energy. The conference report provides insight into Congress's intent regarding how the Department of Energy should allocate the funding. The following items are drawn from the conference report.
- $1 billion for fossil energy research and development programs
- $800 million for Clean Coal Power Initiative program
- $1.52 billion for competitive solicitation for a range of industrial carbon capture and energy efficiency improvement projects, including a small allocation for innovative concepts for beneficial CO2 reuse
- $50 million for competitive solicitation for site characterization activities in geologic formations
- $20 million for geologic sequestration training and research grants
- $10 million for program direction funding
Innovative Technology Loan Guarantee Program—$6 billion total
- Three types of projects are eligible: (1) Renewable energy systems; (2) Electric power transmission systems; and (3) leading edge biofuels projects currently performing at the pilot or demonstration scale
- Department of Energy to consider several factors in making loan guarantees, including (1) viability of project without guarantees; (2) availability of other federal and state incentives; (3) importance of the project in meeting reliability needs; (4) effect of the project in meeting a State or region's environment (including climate change) and energy goals
- Maximum of $500 million to be allocated to leading edge biofuels projects
- Program will expire on September 30, 2011
Energy Tax Incentives
- Extension of renewable energy production tax credit for certain renewable technologies, including wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, waste-to-energy, and marine renewable facilities
- Opportunity for entities eligible for the renewable energy production tax credit to instead elect to claim an investment tax credit
- Some limitations repealed on credits for renewable energy property
- Additional allocations provided for issuance of new clean renewable energy and qualified energy conservation bonds
- Incentives extended and expanded for non-business energy property, e.g. energy efficient building property
- New credit created for qualified investments in advanced energy projects, i.e., projects that re-equip, expand, or establish a manufacturing facility for the production of products that generate or facilitate the generation of renewable energy or clean fossil technology
- Several new credits created for plug-in electric vehicles
Other Energy Funding and Provisions
- $4.5 billion for electricity delivery, energy reliability programs, and smart grid programs
- $400 million to fund the Advanced Research Projects Agency–Energy, as authorized by the America COMPETES Act.
- $483 million for non-defense environmental cleanup
- $390 million for uranium enrichment decontamination and decommissioning fund
- $330 million for Department of Energy science projects
- Supplemental borrowing authority granted to the Bonneville Power Administration and the Western Area Power Administration
Interior, Environment, and Related Agencies
- $5.127 billion for Defense Environmental Cleanup
- $600 million for Hazardous Substance Superfund
- $200 million for Leaking Underground Storage Tank Trust Fund Program
- $6.4 billion for assistance grants to States and Tribes to administer environmental programs
- $750 million for National Park Service operation and construction
- $280 million for United States Fish and Wildlife Service resource management and construction
- $1.15 billion for Forest Service capital improvement, maintenance, and wildland fire management
If you have any questions, please feel free to contact:
Mike Nasi at 512.236.2216 or mnasi@jw.com or Travis Wussow at 512.236.2296 or twussow@jw.com
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