So now that the 787 Billion USD stimulus package has been passed, are you wondering, how much of it will be energy related?
Wrapped inside the economic stimulus package is about $80 billion will be devoted to the Energy sector- to spending, loan guarantees and tax incentives aimed at promoting energy efficiencies, renewable energy sources, higher-mileage cars and clean coal. As a stand-alone measure, these investments would amount to the biggest energy bill in history.
Eighty billion dollars is a lot of money, and the federal agencies overseeing its disbursement must provide strong regulation to ensure that it is spent wisely. Here are some of the provisions that will bear close watching as the money flows to states, cities and businesses:
Energy Efficiency: Homes and buildings soak up 40 percent of the energy generated in the United States - more than vehicles. Of the $25 billion provided for energy efficiency, more than half is aimed at helping low-income families weatherize 1 million homes and helping governments at all levels retrofit public buildings.
Renewable Energy: In addition to new money for research into alternatives fuels, the measure provides roughly $20 billion in tax incentives for wind, solar, hydroelectric and other renewable power sources. These incentives, which are crucial for future development, were the subject of endless congressional debates last year.
Smart Grid: The measure invests $11 billion in grants and $6 billion in loans to modernize the electric grid and increase its capacity to deliver power generated by renewable sources. These programs will need especially careful oversight.
Mass Transit: Federal transportation spending has long favored highways over mass transit by a 4-1 margin, even though mass transit is far more effective in the reduction of gasoline consumption and in greenhouse gas emissions. The package improves this ratio while providing $17.7 billion for mass transit, Amtrak and high-speed rail, nearly a 70 percent increase over present spending levels.
The package includes other potentially useful energy-related provisions: $2 Billion in grants and loans for research into advanced car batteries, a tenfold increase over the existing program; and $3.4 Billion to develop coal-fired power plants that can capture and store greenhouse gases, also a tenfold increase.
Much more will be required to fully address climate change and oil dependency. And President Barack Obama promised much more in his campaign. But the stimulus package is a good beginning.
Source: International Herald Tribune http://www.iht.com/articles/2009/02/18/opinion/edenergy.php
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