Renewable Energy Looms in New Administration

The House Energy & Commerce Committee January 22 approved about $54 billion in economic stimuli for renewable energy, a “smart” transmission grid, and energy efficiency measures, among other energy-related investments. The 328 page bill held no earmarks for California. The American Recovery and Reinvestment Tax Act of 2009, if signed into law, would invest almost 10 percent of the $550 billion stimulus package in energy-related funding. For instance, the bill’s language dedicates $18 billion for energy efficiency and renewable power through Department of Energy. It also designates $2.4 billion for carbon capture and sequestration. There’s also money set aside for developing a “smart” transmission grid, as well as retrofitting and weatherizing homes. California academic Steven Chu now heads the DOE. On the financial side, there is a long-term extension of renewable energy production tax credits--a much-sought deal by non-fossil power developers to be able to borrow money to build new facilities. However, the tax credit only comes into play when there are profits claimed by developers and financiers. To deal with that problem, there’s a temporary election to claim the investment tax credit in lieu of the production tax credit. The investment tax credit is associated with solar developments; the production credit with wind power that’s delivered. On the transmission side, it authorizes the Western Area Power Administration to borrow up to $3.25 billion to construct power lines.

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Renewable Energy Looms in New Administration

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