Stimulus money boosts clean energy, efficiency

(Photo of wind turbine installation in Indiana from Flicker and photographer indywriter/Rob Annis)

You may be wondering how (and when) the $787 billion stimulus bill will help renewable energy? It was supposed to be part of the mix, remember – green jobs? Well, four programs were announced by the Department of Energy in the past two weeks, possibly in reaction to complaints the stimulus isn’t coming fast enough to stimulate.

Clean energy grants
Grants totaling $3 billion will soon be available to clean energy companies, with applications being taken starting Aug. 1. The money will cover 30% of the cost of any approved project and will be paid upfront.

These grants will be available for a wide variety of technologies, including wind, solar, hydro, landfill gas, biomass, fuel cells, geothermal heat pumps, and combined heat and power. They should help pay for about 5,000 projects, according to the DOE.

Private investment in renewable energy has sagged recently, reflecting overall economic and credit problems. The stimulus will provide a short-term boost, though officials say cap-and-trade is needed to spur long-term demand for clean energy.

State projects
DOE also gave $141 million to several states last week for energy-efficiency and clean-energy projects. This is just a portion of $3.1B allocated for the states. Hawaii got $10.4 million for energy efficiency in buildings while Texas received $87.5 million for efficiency in public facilities. Others states getting money were Maine, Nebraska and New Mexico. So far half of the money allocated to the states for such projects has been released.

States also got $448 million for weatherization projects. This should affect some 125,000 homes in 13 states, according to DOE. Households with incomes up to 200% of the poverty level are eligible and should be able to save an average of 32% on heating bills once the work is done.

Appliance rebates
Finally, $300 million was announced this week for rebates for Energy Star appliances. States will administer the program and determine both the appliances covered and the level of rebates, as well as a recycling plan for the old appliances. Kind of a “cash for clunkers” in the kitchen. Initial applications must be filed by the states by Aug. 15.

A total of $174.9 billion of the $787 billion in stimulus money had been made available by July 4, and $60.4 billion had been paid out, according to recovery.gov. As of that date DOE had made $7.15B available and paid out $243,000 for clean energy and efficiency.

(Sources: Climatewire, E&E News PM)

Wind, solar and geothermal tax credits extended, but fossil fuels get incentives too

(Photo of wind farm in Texas from Flickr and photographer fieldsbh)

Washington Report: In case you missed it, the $700 billion bailout bill included renewable energy tax credit extensions, which just a week earlier had seem DOA for this session of Congress because the Senate and House couldn’t agree. It was the Senate version (the least desirable one) that was attached to the bailout. So we got good news and bad news: the good being that renewable energy companies can continue to grow – the bad being that coal, oil shale and tar sands got a break too. The $17 billion package of extensions included:
• 1 year of production tax credits for wind (the industry is already lobbying for longer-term extension of credits)
• 2 years of production tax credits for geothermal, biomass and other alternative sources.
• 8 years of investment tax credits of 30% for solar energy for homes and commercial properties and removal of the $2,000 cap (so an installation costing $30,000 would be reduced to $20,000).
• Biodiesel credits for the U.S. that put an end to Europeans shipping their product here to get the credit and then back again.
• New credits for plug-in electric hybrid vehicles of $2,500 to $7,500. The new Chevy Volt would qualify at the top level.
• New credits for wave and tidal energy projects.
• New employer tax credits to reimburse up to $20/month to those who use bicycles as their main commuter transportation
• New credits for refineries that process oil shale and tar sands.
• New credits for coal-fired plants that capture and store carbon dioxide, including pumping it into depleted oil fields to extract the remaining oil.
• Inclusion of coal-to-liquid fuel as an alternative fuel.
(Sources: Greenwire, E&E Daily)

Senate may try again next week to extend renewable energy tax credits

(Photo of solar panels on Florida beach house from Flickr and photographer John Tracy)

Washington Report 2: Senate Finance Chair Max Baucus (D-Mont.) is likely to try one more time next week to get renewable energy tax incentives extended beyond December. In an effort to win a few more GOP votes, he has added some sweeteners to the tax package (which contains more than renewable credits). Additions include money for the highway trust fund, disaster relief and mental health parity, and an alternative minimum tax fix. Extending the credits for wind, solar, biomass, geothermal and efficiency are not at issue. Rather there is disagreement about how to pay for them. Congress leaves soon for its August break and Dem leaders would like to see the credits extended before then, to provide stability for clean energy businesses. (Source: E&E Daily)

PM says 1,000 nuclear plants needed worldwide

(Photo of inside Dungeness nuclear power station from Flickr and photographer gravyphig/Graham Smith)

News Update 4: British Prime Minister Gordon Brown wants his country to play a major role in an effort to build 1,000 nuclear plants worldwide to end the global “addiction to oil.” He also anticipates a 7-fold increase in renewable sources, such as wind, solar and biomass. Nuclear must be part of the global warming solution, he said, and communities would get government funding to bury the waste . Green groups attacked the plan as “bribery.” Britain already has problems burying existing nuclear waste. (Source: The Independent)