Obama signs Stimulus Bill into law; big incentives for renewable energy and smart grid

February 20, 1:35 PMDC Green Business ExaminerMatt Roberts

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Photo from Southwest Windpower.

President Obama signed a major piece of legislation into law on February 17th - a massive $787 billion spending bill that he and his fellow Democrats in Congress intend to leverage to revive the stagnant economy.

The bill emphasizes new technologies and endeavors over rehabilitation of old industry sectors - and has a particular focus on renewable energy and energy security. 

The American Recovery and Reinvestment Act of 2009 will provide a large influx of government capital to support renewable energy, smart grid infrastructure, energy efficiency, and alternative transportation.

This bill will undoubtedly help to spur business growth and development for those involved in the renewable energy economy around Washington.  More importantly, the bill will help the country to be catapulted to the forefront of clean energy technologies in the world - helping to revive the stagnant manufacturing sector, create energy infrastructure jobs for thousands, and spur on the renewable energy services market which is already on pace to create thousands of quality jobs for the country each year and is one of the few business segments still experiencing moderate growth and investment during the economic downturn.

Specific highlights of the bill relating to green businesses include:

• $32 billion total to transform the nation’s energy transmission, distribution, and production systems by allowing for a smarter and better grid and focusing investment in renewable technology
• 3 year extension of the Production Tax Credit (PTC)
• Renewable project developers can apply for a straight grant from the Treasury Department in lieu of utilizing the Investment Tax Credit (ITC).  The grant will be eligible for up to 30% of the cost of a project started in 2009 or 2010
• Geothermal, wind, biomass, and landfill gas capture projects now also may apply for funding through the ITC
• $2 billion to fund the development of renewable energy manufacturing - specifically focused on the creation of new plants or retooling current plants to create materials in support of the renewable energy and alternative transportation economies
• $16.8 billion in direct spending for renewable energy and efficiency programs over the next 10 years
• $16 billion to repair public housing and make key energy efficiency retrofits
• $6 billion to weatherize modest-income homes
• $2 billion for the manufacturing of advanced batteries
• $2.5 billion for research and development of new renewable and efficiency technologies
• $1.6 billion of new clean energy renewable bonds to finance wind, biomass, geothermal, hydropower, landfill gas, marine renewable, and trash combustion facilities

It is also great to note that incoming Energy Secretary Steven Chu has indicated that he wants half of the money earmarked to go through DOE to be spent within the first year - having previously criticized the time it takes for funding to make it through the institution.

There is plenty of other provisions in the bill that are left out above, but those are the big ones.  Let me know what else is out there in the comments section.