What is in HR1 for alternative energy

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Permalink Reply by Chandrashekar Tamirisa on February 15, 2009 at 2:35pm

I have always found the The CRS summary to be the best place to begin: (but 'am disappointed for the reasons I had indicated in my comments yesterday on Focus Hope. It would be nice if at least the final summary had a specific dollar amounts quick access table, by program). Look at those I have there in bold.

Title IV: Defense - Makes supplemental appropriations for FY2009 to the Department of Defense (DOD) for : (1) facility infrastructure investments; and (2) energy research and development.

Makes supplemental appropriations for FY2009 to the Department of Energy for: (1) programs for energy efficiency and renewable energy; (2) electricity delivery and energy reliability; (3) the Advanced Battery Loan Guarantee Program; (4) the Institutional Loan Guarantee Program; (5) the Innovative Technology Loan Guarantee Program; (6) fossil energy; (7) science; and (8) defense environmental cleanup.

(Sec. 5001) Amends the Hoover Power Plant Act of 1984 to authorize the Administrator of the Western Area Power Administration (WAPA) to borrow funds from the Treasury for: (1) new or upgraded electric power transmission lines and related facilities; and (2) the delivery of power generated by renewable energy resources after enactment of this Act.

Requires the Secretary of the Treasury, without further appropriation and without fiscal year limitation, to loan WAPA up to $3.25 million in outstanding repayable balances at any one time.

Authorizes WAPA to: (1) refinance such loans; and (2) permit other entities to participate in projects financed by them.

Grants the Administrator authority to have utilized $1.75 million at any one time. Requires disbursement of any loan funds above such amount, if the Administrator seeks to borrow them, unless a joint resolution is enacted that rescinds the remainder of the balance of such borrowing authority.

Requires forgiveness of balances of such loans: (1) remaining at the end of such project's useful life; and (2) expended to study projects considered but not constructed.

(Sec. 5002) Makes additional borrowing authority available to the Bonneville Power Administration (BPA) under the Federal Columbia River Transmission System Act to assist in: (1) financing the construction, acquisition, and replacement of the BPA transmission system; and (2) implementing the Administrator's authority under the Pacific Northwest Electric Power Planning and Conservation Act.

(Sec. 5003) Permits the transfer between and within such accounts of up to 20% of funds made available to DOE for accounts for energy efficiency and renewable energy, electricity delivery and energy reliability, and the advanced battery loan guarantee program.

Title VI: Financial Services and General Government - Subtitle A: General Services - Appropriates funds for the General Services Administration (GSA) for the: (1) Federal Buildings Fund of which a specified amount shall be used for construction, repair, and alteration of federal buildings for projects that will create the greatest impact on energy efficiency and conservation; and (2) Motor Vehicle Acquisition and Motor Vehicle Leasing programs for the acquisition of motor vehicles, including plug-in and alternative fuel vehicles.

Subtitle B: Small Business - Appropriates funds for the Small Business Administration (SBA) for direct loans and loan guarantees authorized under this title.

(Sec. 6201) Authorizes the SBA to guarantee up to 95% of a loan made by a private lender to a small business that is eligible for a loan guarantee under the Small Business Act or the Small Business Investment Act of 1958. Authorizes the SBA to charge a fee for such guarantee. Limits the interest rate authorized to be charged to small businesses by lenders under the loan guarantee. Prohibits such guarantees with respect to small businesses: (1) in which an unlawful alien has an ownership interest; or (2) in violation of immigration laws. Terminates the loan guarantee program 90 days after establishment of the economic recovery program under section 6204, below.

(Sec. 6202) Authorizes the SBA to establish a Secondary Market Lending Authority (Lending Authority) to make loans to the systematically important secondary market broker-dealers (broker-dealers) who operate the SBA secondary market (a market for the purchase and sale of loans originated, underwritten, and closed under the Small Business Act). Defines as broker-dealers those entities designated as vital to the continued operation of the SBA secondary market by reason of their purchase and sale of the government guaranteed portion of loans or loan pools originated, underwritten, and closed under the Small Business Act.

Directs the SBA Administrator to establish: (1) a process for the designation of broker-dealers; (2) an office (Lending Authority) to provide loans to broker-dealers to finance the inventory of the government guaranteed portion of loans, originated, underwritten, and closed under the Small Business Act or pools of such loans; and (3) a process under which the broker-dealers may apply for such loans. Provides loan interest rate limits. Requires monthly reports from the Administrator to Congress on such loans.

Terminates the loan program two years after the enactment of this section. Authorizes appropriations.

(Sec. 6203) Directs the Administrator to establish: (1) the Secondary Market Guarantee Authority; and (2) a process under which private lenders may apply for a federal guarantee on pools of first lien position 504 loans (the first mortgage position, non-federally guaranteed loans made by private sector lenders made under title V [Loans to State and Local Development Companies] of the Small Business Investment Act) sold to third-party investors. Authorizes the Administrator to guarantee up to $3 billion of such pools. Requires monthly reports from the Administrator to Congress on such guarantee authority.

Terminates the guarantee authority two years after the enactment of this section. Authorizes appropriations.

(Sec. 6204) Authorizes the Administrator to refinance existing SBA and non-SBA loans made to small businesses. Limits to $10 million the amount of any refinanced loan and the conveyance of a first lien to the SBA. Requires the loan lender to offer to accept from the SBA as full repayment less than 100% but more than 85% of the remaining loan balance.

Directs the Administrator to: (1) offer to sell loans made or refinanced under this section; and (2) maintain and service unsold loans.

Terminates the refinance authority two years after it becomes operational. Prohibits refinancing with respect to small businesses: (1) in which an unlawful alien has an ownership interest; or (2) in violation of immigration laws.

Requires semiannual reports from the Administrator to Congress on the refinancing authority. Authorizes appropriations.

(Sec. 6205) Amends the Small Business Investment Act of 1958 to authorize the SBA to provide a limited amount of debt refinancing under the SBA's local development business loan program if a development project involves the expansion of a small business which has existing indebtedness collateralized by fixed assets. States that a project meets SBA objectives if it creates or retains one job for every $65,000 (currently, $50,000) guaranteed by the SBA.

(Sec. 6206) Revises and increases the maximum amount of outstanding leverage made available to a licensed investment company under the SBA's small business investment company program. Provides revised aggregate investment limits under such program.

(Sec. 6207) Requires a report from the Comptroller General to Congress on the implementation of sections 6201-6206, above.

Subtitle G: Energy Incentives - Part I: Renewable Energy Incentives - (Sec. 1601) Extends the tax credit for producing electricity from renewable sources through 2012 for wind facilities and through 2013 for other facilities (e.g., biomass, solar and geothermal, trash, and hydropower generating facilities).

(Sec. 1602) Allows an energy tax credit for renewable energy facilities placed in service in 2009 or 2010 in lieu of the tax credit for producing electricity from renewable resources.

(Sec. 1603) Repeals limitations on: (1) the energy tax credit for qualified small wind energy property; and (2) property financed by subsidized energy financing.

Part 4: Energy Research Incentives - (Sec. 1631) Increases in 2009 and 2010 the tax credit for increasing research activities for qualified energy research expenses.

Subtitle H: Other Provisions:

Part 3: Grants for Specified Energy Property in Lieu of Tax Credits - Directs the Secretary of Energy to make grants to persons who place in service in 2009 and 2010 certain energy property that is eligible for the tax credit for producing electricity from renewable resources (e.g., wind, biomass, or solar energy facilities) or for the energy tax credit (e.g., fuel cell, geothermal, or microturbine property).

Title VII: Energy - (Sec. 7001) Makes technical corrections to the Energy Independence and Security Act of 2007 (EISA) to: (1) revise fund allocations to states and local governmental units; and (2) repeal specified funding requirements.

(Sec. 7002) Directs the Secretary of Energy (Secretary in this title), when implementing smart grid regional demonstration initiatives, to provide financial support to projects in urban, suburban, and rural areas, including areas where electric system assets are controlled by tax-exempt entities (as under current law) and areas where electric system assets are controlled by investor-owned utilities.

Instructs the Secretary to: (1) establish a smart grid information clearinghouse to make data from projects and other sources available to the public; and (2) precondition funding upon utilization by such demonstration projects of available open Internet-based protocols and standards.

Extends the authorization of appropriations for the smart grid regional demonstration initiative indefinitely.

Increases from 20% to 50% the federal reimbursement match for qualifying smart grid investments under the Smart Grid Investment Matching Grant Program.

Repeals the requirement that, in making such grants, the Secretary seek to reward innovation and early adaptation, even if success is not complete, rather than deployment of proven and commercially viable technologies.

Revises the exclusion from qualifying smart grid investments of expenditures for technologies, devices, or equipment that are eligible for specific tax credits or deductions. Applies the exclusion only to technologies, devices, or equipment that utilize such tax credits or deductions.

Revamps the rules and procedures governing the federal matching fund for smart grid investment costs. Requires as a condition of receiving a grant that recipients utilize Internet-based or other open protocols and standards, if available and appropriate.

(Sec. 7003) Amends the Energy Policy Act of 2005 to set forth a temporary program for rapid deployment of renewable energy and electric power transmission projects. Restricts federal guarantees to specified commercial technology projects that commence construction by September 30, 2011.

Makes eligible for federal support any projects for: (1) renewable energy systems; (2) electric power transmission systems; and (3) leading edge biofuel projects that will use technologies performing at the pilot or demonstration scale that are likely to become commercial and will produce transportation fuels that substantially reduce life-cycle greenhouse gas emissions compared to other transportation fuels.

Prescribes prevailing wage rate requirements for such projects in accordance with the Davis-Bacon Act.

(Sec. 7004) Amends the Energy Conservation and Production Act to: (1) increase from 150% to 200% of the poverty level the income eligibility level for the Weatherization Assistance Program; (2) increase the maximum assistance per dwelling unit from $2,500 to $5,000; and (3) authorize the Secretary to encourage states to give priority to using Program funds for cost-effective efficiency activities, including attic insulation.

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Permalink Reply by South Dakota Wind Energy on February 15, 2009 at 3:54pm

there isn't much for energy period.

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Permalink Reply by Lynn Flaherty on February 15, 2009 at 6:39pm

Why don't we ask T. Boone Pickens? He can answer it, I'm sure. I read it too and didn't find specifics. There were something like 900+ pages in HR1. It's difficult to find detail. The section on Energy and I believe Water Conservation was not very large. I too looked through it. Maybe there's additional information buried somewhere else. LYNN

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Permalink Reply by Chandrashekar Tamirisa on February 15, 2009 at 8:02pm

Boone had sent some messages earlier before the vote with some specific numbers but they cannot be called accurate. The following numberds are an excerpt from his email:

Among the items in the Pickens Plan which are in the stimulus package are:

* $32 billion 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.
* $16 billion to repair public housing and make key energy efficiency retrofits.
* $6 billion to weatherize modest-income homes.
* Tax incentives for the installation of natural gas vehicle home fueling systems and the building of an alternative fuels fueling infrastructure.
* $80 billion loan guarantee program for renewable energy production.
* Three year extension of the Production Tax Credit (PTC) and an elective 30% Investment Tax Credit (ITC).

A lot of the above numbers have to do with tax credits; small business tax rates, loan guarantees and government cost projections on potential default rates; tax deductions, DoD spending; DOEnergy spending on the smart grid; low income housing spending; federal spending on itself; perhaps some federal subsidized state and local spending on alternative energy if those governments decide to do so; grants and so on.

In other words, some generalities related to small businesses for example, could apply to alternative energy as well if they are taken advantage of. So, it depends how the economy accounts for them, once the stimulus starts trickling in.

That said, still my FOCUS HOPE remarks with respect to how this bill was produced and voted on hold. The Congress and the White House can do better with transparency.

The bet that is being placed on the stimulus package by the Congress and the administration is that the targeted government incentives in the bill could stimulate private sector lending if Wall St., is given a massive shot in the arm of nearly $3T shortly (some borrowed money from last year plus Fed printing money and infusing it to temporarily liquidate the bank's bad assets in exchange for more control and government equity in the banks, which is a bad idea), as is being currently proposed by the White House, so that the private sector can fully avail of the slated spending measures in the bill to move the economy in the direction the President wants until such time the country is ready to release the strings on the private sector again.

However, this is TBD because the administration appears to be dragging its feet on reforms and focusing more on recovery as if the two are unrelated, and thus is once again avoiding addressing the root causes, not unlike post-9/11 reforms that are still much to be desired. It is unclear if the administration itself knows what to do at this point. Besides, in practice this administration's approach would result in a highly ineffective form of socialism and a form of sly capitalism, with the government in cahoots with the large corporations and unions, in either case enlarging government, satisfying the unions and benefiting Wall St., all at the same time.

Therefore, in all we may end up incurring deficits of $3T over the next 3 years, as though the Democrats are justifying the debt burden as a response to Bush spending on Iraq with which they disagreed mostly for public consumption for electoral reasons (even Bill Clinton had bombed Saddam in the late '90s, so Al Gore would not have had much of a choice either had he become president, faced with very similar circumstances as Bush did). In other words, if Bush spent on the military, the Democrats want to spend on owning a piece of the economy, with neither side really solving either problem on a more sustainable basis.

That is the real worry about the bill, which I am sure the Republicans will find better ways to articulate to the people if they begin to think about reforms as this absurdity unfolds over the next 3 years.

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