Ask Dr. Riccardo Signorelli, CEO of clean-technology company FastCAP Systems, what role the government may have had in getting his business off the ground and his answer is brief.
“The American Recovery and Reinvestment Act made FastCAP possible,” Signorelli said. “Simple as
I covered the messy breakdown of the Carousel/Destiny USA project in Syracuse earlier this week. In short, the Destiny USA project was selected as a green "demonstration" project under the 2004 Green Bonds program. $255 million in tax exempt bonds were issued on behalf of the project, the revenue of which was supposed to be used to implement the
The industry has been abuzz this past week over the announced acquisition (ahem – merger) of Progress Energy by Duke Energy. The combined entity will become the largest electric utility in the U.S. by revenue and generation capacity if approved by the various regulatory bodies, which is no sure thing. Like most mergers, the promised benefits, for shareholders and
Pike Research recently published its free (!) white paper Smart Grid: 10 Trends to Watch in 2011 and Beyond and have received some interesting feedback. Since most of this has been expressed privately, I thought I would aggregate comments on each trend and share it here.
No. 1 – Security Will Become the Top Smart Grid Concern. There was universal
I don’t know if it is Obama or Al Gore but the US government is starting to understand the need for sustainability. The American Recovery and Reinvestment Act of 2009 was signed into law by President Obama in February to stimulate the sagging US economy. By injecting $690 billion to improve infrastructure the authors hoped to create millions of jobs pulling the US out of the worst recession since the Great Depression. Interspersed within this $690 billion is $60 billion for green projects of which $45 billion is going specifically towards energy related programs. Within this $45 billion most will go directly towards the green building industry with some additional monies going towards large scale renewable energy production.
The fight for leadership in clean-tech is underway. The next decade will prove pivotal in determining where the Silicon Valley of clean-tech will reside. While the U.S. is now putting considerable resources into clean-tech, the strongest competitor has only just entered the contest.
Announced in July, China’s Golden Sun program will increase installed capacity of solar power by five times its 2008 level in the next 2-3 years. China also initiated a residential program to subsidize solar. The nation has quickly emerged as a major player in one of renewable energy’s key sectors. Furthermore, China earmarked nearly $100 billion of economic stimulus for projects related to climate change. This is not to mention the enormous growth of the wind power industry in China, which required Chinese lawmakers to double their wind power prediction for 2010. The country plans to add wind capacity to match the massive Three Gorges Dam within the next decade. All the while, China has strict protectionist rules limiting the beneficiaries to local companies. The likely best hope for foreign entities is to collaborate with their Chinese counterparts similar to the success of American automakers.
In a move that will surely provide an additional boost for the alternative energy industry, and perhaps T. Boone Pickens‘ plan, the US Department of Treasury has finally released guidelines for claiming the grants instead of the federal tax credit. Applications will be submitted online. However, the Treasury will not be accepting applications at this time.
The American Recovery and Reinvestment Act passed in February allowed for business taxpayers to apply for direct payments instead of claiming a tax credit on their income tax return. This applied to the credit under Internal Revenue Code (“IRC”) Section 45 (Energy Produced for Certain Renewable Resources) and IRC Section 48 (Energy Credit). Property that applies to this includes geothermal, biomass, micro wind turbines, and solar amongst others.
A new series of posts on this blog will feature the state of US high speed rail, covering the condition and plans for realizing the new American passenger rail network. A good place to start is with the fastest passenger train currently in service – the Northeast Corridor.
Most of this line is serviced by Amtrak’s Acela express which has the potential to reach 150 mph, but rarely does due to technological limitations concerning the track and the overhead electrical system used to power the train. The average speed of the Acela is a mere 86 mph.
Energy efficiency in transportation is now in the national spotlight. Washington is acknowledging an “energy crisis,” and as part of a solution to this problem, passenger rail in the United States is set for an upgrade. With the inauguration of President Obama, new impetus has been given to constructing a nationwide high speed rail network intended to accelerate US ground travel to speeds upwards of 220 mph. In the American Recovery and Reinvestment Act of 2009, eleven corridors have been earmarked for construction:
This article is part of a series on the Stimulus Update. Previous posts:
– Smart Grid Funding Guidelines Released
– Inching Towards Smart Grid Funding Guidelines
– EE and Conservation Block Grant Funds Releases
– Next Generation Electric Vehicles Funds Released
– Energy Efficiency Funds Released
– Climate Change, the Stimulus Bill, and how CleanTech will benefit
As part of an ongoing effort to reduce US dependence on foreign oil and address the climate crisis by increasing the use of domestic renewable fuels, Secretary of Energy Chu announced Tuesday plans to provide $786.5 million in ARRA funding to accelerate advanced biofuels research and development, and to provide additional funding for commercial-scale biorefinery demonstration projects.
The funding is available through ARRA’s Research and Development program and will be awarded through competitive grants from the DOE’s Office of Energy Efficiency and Renewable Energy (EERE).
A wave of Green Technology innovation is sweeping the world – is the United States willing, and ready, to lead?
That was the question that Andrea Larson presented to the audience a couple hours ago at the Stanford Institute for Economic Policy Research. I was a bit disappointed in most of her comments – beginning with the fact that she chose dwell on “the ignorance” of those that don’t believe in Global Warming… please!
There is nothing less important about this issue than fighting to convince those that don’t believe in it (Peyton speaks about the argument well – I welcome you to join that ongoing discussion).
Updating my previous post, VP Biden announced plans to distribute more than $3.3 billion in smart grid technology development grants and an additional $615 million for smart grid storage, monitoring, and technology viability late last week.
The announcement comes with mixed reviews, including warnings that the $20 million cap on grant awards ($40 million with matching funds) is too small to incentivize large and medium IOUs to deploy smart meters. This post notes that Xcel Energy’s SmartGridCity is a $100 million dollar project on it’s own and involves only a single city.
With specific dollar allocations published for Conservation Block Grants, $780 million released for energy efficiency and Weatherization (more to come), and grant announcements worth $2.4 billion for next generation electric vehicles issued, the first wave of DOE stimulus has come and gone.
In its wake, state, city, and county energy offices, agencies, commissions and departments are scrambling to make sense of how to funnel additional money into their respective jurisdictions. This includes readying Strategic Energy Plans for SEP program approval and drafting State Comprehensive Applications for the remaining Weatherization funds, as well as exploring potential partnerships and programs to win highly competitive grants for additional projects.
$3.2 billion in energy efficiency and conservation projects for US cities, counties, states, territories, and Native American tribes was released last Thursday. The announcement comes on the heels of $8 billion for Weatherization programs and $2.4 billion for Next Generation Electric Vehicles released earlier in March, all part of $16.8 billion allocated under ARRA for Energy Efficiency and Renewable Energy programs.
The most recently released funds will be administered under the DOE’s Energy Efficiency and Conservation Block Grant Program (EECBG), which provides federal grants to reduce energy use and fossil fuel emissions through improvements in energy efficiency in the transportation, building, and “other appropriate sectors.” Unlike the State Energy Program, EECBG emphasizes a bottom-up, community-based energy efficiency strategy through Title V of the Energy Independence and Security Act of 2007.