Federal Stimulus Package Signed Into Law
"What does it mean for me?" is the big question for many alternative and renewable energy companies in the wake of President Obama's signing of the $787 billion American Recovery and Reinvestment Act (the stimulus bill). ERG's phones and email accounts have been busy this week, as midAtlantic companies work through the 1,071 page bill, and the 420 page "executive summary."

The act specifies that 34% of the package is to be devoted to tax cuts of $286 billion, and a further $120 billion will be used to fund infrastructure projects. About $41 billion is dedicated to energy projects. More information on the projections of where your money will go, broken down by state, is available on the web at a White House site, www.Recovery.gov.

In signing the bill, the President called it "an investment that will double the amount of renewable energy produced over the next three years." He noted that "Today… does mark the beginning of the end - the beginning of what we need to do to create jobs for Americans…and to set our economy on a firmer foundation, paving the way to long-term growth and prosperity." The full text of Obama's statement is available on ERG's web site.

The act creates a series of tax credits for businesses and residential consumers, for energy production, conservation and energy efficiency. The package also carves out money for state energy programs, research and development and alternative fuels. There's where things get murky. Time frames for spending the funds have been compressed, and Acting DEP Secretary John Hanger told ERG that the state expects the first wave of funding within 30 days, and the strings on the funding call for the money to be committed within 120 days.

According to Sen. Robert P. Casey's office, Pennsylvania stands to receive $258.8 million dollars in weatherization assistance funding, $100.8 million through the State Energy Programs, and $114.6 million in Energy Efficiency and Conservation Block Grants. Another $343.7 million in funds will go for transit programs, $61.6 million for Community Development Block Grants, and PA's share of the Earned Income Tax Credits will be increased by more than $160 million dollars. Provisions in the energy portion of the bill allow ITCs to be converted to grants. Click here to view a more detailed breakdown of the stimulus package.

ERG is working closely with state government to monitor these programs and funds, and can provide additional information. As state programs are defined, we will provide information and links on our website at http://www.pa-erg.com.

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