Obama On Track to Deliver Energy Promises

20-Jan-2010
The Obama administration is on track to meet its goal of doubling the amount of energy generated from solar, wind, geothermal, and other renewable sources by 2012, according to a memo from Vice President Joe Biden released by the White House Dec. 14. The memo, described by administration officials as a “progress report” on $23 billion in stimulus spending on renewables and associated manufacturing, reports that the spending will likely create 253,000 jobs “and leverage over $43 billion in additional investment that could support up to 469,000 more jobs.”

The $787 billion American Recovery and Reinvestment Act, signed into law by President Obama in February, included $80 billion in federal loans, tax incentives, and other spending mechanisms for clean energy across all government agencies, spending that is expected to produce as much as $150 billion in clean energy projects, according to the memo. The spending is “jumpstarting a major transformation of our energy system including unprecedented growth in the generation of renewable sources of energy, enhanced manufacturing capacity for clean energy technology, advanced vehicle and fuel technologies, and a bigger, better, smarter electric grid,” the memo said.

According to the memo, the amount of renewable energy produced in the country is expected to increase from 27.8 gigawatts to at least 55.6 gigawatts by 2012, including 15 gigawatts that are expected to come online by the end of 2010.
Renewable energy manufacturing in the country is expected to increase from six gigawatts to at least 12 by 2012 as well, according to the memo.

A $2.3 billion stimulus program that provides up to a 30 percent tax credit for domestic manufacturing of solar panels, wind turbines, and other renewable energy technology is largely credited with that increase and will likely create 17,000 jobs, and an expected $5.4 billion in funding to be matched by the private sector will likely create an additional 41,000 jobs and as many as 200 manufacturing projects, according to the memo.

Carol Browner, director of the White House Office of Energy and Climate Change Policy, told reporters during a Dec. 14 phone briefing that awards under the program will be announced in January. Sen. Jeff Bingaman (D-N.M.) and other lawmakers have introduced legislation that would extend the oversubscribed program by $2.5 billion (237 DEN A-11, 12/14/09).
‘Fuels of the Future.'

In addition, the memo said government and industry commitments of up to $16 billion in vehicles and “fuels of the future” will “transform the transportation sector” and result in three new electric vehicle plants—the first to be constructed in the country—and 30 new battery and other electric vehicle components manufacturing facilities by 2015.

“These plants will have capacity to produce 250,000 electric drive cars and batteries to power 500,000 plug-in hybrid electric vehicles” as well as the construction of 10,000 electric vehicle charging stations in more than 12 cities, the memo said.
Stimulus spending also is expected to increase the number of homes with smart meters from 8 million to 26 million by 2013 and as many as 40 million by 2015, as well as 1 million home energy efficiency retrofits by 2012, according to the memo.
Stimulus spending, existing loan guarantees, and private investment will result in $14 billion for clean coal technology, enough to equip five commercial scale power plants with carbon capture and storage facilities by 2015, the memo said.
“What we are showing here is what we told everyone,” Browner said. “We are going to take this recovery act and really transform how we use energy in this country.”

Republican Response
The release of the memo by the White House comes amid criticism from Republicans and others about oversight of the stimulus program. “Investment in renewable energy technology is a good thing,” Robert Dillon, a spokesman for Republicans on the Senate Energy and Natural Resources Committee, said in an interview. “But the stimulus was supposed to timely, targeted, and temporary, but so far it's been none of those things, and we are gearing up for another one.”

By Ari Natter
Vice President Joseph Biden's memo on clean energy spending in the stimulus bill is available at
http://pub.bna.com/ptcj/vicepre_memo_ee121409.pdf

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