On February 17, 2009, President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009 (the “ARRA”). The ARRA contains a broad range of stimulus spending and tax incentives that support increased investment and activity in alternative energy, energy efficiency and other sustainability initiatives. This newsletter provides a summary of the ARRA provisions related to energy.

Energy Related Provisions in the American Recovery and Reinvestment Act of 2009

Summary based on the ARRA, as signed into law on February 17, 2009.

Energy Programs

Direct Spending on Renewables and Efficiency

  • $16.8 billion in direct spending for renewable energy and energy efficiency programs over the next ten years, the majority of which to be allocated as detailed under this heading.
    • ARRA, Division A – Appropriation Provisions Title IV- Energy and Water Development, Department of Energy – Energy Programs. 24. Link

Energy Efficiency and Conservation Block Grant Program

  • $3.2 billion to assist local governments in implementing energy efficiency and conservation programs. Originally Authorized in Title V of the Energy Independence and Security Act of 2007 (“EISA”). Of which:
    • $2.8 billion is awarded based on existing formula;
    • $400 million is awarded on a competitive basis.
    • ARRA, Division A – Appropriation Provisions. Title IV- Energy and Water Development, Department of Energy – Energy Programs. 24. Link

Federal Power Marketing Administrations

  • $6.5 million for capital investments by certain federal power marketing administrations in electric power transmission systems, including:
    • $3.25 billion for the Bonneville Power Administration under the Pacific Northwest Electric Power Planning and Conservation Act (16 USC 839 et seq.)
    • $3.25 billion for the Western Area Power Administration under the Hoover Power Plant Act of 1984 (Public Law 98-381).
      • ARRA, Division A – Appropriation Provisions. Title IV- Energy and Water Development, Department of Energy – Energy Programs. 26 - 27. Link

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