February 18, 2009
Editorial
An $80 Billion Start
Wrapped inside the economic stimulus package is about $80 billion in spending, loan guarantees and tax incentives aimed at promoting energy efficiency, renewable energy sources, higher-mileage cars and coal that is truly clean. As a stand-alone measure, these investments would amount to the biggest energy bill in history.
As ambitious as this measure is, it should not be confused with a global warming bill. Dealing with climate change will require a much broader strategy, even larger federal investments in clean-energy technologies and an effort to put a price on greenhouse gas emissions to unlock private investment on an enormous scale. But this is a useful down payment, which could also help reduce the nation’s reliance on foreign oil.
Eighty-billion dollars is still a lot of money. And the federal agencies overseeing its disbursement must provide strong regulation and firm guidance to ensure that it is spent wisely. Money invested in a modern electricity grid, for instance, will have been badly spent if it is used merely to build transmission towers to move energy from old coal-fired power plants. It will be well spent if it helps move clean energy, such as wind and solar power, from, say, Texas, to distant cities that need it.
That is just one of many provisions that will bear close watching as the money flows to states, cities and businesses. Here are some of the most important ones.
ENERGY EFFICIENCY Homes and buildings soak up 40 percent of the energy generated in this country — more than vehicles. Of the $25 billion provided for energy efficiency, more than half is aimed at helping low-income families weatherize one million homes and helping governments at all levels retrofit public buildings.
RENEWABLE ENERGY In addition to new money for research into alternative fuels, the measure provides roughly $20 billion in tax incentives for wind, solar, hydroelectric and other renewable power sources. These incentives, which are crucial for future development, were the subject of endless Congressional bickering last year, and it is heartening to see them enshrined in law.
SMART GRID The measure invests $11 billion in grants and $6 billion in loans to modernize the electric grid and increase its capacity to deliver power generated by renewable sources. These programs will need especially careful oversight.
MASS TRANSIT Federal transportation spending has long favored highways over mass transit by a 4-to-1 margin, even though mass transit is far more effective in reducing oil consumption and greenhouse gas emissions. The package improves this ratio while providing $17.7 billion for mass transit, Amtrak and high-speed rail, nearly a 70 percent increase over present spending levels.
The package includes other potentially useful energy-related provisions: $2 billion in grants and loans for research into advanced car batteries, a tenfold increase over the existing program; and $3.4 billion to develop coal-fired power plants that can capture and store greenhouse gases, also a tenfold increase.
Much more will be required to fully address climate change and oil dependency. And President Obama promised much more in his campaign. But the stimulus package is a good beginning.
