The American Recovery and Reinvestment Act: Investing in Clean, Efficient Energy

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Energy Efficiency, including Smart Grid and Advanced Battery Technology

• $11 billion to transform the nation’s electricity systems through the Smart Grid Investment Program to modernize the electricity grid to make it more efficient and reliable.  This will jumpstart smart grid demonstration projects in geographically diverse areas, increase federal matching grants for smart grid technology (20% to 50%) including “Smart Meters” that give consumer more choice in their energy consumption at home, and spur research and development. 
• $6.3 billion in energy efficiency and conservation grants to states and local governments.
• $2.5 billion for research into energy efficiency and renewable energy.
• $2 billion in grant funding for the manufacturing of advanced batteries systems and components and vehicle batteries that are produced in the United States.
• $500 million in training of workers for green-collar jobs.
  

Energy Savings at Home

• $5 billion for the Weatherization Assistance Program to improve energy efficiency for up to 1 million modest-income homes. The funding will expand the number of eligible families and increase the aid level from $2,500 to 6,500 per household.

New Jersey will receive $121,853,264 for the program. To see if you are eligible for funding, please visit the New Jersey Weatherization Assistance Program for updates.

Modernizing Federal Infrastructure & Housing to Lower Energy Costs

• $4.5 billion to upgrade federal buildings and making them energy efficient – working to save taxpayers over $1 billion dollars by slashing energy costs in federal buildings by 25 percent.

Includes GSA Federal Buildings, Department of Defense facilities, and public housing.

Energy Tax Credits

• Advanced Energy Investment Credit: Establishes a new manufacturing investment tax credit for investment in advanced energy facilities, such as facilities that manufacture components for the production of renewable energy, advanced battery technology, and other innovative next-generation green technologies.
• Plug-in Hybrid Vehicles: Provides a tax credit for families that purchase plug-in hybrid vehicles of up to $7,500 to spur the next generation of American cars.
• Long-term Extension and Modification of Renewable Energy Production Tax Credit: Includes a three-year extension of the production tax credit (PTC) for electricity derived from wind (through 2012) and for electricity derived from biomass, geothermal, hydropower, landfill gas, waste-to-energy, and marine facilities (through 2013).
• Temporary Election to Claim the Investment Tax Credit in Lieu of the Production Tax Credit: Facilities that produce electricity from wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, waste-to-energy, and marine renewable facilities are eligible for a production tax credit. The bill would allow facilities to elect to claim the investment tax credit in lieu of the production tax credit.
• Removal of Dollar Limitations on Certain Energy Credits: The bill would repeal the individual dollar caps. As a result, each of these properties would be eligible for an uncapped thirty percent (30%) credit.
• Repeal Subsidized Energy Financing Limitation on the Investment Tax Credit: The bill would repeal this subsidized energy financing limitation on the investment tax credit in order to allow businesses and individuals to qualify for the full amount of the investment tax credit even if such property is financed with industrial development bonds or through any other subsidized energy financing.
• Clean Renewable Energy Bonds (“CREBs”): The bill authorizes an additional $1.6 billion for new clean renewable energy bonds to finance facilities that generate electricity from the following resources: wind, closed-loop biomass, open-loop biomass, geothermal, small irrigation, hydropower, landfill gas, marine renewable, and trash combustion facilities.
• Qualified Energy Conservation Bonds: The bill authorizes an additional $2.4 billion for qualified energy conservation bonds to finance state, municipal and tribal government programs and initiatives designed to reduce greenhouse gas emissions.
• Tax Credits for Energy-Efficient Improvements to Existing Homes: Promotes energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.