This article was originally published 19 February, 2009
On February 17, 2009, President Obama signed into law H.R. 1, the "American Recovery and Reinvestment Act of 2009" (the Act). The Act provides $787 billion in new spending and tax incentives which are intended to provide economic stimulus for the American economy, and contains specific provisions designed to address energy requirements and climate change.
The Act authorizes approximately $45 billion of new incremental spending for energy and energy-related investments with particular emphasis on "conservation", "green energy" initiatives and technology and electricity production, distribution and transmission systems. This $45 billion is, in broad terms, allocated as follows:
- $16.8 billion for "Energy Efficiency and Renewable Energy"
- $4.5 billion for "Electricity Delivery and Energy Reliability"
- $3.4 billion for "Fossil Energy Research and Development"
- $2 billion for "Science and Advanced Research"
- $6 billion for "Innovative Technology Loan Guarantees"
- $5.61 billion for Environmental Cleanup programs
- $6.5 billion to be divided equally between the Bonneville Power Administration and the Western Area Power Administration for transmission facilities
Under the Act, these allocations are made either as (a) grants and loan guarantees by the Department of Energy (DOE) to private entities (including public utilities) which pursue certain actions, technologies and programs that promote energy conservation and green power, or (b) legislative grants to federal agencies and state and local governments for programs with similar goals. Consistent with the desire to provide prompt economic stimulus, the Act gives preference to activities that can be started and completed "expeditiously" with a goal of utilizing at least 50% of the allocated funds within 120 days of legislative enactment. Section 1603 of the Act provides that all funds for energy initiatives are available only until September 30, 2010 unless a different date is specified.
This Sidley Update contains a summary overview of the principal energy-related expenditure initiatives contained in the Act. We will be issuing a separate Sidley Update regarding energy-related tax incentives contained in the Act, a separate Sidley Update addressing some of the potential challenges to implementing stimulus projects under existing environmental laws, as well as further Updates and memoranda addressing particular energy-related initiatives.
To view this document in its entirety please click here.
Sidley Austin LLP, a Delaware limited liability partnership which operates at the firm's offices other than Chicago, London, Hong Kong, and Sydney, is affiliated with other partnerships, including Sidley Austin LLP, an Illinois limited liability partnership (Chicago); Sidley Austin LLP, a separate Delaware limited liability partnership (London); Sidley Austin, a New York general partnership (Hong Kong); Sidley Austin, a Delaware general partnership of registered foreign lawyers restricted to practicing foreign law (Sydney); and Sidley Austin Nishikawa Foreign Law Joint Enterprise (Tokyo). The affiliated partnerships are referred to herein collectively as Sidley Austin, Sidley, or the firm.
This article has been prepared by Sidley Austin LLP for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Readers should not act upon this without seeking professional counsel.