How to spend $825 billion

The green aspects of the American Recovery and Reinvestment Act 6

Muckraker: Grist on Politics

Enviros are heartened by much of what they see in the newly released summary of the House’s American Recovery and Reinvestment Act, better known as the stimulus package.  But they’re also concerned about how the transportation funds will be spent.

The bill includes a section focused on “clean, efficient, American energy.”  The summary states, “To put people back to work today and reduce our dependence on foreign oil tomorrow, we will strengthen efforts directed at doubling renewable energy production and renovate public buildings to make them more energy efficient.” Another section of the bill aims to “modernize roads, bridges, transit and waterways.” Here’s the broad breakdown of those portions:

  • $32 billion to transform the nation’s energy transmission, distribution, and production systems by allowing for a smarter and better grid and focusing investment in renewable technology
  • $16 billion to repair public housing and make key energy-efficiency retrofits
  • $6 billion to weatherize modest-income homes
  • $30 billion for highway construction
  • $31 billion to modernize federal and other public infrastructure with investments that lead to long-term energy cost savings
  • $19 billion for clean water, flood control, and environmental restoration investments;
  • $10 billion for transit and rail to reduce traffic congestion and gas consumption

There’s also $4 billion for training and employment services through grants for worker-training programs in “high growth and emerging industry sectors.” Priority for these funds would be placed on green jobs and jobs in healthcare. “Green jobs training will include preparing workers for activities supported by other economic recovery funds, such as retrofitting of buildings, green construction, and the production of renewable electric power,” says the summary.

The Sierra Club praised the bill, saying it “makes an important down payment on solutions that will transform America’s economy and lead to a clean energy future that will benefit generations to come.”

Friends of the Earth President Brent Blackwelder pointed out both the good and the bad.  “This proposal demonstrates a serious commitment to clean energy with a number of smart and much-needed investments that can create green jobs and be instrumental in our transition to a clean energy economy,” he said.  “Unfortunately, the transportation spending doesn’t take the same forward-thinking approach. The stimulus as it currently stands doesn’t do enough to create green jobs through clean transportation investments, and it doesn’t prevent spending from going to unnecessary new roads that increase pollution and oil consumption.”

Environmental Defense Fund points out that bill leaves states a lot of discretion about how they would spend funds, potentially allowing them “to buy ‘bridges to nowhere’ or a bridge to the 21st century.”  The group is calling on states to make their plans known.  “With tens of billions in new transportation spending, it’s more important than ever for states to respect President-elect Obama’s promise of transparency by making their spending priorities public as soon as possible,” said Michael Replogle, EDF transportation director and an adviser to the Department of Transportation.

Here’s a more detailed breakdown of the energy funding in the bill:

  • $11 billion for research and development, pilot projects, and federal matching funds for the Smart Grid Investment Program
  • $8 billion in loan guarantees for renewable energy power generation and transmission projects
  • $6.7 billion for renovations and repairs to federal buildings including at least $6 billion focused on increasing energy efficiency and conservation
  • $6.9 billion in local government energy efficiency block grants
  • $2.5 billion for energy-efficiency housing retrofits for HUD-sponsored, low-income housing to increase energy efficiency
  • $2 billion for energy efficiency and renewable energy research
  • $2 billion in grants and loans for the development of advanced battery technologies
  • $1.5 billion in grants and loans for energy sustainability and efficiency in school districts, institutes of higher education, local governments, and municipal utilities
  • $6.2 billion for low-income home weatherization
  • $300 million in consumers rebates for buying energy-efficient, Energy Star products
  • $600 million to replace older vehicles owned by the federal government with alternative-fuel automobiles
  • $200 million for a new grant program for electric-vehicle technologies
  • $2.4 billion for carbon-capture-and-sequestration technology demonstration projects
  • $350 million for Department of Defense research into using renewable energy to power weapons systems and military bases
  • $400 million for state and local governments to purchase efficient alternative-fuel vehicles to reduce fuel costs and carbon emissions
  • $500 million for energy-efficient manufacturing demonstration projects
  • $300 million for grants and loans to state and local governments for projects that reduce diesel emissions

And here’s a more detailed breakdown of the transit portion:

  • $30 billion for highway and bridge construction projects
  • $1 billion for Capital Investment Grants for new commuter rail or other light rail systems
  • $2 billion to modernize existing transit systems
  • $6 billion to purchase buses and equipment needed to increase public transportation and improve intermodal and transit facilities
  • $1.1 billion to improve the speed and capacity of Amtrak and intercity passenger rail
  • $3 billion for airport improvement projects that will improve safety and reduce congestion

Under that section, there’s also cash for parks and public lands, including $3.1 billion for infrastructure projects on federal lands including improvements to visitor facilities, road and trail restoration, preservation of buildings of cultural and historic importance, rehabilitation of abandoned mines and oil fields, and environmental cleanup projects. Of that, $1.8 billion would go to the National Park Service, $325 million for the Bureau of Land Management, $300 million for the National Wildlife Refuges and National Fish Hatcheries, and $650 million for the Forest Service.

There’s also considerable funding for water infrastructure projects:

  • $6 billion for loans through the Clean Water State Revolving Fund to help communities upgrade wastewater treatment systems
  • $2 billion for the Drinking Water State Revolving Fund
  • $1.5 billion for rural water and waste disposal
  • $4.5 to the Corps of Engineers for environmental restoration, flood protection, hydropower, and navigation infrastructure critical to the economy
  • $500 million to the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought
  • $400 million for watershed infrastructure through the Natural Resources Conservation Service
  • $224 million for the International Boundary and Water Commission to repair flood control systems along the international segment of the Rio Grande damaged by hurricane Katrina and other serious storms

And there’s funding for environmental cleanup around the country, including:

  • $800 million for Superfund cleanups
  • $200 million for enforcement and cleanup of petroleum leaks from underground storage tanks
  • $500 million for nuclear-waste cleanup
  • $300 million for environmental cleanups at closed military installations
  • $400 million for habitat restoration programs through the National Oceanic and Atmospheric Administration
  • $100 million for brownfield remediation
  • $850 million for programs to reduce wildfires threats
  • $550 million to state and private park services for volunteer and wildfire reduction programs
  • $300 million for the Federal Forest Service to reduce wildfire threats
  • $500 million to the Bureau of Indian Affairs for the maintenance of schools, dams, detention and law-enforcement facilities, and over 24,000 miles of roads

Another $600 million under the science and technology portion of the bill is set aside for satellite development and acquisitions, including climate sensors and climate modeling, at the National Oceanic and Atmospheric Administration.

Kate Sheppard is Grist’s political reporter.

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  1. Jon Rynn's avatar

    Jon Rynn Posted 11:14 am
    15 Jan 2009

    a down payment?The proportions between transit and roads is fairly typical.  According to one set of statistics I found, roads usually get 4 times the funding of transit, and in this bill they'll get 3 times (note that amtrak is part of transit in this accounting). Air gets "only" about 1/3 of transit, when it usually gets twice as much.
    Note that the entire infrastructure package, at least the classic parts (not including building efficiency), is about 90 billion, or 10 per cent of the stimulus bill.  Since the american society of civil engineers estimates that we need 1.6 trillion dollars over 5 years to bring the infrastructure up to an adequate level, this is sort of a drop in the bucket.  obviously, a great drop, but still a drop.
    My prediction: this stimulus won't do enough to get the economy going, and later this year there will be lots of talk about getting serious about the infrastructure.
  2. Pompey Road Posted 12:32 pm
    15 Jan 2009

    Road to No where:Most of the road money will go to new construction instead of maintenance and repair of existing roads and bridges. Earmarks and pork will eat up a substantial portion of the funds.

    The eons of time and nature was good to us down here. It was not until we become civilized that destroying our habitat become fathomable or fashionable.
  3. Tasermons Partner Posted 1:00 pm
    15 Jan 2009

    Question:Did anybody really expect that rail would get more than road?
    Not that it wouldn't be a pleasant surprise, but it's highly unlikely to happen anytime soon.
    I'm just thankful that rail and transit got as much as it did.  Way more than the previous administrations were willin' to.
    Also:$2.4 billion for carbon-capture-and-sequestration technology demonstration projects
    Does that include a potential Futuregen restart?
    $500 million to the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought
    Is that likely to include new dams?
    $850 million for programs to reduce wildfires threat
    Is that the same Bush line of: large-scale logging = wildfire reduction, or are they serious this time?
    Overall though, the bill looks like a positive win.  I give it thumbs up and hope it passes at least as it is, if not better.
  4. racc Posted 5:30 pm
    15 Jan 2009

    Spend it on Transit and RailThe road funding is an absolute waste of money. So is the $2 billion for "better battery technology" This all should go to rail and transit. Why build roads to nowhere for expensive electric vehicles that no one can afford during an economic downturn.
    On change.gov, the most popular idea for Energy and the Environment is Bullet Trains & Light Rail.

    http://citizensbriefingbook.change.gov/ideas/ideaList.ape ...
    Rail and transit are also featured in several of the other popular ideas. Electric cars and roads, not so much. Seems like our new prez is a bit out of touch.
    I also added an idea for spending billions on bikes that could use some support.

    http://citizensbriefingbook.change.gov/ideas/viewIdea.ape ...



    It is not about us, it is about everyone.



    http://www.everyoneforever.org/
  5. Jon Rynn's avatar

    Jon Rynn Posted 11:36 pm
    15 Jan 2009

    a little more on transitfrom watthead, via an email I got from  Ted Glick :· New Construction: $1 billion for Capital Investment Grants for new commuter rail or other light rail systems to increase public use of mass transit and to speed projects already in construction. The Federal Transit Administration has $2.4 billion in pre-approved projects.
    · Upgrades and Repair: $2 billion to modernize existing transit systems, including renovations to stations, security systems, computers, equipment, structures, signals, and communications. Funds will be distributed through the existing formula. The repair backlog is nearly $50 billion.
    · Transit Capital Assistance: $6 billion to purchase buses and equipment needed to increase public transportation and improve intermodal and transit facilities. The Department of Transportation estimates a $3.2 billion maintenance backlog and $9.2 billion in needed improvements. The American Public Transportation Association identified 787 ready-to-go transit projects totaling $15.5 billion. Funds will be distributed through the existing formulas.
    Amtrak and Intercity Passenger Rail Construction Grants: $1.1 billion to improve the speed and capacity of intercity passenger rail service. The Department of Transportation's Inspector General estimates the North East Corridor alone has a backlog of over $10 billion.
    I would say, don't worry about the roads (even though they'll be a waste of money if they sprawl), but push for more transit, which obviously needs and is "shovel ready"
  6. Pompey Road Posted 7:08 am
    16 Jan 2009

    Disney Land Economics:The baby boom generation decided they wanted it all and wanted it right now and passed on to the next generation the buy it all on credit mentality.
    It is the same as living well on credit and passing the bill off to the next generation.
    The banks won't give you air without collateral now or a down payment or at least proving you have the means to pay. Just as it was before deregulation. Yet we give billions to Wall Street and the banking industry with no oversight and give it free with no interest and no requirement to pay it back to the taxpayers.
    Of course the trillions they say we need to jump start the economy or the economic recovery package Obama talks about will have to be raised by selling bonds. For the most part to the Chinese. By giving billions to the same people who caused the problem with no oversight and no requirements for a return on our money we bought nothing, for the lending or credit is still tight.
    All the things hoped for in the economic recovery plan will be in vain. When the second and third wave of defaults hit on top of the subprime mess that has not yet run its course we will still be looking for the bottom of this economic crisis.  Commercial real estate will be next because it was also funded with the sub prime model, wait for it. The auto default and personal loan defaults brought on by the bottom falling out of the economy and the subsequent unemployment rate will hit us soon, wait for it. On top of all this add credit card default because people are living on them instead of being employed now, wait for it.
    All the economic recovery stops when bond sales stop and the bottom drops out of the dollar. The hyper accelerated rate of printing money we don't have on credit will catch up with us as soon as the world understands what a bad credit risk we are.
    The special interest and corporate lobby will highjack most of the funding and this in itself will put the recovery in jeapordy. As the market watches most of the money being wasted on projects that neither helps the economy or effects our energy demands bond sales will falter.
    We missed our chance when we had our own peak oil crisis in 74. Over 30 years of the oil and transportation lobby maintaining the status quo. Now we think we have a miracle worker who can defeat the corporate lobby, earmarks, special interest groups and protected subsidies while he prints enough borrowed money to spend us out of a depression. All of this with an economy that is 70% dependent upon foreign sorces for energy where neither the production of or the transportation of is secure. I almost forgot and with a bunch of radical terrorist who would like to see our economy fall the rest of the way off the cliff.
    The portion of the economy that paid the bills and had some intrinsic value was done away with by a corporate lobby looking for cheap labor, a way to dump their legacy cost and oh! yes avoid the cost of doing business under any sort of environmental regulation. We outsourced the part of the economy that had any real value. It will be hard to borrow on the information and service sector.
    I had hopes for the rail and alternative energy portion of the recovery package.
    Unfortunately we are just about 30 years to late to pull it off.

    The eons of time and nature was good to us down here. It was not until we become civilized that destroying our habitat become fathomable or fashionable.

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