03.11.09 - The American Recover and Reinvestment Act

Excerpts from U.S. Energy Secretary Steven Chu’s Testimony Before the Senate Committee on the Budget

The President’s Budget recognizes the enormous challenges and threats we face because of the ways we use energy. Today, we import roughly 60 percent of our oil, draining resources from our economy and leaving it vulnerable to supply disruptions. …

If we, our children, and our grandchildren are to prosper in the 21st century, we must decrease our dependence on oil, use energy in the most efficient ways possible, and lower our carbon emissions. Read more

The President took several strong steps toward that goal with the American Recovery and Reinvestment Act of 2009. First, the Recovery Act will create new jobs making our homes and offices more energy efficient. It includes $5 billion to weatherize the homes of low-income families; a $1,500 tax credit to help homeowners invest in efficiency upgrades; $4.5 billion to “green” federal buildings, including reducing their energy consumption; and $6.3 billion for state and local efficiency and renewable efforts.

The Recovery Act also includes $6 billion for loan guarantees and more than $13 billion in estimated tax credits and financial assistance instruments (grants and cooperative agreements) that may leverage tens of billions in private sector investment in clean energy and job creation. This will help clean energy businesses and projects get off the ground, even in these difficult economic times. The bill also makes investments in key technologies, such as $2 billion in advanced battery manufacturing, $3.4 billion for fossil energy research and development in support of clean coal efforts, and $4.5 billion for our efforts to modernize the electric grid.

Getting this money into the economy quickly, carefully, and transparently is a top priority for me. …we will have much more detail in the coming weeks.