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Changing landscape: Construction is under way in Holland, MI, on a factory to make advanced batteries for electric cars. It is just one of many energy-related projects made possible by funding from last year’s stimulus bill.
Credit: Adam Bird/Redux
A year and a half after the federal stimulus bill budgeted $80 billion for new energy technologies, the investment is providing much-needed momentum for clean tech. But what will happen when the money runs out?
Scattered across a swath of Michigan that's been devastated by the state's slowdown in automobile manufacturing, a half-dozen or so companies have begun construction on facilities to build advanced batteries for electric vehicles. In the Southwest, two solar thermal plants, each supported by more than a billion dollars in federal loan guarantees, will soon sprawl across thousands of acres in the desert. From Hawaii to northern Maine, ridgelines have begun bristling with wind turbines, made possible in part by government funding.
Enacted 18 months ago, the American Recovery Act is now delivering $80 billion in loan guarantees, tax credits, and cash grants to projects aimed at developing and deploying energy technologies. Speaking in mid-July at a ground-breaking ceremony for an advanced battery factory in Holland, MI, President Obama promised that the plant would be "a boost to the economy of the entire region." But beyond spurring new jobs in clean energy, the Obama administration says, the unprecedented injection of federal money into the energy sector is meant to be a first step in creating "a comprehensive strategy that will pave the way toward a clean energy future for our country." Remaking the nation's energy infrastructure will, of course, take years. But a year and half after passage of the stimulus legislation, it is worth asking whether the strategy is on track. Do the billions of federal dollars being spent on energy research and commercialization really represent the beginning of a comprehensive plan for a clean-energy future? Or are they simply piecemeal investments that will become irrelevant once federal incentives disappear?
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