With the signing of the stimulus package, American renewable energy sector has taken a sigh of relief and is anticipated to get back on track soon.
The American renewable energy sector started lifting after the President Barack Obama signed the economic stimulus package on February 17, 2009 that addressed the crucial tax issue due to which several projects were halted across the country, as reported by Los Angeles Times.
As per the non-profit Environment California’s legislation, the American Recovery and Reinvestment Act will invest around $79 Billion in energy efficiency, renewable energy and green transportation. The prominent provisions of recovery act include $8 Billion for new high-speed rail systems, $5 Billion for weatherization of over one million homes in the country and $4.5 Billion for energy upgrades to the federal establishments.
Renewable energy sector is certainly going to be benefited from this act. According to solar and wind companies, the legislation may take several months to bring the industry back on track. However, some players are already preparing themselves for the expected growth.
The wind energy sector was largely benefited by the credit (federal tax cut) that is generally offered for a year or two and then it has to be renewed. In case it is not renewed, it leaves everything into ruins. Now, by the virtue of this stimulus bill, the credit has been renewed for a term of three years. However, this is definitely better than the previous ones, but is short of what it ought to be.
Further, the newly formed American government is trying to reach out to the struggling ethanol industry through this new legislation. This stimulus boost includes plenty of provisions for the renewable and biofuel sectors. It will certainly help the US to continue its race to become a leader in the solar, wind and biofuel energy sectors.
According to a report “US Biofuel Market Analysis” released by RNCOS, US is the largest importer of oil in the world. However, recent increase in the global oil prices has compelled the country to take the development of its biofuel industry seriously. Beside oil security, the strong stand of the US government to increase the use of renewable energy is turning to be an inspiring factor. However, increasing concerns for the prices of biofuel feedstock are paving the way for the smooth growth of cellulosic ethanol’s usage in the US.
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