Green Government Grants Grease the Wheels

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Gentlemen, start your green engines. In recent weeks, the government has thrown stimulus funds at a slew of alternative fuel and power projects.

First came the Department of Energy's Clean Cities Grants, which doled out $300 million in alternative transport dollars. The Wisconsin Clean Transportation Program was a typical recipient, winning $15 million for the deployment of more than 500 alternative fuel vehicles and 10 refueling stations. No corporations were awarded funds directly, but UPS (NYSE: UPS), SYSCO (NYSE: SYY), and J.B. Hunt (Nasdaq: JBHT) are indirect beneficiaries of the various fleet retooling projects.

I should also note that natural gas vehicles fared very well relative to biofuel-powered fleets in this round of grants. Score one for the Pickens Plan.

The other prong of said plan, the large-scale development of our nation's wind resources, has also gotten a helping hand from Uncle Sam. Yesterday, the Treasury Department, along with the DOE, dished out $500 million in cash awards to renewable energy projects. Of the dozen recipients, 10 were wind projects and just two were solar-powered.

The largest award, at $114 million, went to the second phase of Iberdrola's Penascal Wind Farm in South Texas. Iberdrola is a huge Spanish utility that dwarfs local alternative energy enthusiasts like Edison International (NYSE: EIX) and Xcel Energy (NYSE: XEL). The second-largest award of $59 million went to an Iberdrola wind project in Pennsylvania.

As with the possibility of France's Areva winning nuclear enrichment loan guarantees over local player USEC (NYSE: USU), it doesn't bother me to see this pile of stimulus money handed to a foreign firm. The immediate concern is economic activity and job creation, which will happen here regardless of the paymaster's country of origin.

Once again, my hat is off to Energy Secretary Steven Chu for speeding this award process along. These grants were awarded just 30 days after applications were accepted -- that's half the mandated turnaround time, and a blink of an eye in the land of bureaucracy.

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Comments from our Foolish Readers

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  • Report this Comment On September 02, 2009, at 5:23 PM, howard92964 wrote:

    It doesn't bother you that the D.O.E refused a loan to USEC and caused the company to dump 2500 current jobs, as well as any future jobs that would have been created by the Piketon plant? Does it also not bother you that two U.S. companies have contracted with Russia for enriched uranium? After what they have done to Western Europe the last few years with natural gas it ought to bother everyone. This country has no real energy policy. Wind?...Please!! This country of ours is awash in natural gas, yet it is never mentioned when the discussion is (GREEN) energy.

  • Report this Comment On September 02, 2009, at 7:42 PM, 1975rob wrote:

    Well said. Time is running out for Americans to wake up and insist on a real energy plan/policy. We need power (and lots of it) for base load; we need grid updates and infrastructure improvements; we need jobs; we need to stimulate the economy. It should bother everyone that we are giving away contracts and real American jobs because of political red tape and American ignorance. We have the ability to do what we need to and pushing our tax dollars into so-called "green" projects that don't make sense really should make every taxpayer angry. I do believe in research for the future, but we MUST start concentrating on what is failing. Want a real stimilus? How about the government taking a stand OFF the fence about energy. Let's build 20 nuclear power plants since nuclear is the only real green energy with enough megawatts per dollar to make sense. This would create tens of thousands of jobs for a long term contract. Not short part-time jobs or "protecting" jobs. Lets CREATE jobs and lots of them. Lets put our tax money into something we need. Lets put money into USEC's Piketon Plant. Lets pursue natural gas a real energy source. But we MUST stop outsourcing jobs that Americans can do better and strengthen our own country!!!

  • Report this Comment On September 09, 2009, at 10:05 AM, madmilker wrote:

    "Iberdrola is a huge Spanish utility"....wow! jus what America needs....sending more US dollars out of the country....don't you people get it.......think for a moment about George Washington....yes the man tat is on the US dollar bill.... "Washington had been reelected unanimously in 1792. His decision not to seek a third term established a tradition that is now embedded in the 22d Amendment of the Constitution. In his Farewell Address of Sept. 17, 1796, he drew on the results of his varied experience, offering a guide for both present and future. He urged his compatriots to cherish the Union, support the public credit, be alert to the “insidious wiles of foreign influence,” respect the Constitution and the nation’s laws, abide by the results of elections, and eschew political parties of a sectional cast. Asserting that the United States and Europe had different interests, he declared that it “is our true policy to steer clear of permanent alliances with any portion of the foreign world,” trusting to temporary alliances for emergencies. He also warned against indulging in either habitual favoritism or habitual hostility toward particular nations, lest such attitudes should provoke or involve the country in needless wars." Take the time to read his farewell address after only eight years of serving his country and than ask yourself tis....How do you think George feels being sent overseas in return for all tat foreign so-call cheap items and being left in a foreign bank because the American worker doesn't make anythig for the foreigners to buy. Cheap items didn't make tis great union of 57...oops! 50 states the greatest place on the face of tis Earth.....the American worker (union and non-union) did. You can't have a strong country without having a strong currency and you can't have a strong currency unless you keep it floating around within your 50 states. Tis is why the store with the star in the name(Wal*Mart) puts 95% China made items in their stores in China....to keep their "yuan" in their country helping the nice people there. And with only 5% left for all the other 182 country's tat make stuff including the United States of America....tat doesn't produce very many jobs outside of China. Being an old person myself and knowing how it wus back in the 40's, 50's and 60's in tis union of 50 states....I look at George each time I pull him out of my billfold and make a promise to send him out for items made in America so after floating around helping each hand he touches jus maybe one day he will shake mine again.

  • Report this Comment On October 31, 2009, at 2:35 PM, Remustrading wrote:

    Even if others can do better then you, I think you still should keep the job in your country and improve whatever you do.

    You have to stop importing China and alike stuff and make what you need in your own contry.

    And start Kicking your greedy politicinas who own the factories abroad in theirs butt.

    You have a great country and you will do good whithout the rest of the world.

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