President Obama signed into law a $787 billion economic stimulus bill titled the American Recovery and Reinvestment Act H.R. 1 on February 17, 2009. For additional funding updates, view NGWA's stimulus opportunities.
The following provisions may provide additional direct spending or tax incentives for activities undertaken by NGWA members or their clients, or that impact their costs of doing business.
Direct funding:
Department of Interior
- Bureau of Land Management
- $125 million for maintenance rehabilitation and restoration of facilities, property, trails and lands for remediation of abandoned mines and wells
- Bureau of Reclamation
- $126 million for water reclamation and reuse projects
- $60 million for rural water projects, primarily for water intake and treatment facilities
- USGS
- $140 million for repair, construction, and restoration of facilities; equipment replacement and upgrades including stream gauges, and seismic and volcano monitoring systems; national map activities; and other critical deferred maintenance and improvement projects—some portion of the funding is expected to be distributed to private sector firms to seal abandoned monitoring wells
Department of Energy
- $486 million for nondefense environmental cleanup
- $400 million for geothermal research and development
- $3 billion for state energy programs
National Science Foundation
- $2.5 billion for research and related activities; funding is anticipated to be distributed to grant proposals already reviewed and ready for distribution
U.S. EPA
- $600 million for Superfund
- $200 million for the Leaking Underground Storage Tank Trust Fund for clean-up activities (some cost share requirements are not applicable to these funds)
- $4 billion for the Clean Water State Revolving Fund (waste water)
- $2 billion for the Drinking Water State Revolving Fund (note that not less than 50 percent of the CWSRF and DWSRF grant money shall provide additional subsidies in the form of principal forgiveness, negative interest loans, or grants, or combinations of these; further, to the extent there are sufficient applications, not less than 20 percent of the funds are to be for projects addressing green infrastructure, water or energy efficiency improvements, or environmentally innovative activities)
- $100 million for Brownfields (note that some cost share requirements are not applicable to these funds)
- $300 million for the Diesel Emission Reduction Act; the funding is distributed to grants to third parties who then provide funding to retrofit emission exhaust systems, replace engines or vehicles, and establish anti-idling programs
U.S. Department of Agriculture
- Forest Service
- $650 million for road, bridge and trail maintenance and decommissioning, including related watershed restoration and ecosystem enhancement projects, and remediation of abandoned mine sites
- Rural Utilities Services
- $1.38 billion to support $3.8 billion in grants and loans for rural water, waste water, and waste disposal
- Rural Housing
- $200 million to support $11 billion in direct loans and loan guarantees to help rural families and individuals buy homes
Department of Defense
- $4.2 billion for defense facilities, including barracks, improvement, repair and modernization, and investment in energy efficiency
General Services Administration
- $4.5 billion for renovations and repairs to federal buildings; focused on increasing energy efficiency and conservation
Tax provisions:
Geothermal heat pump relevant provisions
- Section 1122 of the stimulus bill amends the federal law signed on October 3, 2008 that made qualified geothermal heat pump property eligible for a federal tax credit. For tax years beginning after December 31, 2008, the costs for installing qualified geothermal heat pump property at a residence are eligible for a 30 percent federal tax credit with no cap. Under the 2008 law, a $2,000 cap had been imposed. Qualified geothermal heat pump property costs are costs for qualified geothermal heat pump property installed on, or in connection with, a home located in the United States. Qualified geothermal heat pump property is any equipment that uses the ground or groundwater as a thermal energy source to heat a home or as a thermal energy sink to cool a home. To qualify for the credit, the geothermal heat pump property must meet the requirements of the Energy Star Program that are in effect at the time of purchase. The home does not have to be the individual's main home.
- Section 1603 of the stimulus bill establishes a "Grants for Specified Energy Property in Lieu of Tax Credits" for the 10 percent tax credit for geothermal heat pumps systems (and other eligible technologies) placed under construction in commercial buildings in 2009 and 2010, with other limitations applicable. The grant is intended to assist businesses that may not have sufficient tax liability to benefit from the business tax credits that passed originally on October 3, 2008.
The above is provided for information only. Individuals should check the specific provisions of the new law, including limitations, and consult with legal or tax counsel relative to the tax provisions and their applicability.
Click here for a printable copy of these provisions.
For more information, visit Recovery.gov and Grants.gov.