Can Change in Washington Bring Opportunity to the Heartland?

By: Andrew L. Ehrlich - Senior Vice President , B&D Consulting

Washington, DC is undergoing significant changes these days, particularly around new energy policy initiatives and fresh streams of federal funding. But can that money get to you? Can changes in Washington really have an impact on your business?

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The answer is "yes" if your business produces energy, consumes energy or supplies services to either an energy producer or consumer � in other words, these opportunities can benefit nearly all of you.

Yet trying to keep up with the constantly changing public policy terrain while you are most concerned with making ends meet at home or at the office can be a daunting task. To help clarify some of these issues, let's review some of the key initiatives underway.

I. Streams of federal funding
You will recall that the American Reinvestment and Recovery Act (the so-called "stimulus") was enacted in February 2009. Though the money was supposed to be distributed without delay, the U.S. Department of Energy needed about three months to initiate these programs the way that the President had hoped. Yet the Department has now come up to speed and is issuing federal grant announcements at a rate of about two or three a week. There are countless opportunities that provide funding for an array of projects, but a few of the most innovative competitive grants are for:

� Research and development of advanced energy storage solutions;
� Design and construction of biorefineries; and
� Research and development to cross the "valley of death."

Other projects being funded include data and telecommunications centers, transportation electrification projects, waste heat, wind, superconductor cable advancement and carbon capture and sequestration opportunities.

The vast "spigot" of funding opportunities will likely stay open for the foreseeable future because the Department has a long way to go before its $40 billion share of the stimulus law is out of Washington and available to Main Street.

II. A little bit of everything - Senate Legislation
The Senate Energy & Natural Resources Committee has been hard at work developing a package of "small" measures that have been combined into a significant bipartisan-supported bill. These measures will cover a wide range of activities and regulations, but will be led by the following:

� Electricity grid modernization and smart grid investment;
� Requirement to produce electricity from renewable resources;
� Oil and gas exploration and production; and
� Additional research and development programs.

The Senate energy package has a long way to go before making law and will be changed and broadened. Energy tax breaks and incentives will be added and the bill will be tweaked in other ways. The bill will not likely be finished in the coming weeks, but the Senate will pick up where up where it left off when Congress returns from the August recess. When it is completed, the spectrum of the energy world could be permanently altered and new initiatives will be available and accessible.

III. "Cap-and-trade" legislation
The Congress passed major energy laws in 2005 and 2007 and now Washington might be poised to build upon those laws by tackling the controversial issue of climate change. To date, the U.S. House of Representatives has passed a bill and left it at the doorsteps of the U.S. Senate.

Here are the basics:

� Greenhouse gas emissions, such as carbon dioxide, would be capped;
� Reductions of these gases by utilities, steel manufacturers, cement producers and others would be mandated;
� Allowances to emit these gases would be allocated or auctioned;
� Projects to "offset" these legal requirements would be established; and
� International trade provisions to help level the playing field would be incorporated.

While the outlook for a federal climate change law is not clear, it is certain that the Washington energy scene is charged with new polices and potential stakeholders. From what I'm witnessing, many companies all over the state and country � established competitors and startups alike � are on top of this phenomenon and are positioning themselves to take advantage of the multitude of opportunities that are presenting themselves -- Is your business one of them? Are you and your colleagues excited and prepared to explore these new possibilities? If you are not, now is the time to explore the new terrain of energy policy. If you are already thinking in these terms, you, your family and your business will be in good shape to ring in a new era of energy possibilities and take advantage of the right opportunities.

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