American Recovery and Reinvestment Act of 2009
Enacted February 17, 2009
The American Recovery and Reinvestment Act (ARRA) of 2009 (Public Law 111-5) appropriates nearly $800 billion towards the creation of jobs, economic growth, tax relief, improvements in education and healthcare, infrastructure modernization, and investments in energy independence and renewable energy technologies. ARRA supports a variety of alternative fuel and advanced vehicle technologies through grant programs, tax credits, research and development, fleet funding, and other measures. The table below provides a summary of the provisions related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation topics.
|Division A, Title IV|
Energy and Water Development
Provides $2.5 billion for U.S. Department of Energy research, development, and deployment projects through the Office of Energy Efficiency and Renewable Energy, including $800 million for projects related to biomass.
Provides $3.2 billion toward the Energy Efficiency and Conservation Block Grant Program, as authorized by the Energy Independence and Security Act of 2007. These grants are for state, local, and tribal governments for energy efficiency improvements, primarily in the transportation and building sectors.
Provides $2 billion toward grants for advanced battery systems and electric vehicle components manufacturing. These funds are intended to support domestic manufacturing of advanced lithium ion batteries and hybrid electric systems and components. Provides $300 million toward competitive grants for alternative fuels and advanced vehicle projects, as authorized by Section 721 of the Energy Policy Act (EPAct) of 2005. The grants are for state governments, local governments, and metropolitan transportation authorities, in partnership with an active and designated Clean Cities coalition.
Provides $400 million to support vehicle electrification efforts.
Provides $6 billion towards the Loan Guarantee Program, authorized by Section 1705 of EPAct 2005. A $10 million portion of these funds will support the administrative expenses of the Advanced Technology Vehicles Manufacturing Loan Program.
|Division A, Title V|
Financial Services and General Government
Provides $3 billion for acquiring more fuel-efficient vehicles for the federal fleet. The funds are intended to increase the federal fleet's fuel efficiency and reduce emissions while stimulating the market for advanced technology vehicles such as hybrid electric, battery electric, and commercially available plug-in hybrid electric vehicles.
|Division A, Title VII|
Interior, Environment, and Related Agencies
Provides $300 million to retrofit diesel vehicle fleets with cleaner burning engines in support of the Diesel Emission Reduction Act. The U.S. Environmental Protection Agency will administer grants via the National Clean Diesel Campaign for eligible state, local government, and non-profit fleets. Private sector applicants may also apply in partnership with one of these groups.
|Division B, Part III|
Energy Conservation Incentives
Section 1123 amends the alternative fuel infrastructure tax credit for qualified equipment placed into service on or after January 1, 2009, increasing the maximum credit to 50% of the cost not to exceed $50,000.
|Division B, Part V|
Plug-in Electric Drive Motor Vehicles
Section 1141-1144 modifies the qualified plug-in electric drive motor vehicle tax credit. Under this provision, the tax credit will be phased out for each manufacturer after 200,000 qualified plug-in electric drive vehicles have been sold by that manufacturer for use in the United States, rather than phased out once the total number of qualified vehicles sold by all manufacturers reaches 250,000. Additionally, this section adds a 10% tax credit for qualified low-speed electric vehicles, electric motorcycles, three-wheeled electric vehicles, and electric vehicle conversions.
|Division B, Part VII|
Rules Relating to Ownership Changes
Section 1302 creates a 30% tax credit to encourage investment in advanced energy property manufacturing facilities. The credit applies to qualified projects that establish, re-equip, or expand facilities that manufacture: components for the production of renewable energy; energy storage systems for use with electric or hybrid electric motor vehicles; new qualified plug-in hybrid electric drive motor vehicles or components that are designed specifically for use in such vehicles; advanced battery technology; and other next-generation renewable energy technologies. Eligible projects must be certified by the U.S. Department of Treasury.