Senate Passes Version of the American Recovery and Reinvestment Act

Earlier today, the Senate passed its version of the American Recovery and Reinvestment Act. The bill includes a proposal to cut spending by Senators Ben Nelson (D-NE) and Susan Collins (R-ME). While the final costs of the House and Senate Bills are roughly equivalent (roughly $820B in the House and $838B in the Senate), the Senate bill includes a significantly larger tax component and a significantly lower spending component than the House version. This is primarily due to the Senate’s inclusion of a provision to protect many middle-class Americans from paying the alternative minimum tax in 2009

The House bill and the original Senate proposal included roughly equal amounts of spending: $360 billion in the House, $365 billion in the Senate. In contrast, the Nelson-Collins amendment reduced total spending in the Senate bill to $282B. The Senate Finance Committee also trims the tax portion of the bill by $25 billion, bringing the final cost of the Senate’s proposal to roughly $838 billion.

With respect to energy spending, the largest cut in the amendment was to the renewable energy loan guarantee program, a cut of $1 billion, taking the program to $7 billion in the Senate bill. Some have suggested that this program should ultimately be run out of the Treasury Department rather than Department of Energy, though at this time, the outlook for this happening is uncertain.

Both Houses are expected to begin work on reaching agreement immediately. Standard procedure is for the House and the Senate to conference and reconcile differences between the two bills.  The House conferees include the following Representatives: Obey (D-WI), Rangel (D-NY), Waxman (D-CA), Camp (R-MI), and Lewis (R-CA).  Senate conferees are Senators Inouye (D-HI), Baucus (D-MT), Reid (D-NV), Cochran (R-MS), and Grassley (R-IA). While the differences between the two bills are relatively few, it is generally believed that the conference process could be difficult given the fragility of the Senate compromise.  Conferees are scheduled to begin negotiations today.

It is unlikely the bill will be finished before the weekend. Early reports are that the House will not vote on the final legislation until late this week. If they so choose, Republicans in the Senate can use procedural tactics to delay a final vote on the bill until next week. Still, this assumes quick and easy reconciliation of the House and Senate bills.

Department of Energy Funding Comparison

• Weatherization:
  • House: $6.2 billion; Senate: $2.9 billion
• Advance Battery Manufacturing Loan Guarantees:
  • House: $2 billion; Senate: $2 billion
• Renewable Energy and Transmission Loan Guarantees:
  • House: $8 billion; Senate $9 billion
• FutureGen:
  • House: 0; Senate: $2 billion
• Alternative Buses and Trucks: (Vehicle Technologies)
  • House: $400 million; Senate: $350 million
• Energy Efficiency Block Grants for Local Government:
  • House: $6.9 billion; Senate: $4.7 billion
• Energy Efficiency Grants for Institutions:
  • House: $1 billion; Senate: $1.6 billion
• Energy Efficiency Loans for Institutions:
  • House: $500 million; Senate: 0
• Low Carbon Power: (clean coal, carbon capture)
  • House: $2.4 billion; Senate $2.6 billion
• Smartgrid:
  • House: $4.4 billion; Senate $4.4 billion
• Renewable Energy R&D through DOE EERE:
  • House: $2.5 billion; Senate: $2.65 billion

Department of Defense Funding Comparison

• Hybrid Vehicles for the Armed Forces:
  • House: 0; Senate: $200 million
• Lithium Ion Battery Procurement:
  • House: 0; Senate: $100 million
• Defense Manufacturing Technology Program:
  • House: $350 million; Senate: $200 million

Department of Agriculture Funding Comparison

• Biorefinery/New Technology program:
  • House: 0; Senate: $200 million
• Rural Energy for America:
  • House: 0; Senate: $50 million

 General Services Administration Funding Comparison

• Energy Efficient Federal Motor Vehicle Fleet Procurement:
  • House: $600 million; Senate: $300 million