Recovery Act Funding Targets Modernizing Nation’s Electrical System

Washington, D.C.--Congressman Eliot Engel announced that the New York State Public Service Commission will receive $1,246,777 from the United States Department of Energy (DOE), as part of the DOE’s efforts to implement the Smart Grid and modernize the nation’s electrical system. The funding was part of the $144 million allocated nationwide to the program, and was made available thanks to the American Recovery and Reinvestment Act (ARRA).

The $144 million was divided between $44 million in awards to state public utility commissions and $100 million for smart grid workforce training programs. The investment is designed to encourage growth in renewable energy sources, empower consumers to reduce usage, and to help America’s road to recovery from the economic downturn towards a more sustainable future.

“Earlier this year, the House passed The American Clean Energy and Security Act (ACES). I believe the revamping of our nation’s energy policy will not only create millions of new clean energy jobs, save consumers billions of dollars in energy costs, enhance America's energy independence, and cut global warming pollution. The smart grid and electrical system reforms are an important step in that process. We must have a new energy policy to finally free us from our dependence on foreign oil,” said Rep. Engel, the senior New York member of the House Energy and Commerce Committee.

The grants help foster a 21st century economy by working to substantially upgrade America’s mid-20th century grid system. The grants will:

• Help state public utility commissions to regulate and oversee projects in the states.
• Develop training programs to educate workers in order to achieve a national, clean energy smart grid.
• Accelerate reviews of electric utility requests into advancements such as carbon capture and storage, transmission lines and electric and hybrid-electric vehicles.

Energy efficiency and conservation are vital to the nation’s needs, not only with regard to costs, but also as they pertain to climate change and national security. Rep. Engel has introduced legislation to help break America’s addiction to foreign oil. The Open Fuel Standard Act (H.R. 1476) would require half of all cars made or sold in America by 2012, and 80% by 2015, to be flexible fuel vehicles. These vehicles would be able to run on gasoline, or alcohol-based fuels such as methanol or ethanol, or a combination of both. Alcohol fuels, including both ethanol and methanol; offer the potential for significant supplies of fuels that can be produced in the United States, and in other Western Hemisphere countries friendly to the United States.

“I will continue to fight for the Open Fuel Standard Act, portions of which were included in ACES. Flex-fuel vehicles allow for competition and consumer choice in the transportation fuel market which would serve to end oil’s monopoly in the transportation sector, strip oil of its strategic status, and protect consumers from price gouging at the pump. Flex-fuel vehicles are estimated to cost only $100 more than the same car in a gasoline-only version. Some experts say the added cost could be as low as $30. It is a simple and inexpensive modification that should be standard in cars, like seatbelts or airbags,” said Rep. Engel.

“Grants, such as this one, which invests in energy solutions, will strengthen our economy and create jobs at the local level,” said Rep. Engel. “It will lay the groundwork needed for an America which is energy independent. I want to thank President Obama for having the foresight to include in ARRA such funding which finally addresses our long-ignored energy crisis,” added Rep. Engel.

New York received the third most funding, behind only California and Texas.