Replies to post #65 on PowerShares WilderHill Clean Energy Portfolio (PBW)

[frenchee]

I think your tactics are prudent John. Thanks for keeping me in the info loop.

[frenchee]

PBW has been on a nice run since my alert John. The daily chart is suggesting it's going to have a pause that refreshes...

[frenchee]

Good news for PBW below

Obama Calls for Doubling Renewable Energy in Three Years
by: Greentech Media January 09, 2009 By Jeff St. John

President-elect Barack Obama on Thursday called for doubling the nation's renewable energy production over the next three years, setting a timeline to one green piece of his economic stimulus plan.

Obama also called for funding to modernize the nation's electricity grid and make 75 percent of all federal buildings and up to 2 million American homes more energy efficient.

"In the process, we will put Americans to work in new jobs that pay well and can't be outsourced – jobs building solar panels and wind turbines; constructing fuel-efficient cars and buildings; and developing the new energy technologies that will lead to even more jobs, more savings, and a cleaner, safer planet in the bargain," Obama said Thursday in a speech at George Mason University.

Obama has pledged three million new jobs with his stimulus plan, which also includes tax cuts, investment in computerizing medical records, modernizing schools and universities, repairing roads and bridges and expanding broadband access to rural towns.

As for measures to promote renewable energy and other green industries, Obama has yet to release further details of his plan, which could call for as much as $800 billion over two years in tax cuts and spending.

But he warned that without quick action by Congress, the country could see a years-long recession leading to double-digit unemployment and the loss of $1 trillion in economic activity.

How green Obama's plan may be has been the subject of much speculation. Michigan lawmakers have said the stimulus plan might include billions in funding for advanced vehicle and advanced battery research, The Detroit News has reported.

Obama also has previously called for instituting a national renewable portfolio standard that would require the nation to get 25 percent of its energy from renewable sources by 2025.

But that will take some doing, given that the country got only about 7 percent of its energy from renewables in 2006, according to the U.S. Department of Energy.

Of that 7 percent share, 90 percent comes from hydroelectric dams and biomass power generation projects. Wind power accounts for only 4 percent, and solar about 1 percent, making the two renewable energy resources responsible for less than one-half of one percent of the nation's power supply.

Obama's call to improve the energy efficiency of federal buildings and 2 million American homes fits in with one of the green priorities of Steven Chu, Obama's nominee for Energy Secretary (see Obama Names Energy and Environment Leaders and Obama Creates an Energy Policy Troika).

As director of the Lawrence Berkeley National Laboratory, Chu has been a long-time proponent of improving building energy efficiencies, as well as developing new renewable energy technologies.

Josh Becker, a partner at New Cycle Capital who has close ties to Washington, has said that Obama will probably make a big push on weatherization programs to retrofit low-income housing for energy efficiency.

Green industry groups have put forward long wish lists of what they'd like to see from the incoming Obama administration and Congress (see What the Green Industry Wants From Obama).

Solar, wind, biomass and hydroelectric power producers want Congress to provide cash payments in lieu of tax credits now available for building renewable energy power plants or producing cleaner energy (see Industry Groups Call for Changes to Federal Incentives).

And smart grid companies want federal grants for projects to modernize the nation's electricity grid, as well as tax credits for companies that use so-called smart meters or devices and software to reduce power use (see Smart Grid Coalition Seeks Tax Breaks for Negawatts).

[frenchee]

Obama Plans to Add Energy Credits to Stimulus, Lawmakers Say

By Brian Faler and Ryan J. Donmoyer

Jan. 12 (Bloomberg) -- President-elect Barack Obama is making “significant” changes to his economic stimulus program, such as boosting energy tax incentives, after members of his own party called elements of the plan inadequate.

“I think they’re moving very effectively to respond to the issues that we raised the other day,” Senator John Kerry, a Massachusetts Democrat, said yesterday after lawmakers met with Obama economic advisers Larry Summers and Jason Furman.

Senator Maria Cantwell, a Washington Democrat, said Summers showed a willingness to double tax credits in the bill for renewable energy to more than $20 billion.

Obama’s plan for a two-year stimulus program of about $775 billion ran into turbulence in the chamber last week when lawmakers criticized elements including a job-creation tax incentive and the share dedicated to tax cuts. Some said Obama’s plan wouldn’t do enough to reduce the nation’s dependence on foreign oil while others called for more infrastructure spending.

“They’ve made some significant changes,” said Senator Charles Schumer, a New York Democrat; Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, said, “They are clearly listening to our colleagues.”

Schumer said Obama plans to produce an outline of a stimulus package rather than a detailed measure, leaving it to lawmakers to “fill in the blanks.”

‘Collaborative, Consultative’

“We’re going to have a collaborative, consultative process with Congress over the next few days,” Obama said yesterday on ABC’s “This Week” program. “If people have better ideas on certain provisions,” the president-elect said, “we welcome that.”

Schumer said there remains “a lot of opposition” among Senate Democrats to Obama’s proposal to give employers a $3,000 tax credit for hiring new workers, because lawmakers don’t believe it will spur many businesses to expand their payrolls.

“People just say, intuitively, at a time when a company’s sales are going down, why are they going to hire new workers no matter what the incentive?” said Schumer.

He said he expects Congress to complete work on the plan by Feb. 13, when lawmakers leave for a weeklong recess.

Summers declined to comment on the meeting other than to say it was a “good discussion.” It was the second time in three days Obama economic advisers huddled behind closed doors with Senate Democrats to discuss the plan.

Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat who sought more funds for energy programs, said yesterday, “There is going to be a much greater commitment of funds to projects that reduce our dependence on foreign energy.”

Cantwell said senators are discussing allowing unprofitable solar and wind energy producers to cash in tax credits they otherwise wouldn’t be able to use until they become taxpayers. Senators are also considering whether to make the credits tradable, she said.