It’s been a long time coming. The Obama administration has just finalized the country’s first ever national regulation to curb greenhouse gas emissions and raise the bar on efficiency requirements for new cars and trucks. The move could push automakers to incorporate more green technology into their lineups, from more efficient fuel-injection systems to start-stop engines to hybrids and all-electric vehicles.

Under the new standards, first proposed last year, manufacturers must achieve an average of at most 250 grams of carbon dioxide per mile for their fleet by the 2016 model year. According to a statement from the Transportation Department this morning, that would mean a fleet average of 35.5 MPG if all of the emission reductions came from improvements in fuel economy (other options might include controlling air conditioner coolant leaks).

The National Highway Traffic Safety Administration (NHTSA), meanwhile, has set fuel economy standards to gradually increase starting with the 2012 model year, reaching 34.1 MPG by 2016. According to DOT, the effect will be to “reduce fleet-wide greenhouse gas emissions by approximately five percent every year.”

As the Detroit Free Press reports, the feds estimate that the new rules will “raise the average price of a new vehicle by less than $1,000 in the 2016 model year.” But the EPA says an average buyer of a 2016 model could potentially save up to $3,000 on fuel over the life of the vehicle.

Federal agencies say they received more than 130,000 public comments in response to their September 2009 proposal for this rule, “with overwhelming support for the strong national policy.” According to a survey from the consumer advocacy group Consumer Federation of America released late last year, just 44 models for the 2010 model year (4 percent of all EPA-rated vehicles for the year) get 30 MPG or more — despite widespread consumer interest in more fuel efficient vehicles.

It’s not just consumers who have backed the uptick in MPG requirements. Environmental groups have supported the regulation, which Transportation Secretary Ray LaHood described today as “the most aggressive fuel economy standard ever set in the United States for car and trucks.”

Car manufacturers got behind the notion of a single national regulation, rather than having separate rules for the Transportation Department, EPA and the 13 states that followed California’s tougher standard. Dave McCurdy, President and CEO of the Automobile Manufacturers Alliance — which represents Toyota, GM, Ford, Mazda, Mitsubishi and other automakers — cheered the new regulation in a statement Thursday, commenting, ”A year ago, the auto industry faced a regulatory maze resulting from multiple sets of inconsistent fuel economy/greenhouse gas standards.”

Having a firm idea of what vehicle standards will look like for the next six years is important for automakers weighing investments in green car technology. EPA Administrator Lisa Jackson in a statement today called the program “a win for automakers and drivers, a win for innovators and entrepreneurs, and a win for our planet.”

Whether and how much car companies end up betting on young entrepreneurial ventures for this tech remains to be seen, however. It’s no small feat persuading an automaker to adopt MPG-boosting technology from a company that hasn’t had time to gather data about how their systems function long term. But a slew of startups (like Achates Power, Alphabet Energy, EcoMotors and others in our chart of upstarts building green car tech for a pre-electric world) aim to seize the opportunity in coming months and years.

Of course, plenty of room for improvement remains. The 35.5 MPG standard marks a major step toward cleaning up the U.S. transportation sector and cutting back on fossil fuel consumption. But as McCurdy points out, “now we need to work on 2017 and beyond.”

Photo courtesy of Flickr user Beige Alert

Nuclear energy dominated Bill Gate’s TED talk last week, and this morning it’ll lead the clean power headlines. According to the Associated Press, President Obama today will announce $8.3 billion in federal loan guarantees to build the first nuclear plants in the U.S. in almost three decades. Southern Company will reportedly use the loan guarantees to build two nuclear plants in Burke County, Ga.

Update: Here’s the official press release from Southern Company. Energy Secretary Steven Chu said on a conference call that the this won’t be the last loan guarantee for a nuclear project.

The news comes on the heels of an aggressive stance by the Obama administration to deliver nuclear as part of the “green economy.” Southern Company says its two nuclear reactors will create 3,000 construction jobs and provide 850 permanent jobs. Last month in Obama’s state of the union address Obama said:

[T]o create more of these clean-energy jobs, we need more production, more efficiency, more incentives, and that means building a new generation of safe, clean nuclear power plants in this country.

Obama’s recently announced budget proposal for the DOE included significant support for nuclear power plants and research: a whopping $36 billion in new loan guarantee authority for two new nuclear power facilities (tripling the amount currently available for these guarantees) and $793 million for “a new cross-cutting research program to address technology needs for all aspects of nuclear energy production.”

Last month Obama also created a 15-person commission that will deliver a report that will look at a path forward for nuclear energy in the U.S. power supply. The group is charged with tackling the controversial question of how to deal with nuclear fuel and waste in a safe and environmentally responsible way — delivering an interim report with recommendations within 18 months and a final report six months later.

Growing support for nuclear energy in the U.S. has hinged on three key arguments in recent years: It offers a carbon-free alternative to coal; a domestic alternative to petroleum; and a supposedly cheaper, more reliable alternative to renewable sources like wind and solar. But while nuclear power plants have relatively low operating costs once they’re paid off, new facilities are hugely expensive. According to an analysis from Climate Progress last year, existing nuclear power plant technology can generate electricity at no less than 25- 30 cents per kilowatt-hour for the first year of operation.

The high price tag is why the loan guarantees for Southern Company’s new two reactors is over $8 billion — as opposed to the $535 million loan guarantee for thin film solar maker Solyndra, or even $80 million for biofuel maker Range Fuels.

Expect the news of the first nuclear plants in the U.S. to help spur innovation and add a much needed jolt to the country’s nuclear power industry. Companies like TerraPower have been innovating in this field for years, but have been stalled in an environment where nuclear projects can’t get past the permitting and financing stage. Southern Company’s nuclear projects still need to be approved by the Nuclear Regulatory Commission, which won’t happen before late 2011 or early 2012, reports the Associated Press.

Image courtesy of exquisitur’s photostream Flickr Creative Commons.

The Department of Energy faces a dilemma. It aims to fund projects that will help reduce power consumption, boost energy efficiency, put Americans back to work and build up what the Obama administration likes to call the clean energy economy. And it wants to do so with a preference for equipment from U.S. suppliers — the Recovery Act provided the DOE’s energy efficiency office with $16.8 billion for its programs and initiatives. But some of the equipment for these projects just isn’t available from U.S.-based manufacturers at large enough scale at this point.

According to a recent notice from the DOE, some grantees for public works efficiency projects, “have encountered difficulties procuring certain manufactured goods,” produced in the U.S. Oops. Now the agency is collecting public comments through next Thursday, February 18, to figure out which categories of equipment — from energy meters to solar panels — should potentially get a waiver on the Buy American provision, which allows exceptions for goods that prove unavailable in sufficient quantity and quality, unreasonably costly or “inconsistent with the public interest.”

The Buy American provision, which extends to not only manufactured goods, but also iron and steel used in stimulus-funded work on public buildings and projects, was a contentious part of Congressional debates over the Recovery Act last year — and it remains so. Critics have called the requirement a protectionist play that could hurt trade relations, while supporters have argued stimulus money should be directed to American firms if the idea is to create jobs on U.S. soil.

Upcoming decisions about whether to waive the requirement for certain goods, and which ones, will affect which greentech manufacturers get to compete for contracts supplying things like high-efficiency lighting systems and controls or photovoltaic systems for public projects — either making the field much tougher for smaller U.S. firms (if a waiver’s granted), or keeping it free of international heavyweights.

The California Energy Commission requested feedback today (it’ll take comments through Tuesday at this address) to incorporate the comments into its response to the DOE next week, explaining that it hopes to determine “what types of equipment are either not manufactured in America, or unavailable as an American product without a significant (over 25%) price premium.”

The commission said it’s “gathering information on what American made equipment is available for efficiency projects, especially for lighting projects.” So if you’re a company selling equipment into this space, now’s the time to pipe up and make yourself known.

The Obama administration released its proposed budget for the 2011 fiscal year this morning, and within the more than $3.8 trillion plan are several programs that could help shift the playing field for greentech startups and energy companies. To start, there’s direct support for the renewable energy, carbon capture and smart grid industries, through loan guarantees, research and development project funding and other programs. Glaringly absent is the $646 billion in revenues that last year’s budget assumed would come from a program for limiting and trading carbon allowances, signaling dwindling confidence that the Senate will pass a bill with a cap and trade system this year.

The administration has also proposed to take a nearly $39 billion bite out of tax breaks for the fossil fuel industry that some advocates of renewable energy sources like solar and wind argue have blocked the gateway to grid parity and fair competition. The bulk of those cuts — $36.5 billion worth through 2020 (a small fraction of the sector’s projected revenue) – are targeted at the oil and natural gas industry ), while Obama proposes cutting tax breaks for the coal industry worth some $2.3 billion in that time frame.

The portion of Obama’s budget dedicated to the Department of Energy includes $300 million for the highly competitive grant program known as ARPA-E (Advanced Research Projects Agency-Energy), which supports very early stage, moonshot technologies that might be too risky for other investors  and can open new doors for cleantech startups. Last fall, the agency awarded its first round of grants, totaling $151 million, for 37 projects — out of a pool of 3,600 applicants.

The budget proposal for the DOE, which on Friday announced a new commission on nuclear energy, also includes significant support for nuclear power plants and research: a whopping $36 billion in new loan guarantee authority for two new nuclear power facilities (tripling the amount currently available for these guarantees) and $793 million for “a new cross-cutting research program to address technology needs for all aspects of nuclear energy production.

Meanwhile, a proposed boost for renewable energy and efficiency projects would support up to $3 billion to $5 billion in guarantees. It’s a lesser amount than the nuclear loan guarantee program, but those dollars could support more projects due to the high costs associated with nuclear development (the first award under the DOE loan guarantee program last year, for thin-film solar startup Solyndra, clocks in at $535 million).

Makers of green energy equipment could also benefit under a proposed $5 billion expansion of a tax credit first created as part the stimulus package, which covers up to 30 percent of the costs for new, expanded or retooled greentech equipment factories. That likely comes as welcome news for the companies behind several hundred projects that didn’t make the cut for $2.3 billion in credits awarded last month under the oversubscribed program. For smart grid technologies, the administration proposes allocating $144 million for R&D as well as demo projects.

In a major shift from the administration’s 2010 budget proposal today’s proposal does not include revenue from a cap and trade system for limiting greenhouse gas emissions. Whereas last year’s proposal assumed $646 billion or more would roll into federal coffers between 2012 and 2019, this year the President says he expects a cap and trade system will be “deficit-neutral,” neither boosting nor shrinking the government’s revenue.

Over at the Environmental Protection Agency, today’s budget proposal includes a $4 million increase over the 2010 allotment for implementing greenhouse gas reporting mandates, bringing the 2011 amount to $21 million. The agency is also aiming for a major $43 million uptick over 2010 in funding for”regulatory initiatives to control greenhouse gas emissions.” That brings the 2011 total to $56 million, with the largest chunk proposed to help states set up permitting programs for large carbon emitters.

A national cap-and-trade program for greenhouse gasses might be in limbo, but that hasn’t stopped President Obama from announcing on Friday an emissions reduction target for federal operations. The president, fulfilling an executive order signed in October, said the federal government will reduce its emissions by 28 percent by 2020 over a 2008 baseline year. “Our goal is to lower costs, reduce pollution, and shift federal energy expenses away from oil and towards local, clean energy,” Obama said in a statement.

The federal government – occupying nearly half a million buildings, operating more than 600,000 vehicles and employing more than 1.8 million civilians – spent more than $24.5 billion on electricity and fuel in 2008 and is the largest energy consumer in the U.S. economy. Federal departments and agencies will achieve emissions reductions by measuring their current energy and fuel use, becoming more energy efficient and shifting to clean energy sources like solar and wind, the statement said.

The announcement should be welcome news for the growing number of firms, such as Kleiner Perkins-backed Hara and German software giant SAP, developing products and services that help organizations track and manage their carbon emissions. Companies that help building owners reduce energy use through efficiency measures, as well as renewable energy developers, also stand to gain from the new federal mandate.

While the new target is limited to federal departments and agencies, private businesses are increasingly looking to track and understand their carbon emissions across their operations. Earlier this week, the Security and Exchange Commission issued guidelines on what publicly traded companies must disclose to investors about climate-related effects on their businesses. One issue they must consider is the potential risk to profits from environmental protection laws, such as those mandating a reduction in green house gas emissions.

In related news, the Obama administration  yesterday gave notice to the United Nations that the U.S. will aim for a 17 percent emissions cut by 2020 over 2005 levels. The Copenhagen Accord agreed by the U.S. and other countries at U.N. talks in December calls for governments to submit non-binding climate plans by the end of this month. But the final U.S. 2020 emissions goal depends on Congress passing a climate bill.

Besides calling for reduced emissions, the executive order signed last fall requires federal agencies to meet other sustainability goals. Those goals include a 26 percent improvement in water efficiency by 2020, a 50 percent recycling and waste diversion by 2015, and the implementation of a net-zero-energy building requirement by 2030. The government said agencies are already taking actions toward these goals. The Central Intelligence Agency, for example, has recently opened two LEED-certified buildings that reduce energy and water use over conventional construction, and the Environmental Protection Agency is upgrading its fleet over the next decade to hybrid-electric and plug-in vehicles.

Image courtesy of Wikipedia. Photo by Paul Morse for the White House.

Duke Energy Jumps for Juwi’s 14MW Solar Project: “Power company Duke Energy said its commercial business unit, Duke Energy Generation Services (DEGS), agreed to buy a 14 megawatt Blue Wing Solar Project from Juwi Solar.” — Reuters

UN’s Rajendra Pachauri Staying Put: “The chairman of the UN’s climate science body said he would not resign in the wake of a row about a mistake on glaciers that appeared in a key report.” — BBC

What to Watch for in Obama’s SOTU: Many businesses and environmental groups will watch President Obama’s State of the Union speech on Wednesday to see whether he “still has the fire in the belly for the climate issue that he had in Copenhagen, or whether he is going to back off at all.” — The Hill

Beacon Power’s Flywheel Bet: Beacon Power has begun construction on a plant in New York that stores energy in flywheels. The plan is to charge grid operators for use of the battery system — a scheme that could work in New York, but faces regulatory hurdles in California. — NYT’s Green Inc.

Sun Catalytix Closes ARPA-E Funds, Adds Execs: Renewable fuels developer Sun Catalytix has hired two executives to lead the startup through its recently closed $4 million ARPA-E contract with the Department of Energy: Scott Wilshire, former president of Thar Geothermal, and Mark Barnett, former Connecticut Clean Energy Fund counsel. — Mass High Tech

UPDATED Automakers got their green on today at Day 1 of the North American International Auto Show at Detroit’s Cobo Center, unveiling new hybrid concepts and announcing manufacturing plans for electric vehicles. Government officials and citizen protesters showed up too, respectively issuing praise for the industry’s efforts to boost fuel economy and criticism for the investment of tax dollars to bail out car companies. We’ve sorted through the avalanche of announcements coming out of the event today and put together some of the most interesting schemes, photos, statements and happenings from the Detroit Auto Show so far.

Toyota’s FT-CH Hybrid Concept and Plans for a Prius Family: After releasing only teaser images ahead of the Detroit Auto Show of its Prius-spawn, the FT-CH dedicated hybrid concept, Toyota finally pulled back the sheets on the new model today. The company also confirmed plans for a larger family of hybrids under the Prius brand and said the FT-CH represents just one model under consideration for production in the Prius lineup.

Toyota has designed the FT-CH for city driving, and claims it weighs less and gets better fuel economy than the Prius. The concept car is 22 inches shorter than the Prius in length, while keeping about the same width. “Within the next 10 to 20 years,” Toyota Motor Sales President Jim Lentz said in a statement today, the world will reach “peak oil” and “enter a period where demand for all liquid fuels will exceed supply.”

Ford’s New Focus: Ford announced today that it will start manufacturing a plug-in version of the Focus in 2011 at a plant in Wayne, Mich. The automaker also snagged both the North American Car of the Year and North American Truck of the Year Awards, for the Ford Fusion Hybrid and the Ford Transit Connect van. This is the fourth time a hybrid has won in the 17 years of the car award, notes the Wheels blog. (See update below on Ford’s Monday afternoon announcement about new EV investments.)

General Motors’ Volt Rollout and Upcoming Plug-in Converj: We already knew California drivers would be among the first to get their hands on the Chevy Volt when it launches in select markets later this year. Now General Motors has named a second lead market for its upcoming plug-in model: Michigan.

GM also confirmed plans today to build a plug-in version of the Cadillac Converj in 2013 or later based on the Voltec system. The automaker envisions the model as a high-end luxury vehicle with about the same 40-mile electric range as the Volt.

Honda’s 2011 CR-Z Hybrid Debut: Honda unveiled today the production version of its CR-Z hybrid, a sporty two-seater scheduled for U.S. sales in late summer 2010. The model has three different driving modes: Sport, Normal and Economy, which prioritizes fuel efficiency and reduces how much load the air conditioning system puts on the engine. Honda has also included the Eco Guide (also deployed in the Honda Insight), a tool for drivers to get feedback on the road about how their driving behavior affects fuel economy.

Ray LaHood’s Hurrah for the Bailout, Big 3: Transportation Secretary Ray LaHood offered what sounds to me like over-the-top praise for automakers and the Obama administration’s move to bail them out in his talk at Detroit’s Cobo Hall this morning. “This [the bailout] was a good investment of taxpayer dollars,” he said. LaHood cheered the auto industry’s agreement to tighter fuel economy standards over the next six years, the results of the cash for clunkers program and automakers’ commitment to building hybrids.

“The automobile industry is manufacturing products that people want to drive,” he said. In particular, as the Wheels blog notes, LaHood named GM’s Chevy Volt as “obviously the kind of green car Americans are looking for,” and said Chrysler is “as innovative and creative as I’ve ever seen.”

Bailout Protesters Take to the Streets: A few dozen workers staged a protest outside the Detroit event “in favor of job creation and against financial-sector bailouts,” Reuters reports. On a nearby street corner, a smaller group came out to protest all bailouts. Reuters quotes one participant saying, “We don’t need to be spending billions of taxpayer dollars on helping companies that should be reorganizing on their own.” Another protester said the Obama administration should focus on a “jobs recovery bill,” helping turn Michigan’s old auto factories into manufacturing facilities for wind turbines and other green energy equipment.

Update: Ford has just announced that it plans to invest $450 million in Michigan for production of electric, hybrid and plug-in hybrid vehicles. The company expects to create up to 1,000 new jobs through its electrification efforts, in part by moving battery pack production to Michigan from current facilities in Mexico.

Ford’s Group Vice President for Sustainability, Environment and Safety Engineering, Sue Ciscke told us in an interview this afternoon that the move was made possible in large part by funding and incentives from the Michigan state government as well as the Department of Energy. Cischke said the company is working on a new hybrid and plug-in hybrid for 2012, but declined to elaborate on details for those models beyond Ford’s plans to base them on the new C-segment platform and the company’s interest in providing “the most versatility to the customer.” Cischke said the cars”may be a totally different vehicle from the Focus.”

Ray LaHood image courtesy of the North American International Auto Show; bottom image courtesy of Flickr user NotionsCapital; other photos courtesy of the automakers.

NEA Closes Biggest Fund Since 2007: New Enterprise Associates said today it has closed a fund with nearly $2.5 billion in committed capital — the largest single fund raised since 2007. The VC firm began making investments from the fund in May and has already made cleantech plays. — Cleantech Group

EPA Warms Up to Mountaintop Coal Mining: Two announcements from the EPA on Tuesday “continue the Obama administration’s up-and-down stance on mountaintop coal mining.” The agency came out in support of a permit for one operation and “suggested it might endorse another permit for the largest such operation in Appalachia.” — Wall Street Journal

CIA, Climate Scientists Make Nice: Restarting an effort shut down by the Bush administration, the nation’s top scientists and spies are now collaborating on an effort to use the feds’ spy satellites and other classified sensors to assess the hidden complexities of environmental change. — New York Times

Money Managers Still Ignoring Climate Risks: According to a new report from Ceres, nearly half “of the world’s largest investment managers are not factoring climate-related trends into their short- and long-term investment decision-making, the result being significant ‘hidden risks’ in the trillions of dollars of investment portfolios they are managing.” — Press Release

Opportunity for Smaller Solar Projects?: “After several years of promoting large-scale solar projects capable of generating hundreds of megawatts, political and administrative circumstances may create an opportunity for more smaller PV projects.” — Greentech Media

Renewable energy policy to result in 1.9M jobs, study says

The Obama administration’s progressive support for renewable energy will result in about 1.3 million green collar jobs, according to a new report published by three U.S. universities. They will also elevate the average household income by more than $1,000 and America’s GDP by $111 billion by 2020.

This sets Obama on track to create 5 million green (not just renewable energy) jobs over the next decade. Granted, he made this promise early in his campaign, all the way back in the spring of 2008. At that point he planned to spend $150 billion total to stimulate the green economy.

The estimations in the report also depends on several conditions that could be a bit of a stretch — namely that all U.S. utilities will be able to generate 20 percent of their power from renewable sources by 2020 and that a carbon emissions cap and trade system becomes a reality. It also anticipates that billions of dollars will be invested in cleantech research and development.

Considering that most utilities aren’t approaching 20 percent renewables in their energy mix, and the climate bill that would establish cap and trade has stalled in the Senate, this may be a little far-fetched.

But if these criteria are fulfilled, all 50 states will have an opportunity benefit economically from the green stimulus packages being given out one industry at a time — so far solar, Smart Grid, biomass, wind and advanced batteries have each received up to billions of dollars, mostly through the U.S. Department of Energy.

The study was produced by the University of California, in tandem with Yale University and the University of Illinois.

Another study, presented earlier this week by Booz Allen Hamilton at Greenbuild 2009, predicted that the green building industry alone will generate or support 7.9 million jobs, and infuse the U.S. GDP by $554 billion in just the next four years.

This topic has been all the rage lately, so let’s get right to it…

Infrastructure Stocks

More specifically, I’m talking about green infrastructure stocks. These days, however, it’s getting harder and harder to tell the difference.

Ever since Obama got elected, the next stimulus has been the talk of the country and The Street. All eyes have been focused on which industries will be getting the money, and how soon they’ll be getting it.

First word came shortly after the election, as Obama sharpened his rhetoric on a green economy, and what that meant for the failing current economy by way of renewed investment and job creation.

As the inauguration neared, and Congress went back to work, it became clear which industries would be getting an Obama bump.

While there are billions slated for tax breaks and healthcare programs, here’s what’s on the docket for government cleantech and infrastructure spending via the $850 billion, and growing, economic stimulus:

* $20 billion in tax credits for wind, geothermal, hydro, and bioenergy generation projects
* $32 billion for electricity infrastructure and transmission upgrades
* $16 billion for energy efficiency
* $2.4 billion for carbon capture and
* $6 billion for home weatherization

Most of that money will make its way to public companies executing projects in the scope of the bill. As that happens, you can bet those companies will be great investment vehicles.

Green Infrastructure Stocks

You see, the plan Mr. Obama is trying to implement is actually quite smart.

If you’ve been paying attention, you know that our nation’s infrastructure is in dire need of repair and improvement. Our aging power systems are no longer enough to handle growing demand. And it’s certainly not advanced enough to handle growing amounts of remotely-produced solar and wind power.

Water infrastructure isn’t much better. Most of our water mains are over 50 years old, and we lose up to 30% of our supply to leaks and old age. What’s more, there are hundreds of water main breaks causing millions of dollars of damage each day.

The plan is to get thousands of people back to work by funding infrastructure projects. The goals are job creation, renewed spending, and the long-term benefits associated with infrastructure improvement.

By the new president’s own admission, the projects will have a noticeable green tinge to them. Finding and investing in related companies will provide an easy windfall over the next few years.

Fairly soon, I’ll be offering a paid stock advisory, in which I’ll recommend stocks like this for purchase. Until then, take a look at the big boys of infrastructure and construction. Caterpillar (NYSE: CAT), The Shaw Group (NYSE: SGR), Jacobs Engineering (NYSE: JEC), Chicago Bridge and Iron (NYSE: CBI), Fluor (NYSE: FLR), Foster Wheeler (NASDAQ: FWLT). They’re all good bets.

Just look at a chart of those stocks:

Infrastructure Stocks

Three of them are down 50% or more over the past year. The other two aren’t far behind.

But they’ve been rising since the election. And they’re going higher; to mid-2008 levels and beyond. Riding a company that took a 50% hit back up to its original price implies a 100% gain. Many of them are possible with these stocks.

Be sure not to miss this infrastructure bull run.

To green energy and green profits,

Chris
Clean Energy Sector