Special Report: 3.5.2009

Posted by TED Magazine on Thursday, March 05, 2009

Your Piece of the Stimulus

By Joe Salimando

Politics enter into any discussion of the stimulus; some folks reference it as the “porkulus.” You won’t read more here on the debate about whether or not it was needed.

The fact is, it’s here. And whether or not the country needed this, you might need it. I didn’t always believe this, but then the McGraw-Hill Construction unadjusted numbers for January construction contracts came out.

 

What we can know:

• It’s only one month. No sense panicking.
• MHC looks at the dollar value of “starts,” a look-ahead number. These are projects on which contracts were signed, or ground broken, in January.
• Perhaps there was notably bad weather in January 2009 and wonderful, balmy weather a year earlier. I don’t remember that, do you?
• For years month after month, I’ve gone to the MHC site to look at these numbers, ignoring the headline and paging down to the table you see above (at the web page’s very bottom). I’ve never seen numbers like this.
• There’s an independent look-ahead construction source that confirms this outlook—the Architecture Billings Index (American Institute of Architects). This “work on the boards” reading just hit an all-time low (for the second month in a row).

Combine MHC’s January numbers with the AIA’s figures, and what you have is a warning: The construction industry’s real work is about to fall off a cliff.

When? In the next four to nine months.

You don’t have to be scared. But you should be.

Facts on the Stimulus

This column seeks to help you find out precisely what you can gain from the stimulus. Of course, your situation is unique, so you’ll have to do some homework to figure it all out.

Below, find places you might go for the info you need to know—all with links.

Construction

AGC offers a page with the stimulus spending broken down by program and details offered on each individual “line item” on the page. Check the top to click tabs to get more info about tax and policy implications.

McGraw-Hill Construction (MHC) quickly moves articles from its flagship weekly, Engineering News-Record, behind a firewall, so if you’re pressed for time, this is a good place to start. On a special web page, MHC offers headlines, analysis, reports, opinions, and more about the stimulus.

Be sure to glance at the right-hand column of the page, where MHC’s Dodge operation offers details on “shovel-ready projects.” This is a paid service; there’s more about Dodge’s database here.

Also from MHC is the ENR Feb. 13 feature, “Stimulus Bill Compromise, Sector by Sector.” I hope it’s still freely available by the time you click.

Note that MHC has a competitor, Reed Construction Data. In late January, Reed placed a “report” online about 18,000 proposed infrastructure projects that were deemed “shovel ready” by local authorities. Be sure to read the whole piece (through to the FAQs).

Apparently, Reed has divided the info by four U.S. regions; see this page.

If you’re Jack Webb and want “just the facts,” the American Council of Consulting Engineers has put together a resources page. Among the links included there:

• The law (the actual text)
• White House website “to track implementation”
• State-by-state funding tables for water, transit, highways and bridges, and rail

Energy, Electrical, and Green

Potentially, the stimulus offers the best chance the country has ever given itself to boost savvy investments in the energy area. Estimate: $50 billion of energy money in the stimulus package.

The glass is half empty: That’s not much out of $787 billion, is it?

The glass is half full: $50 billion is the biggest government “green” package of all time!

There’s a lot in the new law, there’s a lot of information floating around, and it can be confusing (at least to me). Here’s where you might look:

The Alliance to Save Energy offers two neat tables:

a. The first is something you might not think you need. It compares the House bill, the Senate bill, and what made it into the final law (as signed by the President). Why Joe needed it: There was a lot of reporting about what was “in” and what was “taken out;” it’s confusing. With this table, you get a full view of everything they discussed, stuff you might remember hearing about, and what is REAL!

b. OK, the second table might be a bit redundant. It provides a look at “broad energy programs” that stimulate Energy Efficiency.

ASHRAE provided a special report (Feb. 18) on what’s in the package.

Along those lines: The Virginia Engineer noted that the stimulus bill “reinforces [the] importance of [ASHRAE] Standard 90.1.” There’s an explanation in some detail on the LightNow Blog.

Renewables: See this short & sweet Reuters fact box.

And: This San Francisco Chronicle article on home solar panel tax credits.

And: Release on “boost” to municipal solar funding.

There’s a lot ($4.5 billion) of money in the bill for The Smart Grid. You might remember, there was a three-part Special Report “special” on this just a few weeks ago (see Jan. 22, Jan. 29, and Feb. 5 items). According to this article, there is $4.5 billion for Smart Grid in the stimulus; follow the link embedded in it to more on Smart Grid. Is $4.5 billion a start, or a drop in the proverbial bucket?

EcoHome magazine (this is a neat publication) notes implications of the package for green home aficionados.

Interest groups abound (where there’s money, you know…). CEEP is just such a group, seeking to help public power utilities get as many hands into the cookie jar as it can accommodate.

A blog from the Federation of American Scientists (a new one on me) provides an analysis of green measures in the stimulus. I think you’ll be surprised by how much aims to make federal buildings more energy-efficient (see the second bullet).

Along those lines: GlobeSt.com has a piece saying the GSA gets to oversee $5.5 billion under the stimulus. This site often makes articles disappear behind a (pay-only) firewall; apologies if you can’t freely get to this.

See also below info on energy-efficiency homeowner tax credits.

Broadband

What the broadband stimulus package means to rural telcos.

Fiber Optic Association’s two cents (from February newsletter).

Meetings to begin March 2 on how to administer broadband grants.

Your House, Your Taxes, and More

A blog entry on Zillow.com (the real estate site) helps to figure out if your housing situation qualifies you for help. It has links and (obviously) is somewhat promotional. But the four-point advice segment seems to be common-sensical:

1. Get all of your paperwork together.
2. Fill out a loan request (Zillow can help you there).
3. Be patient (no one can help me on this!).
4. Stay informed.

First-Time Home Buyer Tax Credit is the headline on a site put together by the National Association of Home Builders. It doesn’t the same ground as Zillow.

Homeowners doing energy-smart remodels can get a tax credit of up to $1,500 (it had been only $500) through 2010. See this six-point ASE online document.

IMPORTANT NOTE: Point 3 is on Hybrid & Diesel Vehicle tax credits, and includes a table showing the credit available for each make and model.

According to the NAHB, energy renovations can mean that “homeowners can claim the 25C credit on Form 5695.” More here.

In California? There’s a state tax credit designed to spur home construction. The NAHB explains it all here.

OK, it’s true: No one likes the IRS. But you’re going to want to keep an eye on this page, where the federal unit provides info on tax provisions of the stimulus.

Opinion Piece

There are two additional pieces you might read:

1. A Feb. 2 blog entry from Dr. Housing Bubble. Ignore the verbiage and look at two long charts in this piece (from Motley Fool and Bloomberg). The gist: We citizens have committed to provide $8.5 trillion to support the financial system. Next to $8.5 trillion, $787 billion is pennies.

2. Newsweek’s March 2 opus saying that “America could soon out-innovate Japan.” It’s about green. It offers hope and makes sense. And it is do-able!

	Joe Salimando of EFJ Enterprises is a consultant, web content provider, and wordsmith based in Oakton, Va. To contact him, call 703-255-1428. See also The EleBlog.
Personal Disclaimer: The appearance of the ambling pachyderm is indicative of the writer’s obsession with elephants, not his political leanings.
IMPORTANT NOTE: THIS COLUMN REFLECTS ONLY THE OPINIONS OF ITS AUTHOR AND DOES NOT REFLECT THE OPINIONS OR POLICIES OF NAED, TED MAGAZINE, OR THE ADVERTISERS ON THE TEDMAG WEB SITE.