Stimulus expectations run high

Billions set to go to industries on upswing in state

Executive director of the New England Clean Energy Council Nick d'Arbeloff thinks Evergreen Solar, which manufactures solar panels at a plant in Devens, could be one the companies to benefit from stimulus money. (Joanne Rathe/Globe Staff/File 2008)

Massachusetts companies could benefit from the billions of dollars earmarked for clean energy, medical research, and other industries in the economic stimulus package, which is nearing approval by Congress.

Specifically, the legislation sets aside about $50 billion for energy efficiency and renewable energy efforts, including more than $11 billion to build a "smarter" electricity grid and $5 billion to weatherize more than 1 million homes. The stimulus bill also contains a three-year extension for a tax credit for wind power, hydro power, waste-to-energy, and other alternative energy projects. For several years, the state has attempted to position itself as a leader in such energy-related businesses.

"I think the amount of dollars allocated to clean energy in the stimulus bill is really sending a terrific message to the marketplace," said Nick d'Arbeloff, executive director of the New England Clean Energy Council, it says "clean energy is here to stay."

D'Arbeloff ticked off a list of local companies that could gain from stimulus money: wind power developer First Wind in Newton, lithium-ion battery maker A123 Systems in Watertown, Evergreen Solar, which manufactures solar panels at a plant in Devens, and EnerNOC, a company that pays its customers to reduce their electricity use during times of peak demand.

"I just went downstairs and told my people to start hiring," said Stephen Cowell, chief executive of Conservation Services Group, a nonprofit in Westborough that runs energy-efficiency programs.

The bill also provides more than $15 billion for scientific research, including $10 billion earmarked for the National Institutes of Health for medical research grants and to help upgrade university biomedical research centers. NIH funding is especially important to Massachusetts, because the state is home to some of the nation's top research hospitals and institutions. Massachusetts received $2.2 billion in NIH funding in 2007 - more money per resident than any other state.

In addition, Massachusetts boasts one of the world's largest cluster of life sciences companies, which could potentially use any discoveries from NIH grants to develop new drugs or other health products.

"We're more than excited in Massachusetts," said Robert Coughlin, president of the Massachusetts Biotechnology Council. "Increased funding leads not only to more jobs in Massachusetts, but ultimately it leads to life-saving cures and therapies."

Aside from added NIH funding, the bill provides $5 billion for other scientific work, including $3 billion for the National Science Foundation, which funds basic research; $1.6 billion for the Department of Energy's Office of Science, which funds a wide range of energy projects from biofuels to nuclear physics; and $1 billion for NASA (including $400 million earmarked for climate change research). At least part of that money is expected to go to scientists at local universities, and might eventually lead to technology that could be used by local tech companies or to launch start-ups.

"It's a very big deal," said Jack Wilson, president of the University of Massachusetts system, adding he thought the money would be spent over the next two years.

Wilson said a growing backlog of worthy scientific proposals already has been vetted and approved, but the projects have not gone forward because of funding gaps. "I call these shovel-ready projects," he said.

In addition, the bill sets aside $7 billion for extending high-speed Internet service to underserved areas, something that could help Massachusetts companies that manufacture communications and networking equipment.

"Certainly there are technologies that are made in Massachusetts that should be able to participate in areas like communications equipment," said Andy Ory, president and chief executive of Acme Packet Inc., a Burlington company that builds equipment to route voice signals and phone calls over the Internet.

The compromise plan that has made its way through Congress also provides $19 billion for electronic health records, intended to eliminate medical errors and make it easier for doctors to share patient health histories. The provision could be a boon for local software and hardware companies to develop such paperless systems.

John Hallock, a spokesman for Athenahealth Inc. of Watertown, said his firm is "uniquely well-positioned" to benefit because its Web-based design enables daily upgrades and changes.

"We're pleased the Obama administration and their team had the foresight not to give the money in grants, but to pay for the use of systems over time," Hallock said.

The bill is also laden with tax incentives that should aid companies in a broad range of industries, according to a summary of the bill issued by House Speaker Nancy Pelosi's office.

For instance, it will help some companies more quickly write-off investments in plants and equipment. It will allow small businesses to retroactively apply losses to tax bills in previous years, cut long-term capital gains taxes for small business investors, and reduce tax withholding for government contractors. And it will provide tax credits to companies that hire younger workers or veterans who have been unemployed for at least six months.

Still, many details were unclear yesterday. Although Pelosi promised the bill would include "an historic level of transparency," a copy of the actual legislation was not available. Even some congressional aides were unsure how some specific provisions would work, making it hard for businesses to judge how much they would benefit, despite the eye-popping amount of money involved.

"We don't have the wording," said Cowell of the Conservation Services Group. "We have the numbers."

Erin Ailworth, Ross Kerber, Jeffrey Krasner, and Robert Weisman of the Globe staff contributed to this report. Todd Wallack can be reached at twallack@globe.com.