How to Profit from New Energy Bill
Source: Seeking Alpha, Green Chip Stocks (7/27/10)
"There's still a ton of money to be made in alternative energy."
With politicians unwilling to take a meaningful stand on energy legislation so close to an election, the United States now risks falling further behind the rest of the world in the energy game.
For investors, however, there's actually still a number of opportunities that will stem from this latest energy bill.
Not surprisingly, this new "energy bill" latched on to the easiest and least-controversial measure: energy efficiency
In the bill, a $5 billion home-efficiency incentives package called the Home Star program is expected. Supporters claim it will result in the creation of tens of thousands of jobs while significantly reducing energy consumption.
With about $4 billion worth of incentives to convert trucks to run on natural gas, there are definitely some opportunities here.
Not interested in natural gas? Word on the Hill is that the Oil Spill Liability Trust Fund tax may be raised from $0.08–$0.49 per barrel. That cost would certainly trickle down to consumers.
Add to that the effects of peak oil or any major/minor disruption along the way, and you've got a market ready to embrace conventional hybrids and EVs that are coming in 2011.
And if you're unsure of this, consider that when gas hit $4.00 a gallon, there was a rush on Toyota Priuses. Dealers couldn't keep them in stock, and consumers were paying above sticker price for them.
So, even though we're about to see a half-assed energy bill (as Senator Lindsey Graham recently called it), to assume alternative energy opportunities will disappear is unsafe assumption.
Rest assured—there's still a ton of money to be made in alternative energy.