VP Biden announces $4B in smart energy grid grants

JEFFERSON CITY, Mo. -- Vice President Joe Biden used a visit to a mid-Missouri transformer factory Thursday to highlight how the federal economic stimulus package is propelling a new wind-energy project and spinning off jobs.

Speaking from the factory floor of ABB Inc., Biden announced the Department of Energy will award about $4 billion in grants under the stimulus package to improve the nation's electric grid.

Biden is making a two-day, three-stop swing across Missouri, his first trip back to the state since the 2008 campaign.

Earlier Thursday, Biden landed at Whiteman Air Force Base, home of the B-2 bomber, to thank military members for their service. Today, Biden is to host a forum at the University of Missouri-St. Louis on ways to make college more affordable.

The ABB factory, on the north side of the Missouri River just across from the state Capitol, has laid off almost one-third of its work force in the past year, leaving it with 650 employees.

The plant shut down Thursday while Biden and Commerce Secretary Gary Locke took a walking tour of the factory floor before addressing a group of about 400 employees and guests.

Biden touted an order for 100 ABB-built electrical transformers to be used at a $300 million wind power plant in northwest Missouri. Wind Capital Group, which plans to break ground in August on the DeKalb County project, says it will be the largest wind farm in Missouri with a capacity to provide power to about 50,000 homes.

The president of Wind Capital is Tom Carnahan, the brother of Rep. Russ Carnahan, D-Mo., and Missouri Secretary of State Robin Carnahan, who is running for U.S. Senate in 2010.

Wind Capital spokesman Tony Wyche said development of the wind farm is moving forward partly because the economic stimulus act extended a tax credit that can be used by investors in wind energy.

Biden said the Missouri wind-energy site will be designed with smart electric grid components. Smart electric grids enable consumers to better adjust their electricity use and to sell electricity back to the utility from solar panels or other home energy generators.

Under the stimulus act, Biden said the Department of Energy will award nearly $3.4 billion in grants to install smart electricity grid technology and $615 million for smart grid demonstration projects. Locke said the White House will host a forum in early May to work on the creation of industry standards for developing the smart electric grid.

Biden linked energy issues with nation's military presence in the Middle East.

"The smart electrical grid is necessary to ending America's reliance on foreign oil," Biden said.

"How many of you think we would have so many troops stationed in that area of the world if we didn't need the oil?" Biden said. "If you add the actual price of oil, it's probably $10 more a barrel just by the military we have to provide to be able to ensure those oil lanes stay open."

Earlier at Whiteman Air Force Base, Biden told a crowd of about 1,100 troops from all four branches of the military that President Barack Obama's administration is committing $25 billion in additional spending for veterans.

"All of you will one day be veterans," Biden said. "They've been forgotten a lot in the last eight years, the last 15 years."

Biden presented a Bronze Star to technical Sgt. Dave H. Townsend Jr. for heroics in Iraq.

He praised the current generation of troops as "the most powerful, most disciplined, best trained warriors America has ever produced" and pledged that the Obama administration would take care of the some 35,000 U.S. troops who have been wounded in Iraq and Afghanistan.

Biden also acknowledged the sacrifices of families of soldiers, especially those killed in action.

"I say this from the bottom of my heart, I admire you. The president admires you," Biden said. "And now we're putting our money where our mouth is."