Talk of a public infrastructure stimulus program is gathering steam. The “roads & bridges” blueprint appears to be the default idea.

An employment based stimulus spending program can be a beneficial idea (as opposed to $165 bln, $600/head check in the mail that was not). But the roads and bridges lens looks backward. We’ve transitioned to the understanding that we need to wean society off carbon production and roads and bridges are about promoting carbon consumption. Best to leave that at the maintenance level and in the state’s hands.

The US would be well served by directing Treasury level sums of funding toward building out two primary structural programs. First you build out the renewable energy platform and supporting power grid. Put federal dollars to building out transmission and adding wind capacity (with a sincerely competent operations team that understands meteorology, site selection, grid support and land lease management). At the same time, strategically place solar (i.e. within metropolitan hubs where it can both demonstrate what it can do and reduce the fossil fuel supply squeeze at choke points for natural gas and power).

The second element is building out public use facilities that establish the US’s infrastructure support for the anticipated effects of climate change. Enough has happened that there can be a consensus that climate change is occurring, for all but the staunchest dissent. Developing water storage and related transportation pipelines is the kind of thing you do to foresee the obvious and put it in place.

These kinds of actions use federal stimulus dollars to address known and serious threats to forward economic health. It also puts a firm net under our current economy through meaningful employment.

From a finance perspective, they can be cash cows for Uncle Sam. I’ve packaged wind farms for the private sector (merchant energy) into portfolios. When bundled with the inherent tax advantages (production tax credits and MACRS), they were wildly attractive and strongly bid for by large institutions. Or Uncle Sam can issue them directly from its portfolio. They pour off large cash and tax advantages for 10 years or more. Similar structural opportunities are abundant if DC will broaden its lens.

The US can simultaneously create significant employment and put a net under the economy for the long term. The projects’ outputs would pave the way for a transition to the often cited “energy independence” and build the kinds of public works that insure that climate change doesn’t blow up our metropolitan societies and economy. The US will not only recover their debt principal but earn a return for taxpayers that is enviable.