Stimulated by work

Construction companies are gearing up to take advantage of the stimulus money earmarked for public work projects.

"Being in public works, we're in direct line to receive money from the stimulus plan," said Josh McGarva, vice president of Western Water Constructors in Santa Rosa. "Once we get some of it, and we're hoping to get our share, then we'll be hiring."

And it's not just construction.

Nearby in Santa Rosa, Patrick Hanson leaned over his desk and began reading a painfully boring 34-page document that explained how his geothermal-energy company could receive money from the economic stimulus plan.

"It's something that has been a topic of conversation here at ThermaSource since the stimulus plan was announced," Hanson said. "We're hoping to get as much as we can."

While many companies are scaling back on capital spending to survive the recession, the federal government is preparing to spend $828 billion in an effort to get the economy moving.

While the likely amount of federal stimulus dollars headed for Sonoma County is only a tiny fraction of the area's $20 billion economy, the money is expected to create jobs and help alleviate the economy's ills.

"It's like a decongestant," said Ben Stone, president of the Sonoma County Economic Development Board. "It won't cure the cold, but it helps."

The stimulus plan will distribute money in two ways, said Jim Leddy, governmental affairs manager for Sonoma County.

About 65 percent of the money will be funneled into agencies already receiving federal funds, including cities, counties and federal departments, such as Health and Human Services. Western Water stands to benefit from this category as departments begin spending on public works.

The rest of the money will be distributed as competitive grants to spur innovation and long-term growth. This is what ThermaSource is going after.

About $75 million to $85 million should reach Sonoma County through existing programs, with about $14 million of that going to public works projects, Leddy said.

How much more comes into the county depends on the competitiveness of grant proposals by local governments and businesses such as ThermaSource and Enphase Energy, a Petaluma company that designs solar energy technology.

"There has been a lot of discussions about it," said Raghu Belur, co-founder of Enphase. "It really helps companies like us fund development. It's a very big deal."

Enphase already is the recipient of a Department of Energy grant to explore using its micro-inverter technology more widely through power grids, which could reduce energy waste, Belur said.

Enphase hopes it will get an extension of its grant so it can move the idea out of the research phase and into product development. A grant extension would likely accelerate the growth of a company that has already hired 70 employees since it was founded in 2006.

"We would hire even more engineers," Belur said.

At ThermaSource, where Hanson oversees marketing, plans were set in motion Wednesday when the U.S. Department of Energy announced grants for research into geothermal technology. ThermaSource, which is one of the largest geothermal service providers in the country, hopes to snare a grant worth up to $5 million to help it develop a new type of cement able to harden at high temperatures.

The stimulus money is badly needed in the construction industry, McGarva said. The sector was already hurt by the real estate meltdown when state and local governments stopped plans for some public projects because of budget shortfalls.

"A lot of projects were shelved because of a lack of funding," McGarva said. "Now just knowing that the money is in the pipes is freeing things up."

A once-shelved water treatment project in Oakley was recently put out to bid after it became apparent stimulus money was headed for state public work coffers, McGarva said. And that project is a good prospect for Western Water.

"We might be hiring guys in May or June," McGarva said.

The Sonoma County Economic Development Board is hosting a workshop to help construction companies understand how to get stimulus dollars. It will also include a brief overview of stimulus funding available to alternative energy companies.

It put the workshop together quickly because some of the public works money must be spent soon, Stone said. Many of the infrastructure projects such as highways, mass transit and airports must be started by mid June, 120 days after the stimulus bill was signed into law on Feb. 17 by President Barack Obama, Leddy said.

"So any project that is to get funds had better be under way, not completed, by June 17th or risk losing funds," Leddy said. "If we have funding for a shovel-ready project, it will go out to bid to the private sector as is the standard procedure."

The workshop features a presentation on the list of infrastructure projects that will receive funding. It will include instruction on how businesses can bid on the projects. It will also include a snapshot of public funding available for alternative energy projects.

"We're demystifying as best we can in two hours how to sell your products to the government," Stone said. "I'm sure there will be more workshops."

For the general public, who are not in line for stimulus dollars, there is also a benefit, Stone said.

"There will be some real long-term infrastructure improvements, which are badly needed," he said.

You can reach Staff Writer Nathan Halverson at 521-5494 or nathan.halverson@pressdemocrat.com. Check out his blog at DailyGeek.Pressdemocrat.com or on twitter.com/eWords.