Why a Tiny Alabama Town Wants a $375 Million Chunk of the Stimulus

At first glance, the town of Edwardsville, Ala., with a population of 194 people, might raise a few eyebrows with its bid to receive $375 million from the economic stimulus package being assembled by Barack Obama and lawmakers in Congress.

The tiny town, located near the Georgia border and 26 miles from the nearest "big city" of Anniston (population: 24,276), added 33 proposals—about two thirds of them related to "green" energy—to the list of "ready- to- go" projects assembled by the U.S. Conference of Mayors. Total sum: $375,076,200.

That comes out to nearly $2 million per Edwardsville resident, although E. D. Phillips, the town's representative to the U.S. Conference of Mayors, says the projects would affect a wider region that comprises about 80,000 people. That number includes residents of nearby rural areas that aren't already incorporated into towns, along with the residents of Talladega Springs (population: 124), which partnered with Edwardsville and local municipal utilities on the projects.

There's certainly no denying that Edwardsville has big ambitions. Through the various proposals, which include a renewable energy museum, scenic railroad, and vineyards, these small Alabama communities envision themselves becoming a cutting-edge demonstration project for energy sustainability and a hub for tourism.

"I know we look like some little Podunk town, and by the census, we are," Phillips says. "But we really think we've done some amazingly progressive things in the past two years."

The town's proposals began to develop more than two years ago, when Phillips and another town official became intrigued by the argument that renewable energy could create a rural renaissance. If any community needed economic revival, it was Edwardsville—even before the recession. At 28.7 percent, the town's poverty level was nearly equal to that of Nepal and more than twice the national average, according to the 2000 census.

Along with the more traditional proposals to replace streetlights with solar-powered lights (cost: $3,479,200), to install solar panels on the town hall (cost: $77,000), and to build solar-powered recharging stations for electric golf carts and vehicles (cost: $620,000), Edwardsville and Talladega Springs have assembled a set of even more far-reaching projects.

An outlay of $50.4 million, for example, would go toward installing water pipelines beneath roads to soak up the sun's rays, transferring heat. That technology is currently being used in the Netherlands, which found that while the cost of installation was double that of normal gas heating, the system halved the amount of energy required.

With big dreams, however, come big price tags.

"Do you know how hard it is to fund some of these projects when your tax base is so low?" Phillips says. "So we just breathed this sigh of relief when we found out about the stimulus package . . . especially when it had a focus on renewable energy."

Not everyone shares the sentiment.

"This really exemplifies the problem. Why are we buying light bulbs for a local community?" asks Tom Schatz, president of the watchdog group Citizens Against Government Waste. "If a municipality wants to save money, [it can] go out and buy the light bulbs. There is no reason the federal government should buy them."

One of Edwardsville's biggest proposed expenditures is for a "renewable energy museum and information dissemination center." Phillips envisions exhibits, audio tours, seminars, a research center, and a satellite lab run by the National Renewable Energy Laboratory.

To fund the museum, Edwardsville is requesting $32.1 million. That makes the facility the fourth most expensive museum proposed on the U.S. Conference of Mayors list—following facilities planned by Miami, Las Vegas, and Scottsdale, Ariz. (Some of those facilities have drawn their own controversy: Las Vegas's proposal for a $55 million "mob museum," for example, was used by Sen. Mitch McConnell this week as a prime example of pork spending.)

Update
Small Town Rescinds Request for $375 Million