New energy Law Increases Opportunities For Businesses

New energy efficiency requirements will spur sales of many next-generation products -- from light emitting diodes to cutting edge biofuels -- to help America go greener.

Suppliers of components for fuel-efficient cars will be big winners as automakers scramble to meet a 40% increase in average fuel efficiency by 2020. They'll snap up diesel engines from BorgWarner, IHI Corp. and Honeywell's Garrett. And batteries for hybrids from Johnson Controls and Panasonic. Hitachi, TRW and others will see more orders for electronic and mechanical components.

Lighting manufacturers can also expect their order books to fill up fast. New efficiency regulations for lighting will effectively KO incandescent bulbs by the middle of the next decade. Lighting firms such as Osram Sylvania and Philips can expect huge demand for light emitting diodes, compact fluorescents and pinpoint halogens. Among smaller firms likely to benefit: Element Labs, an LED expert. And Orion Energy Services, a leading player in efficient fluorescents.