U.S. Sen. Mark Warner told the region's business community that the D.C. area stands to benefit from the changing economic landscape.

The Democratic senator from Virginia delivered the keynote address at the Greater Washington Initiative’s release of its 2009 Regional Report.

The former venture capitalist and governor of Virginia stressed optimism and growth potential in his discussion about the Washington area's economic future.

“The federal government’s level of activity in the economy is unprecedented,” Warner said. “Today’s economic meltdown has required the president and congress to take extraordinary action.”

In his remarks, Warner broke down this "extraordinary action" into three basic categories: implementing the stimulus plan, shoring up the U.S. financial system, and grappling with the residential mortgage meltdown.

Warner’s advice and insight into the $787 billion stimulus package eased much of the crowd’s trepidation with government’s increasing involvement in today’s economy. He said that about 40 percent of the stimulus act came as tax cuts to individuals and businesses, while another third would be invested into new industries such as green technology, alternative energy and high-speed rail.

Warner, who is a member of the Senate’s Commerce Committee, said he hoped that the Washington region would spearhead development in these up-and-coming economic sectors.

“It helps to be where the money is,” Warner pointed out after his address. As government hands out more stimulus grants, subsidies and other forms of aid to firms researching growing industries, Washington will become an increasingly desirable region to start a business.

In addition to receiving loan guarantees and direct subsidies, being close to regulators would offer new companies to gain publicity on a national stage.

However, to accommodate D.C.’s foreseeable growth, Warner encouraged local execs and politicians to embrace several challenges currently facing the area.

After discussing alternative energy’s future profitability, Warner emphasized D.C.’s potential role as the nation’s leader in energy reform. This played into his opinion that business flocks to where the funding is, and that makes Washington very attractive to start-up alternative energy companies.

Warner also spoke about local infrastructure, which he called Washington’s Achilles' heel. It does no good for Washington to produce goods and services if they are constantly stuck in traffic. In order to remain competitive, Warner advised both the private and public sector support infrastructural investments. The Senator lamented the fact that local transportation spending has been cut in half in proportion to Gross Regional Product since the 1980s.