US DOE extends state renewable energy incentive by 20 years

Washington (Platts)--14Aug2006

The US Department of Energy Monday extended by 20 years a program that
provides state and municipal utilities with a financial incentive for
renewable energy production.

The Renewable Energy Production Incentives program was established in the
1992 Energy Policy Act for 10 years, ending in 2003. The Energy Policy Act of
2005 reauthorized the program until 2026.

In a Federal Register notice, DOE said it made no substantive changes in
a proposal it made in June to meet the latest statutory changes. The
incentive -- currently calculated at 1.8 cents/kWh--is available for projects
started between 2004 and 2016.

Since the program began 1n 1994, DOE has paid incentives for projects
during their first 10 years of operation.

The program paid $4.9 million to projects last year, with Richland,
Washington-based Energy Northwest collecting $2.3 million.

Consistent with the 2005 law, the amended rule adds Indian tribal
governments and Native corporations to the list of eligible participants in
the program, as well as includes ocean thermal energy to the list of
qualifying technologies.

Among other changes, DOE adopted a new formula for allocating funds to
projects when Congress does not -provide enough money to cover them entirely.

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