U.S. Makes $3 Billion Available For Renewable Energy
Date: 10-Jul-09
Country: US
Author: Tom Doggett
U.S. Makes $3 Billion Available For Renewable Energy Photo:
Mark Blinch/Files
A process operator shows a handful of corn at the GreenField Ethanol plant
in Chatham, Ontario, in this April 10, 2008 file photo.
Photo: Mark Blinch/Files
WASHINGTON - The Obama administration on Thursday unveiled guidelines that
will allow companies to apply for some $3 billion in government funds to
boost development of renewable energy projects around the country, creating
jobs.
The funding will help meet the White House's goal to double U.S. renewable
energy production over the next three years and also provide companies with
easier financing than many can obtain in the private sector where credit
remains tight.
The money, from the economic stimulus package, will provide direct payments
to companies in lieu of tax credits to support an estimated 5,000 bio-mass,
solar, wind and other renewable energy production facilities.
The Treasury and Energy Departments announced the funding guidelines, which
would provide each project with an average $600,000.
Previously energy companies could file for a tax credit to cover a portion
of the costs of a renewable energy project. Under the new program, companies
would forgo the tax credits in favor of an immediate reimbursement of a
portion of the property expense, making funds available almost immediately.
"These payments will help spur major private sector investments in clean
energy and create new jobs for America's workers," said U.S. Energy
Secretary Steven Chu.
U.S. Treasury Secretary Tim Geithner said the program "will provide
additional stimulus to economies in urban and rural America."
Energy companies will be able to apply for the money in coming weeks. Until
then, the administration made available the program's terms and conditions,
guidance and a sample application here
(Editing by David Gregorio)
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