Departments of Energy and Treasury Announce $3 Billion to Fund Renewable Energy Projects
July 10, 2009 by Justin
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The U.S. Department of Energy and The U.S. Department of the Treasury on Thursday announced a partnership that includes $3 billion for the development of renewable energy projects around the country, providing direct payments in lieu of tax credits in support of 5,000 bio-mass, solar, wind and other renewable energy production facilities.
According to Treasury Secretary Tim Geithner, “The renewable energy program provides another important avenue for the Recovery Act to contribute to economic development in communities around the country. It will provide additional stimulus to economies in urban and rural America by helping to develop domestic sources of clean energy. This partnership between Treasury and Energy will enable both large companies and small businesses to invest in our long-term energy needs, protect our environment and revitalize our nation’s economy.”
Energy Secretary Steven Chu stated “These payments will help spur major private sector investments in clean energy and create new jobs for America's workers. It is part of our broad effort to double our renewable energy capacity in the next few years and make sure that America leads the world in creating the new clean energy economy of the future.”
The Recovery act authorized "direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009". Until now companies had to file for a tax credit to receive financial assistance for renewable energy projects. Under the terms of this agreement companies would receive immediate reimbursement in return for foregoing tax credits in the future. The goal is for these funds to be immediately injected into local economies to provide a stimulus for these areas.
The program also includes a web based application which will be implemented in the next few weeks along with terms and conditions, guidance and a sample application to speed up the implementation process for this endeavor.