IRS seeking applications for new clean renewable energy bonds
The Internal Revenue Service (IRS) is seeking applications for the remaining volume cap of new clean renewable energy bonds (CREBs). A total of $1.4 billion is available, including $516 million for public power providers, $597 million for governmental bodies, and $281 million for cooperative electric companies. The bonds may be used to fund capital expenditure projects for qualified renewable energy facilities. Qualifying projects include wind, biomass, geothermal, solar, landfill gas, trash combustion, small irrigation power, refined coal production, and hydropower.
The $1.4 billion is a reallocation of the unused portion of $2.4 billion originally approved by Congress in 2008 and 2009. Those funds needed to be used within three years of issuance, and because that time has passed, the unused portions are now forfeited.
The IRS will begin accepting applications for governmental bodies and electric cooperatives on a first-come, first-served basis on March 5. Public power providers have until June 3 to submit applications.
Examples of previously awarded CREB projects include:
- $20 million for new solar energy systems at 70 California Department of Transportation (CALTRANS) facilities;
- $5.7 million for the 1.55-MW Swift Creek hydro project for Lower Valley Energy, Inc. in Wyoming;
- $5 million for the City Facilities Solar Covered Parking Lot Project for the City of Las Vegas; and,
- $25 million for the construction of the Lake Livingston Hydroelectric Project and $40 million for the construction of a biomass plant in Woodville, Texas for the East Texas Electric Cooperative.