United States
Environmental Protection
Agency
vvEPA
State Incentives for Achieving Clean and Renewable
Energy Development on Contaminated Lands
The development of clean and renewable energy on formerly used land offers many economic and environmental benefits. Combining clean and renewable energy and
contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopment projects. This
document provides information about incentives in your state that can be leveraged for clean and renewable energy and development of contaminated land.
Incentives for Clean and Renewable Energy
Funding (grants, loans, bonds, etc.)
Business Expansion Initiative (BEI)
www.masstech.org/renewableenergy/BEI/index.html
Provides loans of $500,000 to $3,000,000 per company, up to 50% of
capital expenses and related spending over 24 months, to support
renewable energy companies entering or expanding within the
manufacturing stage of commercial development.
Sustainable Energy Economic Development (SEED) Initiative
www.masstech.org/SEED
Provides up to $500,000 as a convertible loan on a competitive basis to
support renewable energy companies based in Massachusetts.
Renewable Energy Certificate Incentive
www.massenergy.com/Solar.REC.Sale.html
Purchases renewable energy certificates (also known as green tags) at a
rate of $30 per MWh (or $0.03 per kWh) from PV systems for three years.
Clean Energy Pre-development Financing Initiative
www.masstech.org/renewableenergy/predevelop.htm
Provides unsecured loans up to $250,000 per wind and biomass project,
and up to $150,000 for other renewable energy projects, for pre-
development activities for grid-connected electric generating facilities.
Large Onsite Renewables Initiative (LORI) Grants
www.masstech.org/renewableenergy/large_renewables.htm
Provides feasibility grants, up to $40,000 with a cost share of 15%; design
grants up to the lesser of $125,000 or 75% of actual costs; and
construction grants up to the lesser of $275,000 or 75% of actual costs.
Commonwealth Solar
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Provides rebates for the installation of PV projects at residential,
commercial, industrial, and public facilities. Non-residential projects are
eligible for rebates for PV projects up to 500 kW.
Massachusetts Green Energy Fund
www.masstech.org/renewableenergy/mgef.htm
Invests equity venture capital in Massachusetts-based renewable energy
companies, using the $15 million Green Energy Fund.
Tax Incentives (abatements, deductions, credits, etc.)
Renewable Energy Property Tax Exemption
www.mass.gov/Ador/docs/dls/publ/igr/1984/84-209.PDF
Provides a property tax exemption for 20 years from the date of installation
for solar and wind powered devices that supply the property's energy
needs.
Excise Tax Exemption for Solar or Wind Powered Systems
www.state.ma.us/doer/programs/renew/renew.htmtttaxcred
Provides a 100% tax exemption from the tangible property measure of the
state's corporate excise tax, to qualifying solar and wind energy systems,
for the length of the system's depreciation period.
Net Metering
www.state.ma.us/dpu
Offers net metering by the state's investor-owned utilities. Municipal utilities
may offer net metering voluntarily. Establishes three categories of net-
metering facilities: "Class I" are systems up to 60 kW in capacity; "Class II"
are systems greater than 60 kW and up to 1 MW in capacity that generate
electricity from agricultural products, solar or wind energy; and "Class III"
are systems greater than 1 MW and up to 2 MW in capacity that generate
electricity from agricultural products, solar or wind energy.
Quick Facts
Public Benefit Fund (PBF) Yes 0 No D
Renewable Portfolio Standard Yes 0 No D
4% by 2009 (plus 1 % each year alter 2009)
Net Metering Yes 0 No D
Interconnection Standards Yes 0 No D
Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum-Fired 5.2% Nuclear 12.8%
Natural Gas-Fired 51.0% Hydroelectric 3.3%
Coal-Fired 24.4% Other Renewables 2.8%
Points of Contact
Massachusetts Technology Collaborative, www.masstech.org
BEI, Ian Springsteel, BEI@masstech.org, (508) 870-0312 Ext. 255
SEED Initiative, Sissi Liu, SEED@masstech.org, (508) 870-0312 Ext. 226
Clean Energy Pre-development Financing Initiative
Amy Barad, barad@masstech.org, (508) 870-0312 Ext. 285
LORI Grants, Tyler Leeds, leeds@masstech.org, (508) 870-0312 Ext. 1273
Commonwealth Solar, cs@masstech.org, (508) 439-5700
Renewable Energy Certificate Incentive
Mass Energy Consumers Alliance
Kelly Muellman, kelly@massenergy.com, (617) 524-3950
Massachusetts Green Energy Fund, LP, (617) 739-1155
Massachusetts Department of Revenue, www.dor.sfafe.ma.us
Renewable Energy Property Tax Exemption, Excise Tax Exemption for Solar
or Wind Powered Systems, (800) 392-6089
Net Metering, Massachusetts Department of Public Utilities
Barry Perlmutter, barry.perlmutter@state.ma.us, (617) 305-3659
Information current as of November 2008; please refer to www.dsireusa.org and the state Web sites
provided, or contact the points of contact identified above for more up to date information
Massachusetts Incentives for Clean and Renewable Energy - Page '
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Incentives for Development of Contaminated Land
Funding (grants, loans, bonds, etc.)
Limitations on Liability
Brownfields Redevelopment Fund (BRF)
www.massdevelopment. com/financing/lg_brownfields. aspx
Provides interest-free financing of up to $100,000 per project for
environmental site assessments in economically distressed areas. Also
offers low-interest financing of up to $500,000 for cleanup. Terms are
flexible and determined on a case-by-case basis. The borrower or project
sponsor must be an "eligible person," as defined by statute, with site
control or evidence of the right to enter the site for purposes of conducting
environmental testing.
MassBusiness Remediation Loan Program
www.mass-business.com/site/site-massbiz/content/remediation-loan-
program/
Offers loans from $500,000 to $2 million to finance cleanup costs,
regulatory compliance costs, site preparation and entitlement, demolition,
construction, mortgage financing, and other costs. Flexible terms are
custom-designed to meet the unique requirements of each individual
project. As needed, "Interest Reserves" can often be built into the loan to
eliminate out-of-pocket loan servicing costs during the term of a project.
Massachusetts Opportunity Relocation and Expansion (MORE)
Jobs Capital Program
www.mass.gov/?pagelD=ehedterminal&L=4&LO=Home&L1=Start%2c+Gro
w+%>6+Relocate+Your+Business&L2=Financing+%>6+Funding&L3=lnfra
structure+Financing&sid=Ehed&b=terminalcontent&f=mobd_fin_fund_more
_info&csid=Ehed
Offers competitive grants to municipalities that partner with private
developers to improve infrastructure for projects that create jobs. Although
site assessments cannot be funded through MORE, site remediation and
preparation work that is tied to infrastructure improvements is eligible for
funding. Individual grant amounts will vary with each awarded project.
Tax Incentives (abatements, credits, etc.)
Brownfields Tax Credit for Remediation
www.mass.gov/dep/cleanup/brtxinc.htm
Provides a tax credit of 25% (with reuse restrictions) or 50% (without reuse
restrictions) for eligible persons who complete projects in Economically
Distressed Areas (EDAs). Several conditions apply for property eligibility.
Economic Development Incentive Program (EDIP)
www.mass.gov/dep/cleanup/brtxinc.htm
Provides tax relief financing up to a 5% investment tax credit, 10%
abandoned building tax deduction, and local real estate tax incentives such
as Tax Increment Financing (TIF) or Special Tax Assessment (STA).
Eligible projects must be considered revenue generating and located in an
Economic Target Area (ETA).
Technical Assistance and Other Incentives
Brownfields Redevelopment Access to Capital (BRAC)
www.mass.gov/dep/cleanup/bfins.htm
Provides state subsidized, volume discounted environmental insurance up
to 50% of the eligible premium, up to a maximum of $50,000, to promote
the environmental cleanup and redevelopment of brownfields. The subsidy
is provided through a private insurer and administered by MassBusiness.
Pollution legal liability and cleanup cost cap coverage is also available.
Massachusetts Brownfields Act
www.mass.gov/dep/cleanup/bfhdout2.htm
Provides liability protection for several types of parties involved in
brownfields projects, including: owners/operators, down gradient property
owners, tenants, Redevelopment Authorities, Community Development
Corporations, and secured lenders. The Brownfields Covenant Not to Sue
(CNTS) Program provides liability protection for more complicated projects.
Quick Facts
Limitations on Liability
Yes 0 No D
35,927
Number of State-Tracked Contaminated Properties:
Includes the number of release notifications
Number of EPA CERCLIS Sites: 405
Sites identified for potential investigation under the federal Superfund Program
Number of EPA Brownfields Properties: 777
Properties being funded or addressed under the EPA Brownfields Program
There may be some overlap among the categories listed and sites listed may not
represent all potentially contaminated sites in Massachusetts.
Points of Contact
BRF, Mass Development
(800) 445-8030
MassBusiness Remediation Loan Program
Tom Barry, tbary@mass-business.com, (781) 928-1100 Ext. 106
MORE Jobs Capital Program
Executive Office of Economic Development (EOED)
Nayenday Thurman, Nayenday.thurman@state.ma.us, (617) 788-3636
Brownfields Tax Credit for Remediation
Department of Environmental Protection (MassDEP)
Steve McCurdy, Director, (617) 292-5779
Katherine Finneran, Brownfields Coordinator, (617) 292-5779
EDIP, Massachusetts Office of Business Development
Lauren Jones, lauren.jones@state.ma.us, (617) 788-3638
BRAC, Massachusetts Business Development Corporation
(781)928-1106
Information current as of November 2008; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the state Web sites provided,
or contact the points of contact identified above for more up to date information.
Massachusetts Incentives for Development of Contaminated Land - Page 2
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