&EPA United States Environmental Protection Agency 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 redevelopme 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.) Biomass Energy Program www. adeca.state. al. us/C 16/Biomass %20Energy%20Program/default. aspx Provides up to $75,000 in interest subsidy payments to help defray the interest expense on loans to install approved biomass projects. Sponsored by the Alabama Department of Economic and Community Affairs (ADECA). The program provides funding and technical assistance for industrial, commercial, and institutional facilities looking to install biomass energy systems. Landfill gas (LFG) projects are also eligible for funding consideration. Participants obtain loans from commercial lending institutions and submit repayment data to ADECA for interest payment assistance. Note: interest rates on these loans should be no greater than 2% above the prime rate. Green Power Switch Generation Partners Program www.tva.com/greenpowerswitch/partners/ Offers purchase of solar photovoltaic-generated electricity from commercial energy producers, at a rate of $0.20 per kWh, for a duration of 10 years. Although the maximum output for commercial generation systems remains at 50 kW, larger systems may be permitted with mutual agreement of the purchaser, Tennessee Valley Authority (TVA), on a case-by-case basis. A list of participating Alabama power distributors can be found at: www.tva.com/greenpowerswitch/partners/distributors.htm. Quick Facts Public Benefit Fund (PBF) Renewable Portfolio Standard Net Metering Interconnection Standards YesD No0 YesD No0 YesD No0 Yes D No 0 Electric Power Industry Generation by Primary Energy Source (EIA, 2006) Petroleum-Fired 0.1% Nuclear 22.6% Natural Gas-Fired 13.8% Hydroelectric 5.1% Coal-Fired 55.4% Other Renewables 2.8% Points of Contact Biomass Energy Program Alabama Department of Economic and Community Affairs www.adeca.alabama.gov Clarence Mann, clarence.mann@adeca.alabama.gov, (334) 242-5330 Green Power Switch Generation Partners Program Refer to www.tva.com/greenpowerswitch/partners/distributors.htm for a list of participating power distributors in Alabama. Once a distributor has been identified, call the TVA at (865) 632-2101 to be connected to the appropriate facility, or email tvainfo@tva.com. 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. Alabama Incentives for Clean and Renewable Energy - Page ' ------- Incentives for Development of Contaminated Land Funding (grants, loans, bonds, etc.) Alabama Department of Environmental Management (ADEM) Land Recycling Revolving Fund (RLF) Program http://216.226.179.150/LandDivision/Brownfields/redevelopment_home.htm Offers low interest loans, on an amount-requested basis, to governmental entities and nonprofit organizations on a competitive basis for the remediation of contaminated sites. To be eligible, applicants must own the properties. The negotiated loans generally have a 10-year payback period. The potential creation of jobs, potential benefit to the communities, and plans for sustainable redevelopment also will be taken into consideration in determining loan recipients. This program was initially funded by a $1 million EPA Brownfields RLF grant. Tax Incentives (abatements, credits, etc.) Alabama Department of Revenue—Income Tax Capital Credit http://ador.alabama.gov/Taxincentives/capcrsummary.htm Offers a credit of 5% of the capital costs of a qualifying project, to be applied to the Alabama income tax liability generated by the project income, each year for 20 years. A project consists of new investment at a new site in Alabama, or new investment that will expand the capacity and number of employees at an existing facility. Capital cost requirement under this credit is not less than $2 million for new, expansion, and headquarters facility projects. Facilities must also have at least 20 employees. Alabama Department of Revenue- Tax Incentive Reform Act of 1992 Abatements www. ador.state, al. us/Taxincentives/abatecover. htm Offers potential abatements on taxes that include: state sales and use taxes; non-educational county and city sales and use taxes; non- educational state, county, and city property taxes, for up to 10 years; and mortgage and recording taxes. To receive an abatement for any or all of these taxes, a business must meet certain qualifications and follow certain procedures, as determined by laws and regulations defined in an "Abatement Booklet" published by the Alabama Department of Revenue. Limitations on Liability Brownfields Redevelopment and Voluntary Cleanup Program - Letter of Concurrence http://216.226.179.150/LandDivision/LandDivisionPP.htm Offers a "Letter of Concurrence" from ADEM to VCP participants once it is proven that all requirements of an approved cleanup plan are complete. These letters provide limited liability protection for owners and operators and broad liability protection for prospective purchasers, lenders, and non- responsible parties. Conditional Letters of Concurrence may be awarded if temporary institutional controls are in place on a property. Quick Facts Limitations on Liability Yes 0 No D 356 Number of State-Tracked Contaminated Properties: Includes RCRA and VCP sites Number of EPA CERCLIS Sites: 309 Sites identified for potential investigation under the federal Superfund Program Number of EPA Brownfields Properties: 85 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 Alabama. 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. Points of Contact ADEM RLF Program, Brownfields Redevelopment and Voluntary Cleanup Program Letter of Concurrence ADEM Brownfields Program, Land Division Program http://216.226.179.150/LandDMsion/Brownfields/index.htm http://216.226.179.150/LandDivision/LandDivisionPP.htm Larry Morris, lan@adem.state.al.us, (334) 279-3053 Income Tax Capital Credit Alabama Department of Revenue Kelly Graham, kelly.graham@revenue.alabama.gov, (334) 242-1175 Tax Incentive Reform Act of 1992 Abatements Alabama Department of Revenue Angela Till, angela.till@revenue.alabama.gov, (334) 242-1175 Alabama Incentives for Development of Contaminated Land - Page 2 ------- |