Federal Incentives for Achieving Clean Energy Development on Contaminated Lands

Federal Incentives for Achieving Clean Energy

Development on Contaminated Lands
The development of dean and renewable energy on formerly used land offers many economic and environmental benefits. Combining dean and *
renewable energy and contaminated land cleanup incentives can allow investors and communities to create economically viable clean and renewable energy redevelopmt
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 Energy
Funding (grants, loans, bonds, etc.)
Clean Renewable Energy Bonds (CREB)
www.irs.gov/irb/2007-14JRB/ar17.html
Provides 0% interest bonds to finance public sector renewable energy
projects. The borrower pays back only the principal of the bond and the
bondholder receives federal tax credits in lieu of traditional bond interest.
Participation in the program is limited by the volume of bonds allocated by
Congress. Participants must first apply to the Internal Revenue Service
(IRS) for a CREB allocation.

USDA Rural Energy for America Program (REAP)
www.ers.usda.gov/FarmBill/2008/Titles/TitlelXEnergy.htm
Provides agricultural producers and rural small businesses with funding for
renewable energy systems. Grants are limited to 25% of a proposed
project's cost, and a loan guarantee may not exceed $25 million. The
amount of a grant may not exceed 25% of the project's cost. Grants are
limited to $500,000 for renewable energy systems and $250,000 for energy
efficiency improvements. The combined amount of a grant and loan
guarantee may not exceed 75% of the project's cost. Check the Web site
periodically for updates on 2009 application deadlines.

Tax Incentives (abatements, deductions, credits, etc.)
Renewable Electricity Production Tax Credit (PTC)
www. dsireusa. org/library/includes/incentive2. elm ?lncentive_Code= US13F
&State=federal¤tpageid= 1&ee= 1&re= 1
Provides a per kW hour tax credit for electricity generated by qualified
energy resources and sold by the taxpayer to an unrelated person during
the taxable year. Legislation enacted in October 2008 extended the in-
service deadlines for all qualifying renewable technologies and expanded
the list of qualifying resources. For renewable energy for sales of electricity
for the first 10 years of operation, the PTC provides per kWh tax credit for
the owner, lessee, or operator of a facility that generates electricity
including: 2.00/kWh for wind, closed-loop biomass, and geothermal; and
1.00/kWh for open-loop biomass, small irrigation hydroelectric, landfill gas,
municipal solid waste resources, and hydropower. The in-service deadlines
are: December 31,2009 for wind energy; December 31,2010 for biomass,
geothermal, landfill gas, municipal solid waste, and qualified hydroelectric;
and December 31,2011 for marine and hydrokinetic.

Federal Business Energy Tax Credit
www. dsireusa. org/library/includes/incentive2. elm ?lncentive_Code= US02F
&State=federal¤tpageid=1&ee=1&re=1
Provides a tax credit for equipment placed in service before 2016, including
30% for solar, solar hybrid lighting, and fuel cells; 10%formicroturbines;
and 10% for geothermal equipment. The maximum incentives are: $1,500
per 0.5 kW for fuel cells; $200 per kW for microturbines; $4,000 maximum
credit for small wind. Eligible system sizes are: 100 kW or less for small
wind turbines; 0.5 kW or greater for fuel cells; 2 MW or less for
microturbines; and 50 MW or less for combined heat and power systems.
Renewable Energy Production Incentive (REPI)
apps1.eere.energy.gov/repi/
Provides per kWh annual incentive payments of 1.50/kWh (in 1993 indexed
for inflation) to new qualifying renewable energy facilities on electricity sold
to other entities. The incentive is available for the first 10-years of
operation, subject to the availability of annual federal appropriations.

Technical Assistance and Other Incentives
Modified Accelerated Cost-Recovery System (MARCS)
www. dsireusa. org/library/includes/incentive2. elm ?lncentive_Code= US06F
&State=federal¤tpageid= 1&ee= 1&re= 1
Allows businesses to recover investment in certain property through
depreciation deductions. The federal Energy Policy Act of 2005 classified
fuel cells, microturbines, and solar hybrid lighting technologies as five-year
property. The federal Economic Stimulus Act of 2008 included a 50%
bonus depreciation provision for eligible renewable-energy systems
acquired and placed in service in 2008.
Quick Facts
U.S. Electric Power Industry Generation by
Primary Energy Source (EIA, 2006)
Petroleum-Fired 1.6% Nuclear 0.3%
Natural Gas-Fired 20.0% Hydroelectric 7.1%
Coal-Fired 49.0% Other Renewables 2.4%
Points of Contact
Internal Revenue Service, www.irs.gov
CREB, MARCS
IRS Public Information, (800) 829-1040
Renewable Electricity PTC, Federal Business Energy Tax Credit
IRS Assistance for Businesses, (800) 829-4933
REAP
U.S. Department of Agriculture, Rural Business-Cooperative Service
www. rurdev. usda. gov/rbs/
(202) 690-4730
REPI
U.S. Department of Energy, Energy Efficiency and Renewable Energy
www. eere. energy.gov,
Christine Carter, Christine.Carter@go.doe.gov
Information current as of November 2008; please refer to www.dsireusa.org and the federal Web sites
provided, or contact the points of contact identified above for more up to date information.
Federal Incentives for Clean and Renewable Energy - Page '

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Incentives for Development of Contaminated Land
Funding (grants, loans, bonds, etc.)
U.S. Environmental Protection Agency (EPA) Brownfields
Grants
www.epa.gov/swerosps/bf/pilot.htm
Assessment Grants
www.epa.gov/brownfields/assessment_grants.htm
Provides funding for a grant recipient to inventory, characterize,
assess, and conduct planning and community involvement related
to brownfield sites. An eligible entity may apply for up to $200,000
to assess a site. Total grant fund requests should not exceed a total
of $400,000 unless such a waiver is requested. Assessment
proposals may be submitted by coalitions of eligible entities to pool
their grant funds. Assessment coalitions may submit only one
proposal up to $1,000,000. The performance period for these grants
is three years.

Cleanup Grants
www.epa.gov/brownfields/cleanup_grants.htm
Provides funding to brownfield properties that have been
determined to have an actual release or a substantial threat of
release for a hazardous substance. An individual applicant can
apply for up to $1,000,000. Coalitions of eligible entities may apply
together under one applicant for up to $1,000,000 per eligible entity.
Loans may also be used at sites with a release or substantial threat
of release of a pollutant or contaminant that may present an
imminent or substantial danger to public health or welfare.

Revolving Loan Fund Grants
www.epa.gov/brownfields/rlflst.htm
Provides funding to brownfield properties that have been
determined to have an actual release or substantial threat of
release of a hazardous substance. An individual applicant can apply
for up to $1,000,000. Coalitions of eligible entities may apply
together under one applicant for up to $1,000,000 per eligible entity.

Job Training Grants
www.epa.gov.brownfields/jobs.htm
Provides funding up to $200,000 over two years. Applicants must
establish procedures to ensure that graduates will be employed in
brownfields and/or environmental work that involve the assessment,
cleanup, and/or redevelopment of contaminated sites with a focus
on the graduates' respective communities.

Training, Research, and Technical Assistance Grants
www. epa. gov/brownHelds/trta. htm
Provides funding for eligible entities or nonprofit organizations to
provide brownfields training, research, and technical assistance to
individuals and organizations. The maximum amount of funding
available per applicant is $1,500,000. Applicants may propose
performance periods of up to five years, with the maximum annual
funding not to exceed $300,000.
Tax Incentives (abatements, credits, deductions, etc.)

Brownfields Tax Incentive
www.epa.gov/brownfields/bnaxinc.htm
Allows environmental cleanup costs at eligible properties to be fully
deductible in the year incurred, rather than capitalized and spread over
a period of years. Hazardous substances or petroleum must be present
or potentially present on the property. The taxpayer must incur the
eligible expenses for use in a trade or business or for the production of
income; or the property must be properly included in the taxpayer's
inventory. The taxpayer must obtain a statement from a designated
state agency verifying a property's eligibility (see www.epa.gov/
brownHelds/stxcntct.htm for a list of contacts). The Brownfields Tax
Incentive has been extended through December 31,2009.
Quick Facts
Number of EPA CERCLIS Sites: 12,617
Sites identified for potential investigation under the federal Superfund Program

Number of EPA Brownfields Properties: 17,759
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 the United States.
Points of Contact
EPA Brownfields Grants
www. epa. gov/swerosps/bf/pilot. htm
Office of Brownfields and Land Revitalization, (202) 566-2777
Brownfields Tax Incentive
Office of Brownfields and Land Revitalization
Sven-Erik Kaiser, kaiser.sven-erik@epa.gov, (202) 566-2753
Information current as of November 2008; please refer to
www.epa.gov/brownfields/pubs/st_res_prog_report.htm and the federal Web sites provided,
or contact the points of contact identified above for more up to date information.
Federal Incentives for Development of Contaminated Land - Page 2

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