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 ' ------- 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 ------- |