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 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.) Renewable Energy Grant Program www. energy, sc. gov/index. aspx?m=29&t= 90&h=405 These programs are currently suspended, pending review in the 2009 Legislative Session. Planning Grants Provides up to $10,000 to develop proposals to obtain federal grants and other funding for biomass, solar, and wind energy projects. Matching Grants Provides matching grants up to $200,000 for research and development projects with biomass, solar, and wind energy resources that validate the effectiveness of new and future biomass technologies and products; the grant should not exceed 50% of the total project cost. Renewable Energy Revolving Loan Program www. energy, sc. gov/index. aspx?m=29&t= 90&h=404 Provides low-interest loans for up to 50% of the total cost of a project and a maximum of $250,000 to an individual or organization that plans to build a qualified renewable energy production facility. Biomass Energy Production Incentive www.scstatehouse.net/sess117_2007-2008/bills/243.htm Provides production incentives up to $100,000 per taxpayer for qualifying biomass-energy facilities of $0.01 per kWh for electricity generated and $0.09 per therm for methane gas produced from biomass resources. Tax Incentives (abatements, credits, deductions, etc.) Biomass Energy Tax Credit www.scstatehouse.net/sess117_2007-2008/bills/243.htm Provides a 25% corporate tax credit for costs incurred for the use of landfill methane gas to provide power for a manufacturing facility. Also provides a credit against income tax and/or license fees for 25% of the costs incurred for the purchase and installation of equipment used to create energy for commercial use from a fuel consisting of at least 90% biomass resources. Maximum annual credit of $650,000 per facility, not to exceed 50% of tax liability. Tax Credit for Solar Equipment www.energy.sc.gov/publications/SOLAR_CREDITS.pdf Provides a 25% state income tax credit of the cost of solar equipment used for heating water, space heating, air cooling, or the generation of electricity. Sales Tax Exemption for Hydrogen Fuel Cells www. scstatehouse. net/code/t 12c036.htm Provides a sales tax exemption for any device, equipment or machinery that is: 1) operated by hydrogen or fuel cells; 2) used to generate, produce, or distribute hydrogen and designated specifically for hydrogen applications or for fuel cell applications; and 3) used for the manufacturing of, or research and development involving hydrogen or fuel cells. Technical Assistance and Other Incentives Renewable Energy One-Stop Shop www. energy, sc. gov/index. aspx?m=6&t= 92 Assists renewable energy businesses interested in locating in South Carolina through collaboration between state and federal agencies and key stakeholders. Green Power Purchasing www.energy.sc.gov/publications/SOLAR_CREDITS.pdf The following companies purchase clean energy including solar, biofuel, and wind power: Santee Cooper www.santeecoopergreen.com; PACE www.palmettocleanenergy.org. Net Metering www. energy, sc. gov/index. aspx?m=6&t= 99 In May 2008, the South Carolina Public Service Commission (PSC) issued a directive that required investor-owned electric utilities to offer net metering to its customers beginning July 1,2008. Each utility has proposed its own net metering program. Both Duke Energy and Progress Energy limit customer generation to 0.2% of the previous year's aggregate peak demand. Progress Energy has two net metering programs: the first requires customers to use a time-of-use tariff; the second charges customers an annual fee to net meter. Santee Cooper, a state-owned utility, began a pilot net billing program in fall 2007. The electric cooperatives, which purchase power from Santee Cooper, announced a pilot net metering program in February 2008. Quick Facts Public Benefit Fund (PBF) Renewable Portfolio Standard Net Metering Interconnection Standards Yes D No 0 Yes D No 0 Yes 0 No D Yes 0 No D Electric Power Industry Generation by Primary Energy Source (EIA, 2006) Petroleum 0.3% Hydroelectric 1.8% Natural Gas 6.1% Other Renewables 1.9% Coal 39.8% Pumped Storage -1.1% Nuclear 51.2% Other 0.1% Points of Contact All South Carolina Energy Incentives and Programs Erika Hartwig, ehartwig@energy.sc.gov, (803) 737-7951 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. South Carolina Incentives for Clean and Renewable Energy - Page 1 ------- Incentives for Development of Contaminated Land Funding (grants, loans, bonds, etc.) Brownfields Cleanup Revolving Loan Fund www.scdhec.gov/environment/lwm/forms/BCRLF_Fact_Sheet.pdf Provides low-interest loans at two points below prime rate for environmental cleanup, through a U.S. EPA grant. Members of the coalition partnership (consisting of the Counties of Abbeville, Anderson, Greenville, Kershaw, and Spartanburg; the Towns of Bluffton, Cowpens, Johnston, Lyman, Ware Shoals, and Yemassee; and the Cities of Anderson and Greenville) currently have specific amounts available to them for cleanup. Other local governments, businesses, nonprofit organizations, and public and private parties are eligible to apply if they are not responsible parties for the site being remediated. South Carolina Department of Health and Environmental Control (DHEC) Site Specific Assessments www.epa.gov/brownfields/pubs/bf_states_r4.pdf Conducts a limited number of site-specific assessments through an EPA grant at selected and EPA-approved sites that are publicly owned or have strong local government support for redevelopment. Dry Cleaning Restoration Trust Fund www.sc.gov/NewsCenter/DHEC/nr20060925-02.htm Provides funding for assessment and remediation activities performed by DHEC at participating dry cleaning plants that meet specific eligibility criteria specified by law. The maximum payout is $1,000,000. State Underground Petroleum Environmental Response Bank (SUPERB) Account and SUPERB Financial Responsibility Fund www.scdhec.net/environment/lwm/forms/d-3472.pdf Provides funding for usual and customary costs for site rehabilitation of underground storage tank (UST) releases to UST owners or operators. The SUPERB Financial Responsibility fund is used for compensating third parties for actual costs for injury and property damage caused by a petroleum release. These two state assurance funds provide a combined maximum of $1 million per eligible occurrence to cover these costs after payment of the $25,000 deductible established by the SUPERB Act. Tax Incentives (abatements, credits, deductions, etc.) Voluntary Cleanup Program Tax Incentives www.scdhec.gov/environment/lwm/HTML/brownfields.htm Provides the following tax incentives to non-responsible parties that meet Voluntary Cleanup Program requirements: 1) a state corporate income tax credit of 50% of expenses paid and accrued in performing a voluntary cleanup, up to $50,000 in a taxable year, plus an unused credit up to $100,000 may be carried forward for five years—an additional credit of 10% of cleanup costs (not to exceed $50,000) is allowed in the year that the cleanup is certified; 2) a $1,000 jobs tax credit in addition to the established job tax credit; 3) up to a five-year property tax exemption with county concurrence; and 4) fees in lieu of property taxes for eligible cleanups that exceed a cost of $1 million. Limitations on Liability www.scdhec.gov/environment/lwm/HTML/brownfields.htm Provides state Superfund liability protection, contribution protection, and third party liability protection for non-responsible parties that complete Voluntary Cleanup Program requirements. Quick Facts Limitations on Liability Yes 0 No D 293 Number of State-Tracked Contaminated Properties: Includes DHEC Land and Waste Management Public Record sites Number of EPA CERCLIS Sites: 253 Sites identified for potential investigation under the federal Superfund Program Number of EPA Brownfields Properties: 100 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 South Carolina. Points of Contact All South Carolina Cleanup Incentives and Programs Robert Hodges, hodgesrf@dhec.sc.gov, (803) 896-4069 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. South Carolina Incentives for Development of Contaminated Land - Page 2 ------- |