Show me the Money: Applications Available now for Washington's State Energy Program
On July 1, 2009, Washington State’s Department of Community, Trade and Economic Development (“CTED”) issued application guidelines and forms for its State Energy Program (“SEP”) (available by clicking here). The American Recovery and Reinvestment Act of 2009 (the “Recovery Act”) provided $60.9 million in new funding for Washington’s SEP. Subsequently, the Washington Legislature allocated $38.5 million to CTED to administer a loan and grant program for energy efficiency and renewable energy program (see our client alert, available here, regarding the legislative action).
Eligible energy efficiency, renewable energy, and clean energy projects may be eligible for SEP funding between $500,000 and $2 million.
Eligible energy efficiency projects are those that use technologies that have been deployed at commercial scale that result in the reduction in energy consumption through increases in the efficiency of energy use, production, or distribution, and high-efficiency cogeneration. Ineligible projects are those that are eligible for Recovery Act Funding for community wide urban residential and commercial energy efficiency upgrades as described in (i) Chapter 379, Laws of 2009; (ii) Low income weatherization projects and programs which are eligible for funding through the state’s low-income weatherization program; (iii) Loans support to financial institutions for energy efficiency projects as described in Chapter 379, Laws of 2009; (iv) state energy efficient appliance rebates; and (v) green jobs training as described in Chapter 536, Laws of 2009.
Eligible renewable energy projects are those that are located in Washington and use existing commercial scale technologies that generate liquid fuels, process heat or electricity using algae, bark, biodiesel, biomass, biosolids, food waste, fresh water, gas from sewage treatment facilities, landfill gas, geothermal, pulping liquors, sawdust, solar, hydrokinetics, wind, wood chips and various other waste products. Ineligible projects include those that use the following feedstocks: municipal solid waste, wood from old growth forests, and chemically treated wood.
Eligible clean energy innovation projects include are those that offer innovative new technologies or service delivery models for energy efficiency, renewable energy, or other areas of clean energy. Projects must have a solid chance at commercial scale deployment within two to three years. Ineligible projects include carbon sequestration projects, lab scale projects, and those excluded under federal SEP guidelines.
Interested parties must file a notice of intent to apply by July 27, 2009 at 5:00 p.m. Pacific.
Full applications are due on August 17, 2009 at 5:00 p.m. Pacific.
Information workshops will be held on July 13, 14, 15, and 16. Click here for the specific dates and times. I will be attending the July 13 workshop in Everett, WA. An informational webinar will also be held on July 23.
ENERGY TAX PROVISIONS INCLUDED
From a bootleg copy of the tax provisions in the stimulus bill:
The grant in lieu of tax credits is in the bill. However, it is now Treasury rather than DOE that will issue the checks. The provision has also been changed to allow the grants to be issued even though the property is not placed in service before 2011, so long as the credit is still in effect and construction began before 2011.
In addition, the bill also includes:
1. the placed in service date for the PTC is extended three years,
2. taxpayers can elect the ITC (30%) in lieu of the PTC, beginning in 2009 through 2013 (2012 in the case of wind),
3. the allocation for CREB bonds is increased by $1.6B,
4. the allocation for qualified energy conservation bonds is increased by $2.4 B,
5. Bonus depreciation and small business expensing extended through 2009,
6. 5-year NOL carryback allowed but only for small businesses,
7. A 30% investment credit for investment in qualified advanced energy projects,
Stoel Rives will be issuing an alert describing the provisions in detail in the near future. If you are not already a subscriber, please click on the "Subscribe" button to sign up.
UPDATE -- Deal Reported Among Senate Democrats
Within the last hour, it is being reported that Senate Democrats have reached an agreement with certain Republican Senators and the White House on the outlines of a compromise stimulus bill that can pass the Senate. Although details are sketchy, apparently WH Chief of Staff Rahm Emanuel met with Senate Democratic leaders and swing Republicans to hammer out the agreement. It is being suggested that the bill, in its altered form, could be passed as early as tonight (Friday).
The Senate adjourned last evening without taking final action on the stimulus bill. Senate leadership has speculated publicly that they currently do not have sufficient votes to pass the measure in its current form.
A group of 12 Senators -- Democrats and Republicans -- led by Susan Collins (R-ME) and Ben Nelson (D-NE) -- have been working behind the scenes on an alternative proposal to address many concerns expressed by members. This effort reportedly would strip as much as $100 billion from the bill. While the group has, apparently, found it difficult to achieve a consensus on the proposal, the leadership decided it was important to give the group more time to work rather than continue floor debate.
Majority Leader Harry Reid has stated that the Senate would reconvene on Saturday morning. Saturday sessions are fairly unusual and extremely unpopular among members. As a result, it may be difficult for the Leader to make that happen.
