Department of Treasury Releases Guidelines for Obtaining Renewable Energy Grants
The much-anticipated guidelines and application instructions for renewable energy cash grants available under the February 2009 stimulus bill have been released by the Department of Treasury. Section 1603 of the stimulus bill (formally known as the American Recovery and Reinvestment Act of 2009, or ARRA) provides for cash grants in lieu of tax credits equal to 30% of a renewable energy project's cost.
The cash grant program will be used mostly by wind developers, many of whom have delayed projects while waiting to see how the regulations turn out. The regulations resolved two important issues in favor of developers. First, the regulations confirm that application for an Section 1603 grant will not, by itself, trigger review of the project under the National Environmental Policy Act (NEPA). Second, projects receiving grants will not be obligated to pay prevailing wages under the Davis Bacon Act of 1931.
Applications may be made online at treasury.gov through October 1, 2011. Payment will be made to qualified applicants within 60 days after approval or the date the project is placed in service, whichever is later. The Treasury anticipates receiving about 5,000 applications.
Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.
