ARLINGTON, VA; March 17, 2011 — The Internal Revenue Service (IRS) has announced the allocation of $190,795,445 in bonding authority for 13 electric cooperative projects under the New Clean Renewable Energy Bonds (“New CREBs”) program.
The IRS called for applications in November of 2010 to use some of the 2009 volume cap left over from the initial round applications. This latest round will be the last round of allocations, however, unless Congress acts to authorize additional volume cap.
To date, the IRS has approved more than $1.19 billion in CREB allocations for cooperative renewable development. Prior to the CREB program, which was created by the Energy Policy Act of 2005, cooperatives had been hampered in their efforts to develop renewable energy by their inability, as not-for-profit entities, to take advantage of the production tax credits available to for-profit firms.
Cooperatives are using the new bonds to develop an array of renewable projects, including, among others, wind, geothermal, closed-loop biomass (trees grown expressly for electricity production), open-loop biomass (sawdust, tree trimmings, farm byproducts, animal waste, landfill gas), small hydropower (less than 25 MW), and solar energy systems..
Sixteen electric cooperatives applied for bonding authority. The allocation is valid for three years after the date of the letter issuing the allocation.