Stimulus: $550 Million Going for Renewable Energy Production

The Treasury and Energy departments announced that they have awarded $550 million in Recovery Act money to 25 renewable energy production projects in 14 states. The awards were made through the Recovery Act's 1603 program, which directs the federal government to provide cash assistance to energy producers in lieu of tax credits.

Under the program, recipients will get cash payments that cover 30% of the qualifying cost of projects. The result is that for every federal dollar allocated, more than $2 comes from private sector investments.

"This Recovery Act program is an example of a true federal partnership with the private sector," Treasury Secretary Tim Geithner said. He added, "Not only are our Recovery dollars meeting an immediate funding need among innovative companies, they are also jumpstarting private sector investment in communities across the country — with benefits for the renewable energy industry and our economy alike."

Energy Secretary Steven Chu said the investments are critical to ensuring that America can be competitive in the race for the clean energy jobs of the future, and that with America's workforce and innovation "...we can and must lead the world when it comes to the new Industrial Revolution in clean energy."

Grants range in size from $5,280 to $122 million with the largest grants going to wind farm projects. In addition to wind farms, other awards are for projects such as landfill power generation and solar rooftop panel installations.

The states receiving the awards are: California, Colorado, Florida, Hawaii, Iowa, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, South Dakota, Texas and Vermont.

This is the second round of grants awarded from the 1603 program. More than $500 million was awarded on Sept. 1, 2009. The Treasury Department said it will make the awards in half the statutorily mandated turnaround time of 60 days. Officials note that the grants are having an immediate effect on the renewable energy industry by greatly increasing the availability and liquidity of project capital.

   DOE news release