U.S. Sens. Dianne Feinstein, D-Calif., and Jeff Merkley, D-Ore., have introduced a measure to spur the development of renewable energy projects – such as wind farms, solar farms and solar panel factories – which would generate new employment opportunities.
The bill would primarily extend and expand a Treasury Department grant program that was established in Section 1603 of the American Recovery and Reinvestment Act of 2009 in order to help diminish the impact of the economic crisis on the renewable energy sector.
The Treasury grant program is currently slated to expire in 2010. The legislation introduced by the senators would extend the program for two additional years. It would also expand this program to allow public power utilities to participate. Finally, it would create a new tax credit for solar manufacturing facilities and the construction of large solar projects on disturbed private lands.
‘If the grant program is not extended, bank profits will again become the limiting factor on renewable energy development in the United States, and that makes no sense. This legislation would extend the grant program for two additional years – until 2012,’ says Feinstein. ‘It would also allow public power utilities to qualify for the grants program, since they provide energy for as many as 45 million Americans.’
In addition to extending the Treasury grant program, the Renewable Energy Incentive Act (S.2899), would level the playing field between public power and for-profit companies by allowing public power utilities to receive Treasury grants for renewable energy projects.
Public power utilities have to establish complex financial arrangements with private developers in order to build renewable energy projects that qualify for grants under current law. This is in conflict with public power's vertically integrated, nonprofit model.
SOURCE: Office of Sen. Dianne Feinstein
