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Treasury, Energy Surpass $1 Billion Milestone in Recovery Act Awards for Clean Energy Projects

September 22, 2009

This morning, Treasury Secretary Tim Geithner and Energy Secretary Steven Chu hosted a group of clean energy developers and manufacturers at the White House to discuss how the American Recovery and Reinvestment Act (Recovery Act) is creating jobs and helping expand the development of clean, renewable domestic energy. At the meeting, Secretaries Geithner and Chu announced $550 million in new awards through the Recovery Act's 1603 program, bringing the total to more than $1 billion awarded to date to companies committed to investing in domestic renewable energy production.

"This Recovery Act program is an example of a true federal partnership with the private sector," said Treasury Secretary Geithner. "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."

Said Secretary Chu: "These investments are crucial to ensuring America can compete and win in the race for the clean energy jobs of the future. With American workers and American innovation, we can and must lead the world when it comes to the new Industrial Revolution in clean energy."

Created under Section 1603 of the Recovery Act, the program provides cash assistance to energy producers in place of tax credits. The payments improve project viability, enabling companies to create and retain jobs, and establish sufficient financing bases for projects that may otherwise not be possible, dramatically expanding and accelerating the development of renewable energy projects throughout the country. Under this program, the federal government provides a cash payment in lieu of a tax credit totaling 30% of the qualifying cost of the project; for each federal dollar spent in payments, more than two dollars are spent in private sector investments.

Today the Treasury Department will make the second round of awards, all of which will be made in half the statutorily mandated turnaround time of 60 days. The first round of awards totaling $502 million was announced on September 1, 2009. Today's announcement provides an additional $550 million. The 1603 program is having an immediate effect on the renewable energy industry by significantly increasing the availability and liquidity of project capital in three ways:

Project developers receiving awards through this program participated in today's meeting, including Ameresco, First Wind, Horizon Wind, and Sun Edison. Also participating were several renewables manufacturers who supply these developers, including Cardinal Fastener, GE Energy, Gamesa, Solyndra, and Vestas Americas.

The following is a chart of the 25 projects that qualified for awards as part of today's announcement.

STATE PROJECT/SUBSIDIARY LOCATION AMOUNT
California Bob's Big Boy, LLC Burbank, California $53,648
California Ameresco Half Moon Bay, LLC Half Moon Bay, California $6,641,747
California Ameresco Keller Canyon, LLC Pittsburg, California $2,796,377
California BioFuel Oasis Cooperative, Inc Berkely, California $16,858
Colorado 5135 Company Denver, Colorado $23,130
Florida Conditioned Air Corporation of Naples Naples, Florida $50,250
Hawaii Two Daughters Kihei, Hawaii $15,150
Iowa Barton Wind Farm Kinsett, Iowa $93,419,883
Minnesota BI Minneapolis, Minnesota $25,649
Minnesota Spruce Tree Centre St. Paul, Minnesota $107,764
Missouri Farmers City Wind Farm Tarkio, Missouri $84,959,857
Missouri Ameresco Jefferson City, LLC Jefferson City, Missouri $2,300,244
North Carolina Solar Billboard Property Bolivia, North Carolina $5,850
New Jersey Meadowlands Exposition Center Secaucus, New Jersey $767,937
New Jersey EHT Leasing, LLC Egg Harbor Township $118,560
New Jersey OC Kearny Kearny, New Jersey $992,006
Nevada Enel Salt Wells, LLC Fallon, Nevada $21,196,478
Nevada Enel Stillwater, LLC Fallon, Nevada $40,324,394
New York OP 110 E. 59th St. CHP New York, New York $415,774
South Dakota Impervious Energy Systems, LLC Whitewood, South Dakota $31,511
Texas Barton Chapel Wind Farm Jacksboro, Texas $72,573,627
Texas Rio Grande Valley Sugar Growers, Inc. Santa Rosa, Texas $10,232,261
Texas Bull Creek Wind, LLC O'Donnell, Texas $91,390,497
Texas Pyron Wind Farm, LLC Roscoe, Texas $121,903,306
Vermont Wheeler Brook Apartments Warren, Vermont $19,155
  $550,381,913
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Content Last Updated: 02/03/2006