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Weekly Clean Energy Roundup: October 8, 2008

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To help individuals take advantage of all the tax credits, Division C of H.R. 1424 increases the income limits for the Alternative Minimum Tax, while the energy tax provision allows unused tax credits to be carried over to the next tax year. And to help finance energy efficiency improvements, the bill authorizes $800 million in Qualified Energy Conservation Bonds, which will be issued by state and local governments. The bonds can be applied to a wide range of energy efficiency projects, research and demonstration projects, and even renewable energy projects. The bill also extends the authority to issue bonds for qualified green building and sustainable design projects through 2012. See the Division B and C of H.R. 1424, and for comparison, see Subparts A, D, and E of Part IV of Subchapter A of Chapter 1 of the existing Internal Revenue Code (posted by the Cornell University Law School), as well as Section 168 of Part VI of Subchapter B.

Continuing Resolution Includes $25 Billion in Automakers Loans

President Bush last week signed a continuing resolution bill that keeps the federal government operating through March 6, 2009, but also includes funds for automaker loans that will encourage the development of plug-in hybrids and other advanced technology vehicles.

H.R. 2638-the "Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009"-includes as part of its continuing resolution an appropriation of $7.51 billion for DOE to support up to $25 billion in direct loans to automakers and auto part suppliers. The amount includes $10 million for DOE to administer the loans, which were authorized by the Energy Independence and Security Act of 2007, H.R. 6.

That energy act designated loans to support the manufacture of advanced light-duty vehicles (cars and light trucks) that meet strict emissions limits and exceeded the average fuel economy of current model year vehicles by at least 25%. It specified that the loans would go to automakers and component suppliers to cover up to 30% of the cost of engineering the integration of advanced technologies into vehicles; designing the tooling, equipment, and manufacturing processes to produce the technologies and the vehicles; and creating the manufacturing facilities for the components and vehicles. The new act requires DOE to promulgate an interim final rule for the loan program within 60 days. See the White House press release, Section 129 of Division A of H.R. 2638, and Section 136 of H.R. 6.

In addition to the automotive loans, Section 130 of the continuing resolution provides a $250 million budget boost to the DOE Office of Energy Efficiency and Renewable Energy (EERE), providing additional funds for the Weatherization Assistance Program, which offers energy efficiency services for the homes of low-income families. Other than that, funding for EERE will remain at fiscal year 2008 levels while the continuing resolution is in effect. However, as part of special funds for fire management at the U.S. Forest Service, Chapter 6 of the new act provides $175 million for hazardous fuels reduction, an effort that generates low-value wood waste that it useful for biomass energy production. The act specifies that $125 million of that amount should go toward fuels reduction and hazard mitigation activities on state and private lands. See Section 130 of Division A of H.R. 2638, as well as Chapter 6 of the act.

DOE Invests $43.1 Million in 21 Enhanced Geothermal Projects

DOE announced on Monday that it will invest up to $43.1 million over the next four years in 21 research, development, and demonstration projects involving enhanced geothermal systems (EGS). EGS technologies employ rock fracturing techniques in high-temperature geological formations deep underground, and they can be used to either create a geothermal reservoir of hot water or steam where none existed before or to extend and enhance an existing geothermal reservoir.

The technology typically involves the injection of water at high pressures to fracture the rock. The awards will given to companies and universities under two topic areas-systems demonstrations and technology research and development (R&D)-and include a record 13 first-time recipients. Combined with private cost-share investments, up to $78 million will be invested in these projects.

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