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Contact:
Tracy Warren
703-907-5746
Mobile: 703-517-3411
Arlington, Virginia, February 19 – Electric cooperatives in 11 states got the green light from the IRS to issue Clean Renewable Energy Bonds worth $143 million.
CREB awards to cooperatives ranged from $300,000 to $30 million. Approved projects include: 14 wind projects, five landfill gas projects, six hydropower projects; one solar project and one open-loop biomass project.
As part of the Energy Policy Act of 2005, the CREBs program provides electric cooperatives and other not-for-profit utilities incentives to invest in renewable generation resources. Comparable to Production Tax Credit (PTC) available to investor-owned utilities, CREBs provide low-cost capital for renewable energy facilities because the government provides tax credits to the purchasers of the bonds.
“Most of the nation’s renewable energy resources can be found in the service territory of cooperatives,” noted Glenn English, CEO of the National Rural Electric Cooperative Association. “Clean Renewable Energy Bonds are the financial instrument that allows cooperatives to unleash that power.”
Congress approved approximately $477 million for Fiscal Year 2007. In addition to awards made to cooperatives, the IRS awarded $263 million to governmental borrowers.
Last year, a dispute between the House and Senate resulted in dropping both an extension of the PTC for renewable energy and funding allocations for the CREB program. The House is considering stand-alone legislation to extend PTC and CREB program.
Awardees may now apply to the National Rural Cooperative Finance Corporation (CFC) or other qualified lenders to issue bonds on their behalf. On February 6, 2008, the CFC announced it had issued almost $31 million in CREBs, following IRS allocations made in Fiscal Year 2006.
2007 CREB Allocations |
Cooperative |
Type of project |
Allocation amount |
Kodiak Electric Association, Inc. (AK) |
Wind |
$5,000,000 |
Alaska Village Electric Association, Inc. (AK) |
Wind |
$6,160,000 |
Florida Keys Electric Co-op Association, Inc. (FL) |
Solar |
$1,000,000 |
Adams Electric Cooperative (IL) |
Wind |
$1,504,080 |
Hoosier Energy Rural Electric Cooperative, Inc.(IN) |
Landfill gas |
$300,000 |
Iowa Lakes Electric Cooperative (IA) |
Wind |
$43,000,000 |
Great River Energy (MN) |
Solar/wind |
$2,400,000 |
Great River Energy (MN) |
Biomass |
$30,000,000 |
Flathead Electric Cooperative, Inc. (MT) |
Landfill gas |
$3,500,000 |
Steuben Rural Electric Cooperative, Inc. (NY) |
Landfill gas |
$4,600,000 |
Oneida Madison Electric Cooperative, Inc.(NY) |
Landfill gas |
$4,600,000 |
East Texas Electric (TX) |
Hydro |
$10,200,000 |
Lower Valley Energy (WY) |
Hydro |
$5,730,000 |
Nebraska Public Power District (NE) |
Wind |
$3,387,000 |
Wabash Valley Power Association (IN) |
Landfill gas |
$4,500,000 |
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