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The National Renewable Energy Laboratory (NREL) recently issued a report showing that clean energy development is spreading rapidly throughout the country, often following public policies designed to spur renewable energy growth. According to the report, "State of the States 2009: Renewable Energy Development and the Role of Policy," California led the nation in terms of total non-hydroelectric renewable generation in 2007, while Maine generated the largest percentage of electricity from renewable resources other than hydropower, at 26.1%. Twenty-nine states and the District of Columbia have adopted a renewable portfolio standard (RPS), a policy that requires utilities to draw a percentage of their power from renewable energy sources. All but a dozen states have implemented policies for connecting renewable energy systems to the power grid, known as interconnection, while all but eight allow customers to earn credit for power fed back into the grid, a policy called net metering.

The NREL report also went beyond simply tabulating data by examining the impact of renewable energy policies using statistical and empirical methods. That analysis found that states that had a net-metering policy in place in 2005 had more generation from non-hydropower renewable energy sources in 2007 than states that did not. States that required utilities to tell their customers the energy sources used to produce their electricity and that also required utilities to offer "green power"—electricity produced from renewable energy sources—ended up with more renewable energy development. The report also found several features of RPS policies that significantly contributed to increased renewable energy development, but it failed to find a perfect combination of features for an RPS policy that correlated with significant increases in renewable energy. See the report (PDF 4.2 MB). Download Adobe Reader.

U.S. Energy Secretary Steven Chu today announced more than $18 million in funding from the American Recovery and Reinvestment Act to support small business innovation research, development, and deployment of clean energy technologies. In this first phase of funding, 125 grants of up to $150,000 each will be awarded to 107 small advanced technology firms across the United States.

"Small businesses are drivers of innovation and are crucial to the development of a competitive clean energy U.S. economy," said Chu. "These investments will help ensure small businesses are able to compete in the clean energy economy, creating jobs and developing new technologies to help decrease carbon pollution and increase energy efficiency."

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Washington, D.C. - A new report calls for coordinated activities among government agencies, universities, and businesses to nurture and develop offshore wind power in the United States. The U.S. Offshore Wind Collaborative (USOWC) released its study "U.S. Offshore Wind Energy: A Path Forward" in late October as a call to action for this renewable resource.

Citing a DOE finding that the United States possesses the potential for 900,000 megawatts (MW) of electricity from its offshore wind resources, the report lays out specific areas needed to make offshore wind a U.S. reality.

Among the recommendations: better collaboration among government entities, universities, businesses, and stakeholders in wind development; creation of a Web-based information clearinghouse; convening meetings among states with common interests in offshore wind, as well as between the United States and its European counterparts; and providing leadership to build public trust and investor confidence in offshore wind potential. The report and OSOWC Web site also provide an overview of offshore wind power activities throughout the United States. See the USOWC Web site and report (PDF 619 KB).

As part of the Obama Administration’s efforts to spur renewable energy production, the U.S. Department of Treasury announced Oct. 27 the allocation of $2.2 billion in Clean Renewable Energy Bonds for 805 recipients across the country. Funded by the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009 (Recovery Act), these energy bonds help government agencies, public power providers and cooperative electric companies obtain lower cost financing for clean energy development projects.

“The Recovery Act’s innovative bond programs provide communities around the country with financing to jump-start important development projects,” said Treasury Deputy Secretary Neal Wolin. “Because of the Clean Renewable Energy Bonds awards announced today, energy developers will be able to access lower cost credit to help make the shift to clean renewable energy production, benefitting both our economy and our environment.”

The Treasury Department allocates bond authority to governmental agencies, public power providers and cooperative electric companies involved in clean renewable energy development and production. The application deadline for the new CREBs allocations was Aug. 4, 2009, with recipients being announced Oct. 27. These bonds function as tax credit bonds which allow investors to receive federal tax credits in lieu of the payment of a portion of the interest on the bond. For CREBs, the federal tax credits will cover 70 percent of the interest on the bonds.

A complete list of recipients receiving awards of bond authority to issue CREBs can be found here.

SOURCE: U.S. TREASURY DEPARTMENT

President Obama announced the largest single electric grid modernization investment in U.S. history on October 27, with DOE tapping $3.4 billion in American Reinvestment and Recovery Act funds for 100 projects. The funds will be matched by $4.7 billion in private investments. According to the president, the smart grid projects will help build a "clean energy superhighway," with a goal of increasing energy efficiency and helping to spur the growth of renewable energy resources such as wind and solar power. The grants range from $400,000 to $200 million, and will reach every state except Alaska.

The smart grid grants will pay for installing more than 2.5 million smart meters, which allow utility customers to access dynamic pricing information and avoid periods of peak electricity use, when power is most expensive. The grants will also support the installation of other smart grid components, including more than 1 million in-home energy displays, 170,000 smart thermostats, and 175,000 other load control devices to enable consumers to reduce their energy use. The funding will help expand the market for smart washers, dryers, and dishwashers, so that U.S. residents can further control their energy use and lower their electricity bills. Such smart grid technologies can also better accommodate the use of plug-in electric vehicles and the production of renewable energy from customer-owned systems, such as solar power systems or wind turbines.

Much of the funding will support upgrades to the utility power grids, including the installation of more than 200,000 smart transformers, which will make it possible for power companies to replace units before they fail. Utilities will also install more than 850 sensors that will cover all of the electric grid in the contiguous United States, making it possible for grid operators to better monitor grid conditions and allowing them to take advantage of intermittent renewable energy, such as wind and solar power. Finally, utilities will install nearly 700 automated substations, which will make it possible for power companies to respond faster and more effectively to restore service when bad weather knocks down power lines or causes electricity disruptions. See the DOE press release, President Obama's comments, the awards by category (PDF 141 KB) or by state (PDF 68 KB), and a map of the smart grid projects (PDF 568 KB).

U.S. Department of Energy (DOE) Secretary Steven Chu announced up to $338 million in Recovery Act funding for the exploration and development of new geothermal fields and research into advanced geothermal technologies. These grants will support 123 projects in 39 states, with recipients including private industry, academic institutions, tribal entities, local governments, and DOE's national laboratories. The grants will be matched more than one-for-one with an additional $353 million in private and non-Federal cost-share funds.

"The United States is blessed with vast geothermal energy resources, which hold enormous potential to heat our homes and power our economy," said Secretary Chu. "These investments in America's technological innovation will allow us to capture more of this clean, carbon free energy at a lower cost than ever before. We will create thousands of jobs, boost our economy and help to jumpstart the geothermal industry across the United States."

September 15, 2009 – U.S. Secretary of Energy Steven Chu today announced a new $450 million program designed to catalyze a nationwide energy upgrade that experts estimate could save $100 million annually in utility bills for households and businesses. The Recovery Act’s “Retrofit Ramp-Up” program will pioneer innovative models for rolling out energy efficiency to hundreds of thousands of homes and businesses in a variety of communities.  Much like past roll-outs for cable TV or the Internet, DOE intends to create models that, when undertaken nationally, will save consumers billions of dollars on their utility bills and make the huge savings of energy efficiency available to everyone.

The Request for Information (RFI) being issued today is for competitively-selected local energy efficiency projects.  This competitive portion of the Energy Efficiency and Conservation Block Grant (EECBG) Program will target community-scale retrofit projects that make significant, long-term impacts on energy use and can serve as national role models for grassroots energy efficiency efforts.  DOE is seeking public comment on this newly funded program under the Recovery Act.  Public comment ends on September 28, 2009.

The Department of Energy is accepting feedback on both the competitively-selected portion of the EECBG program for up to $390 million for neighborhood-scale building retrofits, as well as up to $64 million for local governments that were not eligible to receive the formula grants announced earlier this year.  The EECBG program empowers local communities to make strategic investments to meet the Nation's long-term goals for energy independence and leadership on climate change.
 
This first topic area under the funding solicitation will target a select number of innovative programs that are structured to provide whole-neighborhood building energy retrofits.  These will be projects that demonstrate a sustainable business model for providing cost-effective energy upgrades for a large percentage of the residential, commercial, and public buildings in a specific community.  Possible approaches could include innovative partnerships between the public and private sector, utility retrofit and audit programs, alternative financing, retail partnerships, and others.  The Department of Energy will award up to $390 million for these projects.

The second topic area for up to $64 million is reserved for cities, counties and State-recognized Indian Tribes that were not eligible to receive population-based formula grant allocations from DOE under the Energy Efficiency and Conservation Block Grant program.   These funds are intended to help expand local energy efficiency efforts and reduce energy use in the commercial, residential, transportation, manufacturing, or industrial sectors.
 
Public comment is requested by September 28, 2009.  The Funding Opportunity Announcement is expected to be released in early October, following the public comment period.

July 13, 2009 – As part of an innovative partnership aimed at increasing economic development in urban and rural areas while setting our nation on the path to energy independence, the U.S. Department of the Treasury and the U.S. Department of Energy have announced an estimated $3 billion for the development of renewable energy projects around the country and made available the guidance businesses will need to submit a successful application.  Funded through the American Recovery and Reinvestment Act (Recovery Act), the program will provide direct payments in lieu of tax credits in support of an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

“The renewable energy program provides another important avenue for the Recovery Act to contribute to economic development in communities around the country,” said Treasury Secretary Tim Geithner.  “It will provide additional stimulus to economies in urban and rural America by helping to develop domestic sources of clean energy. This partnership between Treasury and Energy will enable both large companies and small businesses to invest in our long-term energy needs, protect our environment and revitalize our nation’s economy.”

The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009.  Previously, these companies could file for a tax credit to cover a portion of the renewable energy project’s cost; under the new program, applicants would agree to forgo tax credits down the line in favor of an immediate reimbursement of a portion of the property expense. This direct payment program allows for an immediate stimulus in local economies.

Said Energy Secretary Steven Chu: “These payments will help spur major private sector investments in clean energy and create new jobs for America's workers.  It is part of our broad effort to double our renewable energy capacity in the next few years and make sure that America leads the world in creating the new clean energy economy of the future.”

In previous years, the tax credit has been widely used.  It is considered a successful incentive for encouraging the development of renewable energy.  In 2006, approximately $550 million in tax credits were provided to 450 businesses.  The rate of new renewable energy installations has fallen since the economic and financial downturns began, as projects had a harder time obtaining financing.  The Departments of Treasury and Energy expect a fast acceleration of businesses applying for the energy funds in lieu of the tax credit.

To expedite implementation of the program, Treasury and Energy are today making available the terms and conditions, guidance, and a sample application so that companies can prepare successful applications in advance of the launch of the web based application in the coming weeks – yet another tool designed to facilitate the timely flow of program funds to eligible businesses.