Clean Renewable Energy Bonds

History

Tax credit bonds, can be issued by a variety of governmental borrowers to finance public or private alternative electric-generation facilities
Benefit to borrower is 70% interest rate subsidy
Maturity and tax credit rates set daily by Treasury (see www.treasurydirect.gov)
First authorized in 2006
Current $800 million national allocation awarded by Treasury

ARRA Provisions

USallocation increased to $2.4 billion
Treasury to make allocations of cap via applications from eligible issuers
No more than one third to qualified projects owned by public power providers, governmental bodies, and cooperative electric companies, respectively
Davis-Bacon wage rates apply

New Clean Renewable Energy “Bond”

An issuance, in whole or in part:

where 100% of available project proceeds used for capital expenditures incurred by qualified owners (incl. governmental entities, public power providers, cooperative electric companies) for one or more qualified renewable energy facilities;
issued by qualified issuer; and
the issuer designates the bond as a CREB

Qualified Issuers

Public power provider (a State utility with a service obligation, as defined by the Federal Power Act)
Cooperative electric company
Governmental entity (a State or political subdivision thereof)
CREB lender (a lender that is a cooperative that is owned by, or has outstanding loans to, 100 or more cooperative electric companies, was in existence on February 1, 2002 and any affiliated entity controlled by such lender)
Not-for-profit electric utility that has received a loan or loan guarantee under the Rural Electrification Act

Qualified Energy Facility

Any facility, owned by public power provider, a governmental entity, or a cooperative electric company for alternative electric generation through:

Contacts
www.irs.gov/taxexemptbond
Kristofor Anderson [email protected]