Department of Treasury Grant Guidance

<p><em>From the EPA CHP Partnership:</em></p>

<p>...The U.S. Department of Treasury has issued guidance for grants in lieu of tax credits for energy production facilities contained in the American Recovery and Reinvestment Act (ARRA) of 2009.<br />
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The Department of Treasury is not yet accepting applications. This information has been released to allow companies to prepare in advance for submitting a grant application. Applications may only be submitted after the facility to which the application relates is placed in service, or is under construction.<br />
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Section 1603 of ARRA allows eligible entities that place in service specified energy production facilities to apply for grants from the U.S. Department of the Treasury in lieu of claiming applicable investment and production tax credits. For eligible CHP projects, the Department of Treasury will make payments to qualified applicants in an amount equal to 10 percent of the system cost. There are also specific provisions for microturbine and fuel cell projects. Eligible microturbine projects can receive 10 percent of the system cost, but the maximum amount of the payment may not exceed an amount equal to $200 for each kilowatt of capacity. Eligible fuel cell projects can receive 30 percent of the system cost, but the maximum amount of the payment may not exceed an amount equal to $1,500 for each 0.5 kilowatt of capacity.<br />
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Applications may only be submitted after the facility to which the application relates is placed in service, or is under construction. A completed application will include the signed and complete application form; supporting documentation; signed Terms and Conditions; and complete payment information. All applications must be received before the statutory deadline of October 1, 2011. For a facility placed in service in 2009 or 2010, applications must be submitted after the facility has been placed in service and before October 1, 2011. Treasury will review the applications and make payment to qualified applicants within 60 days from the date the completed application is received by Treasury. For a facility not placed in service in 2009 or 2010 but for which construction began in 2009 or 2010, applications must be submitted after construction commences but before October 1, 2011. If the facility has been placed in service at the time of the application, Treasury will make payments to qualified applicants within 60 days from the date the completed application is received. For the facility not yet placed in service at the time of the application, Treasury will review such applications and notify the applicant if all eligibility requirements that can be determined prior to the facility being placed in service have been met.<br />
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For more information including the guidance document, terms and conditions, and a sample application, please visit the U.S. Department of Treasury&rsquo;s Web site at: <a href="http://www.treas.gov/recovery/1603.shtml">http://www.treas.gov/recovery/... />
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Questions about the program and the application process at: <a href="mailto:1603Questions@do.treas.gov">1603Questions@do.treas.gov</a>.</p>