Companies with plans to build several hydroelectric projects in the United States will receive millions in Clean Renewable Energy Bonds under a federal program to promote the development of renewable energy projects.
The U.S. Treasury Department has allocated $2.2 billion in Clean Renewable Energy Bonds to more than 800 developers of renewable energy projects nationwide. The funding was authorized by the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009.
The federal bonds program is designed to help renewable energy developers access lower-cost credit for renewable energy projects. The bonds are tax-credit bonds, which means the company does not pay full interest. Instead, the federal government provides the company a tax credit covering 70 percent of the interest earned.
“The Recovery Act’s innovative bond programs provide communities around the country with financing to jump start important development projects,” said Deputy Treasury Secretary Neal Wolin.