Sen. John Kerry (D-Mass.) has introduced legislation that would provide tax incentives for clean energy manufacturing, renewable energy, and conservation. Among other things, the Clean Energy Technology Leadership Act of 2010 would

• provide additional funding for the advanced energy manufacturing credit and uncap the credit for solar energy property, fuel cell power plans, and advanced energy storage systems, including batteries for advanced vehicles;
• extend the excise tax credit for biodiesel and renewable diesel retroactively for 2010 and through 2012;
• provide an additional $3.5 billion for clean renewable energy bonds; and
• extend the research and development tax credit retroactively for 2010 and through 2012, and provide an additional 10 percent credit for qualified advanced energy research expenditures.

In a press release announcing the legislation, Sen. Kerry said that while he will continue to press for comprehensive climate and energy legislation, this new bill would help move the country's energy policy in the right direction.

U.S. Senator Sherrod Brown and U.S. Department of Energy Secretary Steven Chu announced the award of $5.9 Million in federal grants to advanced energy and energy efficiency projects. The money will be distributed in Central and Northeast Ohio on three different projects:

• Battelle Memorial Institute, $400K
  For advancements in cooling and heating technologies which could increase air conditioning efficiency by more than 50 percent.
• ADMA, $3.26 Million
  For dehumidifying research that will lead to efficiencies in cooling technologies.
• Case Western Reserve University, $2.25 Million
  Capacitor research for increased voltage capacity in hybrid vehicles and consumer electronic.

The $5.9 million funding comes from the Department of Energy's Advanced Research Projects Agency-Energy (ARPA-E).

Federal regulators announced on Tuesday that mortgage loan giants Fannie Mae and Freddie Mac have been directed to tighten their underwriting standards before purchasing mortgages tied to “property assessed clean energy” (PACE) loans. PACE programs are designed to allow localities to issue bonds to finance loans for homeowners seeking energy-efficient upgrades to their homes.

PACE programs are set to receive nearly $150 million from last year’s stimulus plan, however, the Federal Housing Finance Agency says PACE poses significant safety and soundness concerns for the mortgage purchasers because they “disrupt a fragile housing finance market and long-standing lending ¬priorities.”

The problem is that a PACE loan would have first-lien status, meaning it would take priority over a mortgage in the event a homeowner defaulted on the loan. Proceeds from a foreclosure would be used to pay off the loan before the mortgage. That arrangement makes the mortgages unpalatable to Fannie and Freddie, which informed mortgage providers last spring that the energy liens could not take priority over mortgages.

Read the full article on The Bond Buyer website.

The Ohio Department of Development, through its Energy Resources division, is now accepting applications for $10 million in grant funding available through the Deploying Renewable Energy: Transforming Waste to Value program. The money is designed for job creation via projects that will convert Ohio’s feedstock waste—including municipal solid wastes, farm wastes and other biomass or waste materials—into electricity, heat, fuel, and/or other bio products. The state hopes to build market demand for Ohio manufacturers and distributors of bio-digester components, biomass or waste conversion equipment, and electric generation equipment. 

Mark Shanahan, energy advisor to Governor Ted Strickland, explained that transforming Ohio’s farm waste into energy can only benefit the food and agriculture industries throughout the state. “These funds will help drive investment in sustainable and profitable energy technologies and build upon Ohio’s existing strengths in those areas,” he said. The program is part of the $96 million allocated to Ohio through the American Recovery and Reinvestment Act State Energy Program.

Grant awards will be selected through a competitive process and will range from $500,000 to $1 million per project. All eligible projects must be located within the state of Ohio, include a match investment of a minimum of 25 percent of the total cost of the project, be completed within 12 months, and provide a direct economic impact to Ohio by creating and retaining jobs. 

A one-page project summary must be submitted to the Energy Resources division of the Ohio Department of Development no later than 3 p.m. on Monday, August 16, 2010.

For more information visit: 
http://www.development.ohio.gov/recovery/energy/fundingopportunities.htm#State_Energy_Program

This week, the Federal Housing Finance Agency (FHFA) warned financial institutions that certain energy retrofit lending programs could affect the institutions' ability to sell residential mortgage loans to Fannie Mae and Freddie Mac. Among other things, some PACE programs use the municipal tax assessment process to ensure repayment, which results in a priority lien status that supersedes the position of existing properly recorded lien holders. The FHFA is currently working on underwriting and consumer protection standards, which will include new truth-in-lending disclosures. Meanwhile, the FHFA, whose concerns are shared by the FDIC, directs Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to take specific actions that protect their operations. 

The FHFA's statement, which has called PACE programs into question, is available at www.fhfa.gov/webfiles/15884/PACESTMT7610.pdf.

For more information, contact Maria Armstrong or Jeff Smith.

Crain's Cleveland Business has an article this week (subscription required) detailing the efforts of the First Suburbs Consortium Development Council to create a special improvement district ("SID") for Cleveland's inner-ring suburbs that would help property owners finance energy-saving projects for their properties. Those efforts are made possible by the Ohio General Assembly's recent passage of Senate Bill 232, which, among other things, expands the availability of municipal special improvement district ("SID") financing, currently only available for solar projects, to include other renewable and advanced energy projects.

In the article, Bricker & Eckler partner Raymond C. Headen explains how the SID legislation allows private property owners to take advantage of the same type of financing governments use to build and maintain sidewalks, roads, sewers and other basic infrastructure. For more information on the SID component of S.B. 232, visit Bricker's updated SID resources page, available here.

U.S. Sen. Sherrod Brown introduced legislation that would expand the Advanced Energy Manufacturing Tax Credit (48C) program. The program in its current form provides a 30 percent tax credit for domestic companies for investments in new, expanded, or re-equipped clean energy manufacturing projects. Brown's Security in Energy and Manufacturing (SEAM) Act would extend the program and allow for grants in lieu of tax credits. This would enable the program to reach new companies that do not yet have tax liabilities, or companies struggling to find credit. Both the tax credit and grant would remain at 30 percent of the cost of the project.

On April 16, 2010, TransCanada Power Marketing, Ltd., a power marketing company, filed a lawsuit in a Massachusetts federal court challenging the constitutionality of the solar "carve out" in Massachusetts' renewable portfolio standard (RPS) -- click here for a copy of the complaint. More specifically, the lawsuit alleges that the provision in Massachusetts law requiring electric suppliers to purchase a portion of their required renewable energy credits from in-state solar generators unlawfully discriminates against out-of-state solar developers. The ramifications of this lawsuit could be far-reaching on states such as Ohio with similar requirements in their RPS. In fact, Ohio's RPS contains a broader in-state requirement than Massachusetts that requires at least one-half of all renewable energy resources generated in Ohio to be derived from facilities located in Ohio.

Vice President Joe Biden announced that the Toledo-Lucas County Port Authority will receive a $15 million grant and the Greater Cincinnati Energy Alliance will receive a $17 million grant to be used toward "ramping-up" energy efficiency building retrofits in their communities. The DOE program encourages communities, governments, and non-profit organizations to cooperate on innovative, community-based programs for energy efficiency building retrofits and financing alternative energy. The Toledo-Lucas County Port Authority plans to establish an Advanced Energy Utility within the City of Toledo to implement the wide-scale use of energy efficiency and alternative energy technologies. The Advanced Energy Utility will utilize the port authority's bond fund program as well as other financing mechanisms to leverage the impact of the grant. The Greater Cincinnati Retrofit Ramp-Up Program will conduct community outreach activities to assist thousands of home and business owners in reducing energy bills through energy efficiency retrofits of homes, businesses, multi-family buildings, and public and institutional buildings. 

For more information on the Toledo award, see: http://abclocal.go.com/wtvg/story?section=news/local&id=7398014. 

For more information on the Cincinnati award, see: http://www.wxix.com/Global/story.asp?S=12348628.

Governor Ted Strickland announced that the Ohio State University and Cuyahoga Community College received $3.2 million in federal stimulus money for "smart grid" workforce training and development programs. OSU's grant is $2.5 million and CCC's is $700,000. Business First's coverage is here. A primer on smart grid technology is here.   

The Ohio State University and Ohio University have received $500,000 in federal stimulus money to collaborate on developing a climate change plan for Ohio businesses and communities. The project will identify policy options and perform an impact analysis to help Ohio prepare for federal climate change policies. Ohio University and Ohio State have outlined a 12-month work plan for a statewide inventory of greenhouse gas emissions and development of a Web-based system for climate policy evaluation. The project director is Scott Miller, director of energy and environmental programs, Voinovich School of Leadership and Public Affairs at Ohio University.

The Ohio Department of Development's Ohio Energy Resources Division is accepting applications for $8 million in grants available through the Making Efficiency Work program, funded by federal stimulus money.

The state seeks eligible applicants for energy efficiency improvements in multi-family, commercial, and institutional buildings located in Ohio. Eligible activities include the installation of energy efficiency equipment and measures, including more energy efficient lighting such as LED and day-lighting techniques, HVAC upgrades, weather sealing, more energy-efficient windows and doors, ENERGY STAR appliances, and geothermal heat pumps. Funding is also available for energy audits and commissioning projects that result in energy efficiency upgrades within 12 months and exceed energy code pilot projects within existing buildings.

Awards will be selected through a competitive process and will range between $125,000 and $1 million. All eligible projects must be located within the State of Ohio, completed within 12 months, include a match investment of a minimum of 50 percent of total costs, and provide a direct economic impact to Ohio by creating and retaining jobs.

The RFP can be found here: http://www.development.ohio.gov/recovery/energy/SEP-ARRA-Making-Efficiency%20Work.pdf

The application can be found here: http://www.development.ohio.gov/recovery/energy/SEP-ARRA-Making-Efficiency%20Work-Application.pdf

Other required forms can be found here: http://www.development.ohio.gov/recovery/energy/SEP-ARRA-Making-Efficiency%20Work-Required%20Forms.pdf

Additional information is available at: http://www.development.ohio.gov/recovery/energy/FundingOpportunities.htm

Governor Ted Strickland announced that 28 Ohio municipal projects will receive $15 million in grant awards funded through the federal American Recovery and Reinvestment Act's Energy Efficiency and Conservation Block Grant program. The awards are part of the $25 million in federal stimulus money allocated to Ohio for energy efficiency projects. Recipients include:

• City of Powell -- $821,861 on a major lighting retrofit to include the installation of LED and light sensors, along with a 77 kilowatt solar electric system on the roof of the municipal building. The city estimates an annual savings of $18,500.
• City of Steubenville -- $579,520 to upgrade its 25-year-old city lighting system by replacing 340 street lights and 898 traffic signals with energy efficient LED bulbs. The city estimates annual savings of $96,847.
• Auglaize County -- $1,306,854 to renovate the county courthouse with lighting upgrades, HVAC systems, and the installation of a 20 kilowatt solar electric system.
• Lucas County -- $700,000 for the installation of building controls that allow for the real-time control of HVAC equipment. These controls will result in an estimated 20 percent reduction in operational cost of the equipment.

A complete list can be found here.

Today's Dayton Daily News has a story on Ohio Senator Sherrod Brown pushing for a vote on a bill that would funnel federal loans to clean energy equipment-makers. Brown's comments came a day after the Federal Deposit Insurance Corp. reported that lending by private banks in 2009 dropped at the fastest clip since 1942.

A report from Policy Matters Ohio provides more context to Senator Sherrod Brown's push for increasing the amount of federal loans available to clean energy equipment-makers (see the previous post). A report released by Policy Matters Ohio predicts that under the bill proposed by Brown, Ohio could gain up to 52,000 new jobs over the next decade. The executive summary of the report is here. And the full report is here.

The Section 1603 grant program which was created under the American Recovery and Reinvestment Act of 2009, whereby eligible applicants and renewable energy projects may receive a 30% cash grant in lieu of an investment tax credit (“ITC”), is set to expire at the end of 2010.

In an effort to prevent this program from expiring, Senators Dianne Feinstein, (D-Calif.), and Jeff Merkley, (D-Ore.) introduced the Renewable Energy Incentive Act (S. 2899) to extend the program until 2012 and to expand the Section 1603 program to continue to spur the development of renewable energy employment, construction, and development. 

The Section 1603 grant program has already distributed over two billion dollars to eligible projects and is a key component in financing renewable energy projects given the decline in the tax equity market. 

The Section 1603 grant program helps renewable energy developers secure affordable financing to move forward with capital-intensive projects. As noted above, it is currently slated to expire in 2010, but this deadline is well before most large scale renewable energy projects will be ready to begin construction or the tax equity market will be primed to rebound. The legislation will also expand this program to allow public power utilities to participate and will create a new tax credit for solar manufacturing facilities and the construction of large solar projects on disturbed private lands.

The key provisions of the Feinstein-Merkley bill are:

• Extend the Treasury Grants Program until 2012: The program allows renewable energy developers to take grants, or payments, from the Treasury department instead of claiming tax credits in order to help build projects that require a great deal of capital upfront.
• Permits Public Power Utilities to receive Treasury Grants for Renewable Energy: The bill will also allow public power utilities to receive Treasury Grants for renewable energy projects. 
• Expands the solar investment tax credit to include manufacturing equipment and solar water heaters for commercial and community pools. The bill would allow equipment that makes solar panels to qualify for the 30 percent solar investment tax credit.
• Establishes a new solar tax credit for consolidation of disturbed private land with high solar value. The bill would create a 30 percent investment tax credit for the purchase, consolidation, and use of multiple, 100 acre or less blocks of high solarity, disturbed private lands for solar development. 

If you have any questions related to this legislation or the Section 1603 program generally, please contact Kevin M. Kinross (614-227-8824 or kkinross@bricker.com)

The folks at RenewableEnergyWorld.com have published a nice breakout of the clean energy funding proposals in President Obama's $28.4 billion budget request for fiscal year 2011. The budget request includes $2.36 billion for the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE), a 5 percent increase over fiscal year 2010. The increase in funding for a number of EERE programs would be substantial, including a 53 percent increase for wind energy, a 43 percent increase for the Weatherization and Intergovernmental Program, a 32 percent increase for the Federal Energy Management Program, a 25 percent increase for geothermal energy, and a 22 percent increase for solar energy.

Ohio Governor Ted Strickland released an RFP on February 10, 2010 for selection of an Investment Manager for the Ohio Energy Gateway Fund.  Unveiled in the State of the State address this past January, the Ohio Energy Gateway Fund was created by the State of Ohio as an investment vehicle in advanced energy industries.  Based on a private-equity fund model, the Gateway Fund will consist of State and Federal funds totaling $40 Million. 

One or more Investment Managers will be selected through a competitive RFP process to manage the fund and make strategic investments.  All investments are expected to include a minimum 1-to-1 match of private investment dollars.  The State envisions this program to be a "fund-of-funds" that uses returns on the state's investment to fund new and more advanced energy projects.

Fund managers wishing to apply need to submit questions by February 17, a one-page summary of proposed services by February 19, and final proposals by February 24, 2010.  Experience, innovation, and advanced energy knowledge will be highly regarded during the RFP scoring process.  The selected Investment Manager(s) will be expected to create a small rate of return in addition to payback of the state's original investment.  Managers should look to invest in projects and industries that:

• Increase energy efficiencies;
• Focus on distributed generation;
• Encourage and develop advanced nuclear technologies;
• Create and expand the fuel cell industry;
• Use solid waste conversion to reduce greenhouse gases;
• Increase the use and accessibility of renewable energy resources; or,
• Innovate in the green technologies space with new and different products.

The Investment Manager(s) will invest funds with the help of an Investment Committee chosen by the Manager(s) with an agent of the State of Ohio sitting in a non-voting, advisory capacity.

The RFP can be downloaded on the Ohio Department of Development's website at www.development.ohio.gov/ohioenergygatewayfund.

For more information, contact Greg Lestini at glestini@bricker.com or 614-227-4893.

There's a nice overview in The Dispatch today of spending on green technologies in Ohio. The article details a roundtable that U.S. Sen. Sherrod Brown hosted in Columbus on Monday with executives from seven companies that have received $125 million in federal stimulus funding from the Advanced Energy Manufacturing Tax Credit program. The program is aimed at encouraging companies to increase production of components for wind, solar, and other "clean energy" industries. One company attending the roundtable was DuPont, which is using $50.7 million in tax credits to help fund a $175 million expansion of its Circleville, Ohio, facility that will add 80 jobs. The Circleville plant makes a film called Tedlar that is used in solar panels. Sen. Brown is trying to increase the approved funding for the tax-credit program to $5 billion from its current $2.3 billion.  

The Dispatch article also mentions that, in a separate development, Gov. Ted Strickland on Monday announced that 18 Ohio projects will receive more than $11.8 million in energy efficiency grants that are funded by federal stimulus spending funneled through Ohio's $96 million State Energy Program.

Free Informational Webinar
About the Department of Energy's
ARRA Funded Loan Guarantee Program

December 16, 2009 at 3pm EST

More info:  https://www1.gotomeeting.com/register/145688793

On October 7, 2009, the US DOE announced that it will provide $750 million in credit subsidy funding to help accelerate the development of commercialized renewable energy projects under the Section 1705 Loan Guarantee program of the American Recovery and Reinvestment Act. The Department's plan is to utilize the new Financial Institution Partnership Program (FIPP) through which approved private sector lenders will underwrite loan guarantees for conventional renewable energy projects such as wind, solar, biomass, geothermal, and hydropower. For more detailed information on the program, see the US DOE's Loan Guarantee Program (http://www.lgprogram.energy.gov/) and Bricker & Eckler LLP's Green Strategies Bulletin Loan Guarantees for Commercial Renewable Energy Projects Announced.

Last week, the Ohio Department of Development announced that it was making available $15 million to counties and municipalities that did not previously receive a direct allocation of funding from the US Department of Energy under the ARRA Energy Efficiency and Conservation Block Grant (EECBG) Program. According to the RFP, the EECBG-Local Government Program provides grant funding for a wide array of activities intended to lower fossil fuel emissions, reduce energy usage, and create jobs including energy efficiency retrofits, energy distribution projects, traffic signals and street lighting, reduction and capture of methane and greenhouse gas projects, and renewable energy projects on government buildings. Under the Request for Proposal, the $15 million will be made available to eligible local governments based on population as follows:

• $3 Million for eligible county and city governments with populations below 39,000 
• $4 Million for eligible county and city governments with populations between 39,000 and 65,000 
• $8 Million for eligible county and city governments with populations between 65,000 and above.

Interested applicants must submit a one-page project summary no later than 2 p.m. Nov. 25, at http://recovery.ohio.gov/opportunities/state to be eligible to make a formal proposal for funding under the RFP. Complete proposals are due to the Ohio Energy Office by 2 p.m. on Monday, Nov. 30. Applications are to be mailed to the Ohio Energy Office, 77 S. High St., Columbus, OH 43215. To access the RFP and for more information, see www.development.ohio.gov/recovery/energy/FundingOpportunities.htm.

The dedication ceremony for the largest on-site, third-party-operated renewable energy system at any Ohio school will be held today at Upper Scioto Valley School District in Hardin County. Two wind turbines recently installed on the District's high school campus will provide up to one-third of the electricity for the school's new Wind/Energy Academy and Green Lab facility and serve as a learning resource for renewable energy and other emerging clean technologies. The project was developed by NexGen Energy Partners, LLC, a national on-site renewable energy systems company. Bricker & Eckler LLP was pleased to participate in the structuring of this initiative.

Read more about the project:
NexGen's press release
Project at-a-glance

Please join Bricker & Eckler LLP and Novogradac & Company LLP for a one-day intensive training workshop that will explore options and tools for financing Ohio renewable energy projects. 

Featured panelists include:

• Mark Shanahan, Ohio Air Quality Development Authority, Executive Director and Energy Advisor to Ohio Governor Ted Strickland
• Steven Klein, First Infrastructure LLC, Financial Advisor to the upcoming U.S. Department of Energy's 1705 Loan Guarantee Program
• Darrell Fields, Ohio Air Quality Development Authority, General Counsel 

Agenda at a glance:

• Tour of State Subsidies 
• Debt Financing 
• Structuring Equity Transactions 
• Ohio's Role & Next Steps 

Wednesday, October 14th 
10 am - 4 pm
Cleveland Forum Conference Center

For agenda and registration information visit: http://www.novoco.com/emails/events/2009/aug_09-5.htm

Financing Ohio's Renewable Energy is being co-sponsored by Bricker & Eckler LLP and Novogradac & Company LLP.

The funds limitation for the Qualified Energy Conservation Bonds has been increased for the 2009-2010 calendar years.  To qualify, all proceeds must be used for qualified conservation purposes; the bond must be issued by state or local government; and the issuer of the bond must designate it as a QECB.  The QECBs are allocated based on relative population share.  For 2009, Ohio’s allocation to be distributed to municipalities or counties is $119.2 million. 

Federal guidelines on QECBs are on the Internal Revenue Service website at www.irs.gov/pub/irs-drop/n-09-29.pdf.  For Ohio, the Ohio Air Quality Development Authority will administer the QECBs.  See their website at www.ohioairquality.org.

Please join us for a one-day intensive training that will explore subsidies available for renewable energy projects in Ohio.  Featured panelists include Ohio Air Quality Development Authority Executive Director and Energy Advisor to Ohio Governor Ted Strickland, Mark Shanahan, Steven Klein of First Infrastructure, LLC, the Financial Advisor to the upcoming U.S. Department of Energy's 1705 Loan Guarantee Program, and Ohio Air Quality Development Authority General Counsel Darrell Fields.

Wednesday, October 14th
10 am - 4 pm
Cleveland Forum Conference Center

For agenda and registration information visit:  http://www.novoco.com/emails/events/2009/aug_09-5.htm

Financing Ohio's Renewable Energy is being co-sponsored by Bricker & Eckler LLP and Novogradac & Company LLP.

On August 13, 2009, The United States Treasury Department and Department of Energy announced the availability of $2.3 billion in tax credits under the Section 48C Advanced Energy Manufacturing Tax Credit Program, which was enacted by the American Recovery and Reinvestment Act of 2009. The MTC program will provide developers with an investment tax credit of 30 percent for facilities that manufacture solar, wind, and geothermal energy equipment; fuel cells, microturbines, and batteries; electric cars; electric grids to support the transmission of renewable energy; energy conservation technologies; and equipment that captures and sequesters carbon dioxide or reduces greenhouse gas emissions. The manufacturing tax credit is capped at $2.3 billion, and credits are available for two years or until the cap is reached. 

According to the guidance released with the announcement, the purpose of the program is to encourage taxpayers to re-equip, expand, or establish manufacturing facilities for the production of qualifying advanced energy facilities. Among the selection criteria to be considered by Treasury in deterring which qualifying advanced energy projects will be awarded credits, key considerations include assessing which project will result in the greatest domestic job creation and provide the greatest net reductions in greenhouse gas emissions. More information on the program can be found in Notice 2009-72 as well as our forthcoming Bricker & Eckler Green Strategies Bulletin at www.bricker.com/legalservices/practice/green.

Grants.gov is hosting a webinar series on finding and applying for ARRA money on Grants.gov. Webinars include:

• FINDING RECOVERY ACT-FUNDED OPPORTUNITIES: AN OVERVIEW OF FBO.GOV AND GRANTS.GOV; Wednesday, August 12, 2009 3:00 – 4:00 P.M. ET 
• Series 1: Introduction to Grants.gov and the Recovery Act; Thursday, August 13, 2009 3:00 – 4:00 P.M. ET 
• Series 2: Finding Recovery Act Opportunities; Tuesday, August 18, 2009 3:00 – 4:00 P.M. ET 
• Series 3: Registration to Submit Recovery Act Opportunities; Thursday, August 20, 2009 3:00 – 4:00 P.M. ET 

Details on and registration for the series are available at: http://www.grants.gov/applicants/recovery_webinar.jsp

Bricker & Eckler bulletin focusing on the recently released U.S. Department of Energy Loan Guarantee Solicitation Announcement for Eligible Renewable Energy, Renwable Energy Manufacturing, Transmission and Biofuel Projects.  Read the full bulletin here.

The Treasury Department announced today that it is now accepting applications for the Section 1603 program created by the American Recovery and Reinvestment Act.

https://treas1603.nrel.gov/

Ohio House Bill 1, the biennium budget, allows Ohio municipalities and townships to assist property owners in financing solar photovoltaic and solar thermal systems, including roof-top and ground-mounted solar arrays and solar water heaters.

Find out more about the new legislation and how municipalities and townships can assist with these SIDs in this Bricker & Eckler Green Strategies Bulletin.

Long awaited program guidance was released on July 9, 2009 by the U.S. Treasury Department ("Treasury") relating to Section 1603 of the American Recovery and Reinvestment Act of 2009 ("ARRA"). Section 1603 of the ARRA created a grant program to be overseen by Treasury, which provides grants in lieu of tax credits for specified energy property under Section 45 and Section 48 of the Internal Revenue Code. In light of the current lack of taxable income available to traditional tax equity investors, the 1603 grant program is expected substantially enhance renewable energy project economics and boost private capital investments in these projects. While Treasury is not yet accepting 1603 Grant applications yet (expected to begin accepting applications around August 1, 2009), the released program guidance, terms and conditions, and Application provide renewable energy developers and other interested parties with the crucial details of how the 1603 grant program will be implemented. According to the Guidance, the Application, once available, will be completed online and submitted electronically to Treasury. Then applications will be reviewed and payments made to eligible applicants within 60 days from the later of the date the qualifying energy property is placed in service or the date the application is deemed completed by Treasury.