Money

Proposed Legislation to Limit ITC Grants for Renewable Projects

March 31, 2010
AlgaeIndustryMagazine.com

Senator Charles E. Schumer (N.Y.) and three other Democratic senators have joined to propose legislation that would place limitations on grants in lieu of tax credits for renewable energy projects under section 1603 of the American Reinvestment and Recovery Act. The concern expressed by Senator Schumer and the other sponsors is that a significant portion of the grants paid so far have gone to non-U.S. companies. Senator Schumer has cited a supposed dependence on foreign-made equipment as evidence that the program is not sound policy and should be limited to projects using American-made equipment and producing jobs in America.

Co-sponsoring the bill with Senator Schumer are Senators Robert P. Casey Jr. (Pa.), Sherrod Brown (Ohio) and Jon Tester (Mont.). Senator Schumer originally stated he would press for immediate passage of his bill but has since backed away from that pledge.

The section 1603 grant currently applies to renewable energy projects, including wind, solar, geothermal and biomass, that are placed in service before 2011 or for which construction begins in 2009 or 2010 (and that are placed in service by certain dates). In its current form, if a project qualifies for the grant, the Treasury Department is required to pay the grant. Senator Schumer’s proposal would make payment of the grant subject to the discretion of the Treasury Department. It also would make the grant subject to the Buy American requirements of the stimulus bill, and would require that the Treasury conduct an analysis of the “domestic job preservation and creation provided by” a project with respect to which a grant application is submitted. The Treasury also would be required to report its findings to the Senate Finance Committee and the House Ways and Means Committee. The proposed legislation would be effective with respect to any project for which the Treasury has not paid the grant as of the date of enactment.

The Obama Administration strongly supports section 1603 and has come out in opposition to the proposal. —A.I.M.

For more information on this bill, please contact: Greg Jenner at (612) 373-8857 or gfjenner@stoel.com

Copyright ©2010 AlgaeIndustryMagazine.com. All rights reserved. Permission required to reprint this article in its entirety. Must include copyright statement and live hyperlinks. Contact editorial@algaeindustrymagazine.com.

FREE Algae News & Updates

Sign up to receive breaking A.I.M. updates!

From The A.I.M. Archives

— Refresh Page for More Choices
Biomass abounds on Earth, as forests, fields, sewage and seaweed. But only a small fraction, mostly human or agricultural waste, can be harvested without posing environme...
Algae.Tec Ltd has received its first purchase order from Reliance Industrial Investments and Holdings Limited (RIIHL), in connection with the arrangements announced on Ja...
As the number of photobioreactors in an algae growing operation increases, there is a need for both autonomous control and monitoring of individual PBRs, as well as centr...
Although the use of whole microalgae in animal diets has long been studied, the 
de-fatted biomass of microalgal species, derived from biofuel production research, has on...
A University of New South Wales (UNSW)-led team of researchers has discovered how algae that survive in very low levels of light are able to switch on and off a weird qua...
Kyae Mone Win reports in the Myanmar Times that spirulina has been harvested from Twin Daung lake in Sagaing’s Bu Ta Lin township for over a decade, but climate change an...
A recent discovery in the multicellular green alga, Volvox carteri,has revealed the origin of male and female sexes, showing how they evolved from a more primitive mating...
Biofuels derived from the oils produced by algae may offer a low-cost sustainable alternative to fossil fuels. To achieve this goal, optimization of cost effective strate...
Channelnewsasia.com reports on three young Spaniards who harvest seaweed, a culinary delicacy, as a way for them to stay out of Spain’s troubled financial waters. 35-year...
Phys.Org reports that scientists Jolanda Verspagen and Jef Huisman of the University of Amsterdam, The Netherlands have concluded that rising CO2 concentrations in the at...
Bookending the upcoming Algae Biomass Summit, Sept. 29-Oct.2 in San Diego, will be industry tours to give attendees a first-hand look at the latest progress in technical ...
Expanding from its initial work in algal biofuels, General Atomic’s (GA’s) Advanced Biological Processes team has focused on the rising need for food globally, specifical...
Oregon State University researchers are combining diatoms, a type of single-celled photosynthetic algae, with nanoparticles to create a sensor capable of detecting minisc...
Portuguese cement facility, Secil, and microalgae biotechnology company, A4F, also based in Portugal, have formed AlgaFarm, a joint venture to develop the use of cement f...
Arizona is taking advantage of its open land and ample sunshine to assume a leadership position in the algae biofuel field. The state is home to two national algae testbe...
With their new CO₂ processing-platform called AstaCos, AlgaeBiotech can produce waxy particles of only 50-100 µm in size with a loading of 25% astaxanthin oleoresin. The ...
MicroBio Engineering, Inc., of San Luis Obispo, California, has introduced a full suite of open pond microalgae growth systems designed for quick deployment of research- ...
Renewable fuels company Muradel has launched Australia’s first integrated demonstration plant to sustainably convert algae into green crude, as a first step towards a com...