Government departments issue guidance for accessing US clean tech funds

US clean energy firms keen to access government stimulus funds were given a helping hand yesterday with the release of detailed guidance on how to apply for new cash funding.

In a joint announcement, the Department of the Treasury and the US Department of Energy said an estimated $3bn of funding had been made available for renewable energy projects across the US. Around 5,000 biomass, solar, wind and clean energy projects are now expected to receive direct payments from the fund instead of the tax credits they have previously had to apply for.

Treasury Secretary Tim Geithner said the wide-ranging investment programme would provide a stimulus to both urban and rural economies, and would "enable both large companies and small businesses to invest in our long-term energy needs, protect our environment and revitalise our nation's economy".

His comments were echoed by energy secretary Steven Chu, who said the direct payments to renewable energy projects would help accelerate renewable energy investments and create new green collar jobs.

The Departments of Treasury and Energy said they expect a "fast acceleration " of businesses applying for the energy funds in lieu of the tax credit.

They also issued a 20-page guidance document offering advice on how to successfully apply for funds, as well as a sample application form designed to help firms prepare their bids for funding ahead of the imminent launch of a new web-based application portal.

The announcement was broadly welcomed by the US renewable energy industry, which argued that the grants would revitalise the sector after a year that has seen a number of large projects postponed and plans for the world's largest wind farm in Texas scrapped.

"As with all industry, the economic conditions of the past eight or nine months have held US back," said Denise Bode, chief executive of the American Wind Energy Association. "We believe these grants will help get our companies back on track, create more jobs, and balance our electricity portfolio with clean, renewable energy. The implementation of this programme for renewable energy will be a welcome boost, just when we all need it."

In related news, the Department of Veterans Affairs confirmed that nearly a quarter of the $1.4bn of stimulus funding it has been tasked with distributing will be spent on green projects. The Department said that $68m has been earmarked for renewable energy projects, while $238m will be invested in improving building's energy and water efficiency.