Green Industry Update

American Recovery and Reinvestment Act - Renewable Energy Summary

Funds Available Through Government Programs

1. $16.8 billion provided to the Department of Energy to help state and local governments increase energy efficiency and expand renewable energy;
   
   
2. $5.5 billion to increase green buildings for the federal government;
   
   
3. $300 million for federal fuel efficient vehicle fleets;
   
   
4. $4.5 billion to modernize the electric grid;
   
   
5. $300 million for the Department of Defense for R&D into energy efficiency and renewable energy;
   
   
6. $1.6 billion increase for Clean Renewable Energy Bonds;
   
   
7. $2.4 billion increase in Qualified Energy Conservation Bonds, the proceeds of which can be used for loans, grants and other repayment mechanisms that implement green community programs;
   
   
8. An additional $6 billion available for the Innovative Technology Loan Guarantee Program which guarantees loans for commercial projects that reduce greenhouse gases and use renewable energy.
   
   

Tax Incentives

1. Production Tax Credits or Investment Tax Credits for investments in energy efficiency and renewable energy;
   
   
2. Grants in place of tax credits for investments in energy efficiency and renewable energy;
   
   
3. Increased business credit for alternative refueling property.
   
   
   

ADEQ

In January, the Arkansas Department of Environmental Quality (ADEQ) received funding from the EPA to reduce emissions from diesel engines in the State of Arkansas. Under the “Reduce Emissions from Diesels (Go RED!)” program, ADEQ will provide funding on a competitive assistance basis for public entities and non-profit organizations in Arkansas that develop clean diesel projects which reduce diesel emissions in Arkansas.

The total amount of funds available in the program is $400,000 with a cap of $100,000 per organization. Applying entities must submit their proposals to ADEQ by April 1, 2009.

Arkansas Renewable Energy Bills Proposed

Two new laws have been introduced to encourage Arkansans to purchase renewable energy equipment such as windmills and solar panels. Senate Bill 7 would exempt purchasers of the equipment from paying sales and use taxes. Senate Bill 8 would give a tax credit of 20% of the purchase price to any taxpayer who buys renewable energy equipment that year. The bills are aimed at attracting wind and solar farms to Arkansas.

Proposed House Bill 1663 is a shell bill that would provide for renovations of buildings owned by the state or institutions of higher education by making them more energy efficient and environmentally friendly.

Proposed Senate Bill 583 would allow the Arkansas Development Finance Authority to issue $300 million in bonds to finance energy cost saving projects for state agencies.