Governor Rell: $36 Million in ARRA Stimulus Bonds to Help Lower Financing Costs of Green Energy Proj
$20 Million Dedicated to Cities, Towns for Qualified Energy Conservation Bonds
Governor M. Jodi Rell today announced the state is now accepting applications for approximately $20 million in special bonding available through a federal stimulus program for energy conservation projects throughout the state. The bonds can be used to fund portions of larger projects, which include green energy components, as well as stand alone “green” improvement projects deemed to be a qualified energy conservation project. Click here for more details, about the guidelines for the money.
The Governor said the state received just over $36 million of the $3.2 billion in stimulus bonding available nationally for the “green” financing program under the American Recovery and Reinvestment Act of 2009 (ARRA). That is just 1.1% of the total of the $3.2 billion.
“The conservation bonding program will serve as a critical resource, lowering the costs of financing projects that will stimulate economic activity, grow jobs, cut our dependence on fossil fuels and preserve our environment,” Governor Rell said.
The Governor said $20 million in Qualified Energy Conservation Bonds (QECBs) will be available to towns for energy projects. Of that, the U.S. Treasury Department, which is providing the stimulus funds, has allocated about $6.3 million in bonding directly to the state’s largest municipalities. They are:
Bridgeport – $1.41 million
Hartford – $1.29 million
New Haven – $1.28 million
Stamford – $1.22 million
Waterbury – $1.11 million
Approximately $16 million will be dedicated to alternative and renewable energy projects on state property.
The energy bonds were first established under the Energy Improvement and Extension Act of 2008 and later amended by the American Recovery and Reinvestment Tax Act of 2009. Although these bonds are a new category of tax credit bonds designed to go directly to governments, up to 30 percent of the total may be issued as private activity bonds.
Issuers will repay principal, but not interest. Instead of interest, holders of QECBs will receive federal tax credits, which then can be applied against their tax liability.
The conservation bond program is administered by the Connecticut Development Authority (CDA) and applications are now being accepted. Projects will be selected jointly by CDA and the Department of Economic and Community Development (DECD). Qualified projects could include:
Capital expenditures related to reducing consumption of energy in public buildings, renewable energy production in rural areas, or green community programs;
Research expenditures that support the development of non-fossil fuels or reduce dependence on fossil fuels;
Mass transit projects that will reduce energy consumption and pollution;
Demonstration projects that promote commercialization of technologies to help conserve energy, advance alternative energy and reduce pollution; and
Public education campaigns that promote energy efficiency.