Measure extends and expandsTreasury program

Last week, Democratic Sens. Dianne Feinstein, of California, and Jeff Merkley, of Oregon, introduced a measure that they said would spur development of renewable energy employment and construction, such as wind and solar farms and solar panel factories.

The bill would primarily extend and expand a Treasury Department grant program to help diminish the impact of the economic crisis on the renewable energy sector, according to a news release from Feinstein's office.

The treasury grant program helps renewable energy developers secure affordable financing to move forward with capital-intensive projects.

The measure ould extend the program until 2012. It would also expand the program to allow public power utilities to participate, since they are currently ineligible, and would create a new tax credit for solar manufacturing facilities and the construction of large solar projects on disturbed private lands, according to the news release.

"One of the consequences of the economic crisis was the shelving of major solar and wind projects, as readily vailable financing evaporated," Feinstein said.

"The stimulus bill established a new grant program to help restart these projects by allowing renewable energy developers to qualify for grants, or payments, from the Treasury Department instead of claiming tax credits.

"But the grant program is set to expire at the end of next year, before most construction is expected to occur and well before experts expect the tax equity markets to thaw.

"If the grant program is not extended, bank profits will again become the limiting factor on renewable energy development in the United States, and that makes no sense.

"This legislation would extend the grant program for two additional years, until 2012. It would also allow public power utilities to qualify for the grants program, since they provide energy for as many as 45 million Americans."