Rocky Mountain Farmers Union

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Rocky Mountain Farmers Union

• Clean Renewable Energy Bonds (CREBs)
• Green Tags
• Community-Scale Renewable Energy Workshop
• March 13, 2007
• Tony Frank
• Cooperative Economic Development Center
• Rocky Mountain Farmers Union
• Greenwood Village, CO
• 303-283-3532
• tony.frank_at_co-ops.org
• www.rmfu.org

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What is a Clean Renewable Energy Bond?

• Special type of bond a tax credit bond
• Equivalent of an interest-free loan for financing
  qualified energy projects.
• Bondholder receives an annual federal tax credit
  in lieu of receiving interest payments
• Finances renewable and alternative energy
  projects
• Energy Policy Act of 2005
• Authorized 800 million available in bonding
  authority
• Additional 400 million available in 2007

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Eligible CREB Issuers

• Cooperative Electric Utilities
• Municipal Utilities
• National Rural Utilities Cooperative Finance
  Corporation
• State and Local Governments
• Indian Tribal Governments
• U.S. Territories and Possessions
• District of Columbia

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2006 Projects Receiving Bond Allocation

• 786 Applicants from 40 States
• 610 Projects Awarded
• 532 governmental projects (ranging from 23,000 -
  3.2 million)
• 78 rural electric projects (120,000 - 31
  million)
• Governmental Projects 401 Solar PV 99 wind
  power 23 landfill gas 8 hydropower, 1 biomass
• Cooperative Projects 33 Solar 13 wind 13
  landfill gas 12 biomass 6 hydropower 1
  refined coal

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More information on CREBs

• Environmental Law Policy Center,
  www.elpc.org/energy/farm/crebs.php
• IRS Notice 2006-7,
• www.irs.gov/pub/irs-drop/n-06-07.pdf
• George K. Baum Company,
• www.gkbaum.com/renewableEnergy/crebs.cfm

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Green Tags
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Green Power Product Types

• On site-renewable energy generation e.g.
  install a small wind or solar panel to power your
  home or business (grid-tied or off-grid)
• Utility green power electric products electric
  utility offers electricity from renewable
  resources as percentage of usage or a fixed
  number of blocks (usually 100 kilowatt-hours).
  Purchase found on utility electric bill.
• Green Tags or Renewable Energy Certificates
  Support the production of renewable energy by
  purchasing the environmental benefits of every
  kilowatt hour produced from a wind or solar
  energy project. Choose from several green tag
  providers and projects.

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How Green Tags Work?
A 100 Wind Powered Home
700 KW Green Tags
14 700 kWh x 0.02 per kWh
63
Electric Utility Bill Usage 700 kW Payment Due
63
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Green Tag Providers and Resources

• Bonneville Environmental Foundation,
  www.b-e-f.org
• Renewable Choice Energy, www.renewablechoice.com
• Community Energy, www.communityenergy.biz
• 3 Phases Energy Services, www.3phases.com
• Green-e, www.green-e.org, Independent
  certification and verification program

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RMFU Farm Scale Wind Power Renewable Energy
Cooperative
USDA Grants/Loans other Financing Tools (e.g.
9006 Program)

Wind Powered Farmers Rural Businesses
Renewable Energy Cooperative
Small Wind Manufacturer
RMFU Coop-Economic Development
Center -Facilitate options for purchase and
installation of turbines
Solar PV Manufacturer

Green Tags Clean Energy Incentive
Energy Consumers (Support Clean Energy
Cooperative) -urban residents, churches, ski
resorts, businesses, etc.
Rural Electric Associations -Net Metering
Interconnection Standards -Installation and other
Services