PROVIDING COMPARABLE INCENTIVE FOR THE DEVELOPMENT OF
RENEWABLE ENERGY BY PUBLIC ENTITIES
WHEREAS, there continues to be strong and growing support for increased production from renewable and clean energy resources at the local, state and federal level; and
WHEREAS, Congress has consistently provided privately-owned energy companies with tax code-based incentives for such investments (such as the Section 45 production tax credit, PTC); and
WHEREAS, not-for-profit public power systems and rural electric cooperatives, which together serve twenty-five percent of America's electric consumers, have long sought a comparable incentive for this type of development; and
WHEREAS, Congress created the Renewable Energy Production Incentive (REPI) in 1992, to provide a comparable incentive to produce renewable energy for these not-for-profit utilities; and
WHEREAS, REPI depends on annual appropriations and has never received sufficient funds to meet the significant demand for this program; and
WHEREAS, Congress sought to address this situation by including the Clean Renewable Energy Bond (CREB) program in the Energy Policy Act of 2005 (EPAct 05), whereby public power systems and rural electric cooperatives were to receive financial incentives comparable to the production tax credit provided to for-profit companies; and
WHEREAS, authorization for the CREB program has been limited by a cap on the available bond authority, which weakens the comparability to the PTC, as the use of the PTC is unlimited except in terms of entities that can use it; and
WHEREAS, the Internal Revenue Service (IRS) which implements the CREB program, has development an allocation methodology for CREBs that gives preference to small projects over large projects.
NOW, THEREFORE, BE IT RESOLVED that Congress continue to provide appropriations for the Renewable Energy Production Incentive
BE IT FURTHER RESOLVED that the United States Conference of Mayors urges Congress to extend the CREB program for multiple years beyond 2008 in conjunction with and for the same term as it extends the production tax credit and investment tax credit for the for-profit utility sector; and
BE IT FURTHER RESOLVED that the United States Conference of Mayors urges Congress to eliminate the volume cap on the CREB program and modify the allocation methodology to create more parity among large and small renewable projects.