The Obama administration has long been pushing for the use of renewable energies to slow down the US dependence on oil. But the US recession that caused the credit freeze stalled the program, even after the Renewable Energy production and investment tax credits got a short term extension to its expiration by end of 2008. Still, ‘there was little to no money to borrow to get projects off the ground. The extension of the production tax credit was almost moot.’ Now, the government’s Treasury and Energy departments have finally issued the much-awaited implementing rules for green energy grant money.

The American Recovery and Reinvestment Act of 2009 solves the problem of program inertia due to the credit freeze. The US Treasury Department is now instructed to ‘make immediate, direct payments to companies for projects—in lieu of tax credits—for an estimated 5,000 bio-mass, solar, wind and geothermal energy facilities.’

“The renewable energy program provides another important avenue for the Recovery Act to contribute to economic development in communities around the country. This partnership between Treasury and Energy will enable both large companies and small businesses to invest in our long-term energy needs, protect our environment and revitalize our nation’s economy,” said Treasury Secretary Tim Geithner.

Energy Secretary Steven Chu and Treasury Secretary Tim Geithner have announced that the government is ready to give out grant monies, starting from the rules governing the application and approval for grants. An online site by the Treasury, to be launched posthaste, will contain ‘the web-based application system in the coming weeks and begin making direct payments within 60 days after projects are submitted.’

Via Renewable Energy for Green Life