Grants, Incentives, and RFPs for CHP

Grants, incentives, requests for proposals (RFP) or other funding mechanisms for CHP in the intermountain region are posted here. Deadlines and application details often change, so check the individual websites. If you know of changes, updates, or incentives not listed here, please Contact Us. Also, if you are considering a CHP project, you may wish to contact us to see if we know of any other funding sources, and/or sign up to receive notices.

CHP Assistance from the Intermountain CHP Center
The Intermountain CHP Center is pleased to offer free technical, economic, and feasibility screenings, third-party review of vendor proposals, expert advice, customized presentations, case studies, and information on available grants and incentives to any business in the Intermountain region (AZ, CO, NM, UT, and WY) that is considering CHP. Contact  at 928-527-8036.

US Department of Energy, Energy Efficiency and Renewable Energy Solicitation for Fuel/Feedstock Flexibility and Combined Heat and Power
Soliciting for technologies that enable utilization of opportunity fuels and nontraditional feedstocks in industrial processes, as well as enable the use of combined heat and power (CHP) in underutilized applications. More information or go to https://e-center.doe.gov/iips/faopor.nsf/1be0f2271893ba198525644b006bc0be/5ca0558c91e6398785257449006a2b8a?OpenDocument

$2 Billion in Loan Guarantees
The U.S. Department of Energy invites applications for Federal Loan Guarantees for Projects that Employ Innovative Technologies in Support of the Advanced Energy Initiative and Title XVII of the Energy Policy Act of 2005. The intent of this RFP is to facilitate the use of new or significantly improved innovative technologies in early commercial projects in order to meet principal energy challenges of enhancing energy security, repairing and modernizing our energy infrastructure, promoting energy conservation, and increasing our energy supplies in ways that protect and improve the environment. Project categories of interest include but are not limited to: Biomass, Hydrogen, Solar, Wind, Hydropower, Carbon Sequestration Practices and Technologies, Electricity Delivery and Energy Reliability, Alternative Fuel Vehicles, Industrial Energy Efficiency Projects, and Pollution Control Equipment. Up to $2 billion in loan guarantees expected to be available. Pre-applications are required and are due 11/6/06, final application due date TBD. For more info, contact Kathryn Chantry at lgprogram@hq.doe.gov or go to: https://e-center.doe.gov/iips/faopor.nsf/UNID/D230E80D10F4AAD4852571C5004A1749?Open. Refer to Sol# DE-PS01-06LG00001. (FBO 8/11/06)

Power, Controls and Adaptive Networks
The National Science Foundation requests proposals for the Power, Controls and Adaptive Networks (PCAN) Program. PCAN supports creative research and education underlying the analysis and design of intelligent engineering networks for control, communications, computation and energy. The program covers areas including, but not limited to, all aspects of transmission, distribution and generation of electric power, including operations, communications, reliability, electric machines, power electronics and drives. The program further includes integration of renewable and distributed energy systems, such as fuel cells, solar cells, wind power and micro-turbines into large power networks. Responses due 10/7/06 and 2/7/07. For more info, contact Radhakishan Baheti at rbaheti@nsf.gov or go to: http://www.nsf.gov/funding/pgm_summ.jsp?pims_id=13380.  Refer to Sol# PD-05-1518. (Grants.gov 8/17/06)

1.8¢/kWh for Advanced Turbines, Fuel Cells, Hybrids, or Energy Storage
Under the Energy Policy Act of 2005 (Section 1224) owners or operators of advanced power system technologies are eligible for a payment of 1.8 cents per kWh of electricity generation. Qualifying facilities must use an advanced turbine, fuel cell, or hybrid power system or a power storage system to generate or store electricity. Facilities are eligible up to the first 10 million kWh produced in a fiscal year. An additional 0.7 cents per kWh is available for owners or operators of qualifying security and assured power facilities as deemed appropriate by DOE and Department of Homeland Security. Expires December 31, 2012.

Energy Efficient Commercial & Public Buildings Tax Deduction
Commercial and public buildings that install energy efficient technologies including CHP are eligible for a tax deduction of $0.30-$1.80 per square foot. For details see the Commercial Buildings Tax Deduction Coalition.

Business Tax Credit for Fuel Cells or Microturbines
As part of the Energy Policy Act (section 1336), businesses that install fuel cells can receive a 30% tax credit, up to a maximum of $500 per 0.5 kW. Businesses that install microturbines can receive a 10% tax credit, up to a maximum or $200 per kW, and a total maximum microturbine system capacity of 2 MW. Expires December 31, 2007. See details.

Renewable Electricity Production Tax Credit (for Corporations)
CHP technologies that use biomass, landfill gas, or municipal solid waste are eligible for 0.9¢/kWh, adjusted for inflation, for 5 years of operation (Closed-loops biomass, i.e. crops grown specifically for energy) get 1.9¢/kWh. Expires December 31, 2007. See details.

Renewable Energy Production Incentive (for Governments, Municipal Utilities, & Rural Co-ops)
State and local governments, tribal governments, municipal utilities, and rural cooperatives can receive a tax credit of $1.8¢/kWh (adjusted for inflation) for CHP technologies fueled by biomass, livestock methane, or landfill gas, for 10 years of operation. See details.

USDA Renewable Energy Systems and Energy Efficiency Improvements – Grants & Loans (Farm Bill)
Agricultural projects or commercial projects in rural areas can get grants of up to 25% of project costs, with a maximum of $500,000, or loans of up to 50% of project costs with a maximum of $10 million. Natural gas-fired CHP systems may qualify as an energy efficiency measure, and obviously biomass or other renewable-fueled CHP systems will certainly qualify as a renewable energy system. See details.

Inventions and Innovations Program
The Inventions and Innovations Program offers grants to individuals and small businesses for the investigation of innovative ideas and inventions with commercial market potential that could save a significant amount of energy. Once or twice a year, the program releases an “announcement of funding opportunity.” For details, go to www.eere.energy.gov/inventions.

20% Credit for Gasification Projects
Under the Energy Policy Act of 2005, the Project Credit provides a 20% credit per year for any eligible property used for a qualifying gasification project. A project will be eligible if it employs gasification technology for at least 90% of the fuel required for the production of chemical feedstocks, liquid transportation fuels, or co-production of electricity related to chemicals, fertilizers, glass, steel, petroleum residues, forest products, or agriculture. Gasification technology is defined under this section as any process which converts a solid or liquid product from coal, petroleum residue, biomass, or other materials which are recovered for their energy or feedstock value into a synthesis gas composed primarily of carbon monoxide and hydrogen for direct use or subsequent chemical or physical conversion. The credit recipient must demonstrate that the project is feasible without additional federal funding. 350 million is available for this project between 2006-2011. Expires December 31, 2007.

StEPP Foundation
The StEPP Foundation, a 501(c)(3) nonprofit organization, has funding available for energy efficiency, renewable energy, and pollution prevention projects implemented for the benefit of the public. For more information, go to www.steppfoundation.org.

Grants for Projects in Economically-Distressed Areas
The Economic Development Administration’s (EDA’s) Public Works Program helps communities in economic decline revitalize, expand, and upgrade their facilities. Projects that have been funded in the past include: water and sewer facilities upgrades; technology-related infrastructure development; diversification of natural resource dependent economies efforts; commercialization and deployment of innovative technologies; business/industrial development; and the demolition, renovation, and construction of publicly owned facilities. The following types of applicants are eligible for funding: economic development districts; states, cities, or other political subdivisions of a state or consortium of political subdivisions; Indian tribes; colleges and universities; public or private nonprofit organizations; and associations acting in cooperation with officials of a political subdivision of a state. Projects must either be located in or directly benefit an area that exhibits economic distress, determined based on the level of unemployment, per capita income, or special need. EDA provides direct grants, on a cost-share basis, generally funding 50 percent of the project cost. For more information see www.eda.gov/InvestmentsGrants/Investments.xml.

Colorado: Local Governments, Non-Profits, and Individuals in Pitkin County
The Renewable Energy Mitigation Program is offer mini-grants up to $1,000 for projects that result in a reduction of greenhouse gases. For information, see www.aspencore.org/NEW_FORMAT/CashIncentives.htm.

New Mexico: Tax Deductions for Biomass Materials and Equipment
New Mexico allows the value of certain biomass-related equipment and materials to be deducted when computing a qualifying entity’s tax liability under the state’s Compensating Tax provisions. (Laws of 2005, Chapter 179; House Bill 995—2005 Session)

New Mexico Renewable Energy Production Tax Credit >10 MW
CHP systems in New Mexico that run on biomass, landfills gas, animal waste, etc. and that are at least 10 MW in capacity are eligible for a corporate income tax credit of 1¢kWh, for the first 400,000 MWh/year. (Section 7-2A-19 NMSA 1978)

New Mexico Industrial Revenue Bond (IRB) Financing
The NM Industrial Revenue Bond Act (Section 3-32-1 et seq. NMSA 1978) and County Industrial Revenue Bond Act (Section 4-59-1 et seq. NMSA 1978) provide that any county or municipality may issue IRBs for the purpose of financing electric generating plants. CHP facilities may qualify for this type of financing.

New Mexico: Energy Performance Contracting
New Mexico has an Energy Performance Contracting law, and CHP projects could be financed under the provisions of this statute. (See Public Facility Energy Efficiency and Water Conservation Act, Section 6-23-1 et seq., NMSA 1978).

Utah: Corporate Income Tax Credit for Biomass Systems
Utah’s corporate income tax credit for biomass systems applies to 10% of the cost of installation of a system up to $50,000. See www.energy.utah.gov/taxcred1.htm.

Utah: Biomass Equipment Exempt from State Sales Tax
Biomass systems 20 kW or greater and expansions of 1 MW or greater are exempt from Utah’s state sales tax. For more information, contact:

Philip Powlick
State Energy Program Manager
Utah Geological Survey
1594 West North Temple
P.O. Box 146100
Salt Lake City, UT 84114-6100
801.537.3365, Fax 801.537.3400
E-mail: philippowlick@utah.gov
Web site: www.energy.utah.gov

Wyoming: Sales Tax Exemptions and Use Tax Exemptions on sales of equipment used to generate electricity from renewable resources. Refer to 2006 Wyoming Statutes legisweb.state.wy.us/statutes/statutes.aspx or link directly to abbreviated statute language:

39-15-105(a)(viii)(N) Sales Tax Exemptions
39-16-105(a)(viii)(c) Use Tax Exemptions

Robert Tompkins
Wyoming Department of Revenue
Herschler Bldg, 2nd Floor West
122 West 25th Street
Cheyenne, WY 82002-0110
Phone: (307) 777-5293
E-Mail: rtompk@state.wy.us
Web site: revenue.state.wy.us