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. You may also wish to check the comprehensive Database of State Incentives for Renewables and Efficiency (DSIRE) at www.dsireusa.org.

Colorado Carbon Fund *new
The Colorado Carbon Fund is currently recruiting high-quality, innovative greenhouse gas offset projects. The Climate Trust, in partnership with the Governor's Energy Office, is responsible for evaluating and contracting to buy the emission reductions from innovative energy projects in Colorado. If you have a new project that is reducing or displacing the use of fossil fuels and would like to be considered for funding, please contact mthilges@climatetrust.org. More information on the Colorado Carbon Fund is available on: www.coloradocarbonfund.org. (Added 1/27/09)

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.

Power, Controls and Adaptive Networks
Innovative and technologically-advanced CHP projects may qualify for grants from the National Science Foundation under its ongoing 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. Proposals are due between January 7th and February 7th of each year, and between September 7th and October 7th of each year. For more info, contact Radhakishan Baheti at rbaheti@nsf.gov or go to: www.nsf.gov/funding/pgm_summ.jsp?pims_id=13380. Refer to Sol# PD-05-1518. (Grants.gov 1/27/09)

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 $1,500 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. CHP/cogeneration systems under 50 MW are eligible for a 10% tax credit. See details.

Renewable Electricity Production Tax Credit (for Corporations)
CHP technologies that use renewable fuels are eligible for 1.0¢/kWh, adjusted for inflation, for first 10 years of operation. Closed-loops biomass, i.e. crops grown specifically for energy, get 2.1¢/kWh. Agricultural livestock systems must meet minimum size of 150 kW. 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 here or here.

USDA Rural Energy for America Program (REAP) - Grants and Loans for Renewable Energy Systems and Energy Efficiency Improvements (including CHP)
Agricultural projects or commercial projects in rural areas can get grants of up to 25% of project costs, or loans of up to $25 million, not to exceed a total of 75% of project costs. See details.

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 >1 MW
CHP systems in New Mexico that run on biomass, landfills gas, animal waste, etc. and that are at least 1 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 Energy Efficiency & Renewable Energy Bond Program
Counties or municipalities in New Mexico can apply to the New Mexico Energy, Minerals and Natural Resources Department for an energy assessment, and if an energy efficiency measure (including CHP) is shown to result in cost savings then the county or municipality may issue bonds to cover the measure. See details.

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 Renewable Energy Systems Tax Credit
In Utah, most renewable-fueled CHP systems greater than 660 kW can get 0.35¢/kWh for 4 years. See details.

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 Renewable Energy Sales Tax Exemption
Renewable-fueled CHP systems 20 kW or greater and expansions of 1 MW or greater are exempt from Utah's state sales tax. See details.

Wyoming Renewable Energy Sales Tax Exemption
See details.