Clean Renewable Energy Bonds “CREBs”.pdfVIP

Clean Renewable Energy Bonds (“CREBs”) Clean Renewable Energy Bonds (“CREBs”) The Energy Policy Act of 2005 (P.L. 109-58) Notice 2006-7 clarifies that facilities that are “functionally related and subordinate” to the provides electric cooperatives and public generation facility itself are also eligible for CREB power systems with the ability to issue “Clean financing. These facilities may include a radial Renewable Energy Bonds” (“CREBs”). The transmission line to the nearest substation, CREBs program is further described in Internal interconnection upgrades made necessary as a Revenue Service (“IRS”) Notices 2005-98 and result of the renewable project, offices, storage, or 2006-7 (“Notices”). The Notices will other items. Facilities will not be functionally eventually be followed by “temporary and related and subordinate to a generation facility if proposed” regulations that invite public they are not of a character and size commensurate comment. The “temporary and proposed” with the character and size of the generation regulations may add detail to the program but facility. Your bond counsel can assist you in will not alter the general terms of the Notice. identifying the scope of eligible facilities. CREBs deliver an incentive comparable to the Qualified Issuers Production Tax Credit (“PTC”) that is Entities qualified to issue CREBs include available to private developers and investor- governmental bodies, Indian tribal governments, owned utilities (“IOUs”). A CREB is a special mutual or cooperative electric companies and clean type of bond, known as a “tax credit bond,” energy bond lenders – namely, the National Rural that offers cooperatives the equivalent of an Utilities Coopera