Renewable Energy Groups in Illinois Back Extension of Federal Grants for Wind and Solar

The tax cut deal reached by President Obama and Senate Republicans this week includes an extension of tax credits for ethanol --- but another green energy program is not included. Now, supporters of wind and solar energy are lobbying Congress to include an extension of the so-called "Section 1603" grant program in the final tax bill. The program is slated to expire at the end of the month.

The 1603 program converts tax credits for renewable energy projects into up-front grants. Environment Illinois' Max Muller said those grants have helped qualifying companies build 14 new solar, wind energy and fuel cell facilities in Illinois --- resulting in the creation of new jobs at a time of high unemployment.

"Basically, if we don't want to see a precipitous drop in the number of new clean energy projects in Illinois and nationally, we need to extend this program," Muller said.

Among the recipients of 1603 grants in Illinois are nine wind farms, including the Cayuga Ridge Wind Farm in Livingston County near Streator.

Kevin Borgia of the Illinois Wind Energy Association says the grant program provides funding for renewable energy projects at a time when financing is hard to come by, and he said that has led to the creation of new jobs in Illinois.

"I think that the past history with the program is pretty impressive," Borgia said. "And there could be a loss to the Illinois economy if the program does sunset."

In the case of Illinois wind farms, the 1603 grant program has helped only a fraction of the 46 projects that have been built or were slated for construction as of July of this year, according to the Center for Renewable Energy at Illinois State University. Wind farms and other green energy projects will still be eligible for federal tax credits, even after the grant program runs out. But Borgia says the 1603 grants give companies more flexibility when it comes to putting wind farms projects together.