Senators Ask Treasury for Timely Issuance of Energy Bond Regs

We are writing to express our concern about the possible delay in the issuance of the regulations necessary for implementing the Clean Renewable Energy Bonds authorized by Section 1303 of the Energy Policy Act of 2005. It is our understanding that these regulations may be delayed until next year, though the statute specifically states that the regulations shall be issued by the Department no later than December 8, 2005, or 120 days after enactment.

As you may know, Clean Renewable Energy Bonds represent an important component of the renewable energy provisions in the Act. The successful completion of these regulations will enable various government and nongovernmental agencies to issue bonds that will help to spur the increased use and production of renewable and alternative sources of energy. Bringing these resources online will also help to stimulate our economy and produce affordable and environmentally sustainable power.

These Bonds will allow municipally and cooperatively-owned utilities and other nonprofit entities to issue up to $800 million in "no interest" bonds to finance renewable energy projects. Purchasers of the bonds are then eligible for Federal tax credits rather than interest payments. The program, as envisioned by Congress, is patterned after the qualified zone academy bonds which have been used to finance school improvements and which has been operating for some time and with which Treasury is well-acquainted.

We believe it is essential that the Federal government do everything in its power to swiftly alleviate the economic impacts of energy price spikes on the American consumer and businesses, Quick action to promote renewables through implementing the Clean Renewable Energy Bonds program will send the right calming signal to energy users and the market and will help pave the way for a much greater percentage of our nation's energy to be met through renewables.

We encourage you to see to it that the Department issues the regulations on schedule and does all that it can to accelerate the use and market penetration of clean renewable energy technologies. Please provide us with information regarding the Department's schedule and the reasons for any delay.

Thank you for your attention to our request. Please contact us or our staff (Chris Miller or Ryan Mulvenon with Senator Reid -- 224- 3542) if there are questions or comments on this matter.