For Immediate Release - August 25, 2011

Patrick-Murray Administration Announces $16 million in Federal Financing for Renewable Energy, Energy Efficiency Projects in Eight Communities

BOSTON - Thursday, August 25, 2011 - The Patrick-Murray Administration today announced eight communities in Massachusetts will receive a share of $16 million in low-interest federally subsidized financing, for the creation of renewable energy and efficiency projects, including efforts to cut municipal energy consumption, and fund municipal wind power and anaerobic digestion projects.

"I look forward to seeing these projects come to fruition," said Governor Deval Patrick. "Investments like these will reduce long-term energy costs and stimulate our economy with home-grown, clean energy jobs."

Projects in Belchertown, Cohasset, Deerfield, Fairhaven, Gill, Kingston, Marshfield, and West Newbury will receive a share of the $16 million.

The Energy Improvement and Extension Act of 2008, enacted by Congress in October 2008, authorized the issuance of Qualified Energy Conservation Bonds (QECBs) to state, local and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, through which the borrower pays back the principal on the bond, and the bondholder receives federal tax credits in lieu of traditional bond interest payments. QECBs allow a project to obtain zero or very low interest financing while encouraging investment in clean energy projects.

"In Massachusetts each year, we spend approximately $22 billion on energy, about $18 billion of which go out of the state and the country. This program rewards municipalities and organizations for meeting their energy needs by adopting clean energy practices that lower operating costs while reducing our dependence on imported fuel," said Energy and Environmental Affairs Secretary Richard K. Sullivan Jr.

"By helping these communities and private entities embrace energy efficiency and renewable energy strategies, we are able to take big steps forward in meeting our goals of cutting greenhouse gas emissions," said Department of Energy Resources (DOER) Commissioner Mark Sylvia.

The QECB program is a partnership between EEA, DOER, the Executive Office of Administration and Finance (ANF), and MassDevelopment, the state's finance and development authority. Under the program, DOER and ANF provide the bond allocations and MassDevelopment issues the bonds.

"MassDevelopment's mission focuses on a healthy economy and environment for the Commonwealth, and this program helps achieve that goal by promoting sustainable energy sources and creating green jobs," said MassDevelopment President and CEO Marty Jones.

The American Recovery and Reinvestment Act of 2009 authorized $3.2 billion for QECBs, allocated among the states based on each state's population. The Commonwealth has $50,805,911 available to distribute. No more than 30 percent of the funding may be used for private activities, and 70 percent must be used for governmental purpose bonds.

"This is another example of the Recovery Act improving communities and putting people back to work," said Massachusetts Recovery & Reinvestment Office Director Jeffrey Simon. "The Qualified Energy Conservation Bonds provide resources for cities and towns to take innovative steps to reduce their energy costs."

Projects financed:

Belchertown
Town of Belchertown
$3,149,586
Energy Savings Performance Contract to reduce energy consumption in public buildings by 20 percent

Cohassett
Conservation Wind Partners, LP
$1,337,169
One 900kW wind turbine on the Trustees of Reservations Whitney Thayer Woods Reservation

Deerfield
A Green Energy, LLC
$2,200,000
An anaerobic digestion facility at a farm as part of a five-farm consortium of digesters

Fairhaven
$1,337,169
Fairhaven Wind, LLC
Two 1.5 MW wind turbines; power purchase agreement with Fairhaven for the output

Gill
Town of Gill
$127,500
Energy Savings Performance Contract to reduce energy consumption in public buildings by 20 percent

Kingston
No Fossil Fuel, LLC
$1,337,169
Two 2-MW wind turbines; power purchase agreement with Kingston for the output

Marshfield
Town of Marshfield
$1,426,551
Energy Savings Performance Contract to reduce energy consumption in public buildings by 20 percent

Pentucket
Pentucket Regional School District
$5,540,000
Multiple energy efficiency measures to reduce energy consumption by 20 percent in four school buildings

About the Department of Energy Resources:

DOER develops and implements policies and programs aimed at ensuring the adequacy, security, diversity, and cost-effectiveness of the Commonwealth's energy supply within the context of creating a greener energy future. DOER strives to:

  • Ensure deployment of all cost-effective energy efficiency,
  • Maximize development of clean energy resources,
  • Create and implement energy strategies to assure reliable supplies and improve the cost of clean energy relative to fossil-fuel based generation, and
  • Support Massachusetts clean energy companies and spur Massachusetts' clean energy employment.

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