Final rules establish a program to expand clean energy investments and lower home energy costs were released by the U.S. Department of Treasury Wednesday.
The department, along with the IRS, released the final rules and procedural guidance for Section 48E(h), the Clean Electricity Low-Income Communities Bonus Credit Amount Program that is aimed at increasing clean energy investments in low-income communities and benefiting low-income households, on Indian Lan, or as part of affordable housing developments.
An analysis of the first year of the program found that it received more than 54,000 applications from 48 states and the District of Columbia, and four territories. Approved applications to the program are anticipated to generate $3.5 billion in investments in low-income communities and on Indian land, and are estimated to generate more than $270 million in offset energy costs per year. During the second year, the program received more than 57,000 applications, totaling more than 1.9 gigawatts of clean energy generations. Those approved applications are expected to generate an estimated $4 billion in public and private investment into communities and generate nearly $350 million in offset energy costs per year.
“Expanding the Clean Electricity Low-Income Communities Bonus Credit will help lower energy costs in communities that have been overlooked and left out for too long and empower developers to work alongside communities to provide tailored solutions to meet their energy and economic needs,” U.S. Deputy Secretary of the Treasury Wally Adeyemo said. “The final rules announced today will help ensure that all Americans benefit from the growth of the clean energy economy.”
The final rules made key changes to the program including changes due to the statutory transition of the 48E Clean Electricity Investment Credit, and the incorporation of feedback received through public comment. Those changes include expanding eligibility of investment technologies; expanding the impact for low-income households and creating opportunities for small businesses.
The rules highlight the expanded list of program0eligible technologies beyond wind and solar to zero-emission technologies like hydropower and geothermal.