Clean Renewable Energy Bonds

MONTANA, Jul 14 2008 (Neo Natura) - Under the recently enacted federal Clean Renewable Energy Bond (CREB) program, electric coopoeratives, public power systems, and municipal utilities can issue or benefit from the issuance of clean renewable tax credit bonds to finance renewable energy projects as a less expensive alternative to traditional tax-exampt bonds. To a large extent, the CREB program is modeled after the Qualified Zone Academy Bond (QZAB) program enacted in 1998 to provide tax incentives for the rehabilitation of public school buildings.

A 135 acre Flathead County landfill located near Kalispell is one of the latest entities to take the goverment up on the offer. The landfill has been collecting methane gas produced by decaying garbage and then burning it, to prevent the greenhouse gas from escaping into the atmosphere.

Flathead Electric co-op's Ross Holter says next year a $3.5 million project will be financed by federal clean renewable energy bonds, and should pay for itself in about 15 years. The project will burn the methane gas that is currently being collected from the landfill, and drive a 1.6 megawatt generator hooked up to the Flathead Electric Co-op's distribution system. The generator will be capable of producing enough power for 900 homes.