NORTH CAROLINA’S GREEN ENERGY ECONOMY CONTINUES RAPID GROWTH, DESPITE RECESSION

RALEIGH, NC – The North Carolina Sustainable Energy Association (NCSEA) has released the 2009 North Carolina Renewable Energy and Energy Efficiency Industries Census, which identified 10,250 green energy jobs in all 100 counties of North Carolina. The annual report was released at NCSEA’s forum, “Growing North Carolina’s Green Energy Economy: Learning, Connecting & Creating Opportunities Together,” which was held at the Charlotte Convention Center on Friday, October 9 with close to 400 attendees from across the state. Click here to download the full report.

Earlier this summer, NCSEA identified and surveyed 1,136 firms potentially meeting these criteria. The firms largely represented businesses, but several state agencies, education outfits, and non-profits were also included. A total of 548 firms met the qualifications and responded to the census’ 23 questions. Another 110 firms indicated they did not meet any of the qualifying criteria.

The 2009 report estimates that the renewable energy and energy efficiency industries employ 10,250 full-time equivalent employees across a broad supply chain in North Carolina. Manufacturers support the greatest percentage of employees – 23% of the reported jobs were with firms that identified manufacturing as most important to their business.

NCSEA estimates that renewable energy and energy efficiency industries generate more than $3.5 billion in annual revenue from North Carolina activities, with the industries maintaining a presence in all 100 North Carolina counties. 

Wake County is leading the state’s green energy economy due to its 141 firms reporting a presence. Mecklenburg County ranks second with 99 firms and Buncombe County ranks third with 57 firms. NCSEA defines a “presence” as having a headquarters, satellite office, manufacturing facility, or remotely located employees. The Research Triangle Region supports 36% of the reporting firms’ headquarters.

More information is available by downloading the full report...



Click here to download the 2009 Renewable Energy & Energy Efficiency Industries Census.

Click here to download the press release announcing the 2009 Industries Census.

Click here for more information on the 2008 Renewable Energy & Energy Efficiency Industries Census.

More than 400 leaders from communities across North Carolina attended events at the Charlotte Convention Center on Oct. 8-9 focused on our state's Green Energy Economy. NCSEA hosted the events entitled, GROWING NORTH CAROLINA'S GREEN ENERGY ECONOMY: Learning, Connecting & Creating Opportunities Together.

Click here to view a slide show of photographs from the events. (Photographs taken by Andrew Whelan.)

Thursday evening's Networking Reception featured remarks by Amory Lovins, co-founder of the Rocky Mountain Institute, a highly-acclaimed author and one of our nation's leading voices on renewable energy technologies and energy efficiency solutions.

All day on Friday, October 9, NCSEA hosted a major Green Energy Economy forum, which included the organization's Annual Membership Meeting. The highlights of the day included the release of the long-awaited 2009 Renewable Energy & Energy Efficiency Industries Census, the election of NCSEA's 2010 Board of Directors and remarks by the luncheon keynote speaker John Morrison, North Carolina's new Assistant Secretary of Energy at the Department of Commerce. The forum also featured informational panel discussions, presentations, Q&A sessions, remarks by Charlotte's Mayor Pat McCrory, and the announcement of the 2009 sustainable energy awards.

FEDERAL STIMULUS FUNDS: '1603' GRANT PROGRAM
U.S. Treasury now accepting grant applications

The US Departments of the Treasury and Energy will provide an estimated $3 billion for the development of renewable energy projects around the country and are currently offering guidance businesses will need to submit a successful application. Established under Section 1603 of the American Recovery and Reinvestment Act (Recovery Act), commonly known as the federal economic stimulus law, this program gives owners of many types of renewable energy facilities the ability to offset project costs through a 30% grant (10% in the case of certain types of energy property) instead of the energy tax credit under Internal Revenue Code Sections 45 & 48.

The Recovery Act authorized Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009. Previously, these companies could file for a tax credit to cover a portion of the renewable energy project's cost; under the new program, applicants would agree to forgo tax credits down the line in favor of an immediate reimbursement of a portion of the property expense. This direct payment program will benefit companies that do not have federal tax liability and allows for an immediate stimulus in local economies.

The US Departments of Treasury and Energy expect a fast acceleration of businesses applying for the energy funds in lieu of the tax credit.

To learn more about this grant program, including the terms and conditions, a 20-page guidance document, and a sample application, or to submit your application, go to www.treas.gov/recovery/1603.shtml. If you have questions or need additional guidance, you can email 1603questions@do.treas.gov. This new website and web-based application for the 1603 program was launched on July 31, 2009, and the government is now accepting applications. The Dept. of Energy is also expected to offer a series of webinars in the coming weeks to better educate applicants about the grant program and how to apply.

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As we reported previously, the application is computerized and is completed and submitted online, at https://treas1603.nrel.gov/. The new '1603' website provides a sample application. Note: the electronic application “times out” in 60 minutes, therefore, it is recommended that you take advantage of the opportunity to print out the sample application and pencil in your answers before doing the online version.

The Treasury has a complex rule for setting up a password for your account. Your password must be at least eight characters; it must begin and end with a non-numeric character; and it must include at least one capital letter, one lower-case letter, one number, and one symbol. For example, AbCDEFG2 will not work (no symbols, and it ends in a number), but ABCD12EF;g will.

Applications with a credit eligible basis of $500,000 or more require “an independent accountant’s certification attesting to the accuracy of all costs claimed as part of the basis of the property.” The Treasury has provided two forms for certification. The first form (for “Mid-Sized Certification”) is for projects with a basis of $500,000 to $3,333,333 (i.e., claiming a grant of less than $1 million), and the second form (for “Large Certification”) is for projects with a higher basis (i.e., claiming a grant of $1 million or more). Remember that smaller projects (with a basis of under $500,000) do not need an accountant’s certification at all.

The Treasury has provided language for the accountant’s letters. Both refer to “Section V” of the guidance, which provides very limited rules about computing basis. While the Large Certification is based on attestation standards established by the American Institute of CPAs (AICPA), including “examining evidence supporting management’s assertion,” the Mid-Sized Certification is done in accordance with “agreed-upon procedures” (AUP), and specifically relies on management to report costs and determine the eligible basis for the property.

Attached to the Mid-Sized Certification language is a four-page “agreed-upon procedures and findings,” no doubt intended to assure that an accountant providing certification of a mid-sized project is aware of the general rules that apply to computing the basis of energy property. While most of the rules are unsurprising, one stands out:

“Other federal grants, state grants, or rebates reduce the cost basis.”

This is unexpected, because most advisors treat most grants and rebates, at least in a commercial context, as taxable income, with the resulting expenditures being included in basis. Yes, there are exceptions (e.g., Section 136 of the Code applies to certain energy conservation subsidies provided by utilities with respect to dwelling units), but the rules are certainly not as obvious and consistent as to always cause a reduction in cost basis. Furthermore, this rule does not appear elsewhere; for example, it does not appear in the aforementioned Section V of the guidance.

The Treasury has also provided rules for assigning the 1603 payment. Payments can be assigned if (i) they are $1,000 or more; (ii) the assignee is a bank, trust company, or other financing institution, including any federal lending agency; (iii) the assignment covers all amounts payable; (iv) the payment is not further assignable except where the recipient is the agent or trustee for multiple parties who are participating in the financing; and (v) a written notice of assignment is filed with the Treasury, using the provided form. The reference to “other financing institution” leaves unanswered questions—for example, can an individual be an assignee? Perhaps if he or she is in the business of lending money.

(Source: US Department of Treasury and Energy; NCSEA; Nixon Peabody; and other sources)

NCSEA's Networking Reception & Fundraiser in Charlotte on June 23 was a huge success! The reception brought together over 250 of the Charlotte region's top energy, economic development, finance and community leaders who are playing a leading role in developing our clean energy economy, as well as NCSEA's policy and market development experts, local elected officials, representatives of state and local government agencies, educational institutions, community organizations, legal experts, and other supportive citizens. 

Due to overwhelming support by attendees who bought tickets and our gracious Sponsors and Partners, NCSEA is close to meeting our $20,000 fundraising goal for our new Charlotte Regional Energy Leadership Fund. The funds raised at this event will allow NCSEA to increase our work in the Charlotte region, hire a part-time staff member (based in Charlotte), and ensure North Carolina becomes one of the top sustainable energy markets on the East Coast.

Click here for more information.

Last year through the work of NCSEA, North Carolina became the third state in the nation to quantify and track our state's renewable energy and energy efficiency businesses and jobs. And now, it's that time again! Through the end of June, NCSEA will conduct an online survey of our state's more than 1,000 businesses for the "2009 North Carolina Renewable Energy and Energy Efficiency Industry Census." 

Businesses will receive an email from our staff, which will include a link to the online survey. Some businesses may also receive a duplicate paper survey if our staff was unable to confirm an email contact. It is very important for all businesses to complete either the online survey or the paper survey by June 30th to ensure their responses are included in the final report, which will be announced in October. North Carolina's elected officials, economic developers, business leaders, the media and others rely on this valuable information and are anxiously awaiting the updated results.

The inaugural 2008 survey was a huge success - garnering both local and national coverage and we are excited to repeat this success in 2009. Click here to view the "2008 Renewable Energy & Energy Efficiency Industry Census."

The goal of the project is to better understand the employment and industry dynamics of North Carolina's renewable energy and energy efficiency businesses. The year's Industry Census will examine company sizes, core competencies and employment dynamics. The survey is 25 questions and will take approximately 15 minutes to complete. Survey responses and contact information are kept confidential. The survey results and any additional analysis are made available only in aggregate.

Renewable energy or energy efficiency business in North Carolina that would like to get started on the 2009 Industry Census online survey right away may click here. 

To learn more about the survey, recommend a company for inclusion, or ensure that your company is on the survey list, please contact Rich Crowley at richard@energync.org or (919) 832-7601, ext. 104.