KGUN 9 On Your Side, Tucson News, Weather & SportsTown of Oro Valley receives approval to issue Clean Renewable Energy Bonds.

Town of Oro Valley receives approval to issue Clean Renewable Energy Bonds.

Written by: Brian Pryor

The Town of Oro Valley has received approval to issue $2.6 million in Clean Renewable Energy Bonds (CREBS), administered by the U.S. Treasury Department's Internal Revenue Service (IRS). The Town was one of only two jurisdictions in Arizona to receive the award, and was allocated one of the highest amounts of the $2.2 billion in available funding.

The Town submitted a project to establish solar photo voltaic (PV) systems in strategic areas on the Town of Oro Valley's main campus at 11000 N. La Cañada Dr. The proposed locations include arrays for roof-top application on the Administration building; in the breezeway between Administration and the Court; and the Library. Solar panels would also support new covered parking structures proposed in four locations. Power generated will signifantly offset energy consumption from Town facilities, as the systems would be capable of producing 35,949 kw from renewable solar energy.

The Treasury Department allocates bond authority to governmental agencies, public power providers and cooperative electric companies involved in clean renewable energy development and production. These bonds function as tax credit bonds which allow investors to receive federal tax credits in lieu of the payment of a portion of the interest on the bond. For CREBs, the federal tax credits will cover 70 percent of the interest on the bonds.

Funded by the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009 (Recovery Act), these energy bonds help recipients obtain lower cost financing for clean energy development projects.