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(RTTNews) - The Treasury and Energy Departments announced Friday that they are now accepting applications for grants to boost renewable energy projects.

The grants, which come in the form of a cash advance on the renewable energy tax credit, are hoped to spur development of energy projects around the country and are funded through the $787 billion recovery and stimulus bill that Congress passed earlier this year.

The departments estimate the program will distribute at least $3 billion in funds to roughly 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

"As we move quickly to get our economy back on track and to repair the financial system, we must make investments that lay the foundation for a stronger economic future," Treasury Secretary Timothy Geithner said in a written statement. "Too many renewable energy projects have stalled due to a lack of financing."

He added, "The Recovery Act program will lead to investment in our long-term energy needs, move us towards energy independence, increase jobs at energy-specific businesses, and protect our environment."

Energy Secretary Steven Chu said the goal of the grants is to spur private investment in renewable energy projects, leveraging the federal funds to greater effect.

"This program will play a major role in encouraging private sector capital to invest in clean energy development, creating new jobs that can't be outsourced," he said. "It is an investment that will continue to help our economy grow and ensure advancement in clean and renewable energy development."

Although the tax credit has been widely used in the past, private financing for renewable energy projects had fallen off during the economic downturn and recession.

But both Treasury and Energy expect to see a rapid increase in applications for the payment in lieu of the tax credit, which will likely also provide a stimulus effect in local economies around the country.
The Treasury and Energy Departments announced Friday that they are now accepting applications for grants to boost renewable energy projects. The grants, which come in the form of a cash advance on the renewable energy tax credit, are hoped to spur development of energy projects around the country and are funded through the $787 billion recovery and stimulus bill that Congress passed earlier this year.