January 5, 2010 - On December 30, 2009, the Washington State Department of Commerce (DOC) announced that the application deadline for local governments to apply for eligibility to issue Qualified Energy Conservation Bonds (QEC Bonds) would be extended to February 1, 2010. Click here to read the announcement.
The newly extended deadline applies to the approximately $9.8 million of QEC Bond authorization that will be allocated to local governments on a competitive basis. Applications for this allocation are now due on February 1, 2010. (Application forms are available here.)
QEC Bonds are taxable tax credit bonds that may be issued by a state or local government for qualified conservation purposes, including: capital expenditures for reducing energy consumption in public buildings, implementing green community programs, certain renewable energy production projects; expenditures for facilities or grants supporting research in certain renewable energy and energy efficiency technologies; mass commuting facilities or other facilities that reduce pollution from vehicles used for mass commuting; certain demonstration projects to promote certain renewable energy and energy efficiency technologies; and public education campaigns to promote energy efficiency.
The DOC previously published emergency rules regarding allocations and reallocations of QEC Bonds, Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds, all of which were authorized by the American Recovery and Reinvestment Act of 2009 (ARRA). Unless extended by Congress, all such bonds must be issued before January 1, 2011. Click here to read Foster Pepper’s prior e-alert and other information regarding these bonds and allocation rules.
DOC will hold a public hearing on the emergency and proposed rules for QEC Bonds, RZED Bonds and RZF Bonds on January 6, 2010 at 2:00 PM in the first floor conference room of the Davis-Williams Building at 906 Columbia SW, in Olympia.
If you have questions about ARRA, the allocations of these types of bonds or about the reallocation procedures described, please contact Alice Ostdiek (206.447.4663) or any member of our Public Finance group.