Internal Revenue Bulletin

Internal Revenue Bulletin: 2007-14

April 2, 2007

APPENDIX A
APPLICATION FOR ALLOCATION OF CLEAN ENERGY RENEWABLE BOND VOLUME CAP
Internal Revenue Service
Washington, D.C.
Dear Sir or Madam:
The following constitutes the application (“Application”) of (Name) (the “Applicant”) for allocation of clean renewable energy bond (“CREB”) volume cap under Section 54(f) of the Internal Revenue Code (the “Code”) (unless otherwise noted, section references herein are to the Code) to finance the project described below. (If a single Application is used to request CREB volume cap for more than one project, then all of the required information in the Application must be provided separately for each project.)
	1.	Name of Applicant/Issuer
		Street Address
		City State Zip
		Telephone Number Fax Number
	2.	Status of Issuer - (Select as appropriate)
		The Applicant/Issuer is a “qualified issuer ” under section 54(j)(4) because it is—
			(i)	a “clean renewable energy lender” that is a cooperative owned by, or has outstanding loans to, 100 or more cooperative electrical companies and was in existence on February 1, 2002 or is an affiliate that is owned by such a lender, as demonstrated by the attached documents included as Exhibit D.
			(ii)	a “cooperative electric company” that is a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), as demonstrated by the attached documents included as Exhibit D, including a copy of the determination letter previously obtained from the IRS, if any (or other relevant documents).
			(iii)	a “governmental body” that is a State, territory, possession of the United States, District of Columbia, Indian tribal government, or any political subdivision of the foregoing, as demonstrated by the attached documents included as Exhibit D. (Supporting documents are not required to be attached for governmental bodies that are general purpose governmental entities with substantial taxing, eminent domain, and police powers such as generally a county, city, municipality, township, or borough.)
	3.	Name of Borrower
		Street Address
		City State Zip
		Telephone Number Fax Number
	4.	Status of Borrower - (Select as appropriate) The Borrower is a “qualified borrower” under section 54(j)(5) because it is—
			(i)	a qualified borrower under section 54(j)(5)(A) that is a mutual or cooperative electric company under section 501(c)(12) or section 1381(a)(2)(C), as demonstrated by the attached documents included as Exhibit D, including a copy of the determination letter previously obtained from the IRS, if any (or other relevant documents).
			(ii)	a qualified borrower under section 54(j)(5)(B) that is a “governmental body” under section 54(j)(3)(B) and is a State, territory, possession of the United States, District of Columbia, Indian tribal government, or any political subdivision of the foregoing, as demonstrated by the attached documents included as Exhibit D. (Supporting documents are not required to be attached for governmental bodies that are general purpose governmental entities with substantial taxing, eminent domain, and police powers such as generally a county, city, municipality, township, or borough.)
	5.	Name of Project.


	6.	Detailed Description of Project. A reasonably detailed description of the project (the “Project”) is set forth below or in attached Exhibit A, including reasonably expected costs of components, such as land, site prep, equipment, installation, other dedicated facilities such as transmission, and capacity:
	7.	Qualified Project. The Project is a “qualified project” within the meaning of section 54(d)(2)(A) of the Code, because it is a “qualified facility” (as determined under section 45(d) of the Code without regard to section 45(d)(10) and to any placed in service date) that is (select as appropriate)—
			(1) a wind facility - a facility using wind to produce electricity;
			(2) a closed-loop biomass facility - a facility using closed-loop biomass (as defined in section 45(c)) to produce electricity or, if owned by the taxpayer prior to January 1, 2008, a facility using closed-loop biomass to produce electricity which is modified to use closed-loop biomass to co-fire with coal, with other biomass, or with both, but only if the modification is approved under the Biomass Power for Rural Development Programs or is part of a pilot project of the Commodity Credit Corporation;
			(3) an open-loop biomass facility - a facility using open-loop biomass (as defined in section 45(c)) to produce electricity and in the case of a facility using agricultural livestock waste nutrients, the nameplate capacity rating of which is not less than 150 kilowatts;
			(4) a geothermal or solar energy facility - a facility using geothermal energy (as defined in section 45(c)) or solar energy to produce electricity (not including a facility described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48 of the Code);
			(5) a small irrigation power facility - a facility using small irrigation power (as defined in section 45(c)) to produce electricity;
			(6) a landfill gas facility - a facility producing electricity from gas derived from the biodegradation of municipal solid waste (as defined in section 45(c));
			(7) a trash combustion facility - a facility that burns municipal solid waste (as defined in section 45(c)) to produce electricity;
			(8) a refined coal production facility - a facility producing refined coal (as defined in section 45(c)); or
			(9) a qualified hydropower facility - a facility engaged in qualified hydropower production (as defined in section 45).
	8.	Construction Commencement Date and Placed in Service Date. The Borrower begun or expects to begin the construction, installation and equipping of the Project on . The Borrower expects that the Project will be placed into service on or before .
	9.	Independent Engineer’s Certificate:(If the Application is for more than one Project, a separate certificate must be included for each Project.) Attached as Exhibit B hereto is a certification by an independent, licensed engineer to the effect that the Project will be a “qualified project” within the meaning of section 54(d)(2)(A) and a “qualified facility” within the meaning of section 45(d) of the Code (without regard to section 45(d)(10) of the Code and to any placed in service date) and that the project is technically viable and will produce electricity.
		If the project is a qualified hydropower facility —
			a.	producing incremental hydropower production, then the engineering certificate also must state that the project consists only of efficiency improvements or additions to capacity that produce additional production as described in section 45(c)(8)(B) based on a methodology that would meet Federal Energy Regulatory Commission (FERC) standards; or
			b.	that is a nonhydroelectric dam under section 45(c)(8)(C), then the engineering certificate also must state that the facility, when constructed, will meet FERC licensing requirements and other applicable environmental, licensing and regulatory requirements.
	10.	Location of the Project:
		Project address or physical location (do not include postal box numbers or mailing address)



		City State Zip
		County where Project is located
	11.	Individual to contact for more information about the Project:
		Individual Name
		Company Name
		Street Address
		City State Zip
		Telephone Number
		Fax Number
		(Include as appropriate) The contact person is not an authorized official or officer of the Issuer and a properly executed Form 8821 is included with this Application that authorizes the disclosure by the IRS of information that relates to this Application and the Project(s) described above to the contact person.
	12.	Regulatory Approvals. Identify each regulatory body, the action that must be taken, status of any pending action and the remaining timeframe required to obtain each required approval such as a FERC approval, or siting permits. The plan of the Applicant for obtaining such approvals is as follows: (or attach an Exhibit)
	13.	Plan of Financing. Include a reasonably detailed description of the plan of financing for the Project, including all reasonably expected sources and uses of financing and other funds, the status of such financing, the anticipated date of bond issuance, the sources of security and repayment for the bonds, the aggregate face amount of bonds expected to be issued for the Project, and the issuer’s reasonably expected schedule for spending proceeds of CREBs. Attached as Exhibit C is a plan of financing for the Project.
	14.	Refinancings and Reimbursements.(Include the following statements, as applicable.) [(For refinancings, include the following statement.) The Issuer intends to use the proceeds of CREBs to refinance qualified projects in accordance with section 54(d)(2)(B).] [(For reimbursements, include the following statement.) The Issuer intends to use the proceeds of CREBs to reimburse costs of a qualified project in accordance with section 54(d)(2)(C).] (In addition, the Issuer must demonstrate that the requirements of § 54(d)(2)(B) or (C), as applicable, will be met.)
	15.	Dollar Amount of Allocation Requested for the Project. To finance the Project, the Applicant hereby requests a CREB allocation in the amount of $.
	16.	Prior Allocations for the Project or Related Project.(If the Project or any Related Project (as defined in section 3.f(iii) of this Notice) previously received an allocation of CREBs volume cap, then this paragraph must include a statement to that effect.)
		[If applicable, include the following statement: On (Insert date), the Project previously received a CREBs volume cap allocation in the amount of $. A copy of the IRS allocation letter for that allocation is attached.]
		[If applicable, include the following statement: On (Insert date), a Related Project previously received a CREBs volume cap allocation in the amount of $. A copy of the IRS allocation letter for that allocation is attached.]
	17.	Other allocation requests for Related Projects to the Project. Included below are descriptions of other projects that are Related Projects (as defined in paragraph 16 above) to the Project for which the applicant or other entities are applying for a CREB volume cap allocation. With respect to an applicant on a Related Project other than the Applicant, set forth below are the names, addresses, contact persons, and telephone numbers for any such applicant.
	18.	Pooled Financing Bonds.(If the issuer expects to use the requested allocation of CREB volume cap as part of a pooled financing bond within the meaning of section 54(l)(2), then the issuer should include the undertaking noted below.)
		[The Applicant Issuer expects to use the requested allocation for CREBs volume cap in a pooled financing bond within the meaning of section 54(i)(2), and the Issuer expressly agrees that it will obtain a written loan commitment for all borrowers from the issue of CREBs to which the requested allocation relates before the issue date of that issue.]
I hereby certify that I am an authorized officer or official of the Applicant and am duly authorized to execute legal documents on behalf of the Applicant in connection with incurring debt and that I am duly authorized to execute legal documents on behalf of the Application in making this Application. Under penalties of perjury, I declare that (i) I have knowledge of the relevant facts and circumstances relating to this Application and the Project(s), (ii) I have examined this Application, and (iii) to the best of my knowledge and belief, all of the facts contained in this Application are true, correct and complete.
					By:
					Name and Title:
					Date:

EXHIBIT A
DESCRIPTION OF THE PROJECT(RESPONSE TO QUESTION 6 OF THE APPLICATION)
(Attached hereto)

EXHIBIT B
ENGINEER’S CERTIFICATE (RESPONSE TO QUESTION 9 OF THE APPLICATION)
(Attached hereto in substantially the form below)
Dated: , 2007
This certificate is being provided to the Internal Revenue Service (“IRS”) in connection with an application (the “Application”) by [Name of Applicant Issuer: ] (the “Issuer”) to the IRS requesting an allocation of volume cap authority to issue clean renewable energy bonds (“CREBs”) under section 54 of the Internal Revenue Code, as amended (the “Code”). The CREBs are being issued to make a loan to [Name of qualified borrower: (the “Borrower”), to finance the costs of certain clean renewable energy facilities described more particularly in the Application (the “Project”). The undersigned hereby certifies as follows:
	1. I am an independent, licensed engineer, duly qualified to practice the profession of engineering under the laws of the State of , and I am not an officer or employee of the Issuer or the Borrower.
	2. I have reviewed the Application for a CREBs volume cap allocation (including the exhibits thereto) of the Issuer of even date herewith describing the Project. To the best of my knowledge, information, and belief, the Project will meet the requirements to be a “qualified project” under section 54(d)(2)(A) of the Code and correspondingly a “qualified facility” under section 45(d) of the Code, determined without regard to section 45(d)(10) of the Code and without regard to any placed in service date).
	[(Include as appropriate) To the best of my knowledge, information, and belief, the Project is a qualified hydropower facility under section 45(d)(9)—
	a.	producing incremental hydropower production consisting only of efficiency improvements or additions to capacity that produce additional production as described in section 45(c)(8)(B) based on a methodology that would meet Federal Energy Regulatory Commission (FERC) standards. or
	b.	that is a nonhydroelectric dam under section 45(c)(8)(C) and the facility, when constructed, will meet FERC licensing requirements and other applicable environmental, licensing and regulatory requirements.]
	3. To the best of my knowledge, information and belief, the Project is technically viable and when constructed will produce electricity.
IN WITNESS WHEREOF, I have hereunto affixed my official signature on the date of this Engineer’s Certificate.
			By:
Seal and/or License number:
			Name and Title:

			Company:

EXHIBIT C
PLAN OF FINANCING(RESPONSE TO QUESTION 13 OF THE APPLICATION)
(Attached hereto)

EXHIBIT D
DOCUMENTS REGARDING ISSUER OR BORROWER ORGANIZATIONAL STATUS(RESPONSE TO QUESTION 2 OR 4 OF THE APPLICATION, AS APPLICABLE)
(Attached hereto)

APPENDIX B
CONSENT TO PUBLIC DISCLOSURE OF CERTAIN CLEAN RENEWABLE ENERGY BOND APPLICATION INFORMATION
In the event that the Application of [(Insert name of applicant here): ] (the “Applicant”) for an allocation of authority to issue clean renewable energy bonds (“CREBs”) under section 54 of the Internal Revenue Code is approved, the undersigned authorized representative of the Applicant hereby consents to the disclosure by the Internal Revenue Service through publication of a Notice in the Internal Revenue Bulletin or a press release of the name of applicant (issuer), the name of the borrower (if other than the issuer), the type and location of the project that is the subject of the Application, and the amount of the allocation, if any, of volume cap authority to issue CREBs for such project. The undersigned understands that this information might be published, broadcast, discussed or otherwise disseminated in the public record.
This authorization shall become effective upon the execution thereof. Except to the extent disclosure is authorized herein, the returns and return information of the undersigned taxpayer are confidential and are protected by law under the Internal Revenue Code.
I certify that I have the authority to execute this consent to disclose on behalf of the taxpayer named below.
Date:					Signature:
					Print name:
					Title:
Name of Applicant-Taxpayer:
Taxpayer Identification Number:
Taxpayer’s Address:


Note: Treasury Regulations require that the Internal Revenue Service must receive this consent within 60 days after it is signed and dated.

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