Jun 5 2010
The California Debt Limit Allocation Committee (CDLAC) has announced a $29.9 million in tax-exempt Recovery Zone Facility Bonds for GreenHunter Energy’s subsidiary GreenHunter Mesquite Lake, LLC. The bonds will be issued by the California Enterprise Development Authority. The allocation has already been authorized at two Tax Equity Finance Reform Act (TEFRA) hearings by the Board of Supervisors in California’s Imperial County.
GreenHunter Mesquite Lake Biomass Power Project
Last year, GreenHunter Energy had entered into a new twenty-year agreement with Imperial Irrigation district, facilitating the sale of 100% of the output of the GreenHunter Mesquite Lake biomass power plant. Funds generated by the bonds will be used by the company for refurbishing and expanding its 18.5 MW biomass power generator situated near El Centro, California.
Gary C. Evans, CEO of GreenHunter Energy, Inc., said that the company’s application for a bond allocation was scored by CDLAC using a system for rating applicants based on key project factors such as energy efficiency, job creation and community needs. He also said that the approval motivates the company to explore ways of receiving similar low-cost funding for construction costs at the Mesquite Lake facility.