As the March 1 deadline for Congress to achieve required budget deficit reductions draws closer, officials from the Office of Management and Budget (OMB) and other government personnel have released new details on how sequestration would affect grants given to solar projects under the U.S. Department of Treasury's Section 1603 program.
Sequestration is still scheduled be triggered March 1 if the government does not resolve its budget standoff. However, new details reveal that the Treasury could implement the sequestration order as early as that same day, according to a news alert from law firm Akin Gump. The Treasury may also select an implementation date anytime between March 1 and July 29.
‘It is still unknown what 'effective' date the Treasury will use to distinguish between cash grant applications that will be subject to sequestration and those that will not,’ Akin Gump added. ‘Such possible dates include the date of payment, the date the application is formally accepted by Treasury, the date the application is submitted to Treasury or the project's 'placement in service' date.’Â
The law firm has also found that the sequester percentage is likely to increase from its previous estimate of 5.0% to 5.1-5.3%. The OMB is expected to issue formal guidance later this month.