UPDATE 1-U.S. makes $3 bln available for renewable energy

(Adds when companies can apply for grants, details of the program, comments from wind and solar industry groups)

By Tom Doggett

WASHINGTON, July 9 (Reuters) - The Obama administration on Thursday unveiled guidelines that will allow companies to apply for some $3 billion in government grants to boost development of renewable energy projects around the country, creating jobs.

The funding will help meet the White House's goal to double U.S. renewable energy production over the next three years and also provide companies with easier financing than many can obtain in the private sector where credit remains tight.

The money, from the economic stimulus package, will provide direct payments to companies in lieu of tax credits to support an estimated 5,000 biomass, solar, wind and other renewable energy production facilities. Projects must begin construction this year or in 2010 to get the grants.

The Treasury and Energy Departments announced the funding guidelines, which would provide each project with an average $600,000. However, there is no cap on how much money a company can get or a limit on the total funds that will be available.

Previously energy companies could file for a tax credit to cover a portion of the costs of a renewable energy project. Under the new program, companies would forgo the tax credits in favor of an immediate reimbursement of 30 percent of certain project expenses, making funds available almost immediately.

"These payments will help spur major private sector investments in clean energy and create new jobs for America's workers," said U.S. Energy Secretary Steven Chu.

U.S. Treasury Secretary Tim Geithner said the program "will provide additional stimulus to economies in urban and rural America."