An automated-ventilated radiation station has been set up in a mountainous valley at the Logan Airport in northern Utah, USA, since mid-1995, to evaluate the daily and annual radiation budget components, and develop an algorithm to study cloudiness and its contribution to the daily and annual radiation. This radiation station (composed of pyranometers, pyrgeometers and a net radiometer) provides continuous measurements of downward and upward shortwave, longwave and net radiation throughout the year. The surface temperature and pressure, the 2-m air temperature and humidity, precipitation, and wind at this station were also measured. A heated rain gauge provided precipitation information. Using air temperature and moisture and measured downward longwave (atmospheric) radiation, appropriate formula (among four approaches) was chosen for computation of cloudless-skies atmospheric emissivity. Considering the additional longwave radiation during the cloudy skies coming from the cloud in the waveband which the gaseous emission lacks (from 8–13 μm), an algorithm was developed which provides continuous 20-min cloud information (cloud base height, cloud base temperature, percent of skies covered by cloud, and cloud contribution to the radiation budget) over the area during day and night. On the partly-cloudy day of 3 February, 2003, for instance, cloud contributed 1.34 MJ m − 2 d − 1 out of 26.92 MJ m − 2 d − 1 to the daily atmospheric radiation. On the overcast day of 18 December, 2003, this contribution was 5.77 MJ m − 2 d − 1 out of 29.38 MJ m − 2 d − 1 . The same contribution for the year 2003 amounted to 402.85 MJ m − 2 y − 1 out of 9976.08 MJ m − 2 y − 1 . Observations (fog which yielded a zero cloud base height and satellite cloud imaging data) throughout the year confirmed the validity of the computed data. The nearby Bowen ratio station provided the downward radiation and net radiation data. If necessary, these data could be substituted for the missing data at the radiation station. While the automated surface observing systems (ASOS) ceilometer at the Logan airport provides only the overhead cloud information, the proposed algorithm provides this information over the valley. The proposed algorithm is a promising approach for evaluation of the cloud base temperature, cloud base height, percent of skies covered by cloud, and cloud contribution to the daily and annual radiation budget at local and regional scales.