Mereja

Author: Jenna Conklin

  • Renewable Energy Law News – Week of April 15, 2013

    Vermont Representative introduces legislation to make it easier to finance renewable energy projects

    Joined by Vermont renewable energy companies that are putting Vermonters to work and charting a cleaner energy future, Rep. Peter Welch has announced bipartisan, bicameral legislation that will make it easier to finance renewable energy projects in Vermont and throughout the country.

    “MLPs provide the opportunity for increasing capital for renewable energy projects, driving down their cost and helping make projects happen,” says David Blittersdorf, president and CEO of AllEarth Renewables, a solar tracker manufacturer based in Williston, Vt. “It makes common sense to extend this financing option currently available for fossil fuels to renewable energy.”

    At AllEarth Renewables in Williston, Welch outlined his Master Limited Partnership Parity Act, which would allow renewable energy companies to take advantage of a key financing tool used by the energy sector known as master limited partnerships (MLPs). For nearly 30 years, MLPs have driven investment in oil, gas, and coal projects. Under current law, renewable energy projects cannot take advantage of MLPs. Welch’s bill expands the definition of qualified projects to include renewable energy.

    “Expanding MLP financing to renewable energy projects will be a boost for the renewable industry and for a cleaner energy future. If oil, gas, and coal projects can take advantage of this important tool, there is no reason why renewable projects should be excluded. This is a simple, common sense idea that will drive investment in renewable energy projects for years to come,” Welch says.

    An MLP is a business structure that is taxed as a partnership, but whose ownership interests are traded like corporate stock on a market. Whereas profit from publicly traded corporations is taxed at both the corporate level and the shareholder level, income from MLPs is taxed only at the shareholder level because it is treated as a partnership for tax purposes. 

     IRS Defines Start of Construction for the Production Tax Credit

    The Internal Revenue Service explained today what developers must do this year to be considered to have started construction of new renewable energy projects.

    The IRS adopted roughly the same definition for start of construction as under the Treasury cash grant program.

    Wind, geothermal, biomass, landfill gas, incremental hydroelectric and ocean energy projects that are under construction by December 2013 will qualify for 10 years of production tax credits on the electricity output or an investment tax credit upon project completion for 30 percent of the project cost.

    There is no deadline to complete projects that start construction this year.

    The IRS departed from the Treasury cash grant rules in one significant respect.

    There are two ways to show that a project is under construction in time.

    One is by showing that “physical work of a significant nature” commenced at the site or at a factory that is making equipment for the project. Work at the factory counts only if done after the project has placed a binding equipment order with the manufacturer.

    The other is by showing that the developer “incurred” at least 5 percent of the total project cost. Costs are not usually “incurred” merely by spending money; the developer must take delivery or title to services or equipment.

    Many developers gravitated toward the 5 percent test under the Treasury grant program because anyone relying on the physical work test had to show a continuous pattern of construction after work started. There was no similar requirement for the 5 percent test. This let tax equity investors and lenders determine with more certainty at the outset whether a project was under construction in time.

    The IRS said it will require developers relying on the 5 percent test to show “continuous efforts” in the future on a project. Developers relying on the physical work test will have to show “continuous construction.”

    Renewable energy bill passes House, heads to Senate’s rocky ground

    Florida – A bill exempting renewable energy improvements from property tax assessments passed the House Wednesday, but the bigger hurdle may be in passing the Senate.

    HB 277 is the only legislation dealing with renewable energy that is moving in the Legislature.

    The bill would implement a constitutional amendment that passed in 2008 with 61 percent of the vote. The amendment also exempted improvements for wind resistance from property tax assessments.

    Similar legislation implementing a 2008 constitutional amendment passed the House the three previous years but those bills didn’t pass the Senate.

    Rep. Michelle Rehwinkel Vasilinda, D-Tallahassee and HB 277 sponsor, said she doesn’t know why the bill hasn’t passed the Senate but she thinks its prospects are better this year.

    That’s because it doesn’t include exemptions for wind resistance improvements, which could increase the loss of tax revenue for cities and counties.

    “I think it makes common sense,” she said of the bill. “When people want to make some improvements to their home to lower their utility bills and take part in energy conservation and renewable energy decisions, they shouldn’t then have their property values raised for ad valorem taxes.”

    The Senate companion, SB 1064, has passed two committee stops without opposition votes and has one more stop before it reaches the Senate floor.

    Photo credit
     

  • Renewable Energy Law News – Week of February 11, 2013


    Two Energy Revolutions in The State of the Union

    It was no surprise that energy and climate change featured prominently in Tuesday’s State of the Union speech. The President devoted an entire section of his address to these topics, leading into it in a very upbeat way: “Now is the time to reach a level of research and development not seen since the height of the Space Race. And today, no area holds more promise than our investments in American energy.” You’d never guess from that introduction that this president faces a strikingly different energy challenge than his seven most recent predecessors. There are two energy revolutions underway in the US, and the unplanned one is racing ahead of the one to which he devoted most of his remarks–and most of his efforts on energy for the last four years.

    Let’s start with the positives. Even more than in last year’s speech, President Obama presented energy as more of an opportunity than a problem. He described our impressive recent progress in oil and natural gas production, renewable energy generation, and the reduction of greenhouse gas emissions. As fact-checkers have pointed out, he stepped into aspiration when he claimed credit for doubling automobile fuel economy–a goal that might or might not be attained by 2025–but even this fits within a broad set of energy trends that are all finally moving in the right direction.

    The President also endorsed a very good idea that has been floating around for a long time, but has never been seized upon. He suggested funding R&D for electric and natural gas vehicles and biofuels with the revenue from federal oil and gas lease bid premiums and royalties. This “Energy Security Trust” would yoke the success of future energy technology to the enormous cash cow represented by the vast oil and gas resources beneath public lands and waters. He’ll have to sort out the allocation of revenues with the states, who surely won’t want the new set-aside to come from their share. If he can work that out, the government will have an even bigger vested interest in ensuring that responsible oil and gas development on these lands proceeds, in order to advance energy innovation.

    The 2013 Renewable Fuel Standard: A 10-Minute Guide

    In Washington, the U.S. Environmental Protection Agency (EPA) issued its proposed 2013 Renewable Fuel Standards (RFS2).??The proposal will be open for a 45-day public comment period and EPA will consider feedback from a range of stakeholders before the proposal is finalized.

    For 2013, the program is proposing to implement EISA’s requirement to blend more than 1.35 billion gallons of renewable fuels over the amount mandated for 2012.

    The Proposed Standard

    Here, we have given you the proposed 2013 RFS2 volumes, and the original 2013 targets set under the 2007 EISA legislation. We’ve also provided the final 2012 and 2011 numbers, so that you can evaluate the growth rate in each pool and in the overall Standard.

    Note: RFS2 is nested, so the figures for Cellulosic biofuels and Biomass-based diesel are nested inside the overall Advanced Biofuels number — and in turn the Advanced biofuels pool is nested (alongside the corn ethanol target) within the overall Renewable Fuel Standard.

    It may sound complex, but it is designed that way so that shortfalls in one pool can be made up by expanding the targets in another pool. That’s why you have to be wary of people who flag a shortfall in one nested pool, for example, cellulosic biofuels. Any shortfalls are easily made up by sourcing qualifying advanced biofuels elsewhere.

    Norway to support the renewable energy sector in Angola

    The governments of Angola and Norway Friday in Luanda signed a cooperation protocol in the area of renewable energy, for the 2013-2015 period, Angolan news agency Angop reported.

    Under the terms of the protocol, Norway will provide technical assistance, organise training for Angolan Energy and Water Ministry staff and support Angola to promote activities for more efficient electricity use in the country.

    At the end of the ceremony, the secretary of state for Water, Luís Filipe da Silva, said that Norway was a highly developed country in terms of hydroelectricity and that Angola hoped to benefit from that experience further to improve its energy sector.

    “The protocol includes drawing up a proposed strategy and plan of action for rural electrification through use of renewable energy, drawing up proposals for the legal framework of renewable energy development and its uses,” noted the secretary of state.

    Norway, according to Silva, will support Angola in improving its technological development, through several activities such as assistance in execution of the investment programme for pre-paid electricity meters, campaigns to raise awareness of more efficient use of electricity, amongst other activities.

    Photo via Flickr. 

  • Renewable Energy Law News – Week of January 7, 2013


    Wind Energy Tax Credit Extension Passes with Fiscal Cliff Deal

    On January 1, 2013, Congress passed legislation that included the long-sought extension of wind energy tax credits in a bill to avert the “fiscal cliff” that now moves to President Obama for his expected signature.

    The extension of the production tax credit (PTC) and Investment Tax Credit (ITC) is expected to save up to 37,000 jobs and create far more over time, and to revive business at nearly 500 manufacturing facilities across the country. Wind energy PTC, and ITC for community and offshore projects, will allow continued growth of the energy source that installed the most new electrical generating capacity in America last year, according to the American Wind Energy Association (AWEA).

    The version included in the deal would cover all wind projects that start construction in 2013. Companies that manufacture wind turbines and install them sought that definition to allow for the 18-24 months it takes to develop a new wind farm.

    Leaders of the Senate Finance Committee included that version in a “tax extenders” package they assembled in August, which made it into the overall fiscal cliff deal that passed the Senate early Tuesday morning and the House Tuesday night. President Obama is expected to sign the bill into law swiftly.

    The Energy Information Administration said that wind set a new record in 2012 by installing 44 percent of all new electrical generating capacity in America, leading the electric sector compared with 30 percent for natural gas, and lesser amounts for coal and other sources.

    U.S. Gauging Interest in New York Offshore Wind Farm Projects

    The Obama administration is gauging interest in wind power development off the coast of New York, after a state agency proposed an offshore project 11 nautical miles south of Long Beach.

    The Bureau of Ocean Energy Management issued a request today for any competing interests in the proposed lease area, which covers about 127 square miles (329 square kilometers), according to an e-mailed statement. If no other parties express interest, the New York Power Authority can get a lease on a non- competitive basis.

    The agency, part of the U.S. Interior Department, is also seeking comments on potential environmental effects of a wind farm in the area. The authority has proposed a project that would generate 350 to 700 megawatts of power for Long Island and New York City.

    There are no offshore wind farms currently operating in the U.S. The government has awarded two offshore wind-energy leases, in Massachusetts in 2010 and in Delaware in October, through non-competitive arrangements with Cape Wind Associates LLC and NRG Energy Inc. The administration plans to conduct the first competitive lease auctions this year for projects off the coasts of Massachusetts, Rhode Island and Virginia.

    The Long Island – New York City Offshore Wind Project is being backed by the New York Power Authority, Long Island Power Authority and Consolidated Edison Co., according to its website. The Long Island Power Authority canceled plans in 2007 to build a wind farm off Jones Beach after costs rose.

    Photo via Flickr. 

  • Renewable Energy Law News – Week of December 31


    Virginia utilities, lawmakers to reform renewable energy policy

    Virginia lawmakers, environmental groups and utilities are working to revamp the state’s 2007 Electric Utility Re-Regulation Act, which is designed to bolster renewable energy generation.

    Stakeholders want to reform loophole in the law allows utilities to receive financial credit for renewable energy investments made outside of Virginia.

    A November report released by Virginia Attorney General Ken Cuccinelli found that renewable energy standards introduced in 2007 did not address environmental concerns in the state and also led to consumer bill increases over the past five years. The report noted that utilities have purchased RECs from existing renewable generation rather than investing in new development.

    But Cuccinelli, who is currently a candidate for governor, did not blame the utilities for the lackluster results and said in a release that they should “not be criticized for making beneficial business decisions based on choices provided or incentives offered by the law.”

    Virginia environmental groups echoed that sentiment.

    Wind power deadline sees US firms rush to build turbines

    US energy companies are racing to install wind turbines before a federal tax credit expires at the end of this year.

    Experts say that wind power has exceeded the construction of natural gas plants in recent months.

    However the financial incentive for wind could be lost as congress struggles to avoid financial deadlock.

    Even if the credit is extended it is expected that new installations will decline in 2013.

    According to industry analysts, the federal government’s production tax credit has played an important role in the expansion of wind energy across the US since it was first introduced in 1992. 

    Photo via Flickr.
     

  • Renewable Energy Law News – Week of November 12

    Fate of wind energy production tax credit in hands of Obama, House GOP, officals say

    The fate of a tax credit that advocates say is needed to maintain tens of thousands of wind energy jobs will be decided during high-stakes, last-minute negotiations between President Obama and House Republicans over fiscal issues, officials said Tuesday.

    The wind energy production tax credit is due to expire at the end of the year. Its extension stalled in Congress this summer amid fierce opposition from some conservative House Republicans. The last chance to extend the measure is in the budget deal that will be cut between Obama and Republicans in the lame duck session of Congress.

    Backers of the credit tried to ramp up pressure to extend the $12 billion break Tuesday with a teleconference featuring several governors, who noted that uncertainty over its fate has led to thousands of job losses across the country. A study by a wind energy group found that 37,000 jobs would be lost if the credit expires.

    The credit’s supporters say the government has subsidized fossil fuels like oil for more than a century. Opponents argue it distorts the energy marketplace and leads to higher prices.

    Governors Urge Congress to Renew Wind Energy Production Tax Credit

    Salt Lake City, UT — With the expiration of the wind energy Production Tax Credit looming and the clock ticking rapidly away to the end of 2012, a bipartisan group of U.S. governors is urging Congress to act now to save jobs. In a joint press conference held today, Senator Chuck Grassley (R-IA) stressed that uncertainty over the extension of the wind energy Production Tax Credit (PTC) is already beginning to have an impact on renewable energy jobs.

    “The uncertainty about the future of this tax incentive,” Grassley said, “hurts the economic good that these policies do.” Grassley, who authored the original wind energy PTC in 1992 and has also sponsored Senate bill (S. 3521), which aims to extend the tax credit for at least another year, pointed to the expiration of the biodiesel tax credit in 2010 as an example that he says resulted in 23,000 jobs being “put on hold.” This is a situation that all involved are keen to prevent from happening to wind energy in their states.

    Governor Terry Branstad (R-IA) also cited uncertainty about the wind energy PTC’s fate as a major playing factor in the decision of some companies to have already begun eliminating jobs. “Due to the uncertainty,” Branstad said, “we’ve begun to see a negative economic impact and loss of jobs in our states. In Iowa, Siemens recently announced the layoff of 400 employees at their plant in Fort Madison, and Clipper Windpower laid off 100 workers at their plant in Cedar Rapids. We have literally thousands of wind energy related jobs in our state. These are high tech, high paying jobs.” Branstad says he remains hopeful that Congress will act quickly to extend the PTC.

    Branstad is the chair of the Governors’ Wind Energy Coalition, which is a group comprised of 28 state governors who all share the goal of leveraging wind energy resources as a way to pursue the long-held goal of lasting energy independence.

    “Nationally, wind energy drives about $10 to $20 billion a year in private sector capital investment and employs almost 75,000 Americans,” said John Kitzhaber (D-OR), Governor of Oregon and vice chair of the Governors’ Wind Energy Coalition. Kitzhaber used Oregon’s own Sherman County as an example of how rural communities can utilize wind energy production to drive revenue. “The county now receives $33 million per year in revenue from wind farms,” Kitzhaber said. “That’s revenue that has proved essential to sustain schools, fire departments and road maintenance.”

    Hawaii issues new rules for renewable energy tax credit

    HONOLULU – The state Department of Taxation on Friday issued new rules for the renewable energy tax credits that have spurred more residents to install solar panels.

    The department said it is doing so to provide clarity to taxpayers, but environmentalists and renewable energy advocates said the new rules jeopardize the state’s progress in moving away from imported fossil fuels.

    The rules, which will take effect on Jan. 1, require renewable energy systems to meet set output capacity requirements. The Sierra Club and Earthjustice said the change would limit the solar tax credit for the average residential solar power system to $5,000. This would effectively cut the tax credit in half and put solar power out of the reach of many families, they said.

    The department explained its decision by saying the previous rules, issued in 2010, created uncertainty and an unlevel playing field. The department has been receiving complaints about the rules for more than a year, it said.

    The law grants residents and businesses a tax credit for installing a renewable energy system. Some people, however, have been advised by the companies putting in their solar panels to say their installation consists of multiple systems and then claimed the credit multiple times. This has made solar panels more affordable and encouraged many more people to buy them but it’s also depleted tax revenues and made it harder for the state to balance its budget.

    “After listening to taxpayers concerns, the department is issuing these new temporary rules in order to provide consistent, uniform and fair application of the tax credit law, while still supporting the State’s public policy goal of reducing our reliance on fossil fuel,” the department said in a statement.

    Photo via Flickr. 

  • Renewable Energy Law News – Week of October 15

    Photo via Flickr

    Obama Administration Approves Roadmap for Utility-Scale Solar Energy Development on Public Lands

    WASHINGTON, D.C. – As part of President Obama’s all-of-the-above energy strategy to expand domestic energy production, Secretary of the Interior Ken Salazar today finalized a program for spurring development of solar energy on public lands in six western states. The Programmatic Environmental Impact Statement (PEIS) for solar energy development provides a blueprint for utility-scale solar energy permitting in Arizona, California, Colorado, Nevada, New Mexico and Utah by establishing solar energy zones with access to existing or planned transmission, incentives for development within those zones, and a process through which to consider additional zones and solar projects.

    Today’s action builds on the Administration’s historic progress to facilitate renewable energy development. On Tuesday, with the authorization of the Chokecherry and Sierra Madre Wind Energy Project site in Wyoming, Interior reached the President’s goal of authorizing 10,000 megawatts of renewable power on public lands. Since 2009, Interior has authorized 33 renewable energy projects, including 18 utility-scale solar facilities, 7 wind farms and 8 geothermal plants, with associated transmission corridors and infrastructure. When built, these projects will provide enough electricity to power more than 3.5 million homes, and support 13,000 construction and operations jobs according to project developer estimates.

    “Energy from sources like wind and solar have doubled since the President took office, and with today’s milestone, we are laying a sustainable foundation to keep expanding our nation’s domestic energy resources,” said Secretary Salazar, who signed today’s Record of Decision at an event in Las Vegas, Nevada with Senator Harry Reid. “This historic initiative provides a roadmap for landscape-level planning that will lead to faster, smarter utility-scale solar development on public lands and reflects President Obama’s commitment to grow American made energy and create jobs.”

    The Solar PEIS establishes an initial set of 17 Solar Energy Zones (SEZs), totaling about 285,000 acres of public lands, that will serve as priority areas for commercial-scale solar development, with the potential for additional zones through ongoing and future regional planning processes. If fully built out, projects in the designated areas could produce as much as 23,700 megawatts of solar energy, enough to power approximately 7 million American homes. The program also keeps the door open, on a case-by-case basis, for the possibility of carefully sited solar projects outside SEZs on about 19 million acres in “variance” areas. The program also includes a framework for regional mitigation plans, and to protect key natural and cultural resources the program excludes a little under 79 million acres that would be inappropriate for solar development based on currently available information.

    Photo via Flickr

    Wind Energy Jobs, PTC Surface At Second Presidential Debate 

    The first presidential debate came and went without mention of the wind energy production tax credit (PTC) and hardly any discussion of renewables. The story was quite different, however, at the second debate between President Barack Obama and Republican presidential candidate Mitt Romney, held Tuesday night at Hofstra University in Hempstead, N.Y.

    In fact, energy was arguably one of the most contentious issues of the night, and sparked heated disputes between the two candidates, who traded jabs on policies that – as described Tuesday night – did not differ all that much.

    Obama has said he favors an “all of the above” energy approach, including oil, gas, wind, solar and biofuels – a position he stated in the first presidential debate and reiterated Tuesday night.

    “We’ve got to control our own energy, you know – not only oil and natural gas, which we’ve been investing in – but also, we’ve got to make sure we’re building the energy sources of the future,” he said at Tuesday’s debate. “Not just thinking about next year, but 10 years from now, 20 years from now. That’s why we’ve invested in solar and wind and biofuels, energy-efficient cars.”

    And despite the virtual absence of renewables from Romney’s official energy plan, released in August, this time, the former Massachusetts governor also expressed support for clean energy like wind and solar power.

    “Look, I want to make sure we use our oil, our coal, our gas, our nuclear, our renewables,” he said. “I believe very much in our renewable capabilities – ethanol, wind [and] solar will be an important part of our energy mix.”

    At the first debate, neither candidate mentioned the jobs being lost in the wind energy supply chain due to the looming expiration of the PTC.

    The PTC’s omission from the first debate may have seemed glaring to some in the wind industry, considering that the president had made the critical tax credit a cornerstone of his campaign efforts in Iowa and Colorado – two states that have lost hundreds of wind energy jobs over the past few months.

    This time, however, Obama came out swinging against Romney, who has stated he would let the PTC expire at the end of this year.

    “What I’m not for is us ignoring the other half of the quotation,” Obama said, referring to renewables. “So for example, on wind energy, when Gov. Romney says these are ‘imaginary jobs,’ when you’ve got thousands of people right now in Iowa, right now in Colorado who are working, creating wind power, with good-paying manufacturing jobs – and the Republican senator in that, in Iowa, is all for it, providing tax credits to help this work – and Gov. Romney says, ‘I’m opposed; I’d get rid of it’ – that’s not an energy strategy for the future.”

    Romney refuted the claims, saying he does, in fact, support wind jobs.

    “I don’t have a policy of stopping wind jobs in Iowa, and they’re not phantom jobs – they’re real jobs,” he said.

    “I appreciate wind jobs in Iowa and across our country,” he added. “I appreciate the jobs in coal and oil and gas. I’m going to make sure that taking advantage of our energy resources will bring back manufacturing to America. We’re going to get through a very aggressive energy policy, 3.5 million more jobs in this country.”  

    Louisiana’s Solar Tax Credit Under Review

    Louisiana, USA — The Louisiana Department of Revenue weighed the future benefits of solar energy at a public hearing last week in Baton Rouge. Homeowners in Louisiana can choose solar-generated electricity and realize a 50-percent, one-time, refundable, state income tax credit for the purchase and installation of the system under provisions of the Wind and Solar Energy Systems Tax Credit created by state legislation in 2007.

    Louisiana’s investment in this incentive program is something the solar energy industry does not want to see fade away.

    Nearly 100 people, from all over the state and nation, filed into the hearing room to shed some light on LDR’s rules for the Income Tax Credits for Wind or Solar Energy Systems.

    The solar power industry generated more than just energy that day as more than a dozen people registered to speak.

    “It appears there was a lot of interest,” said Byron Henderson, press secretary for the Department of Revenue, “This is just a public hearing on proposed rule changes for the tax credits on the wind and solar energy systems.”

    Tucker Crawford, co-owner of a Louisiana-based solar energy company and president of the Gulf States Renewable Energy Industries Association – which is a non-profit, trade organization that represents solar and renewable energy firms in Louisiana, Mississippi and Alabama– told the committee that the entire Louisiana solar industry has far exceeded the state’s initial estimates.

    “That’s a good thing to Louisiana energy consumers,” Crawford said. “In 2007, Louisiana only had five licensed solar installers. Today, we have 196 and counting; many of them are represented here today.”

    Crawford said that the 2007 state law – which allowed income tax credits for wind or solar energy systems purchased and installed by taxpayers to cut costs on their homes or buildings – has created local jobs, increased the state’s energy independence and reduced or eliminated utility bills for more than 3,100 Louisiana households.

  • Renewable Energy Law News – Week of September 24

    Photo via Flickr

    19 Companies Urge Congress To Extend Wind Tax Credit

    A group of 19 leading companies has sent a letter to Congress asking lawmakers to immediately extend a key tax credit for wind that is set to expire at the end of the year.

    The diverse coalition of firms, which includes Ben & Jerry’s, Johnson & Johnson, Levi Strauss, Starbucks, and Yahoo!, says that raising taxes on the wind sector would be bad for businesses that buy large amounts of wind electricity.

    These companies join a very large bi-partisan chorus of renewable energy supporters asking Congress to give the wind industry some certainty and put the sector on a level tax playing field with the oil and gas industry, which enjoys billions of dollars in permanent tax benefits.

    Over the last year, the National Governor’s Association, County Commissioners, and numerous Republican politicians have all sent separate letters to Congressional leaders in support of extending federal wind tax credits for at least another year. Now this latest group of prominent companies is playing up another theme: Ending support for wind isn’t just bad for the wind industry, it’s bad for downstream non-utility companies that procure energy from wind:

    “As major U.S. employers and some of the largest non-utility purchasers of renewable energy, we urge you to extend the Production Tax Credit (PTC) for wind energy before the end of the 112th Congress. A failure to pass an extension will amount to levying a tax on companies committed to buying American energy and growing the U.S. economy. In today’s economic climate, a taxhike on American businesses buying American renewable energy is unwarranted.

    “In the past decade American businesses have significantly ramped up their purchase of American wind energy. For consumers of wind electricity, the economic benefits of the PTC are tremendous. Electricity rates, which reflect marginal costs for power plant operations and fuel prices, consistently decrease when wind enters the market. Because wind prices can be locked in up front, businesses incorporating wind into their energy portfolios are better equipped to hedge market volatility in traditional fuels markets caused by supply shocks. We are concerned that allowing the PTC to expire will immediately raise prices for the renewable electricity we buy today.”

    California Congresswoman Capps Joins in to Pass Legislation to Extend Renewable Energy Tax Credits

    Congresswoman Lois Capps (CA-23) joined her colleagues in the Sustainable Energy and Environment Coalition (SEEC) on the floor of the House of Representatives urging the Speaker to immediately renew tax incentives for wind energy. The renewable energy Production Tax Credit (PTC) provides an income tax credit for each kilowatt-hour of electricity produced by a renewable energy source, including wind, and has been a key factor in the expansion of clean energy over the last decade.Unfortunately, the PTC is set to expire on December 31st of this year without Congressional action. A recent report from the U.S. Department of Energy highlighted the importance of extending the PTC to ensure growth in wind energy production and manufacturing.

    Video of Capps’ floor statement is available here.

    With precious few weeks left in the Congressional calendar, it’s time for the Speaker of the House to stop holding bipartisan legislation to extend tax incentives for wind energy hostage,” said Capps. “The country cannot afford to wait any longer to develop wind energy projects that will create jobs and move our country forward to a cleaner, healthier future.”

    In May, Capps spoke about the PTC’s role in creating jobs on the Central Coast with employees at Infinity Wind Power of Santa Barbara. She has co-sponsored bipartisan legislation, the American Renewable Energy Production Tax Credit Extension Act of 2011 (H.R. 3307) to extend the PTC through 2016. She also wrote to the Speaker in May urging him to bring this legislation to a vote. Earlier this month, the Senate Finance Committee included extension of the PTC when reporting a bipartisan tax bill just before Congress adjourned for the August district work period, but the House has yet to act.

    Feed-in Tariffs Do More for Wind at Less Cost to Ratepayers than RPS, Says German Agency

    In a recent report, the German Renewable Energy Agency says that across Europe countries using feed-in tariffs develop more wind energy and pay less for it than countries using quota systems.

    In North America, the quota model is known variously as Renewable Portfolio Standards (RPS) or Renewable Energy Standards.

    The agency, the Agentur für Erneuerbare Energien, says that RPS-related tendering programs raise the payments for wind energy in Europe to as much as €0.15/kWh ($0.19/kWh) in Italy. In contrast, Germany, which uses a feed-in tariff, pays only €0.089/kWh ($0.11/kWh). Spain, which also uses a feed-in tariff, pays even less.

    Germany operates the most wind energy capacity in Europe, 29,000 MW, Spain follows with nearly 22,000 MW.

    Italian wind generation has fallen behind electricity generation from solar photovoltaics for the first time in an industrialized country. Italy uses feed-in tariffs to pay for solar energy instead of a trading system in green certificates, one of the hallmarks of a quota system.

    Great Britain, which also uses a quota system for large-scale wind energy and has the best wind resources in Europe, pays 20% more for wind energy than Germany: €0.108/kWh ($0.135/kWh). More than half of German wind capacity is now installed in lower wind areas of mid-Germany and yet Germany still pays less than Great Britain for wind energy.

    Payments for wind energy normally reflect the costs of wind energy and costs are substantially less where the wind resources are greater. Thus, it is unusual that Britain pays more for wind energy than Germany even though its wind resource is so much better.

  • Renewable Energy Law News – Week of July 23

    Photo source

    Christie signs bill to boost solar

    New Jersey Gov. Christie and the state’s environmental groups have landed on common ground _ a highly unusual occurrence.

    That’s because [on Monday] Christie signed a bill that would encourage the growth of the solar industry in the state.

    New Jersey already is a leader. It is second in the nation in solar installations. So far, more than 775 megawatts of solar has been installed in the state, enough to power about 130,000 homes. (Or, as the environmental groups note, more than the amount of energy produced by Oyster Creek Nuclear Plant, which they have pushed to have shuttered.)

    But solar advocates, such as Rhone Resch, president and CEO of the Solar Energy Industries Association, have contended that the growth of the solar industry was threatened because of uncertainty in the Solar Renewal Energy Credits market.

    The cost of most project factors in the value of these credits, which are sold as electricity is generated, as part of the pay-off of the system. Like many states, New Jersey has a Renewable Energy Portfolio Standard, which requires that utilities either produce a certain amount of power from solar or that they buy it through the SRECs. Even a homeowner with a small system could get SRECs and sell them to help pay off the system.

    In the early days of SRECs, the value was high. But now it has dropped. System owners aren’t the only ones suffering. Those who are contemplating installing solar don’t have the financial incentive they might need.

    The Christie administration worked with the SEIA to come up with the new law, which accellerates the state’s Renewable Energy Portfolio Standard, leading to more demand for SRECS.

    Renewable energy: U.K. Onshore wind subsidy to be cut by 10%

    The United Kingdom – The subsidy for onshore wind energy generation is to be cut by 10%, the government has announced.

    The Treasury is thought to have favoured a larger cut of up to 25%.

    It is one of a number of cuts which the Department for Energy and Climate Change said should encourage up to £25bn in new investment in energy generation between 2013 and 2017.

    The measures should also reduce the impact on household energy bills, it said, saving £5-£6 a year on average.

    Under the current arrangements £44 of the average household bill would go towards renewables in 2013-14, rising to £50 in 2016-17.

    Under the new subsidy levels, that will be £6 less in 2013-4, £5 less in 2014-5, but will be £1 higher in 2015-6 and £3 higher in 2016-7.

    Energy firms pass on the cost of investing in new cleaner generation to consumers, and MPs on the Commons Energy and Climate Change Committee warned earlier this month that cutting subsidies too fast could increase bills.

    Moving Solar Beyond 1603 – There Are Alternatives

    The 1603 Federal Grant Program is dead. Fine, so let’s all move on because PV solar is here to stay and will be a critical component of our economic growth and environmental health.

    The 1603 Grant allowed for the monetization of the 30% ITC (investment tax credit), encouraging relatively simple and efficient third party finance models. The models allowed for the transfer of the up-front capital costs to an entity with greater access to capital, a lower cost of capital, or greater ability to utilize tax specific incentives and has been critical to commercial and industrial (C&I) customers adopting solar technology. The expiration of 1603 Grant at the end of 2011 has left these customers with little to no way to monetize the ITC, all but bringing this segment of the market to a standstill as developers and customers search for alternative financing structures that must now include a more complex tax equity component.

    Without a new approach the C&I market will be left to self-funding. This will make solar available to the few profitable and brave companies or institutions (those able to monetize the tax benefits) that are willing to take on the challenge of financing, managing and maintaining their own systems over 20 plus years. As history has shown there are relatively few willing participants in this market structure and the sales cycle is long and uncertain.

  • Renewable Energy Law News – Week of July 16

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     Bill would allow utilities into energy efficiency

    Electric utilities in Delaware would be able to count energy efficiency toward their state renewable energy purchase requirements, under a bill under consideration in the General Assembly.

    The bill would also allow Delmarva Power to offer energy efficiency programs to residents and businesses. It is largely restricted from doing so under current law, which assigns the Sustainable Energy Utility that responsibility.

    Delmarva Power has long supported energy efficiency programs for its customers, said Matt Likovich, spokesman for the utility. Delmarva has programs such as offering money for trading in old appliances in Maryland, but in Delaware, its only efficiency programs are those directly tied to the use of its “smart meters.”

    The SEU, a not-for-profit, state-created energy efficiency organization, has mostly focused on large state and university buildings since overspending its residential and small business efficiency budget late last summer.If the bill is signed into law, the utilities, along with the SEU, will become responsible for carrying out energy efficiency programs in Delaware, Likovich said. If that happens, “Delmarva Power looks forward to cooperating with the SEU and the State Energy Office to offer energy efficiency programs to our Delaware customers.”

    Japan: Japan Launches The Feed-In Tariff System For Renewable Energy

    Effective July 1, 2012, Japan implemented a new feed-in tariff (“FIT”) system under the Act on Special Measures Concerning the Procurement of Renewable Energy by Operators of Electric Utilities (the “Act”). Under the terms of the FIT system, power utilities must purchase electricity from applicable renewable energy sources, including solar, wind, hydro, geothermal, biomass, and others, generated by certified power generating facilities (the “Certified Facilities”) at a fixed price (the “Purchase Price”) for a given period (the “Purchase Period”). This Commentary provides an overview of the FIT system with specific focus on key items stipulated in the newly promulgated ordinance for the Act (the “Ordinance”).

    Purchase Price and Purchase Period

    The Ministry of Economy, Trade and Industry (“METI”) has set the Purchase Price and the Purchase Period for the mandatory purchase of power generated by renewable energy sources under the FIT system for fiscal year 2012. The initial Purchase Price and the Purchase Period apply to a renewable energy project if (1) a power utility receives a written request from the generator for connection of a Certified Facility to the power utility’s transmission facility and a power generating facility is certified as a Certified Facility and (2) the date of such request or certification (whichever is later) falls between July 1, 2012 and March 31, 2013. The Purchase Period starts from the date renewable energy supply commences to the power utility. The following chart sets forth the initial Purchase Price and Purchase Period for each type of renewable energy subject to the FIT system:

    METI designed the Purchase Price and the Purchase Period for each type of renewable energy with the goal of providing sufficient incentives for new investments in renewable energy projects. Although METI fixed the Purchase Price for the applicable Purchase Period, it retains authority to revise the Purchase Price during that period if required by a significant change in prices and other economic factors, in accordance with the opinion of a third-party committee of experts and subject to reporting the basis of the calculation of the revised prices to the Diet. 


     United Kingdom – DECC delays announcement on renewable subsidies

    Ministers had been expected to reveal new support levels for projects from April next year.

    But the Department of Energy and Climate Change (DECC) said it was still “discussing and finalising” details.

    Labour’s shadow energy minister, Tom Greatrex, claimed investment in clean energy would grind to a halt unless ministers “end the dithering”.

    Scottish Power also expressed concern, arguing that sticking to the timetable was key to investor confidence.

    The DECC was due to announce the outcome of a review into renewable obligation certificate (ROC) banding, a system which obliges electricity companies to buy a certain amount of their electricity from renewable sources.

  • Renewable Energy Law Blog 2012-05-09 09:57:00

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     Vermont first state in nation to ban fracking for oil and gas

    With a 103-36 vote in the House of Representatives, Vermont on Friday became the first state to ban hydraulic fracturing to extract oil or natural gas. The bill passed the Senate earlier this week.

    The House debate was short. Heidi Scheuermann, R-Stowe, raised concerns that Vermont was banning the practice without knowing what natural gas resources it was giving up. “We have no idea if some farmers in Franklin County might be able to take advantage of an economic opportunity on their property,” she said in floor debate. Scheuermann urged the House to vote for a moratorium, which would sunset after a number of years.

    David Deen, D-Westminster, argued that there was a small “semantic difference” between a ban and a moratorium, since no legislature can bind a future legislature. “If we put a ban in place at this time, by this time next year, that ban could either be a moratorium or lifted.”

    Vermont renewable energy bill gets last-minute overhaul

    It was do or die for the energy bill on Wednesday. After a fight on the Senate floor over the House proposal to expand the buildout of renewable energy projects over the next 10 years, the legislation was on life support by Tuesday night.

    The options? The legislation would either pass, die in committee or delay the end of the session.

    Wednesday morning a whirlwind of closed door meetings in the governor’s ceremonial office, cursory committee testimony and whisperings in hallway ensued.

    A handful of lawmakers hammered out a plan with the Shumlin administration in the morning, a lawyer from legislative counsel then redrafted the bill and lawmakers in Senate Finance spent less than an hour taking testimony from the commissioner of the Department of Public Service. By day’s end the Senate was set to debate the hastily reworked legislation. The bill passed 21-4 late in the evening.

    Can you say sausage?

    When S.214 (H.468) landed from its missile-like trajectory onto the Senate floor, the legislation, formerly known as the Renewable Portfolio Standard bill, it no longer contained renewable portfolio standards. Presto change, the requirements for utilities to retain renewable energy credits had vanished. Instead, the legislation calls for another study (the RPS recommendations came from a Public Service Board study conducted last year per a legislative request) and expands the “standard offer” program for small renewable projects.

    Arizona Legislature Exempts the Sale of Renewable Energy Credits from State Sales Tax

    Affirming its commitment to the development of renewable energy resources, the Arizona legislature recently passed legislation exempting the sale and/or use of Renewable Energy Credits (generally referred as “RECs”) from Arizona’s transaction privilege tax, which operates similar to a sales tax. Given that Arizona’s state transaction privilege tax is over seven percent in most counties, and that city tack on an additional 2 to 3 percent tax, the decision to exempt the sale of RECs from a 10 percent tax is a significant development that should encourage the development of renewable energy in Arizona.

    Arizona’s Renewable Energy Standard

    In 2006 the Arizona Corporation Commission, which is the state agency that governs public utilities, enacted the Renewable Energy Standard and Tariff. This “RES Tariff,” which became effective in 2007, requires that by 2025, at least 15 percent of energy supplies come from eligible renewable energy, with smaller amounts required in earlier years. Of the total renewable energy requirement, 30 percent must come from distributed energy renewable resources by 2025, again with smaller amounts required in earlier years.

    A “distributed energy resource” is small-scale power generation technology used to provide an alternative or enhancement to the traditional electric power system and is located on the customer’s side of the power meter. Rooftop or parking lot solar panel arrays are examples of a distributed energy resource, and can be contrasted with solar power plants operated by the utilities themselves. Under the RES Tariff, 50 percent of the distributed energy resource must come from residential customer systems while the remaining 50 percent must come from non-residential, non-utility applications.

  • Renewable Energy Law News – Week of April 23

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    MONTPELIER, Vt — Demonstrating the size and diversity of Vermont’s renewable energy economy, more than 100 businesses that work in the renewable energy industry are urging legislative action before the session closes on a package of clean energy legislation.
    In a letter led by Renewable Energy Vermont to Governor Peter Shumlin, Lieutenant Governor Phil Scott, and lawmakers, the businesses urged passage of five House-passed, bipartisan bills, stating that “our industry is growing and it is strong,” but “to remain competitive, we need to continue to foster a strong local industry.”
    The letter continued, “Vermont has worked hard to develop our in-state, clean energy economy. Now is not the time to let this effort slide, letting the wave of the future move on to other states and countries. Predictability and pro-growth policies are vital to our continued success.”

    Tennessee solar tax bill dead for this session

    Tennessee – A controversial bill on the taxation of solar installations will go to a summer study committee, effectively killing the bill for this session, with proponents opting to regroup on a complex debate.

    The Comptroller of the Treasury’s Office, which had initiated the legislation, made the announcement this afternoon. Jason Mumpower, the comptroller’s chief of staff, said proponents decided to delay the issue for study, rather than try to ram it through in the last days of session with so many questions lingering.

    “While there has been a good discussion during this session about how solar businesses should be assessed, it is not advisable to seek a quick resolution of the concerns that have been raised during the session’s waning days,” Mumpower said in a statement.
     
    Arizona Governor signs two new solar energy friendly bills into law this week

    Arizona is set to become friendlier to solar energy as Governor Jan Brewer signs two new legislations into law this week. The state boasts of a large amount of solar energy capacity that has, until very recently, been untapped. Solar energy advocates have been working to promote the power for several years, but initiatives to progress the alternative energy have long been stunted by legislative complications. This week, however, Governor Brewer signed two solar-friendly bills into law that could make Arizona one of the leaders in solar power.

    The first is House Bill 2830, which removes the 2013 deadline for schools to install their own solar energy systems. The initial deadline was criticized because many felt that it presented an unfair problem for Arizona’s numerous school districts. These districts have been working to become more energy efficient and adopt alternative energy systems. This has been somewhat complicated, especially in regards to solar power, because of the expensive nature of these systems. Districts will now be allowed more time to adopt solar energy systems.

    The second is Senate Bill 1229. This legislation clarifies a problem concerning the sale of Renewable Energy Credits. Since the program was introduced in 2001, it has been the subject of controversy. Concerns regarding whether sales tax can be imposed on the Renewable Energy Credits has been the crux of several legislative battles. That will no longer be the case, however, as the legislation frees Renewable Energy Credits from sales tax. The legislation also declares that Arizona residents are only liable for paying sales tax on energy they purchase from the state’s energy grid, not electricity they do not purchase from the grid.

  • Renewable Energy Law News – Week of April 16

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    Vermont is Helping to Lead the Nation in Transforming Our Energy System

    We come from Vermont. We know our small state cannot reverse global warming on our own, but we can provide a model for America which helps lead our nation and the world to a more sustainable and secure energy future. 

    We see three major imperatives. 

    First, we must act to reverse global warming. The scientific consensus is clear that global warming is real, that it is caused by human activities and that it will only get worse if we do not take bold efforts now. At a time when many members of Congress do not even acknowledge that global warming is happening, in Vermont we are taking action. Vermont has more than 100 grassroots citizen-led town energy committees that are working with state agencies to transform our energy system away from fossil fuels and into energy efficiency and such clean sources of sustainable energy as solar, geothermal, biomass and wind. 

     Refundable Federal Tax Credit Could Remove Barrier to Community Wind

    Since it will take a battle to extend federal tax credits for wind power anyway, why not make community wind development easier at the same time?

    Last month, President Obama’s Treasury Department released proposed reforms to a number of business taxes including the federal Production Tax Credit (PTC) for wind power projects. The reform proposal would make the tax credit permanent, but more importantly, it would make it refundable.

    A regular tax credit reduces the amount of taxes a business or person pays dollar for dollar, down to zero. In the case of the PTC, it provides 2.2 cents for every kilowatt-hour produced by the wind power project, over 10 years. But for the many individuals and businesses that don’t owe a lot of taxes, they have limited use. That’s why there’s an entire “tax equity industry” made up of large banks and Wall Street firms that partner with wind and solar developers to reduce their tax bills. The drawback of these partnerships is that as much as half of the tax credit’s value is consumed by the Wall Street firms and not the renewable energy project.

    Virginia governor to add signature to energy bills

    RICHMOND, Va. – Gov. Bob McDonnell is promoting legislation that he says will help Virginia become the “energy capital of the East Coast.”

    McDonnell added his signature Tuesday to 13 pieces of energy-related legislation. The legislation promotes development of the state’s energy resources and supports alternative and renewable energy strategies, according to the governor’s office.

    McDonnell has promoted an “all-of-the-above” approach to energy development. That includes fossil fuel development such as coal and renewable sources of energy such as wind and solar power.

    In a news release following the signing, McDonnell said that the state must work with must work with industry and stakeholder groups to continue to aggressively work to harness the resources to provide affordable and reliable energy for homes and businesses.

    Florida energy bill that affects south Lee Algenol’s expansion becomes law

    TALLAHASSEE – In a political squeeze because of a bill that includes tax breaks for renewable-energy production, Gov. Rick Scott late Friday allowed the controversial measure to become law without his signature.

    Scott’s decision could anger tea party members and some conservative groups that placed heavy pressure on him to veto the bill (HB 7117). But it effectively gives a victory to Agriculture Commissioner Adam Putnam and lawmakers who say the state needs to take steps toward developing renewable fuels.

    It could also prevent a Southwest Florida company from expanding.

    Algenol Biofuels Inc. wants to make ethanol from algae at its commercial farm in south Lee County, the first such enterprise in Florida. But at the state level, the concern is that the algae, if it escapes during a storm, for example, could pose an environmental threat.

  • Renewable Energy Law News – Week of April 2

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    Seven US Republican and Democratic senators on Thursday introduced a bill that would extend for two years the federal production tax credit for wind energy that is set to expire at the end of 2012.

    “Congress should renew the wind energy tax credit to develop clean energy alternatives and good paying jobs,” Iowa’s Charles Grassley, the senior Republican on the Senate Finance Committee, said in a statement.

    “Tax relief has succeeded in developing this clean, renewable and innovative energy source and it ought to be continued with the degree of certainty that encourages continued investment,” he said.

    The bill also would extend renewable energy tax credits for biomass, geothermal, landfill gas, trash, hydropower, and marine and hydrokinetic power by one year to January 1, 2015.

    Democrats joining Grassley in sponsoring the bill are Mark Udall and Michael Bennet of Colorado, Tom Harkin of Iowa and Ron Wyden of Oregon. Republicans co-sponsoring the bill, dubbed the “American Energy and Job Promotion Act” were Scott Brown of Massachusetts and Dean Heller of Nevada.

    California Legislation Would Benefit Renewable Energy Projects 
    Assemblyman Ben Hueso, D-79th District-Calif., has introduced a bill that would allow property-tax revenue to be used to promote renewable energy projects.

    The legislation, A.B.2551, would authorize a legislative body to establish an infrastructure financing district in a renewable energy zone area, as defined, for the purpose of promoting renewable energy projects. The bill would exempt the creation of the district from the voter-approval requirement.

    Existing law authorizes counties and cities to form infrastructure financing districts, in accordance with a prescribed procedure, and requires that a district finance only public capital facilities of community-wide significance, as specified. In addition, existing law authorizes a legislative body, by ordinance, to adopt an infrastructure financing plan and create the district with the full force and effect of law, if 23 of the registered voters within the territory of the proposed district are in favor of creating the district.

  • Renewable Energy Law News – Week of March 19

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    Vermont House votes to pursue renewable energy

    MONTPELIER — With summer temperatures in Vermont on the first day of spring, House members gave preliminary approval Tuesday to a bill to address climate change.

    “We see its evidence everywhere and we see it at an ever increasing rate,” Rep. Margaret Cheney said on the House floor while the thermometer reached 75 degrees outside.

    The Norwich Democrat described a bill that sets a goal that Vermont get 75 percent of its electricity from renewable sources by 2032. It calls for a renewable portfolio standard, in which the state’s utilities would be required to get increasing amounts of the power they sell from green sources over the next 20 years.

    The measure received preliminary approval on a voice vote. It is up for final House approval Wednesday before moving to the Senate.

    Cheney said the bill is not ambitious enough for some environmentalists, but said the House Natural Resources and Energy Committee, of which she is vice chairwoman, tried to balance environmental and economic concerns. 

    Wisconsin Wind Siting Rules Effective March 16

    After years of uncertainty, the Wisconsin legislature allowed statewide wind energy siting rules to go into effect today. The new rules (known as “PSC 128”) require wind turbines to be located at least 1,250 feet from the nearest residence and at a distance 1.1 times the height of the wind turbine from the nearest property line. Cities, villages, towns, and counties are prohibited from enacting an ordinance imposing more restrictive requirements than the statewide rules.

    In 2009, the legislature directed the Wisconsin Public Service Commission (“PSC”) to develop rules that limit the restrictions local governments may impose on wind energy projects. The purpose of these rules was to ensure consistent local procedures and regulation of wind energy. On December 27, 2010, the PSC adopted the final wind energy siting rules (Wisc. Admin. Code Ch. PSC 128). But on March 1, 2011, the day the rules were to take effect, the legislature’s Joint Committee for the Review of Administrative Rules voted to suspend PSC 128. This year, the legislature considered a proposal to indefinitely suspend the rules, but adjourned yesterday without taking action. As a result, PSC 128 automatically became effective today.

  • Renewable Energy Law News – Week of March 12

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    The Senate failed to pass an amendment that would have extended a set of expiring tax credits for wind energy, biofuels, energy efficient homes and other tax breaks.

    The wind energy production tax credit and the other tax breaks are set to expire at the end of the year. The amendment, introduced by Sen. Michael Bennet, D-Colo., needed 60 votes to pass in the Senate, but failed by a vote of 49-49 on Tuesday. However, a new bill was introduced Thursday in an attempt to extend the tax credit again.

    “I’m disappointed that the wind energy PTC extension did not move forward today,” Bennet said in a statement Tuesday. “I have visited with Colorado companies and met with Colorado workers who stand to suffer a huge economic blow if Congress can’t get its act together and extend this critical tax credit. With thousands of high-quality jobs at stake across our state and the entire country, we need to provide certainty for this industry, so we do not derail its current growth. Standing on its own, this tax credit has bipartisan support, and Colorado companies are counting on us to get it across the finish line. I will continue the fight and look for the next opportunity to extend the wind energy tax credit. We cannot afford to delay. Congress needs to act now before more Americans lose their jobs.”

     Adam Putnam’s Renewable-Energy Bill Passes In Florida

    Florida Agriculture Commissioner Adam Putnam on Friday morning cheered the House’s passage of the energy bill he has been pushing throughout the 2012 session. With the House passing the measure 116-2, it is now on its way to Gov. Rick Scott. Two Republicans voted against the measure, Eric Eisnaugle of Orlando and Marlene O’Toole of The Villages.

    “The Florida House of Representatives cast its final vote today in support of advancing Florida’s energy future,” Putnam said. “Florida’s energy bill, which will increase diversity in the state’s energy portfolio, expand energy production and create much-needed jobs for Floridians, is now headed to the governor’s desk for signature.

    “With overwhelming support in both chambers, the Legislature is sending a clear message that Florida is focused on its future. We’re putting Florida’s energy policy back on the right track, positioning Florida to secure a stable, reliable and diverse supply of energy,” Putnam added before thanking Rep. Scott Plakon, R-Longwood, and Rep. Seth McKeel, R-Lakeland.

    New Proposal Would Limit AZ Renewable Energy Rules

    PHOENIX (AP) — A bill that would give the Legislature a say over energy rules adopted by the Arizona Corporation Commission is being scaled back.

    An amendment proposed for consideration by a Senate committee Wednesday would rewrite the bill approved by the House.

    The new version would bar the commission from requiring a utility to meet a renewable energy standard greater than those now in effect.

    Glendale Republican Rep. Debbie Lesko recently won House approval of her original bill only after promising fellow representatives to scale it back.

  • Renewable Energy Law News Week of March 5

    Administration produces renewable portfolio standard proposal

    Two months into the legislative process, the Vermont Department of Public Service weighed in this week with a proposal for the renewable portfolio standard bill that has ping-ponged back and forth in the House Committee on Natural Resources and Energy.

    The department proposes a goal for the state of 75 percent renewable energy by 2032, including 35 percent “new renewable” and 10 percent small-scale generation.

    The committee has seen multiple drafts, some more stringent than others in moving Vermont toward a law that would require utilities to provide a percentage of their electricity portfolio from renewable sources.

    Army Issues Draft RFP for $7 Billion in Renewable Energy Contracts

    On Friday February 24, 2012, the U.S. Army Engineering & Support Center in Huntsville, Alabama issued a draft request for proposals (Solicitation No. W912DY-11-R-0036, the “Draft RFP”) titled “Large Scale Renewable Energy Production for Federal Installations.”

    The objective of the solicitation, in its current form, is to procure renewable and alternative energy through power purchase agreements (PPAs) or contractual equivalents for terms of up to 30 years. The government does not want to acquire generation assets, only energy. Projects may be located on or near any federal property located within the United States, including Alaska, Hawaii, territories, provinces or other property under the control of the United States. “The intent is to award contracts to all qualified and responsible offerors, both large and small businesses.”


  • Renewable Energy Law Blog 2012-02-28 18:25:00

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    Maine tidal project wins pilot license

    Federal regulators have issued a pilot project license to a tidal energy project proposed in Maine’s Cobscook Bay. Yesterday, the Federal Energy Regulatory Commission issued an order granting Ocean Renewable Power Company Maine, LLC an 8-year pilot project license to construct, operate, and maintain its proposed Cobscook Bay Tidal Energy Project. As licensed, the 300 kilowatt project will be located in Cobscook Bay north and east of Seaward Neck and west of Shackford Head State Park in Eastport, Maine.

    ORPC Maine applied for its pilot license in September 2011. Last month, FERC issued its Environmental Assessment of the Cobscook project, finding generally that licensing the hydrokinetic project with appropriate environmental protective measures would not constitute a major federal action that would significantly affect the quality of the human environment.

    FERC granted the pilot project license just 179 days after the license application was filed, a relatively quick timeline for hydropower permitting made possible by FERC’s hydrokinetic pilot project licensing process. As envisioned by FERC staff, the ideal pilot project should be (1) small, (2) short term, (3) located in non-sensitive areas based on the Commission’s review of the record, (4) removable and able to be shut down on short notice, (5) removed, with the site restored, before the end of the license term (unless a new license is granted), and (6) initiated by a draft application in a form sufficient to support environmental analysis. In ORPC Maine’s case, FERC staff agreed that the Cobscook project was a good fit for pilot project licensing process after reviewing the developer’s application. 

    Vt. won’t make renewable energy goals

    MONTPELIER, Vt. (AP) — Two key state lawmakers said Tuesday that Vermont won’t meet its goal of getting 20 percent of its electricity from renewable sources by 2017, and they’re withdrawing their support for setting a new goal of 30 percent renewable power by 2025.

    Reps. Tony Klein and Margaret Cheney, the chairman and vice chairwoman of the House Natural Resources and Energy Committee, also said legislation passed three years ago to offer premium prices to renewable energy project developers had fallen far short of its goal of bringing 50 megawatts of new renewable power onto the Vermont electric grid. Cheney said just 7.1 megawatts worth of such projects had been built.

    The two Democrats said they were surprised to learn recently from the state Department of Public Service, which regulates utilities, that the state likely would fall short of its 2017 goal. Of backing away from the more ambitious 2025 goal, Cheney said, “We don’t want to put out a percentage because it sounds good and not be able to meet it.”      

    First Wind Starts Construction of Hawaii’s Largest Wind Project.

    First Wind, an independent U.S.-based wind energy company, has celebrated the start of construction of its 69-megawatt (MW) Kawailoa Wind project on Kamehameha Schools’ Kawailoa Plantation lands on Oahu’s North Shore. Once complete, Kawailoa Wind will be the largest wind energy facility in Hawaii. The site’s thirty 2.3 MW Siemens wind turbines will have the capacity to generate enough clean, renewable wind energy to power the equivalent of approximately 14,500 homes on the island, or as much as five percent of Oahu’s annual electrical demand.

    During a groundbreaking ceremony on the project site, First Wind officials were joined by U.S. Senator Daniel K. Akaka, Hawaii’s Lieutenant Governor Brian Schatz, State Senator Mike Gabbard and Honolulu Mayor Peter Carlisle, along with several other state and local leaders, who shared comments on the project’s significance.

    “Clean energy projects are a priority for the City and County of Honolulu because they are a priority for our future,” said Mayor Carlisle. “When completed, the Kawailoa Wind project will be able to produce clean, renewable energy to power more than 14,500 Oahu homes. Projects like this will benefit and position our city for the future.”

  • Renewable Energy Law News – Week of January 30, 2012

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    AWEA Pushes For Production Tax Credit’s Near-Term Extension

    Anticipating a tough fight to get legislation passed during an election year, the American Wind Energy Association (AWEA) is seeking near-term legislative action as a means to extend the production tax credit (PTC), which, for wind power, expires at the end of the year.

    “We’re putting everything we’ve got into getting legislation to move in the next five weeks,” Rob Gramlich, AWEA’s senior vice president of public policy, tells NAW.

    “We’ve made extending the wind PTC our top focus this year,” he says. “We’re working with a broad coalition to encourage the leadership of both parties to include the PTC in the payroll tax cut extension when it comes up next month.”

    Gramlich reasons that, when Congress meets in February about extending the payroll tax cuts, the discussions could include broader tax reform, such as those important to renewable energy. AWEA’s position is that an omnibus tax package provides the best vehicle for attaching a rider, such as a PTC extension.     

    Vermont Legislature considers banning hydrofracking

    MONTPELIER — Nobody has applied to Vermont for permission to drill for oil or gas using hydraulic fracturing.

    No one is sure it would even be worthwhile to do so.

    Still, the Legislature and Gov. Peter Shumlin are considering banning the practice, commonly called hydrofracking. Vermont would become the first state to do so.

    “This is kind of saying, ‘Don’t bother. Close the door on the issue,’” said Rep. Tony Klein, D-East Montpelier, sponsor of a bill the House Fish & Wildlife Committee is preparing to vote on this week. “It’s about protecting our most precious resource — our groundwater.”

    A look at what’s going on in neighboring New York state, across the border in Quebec, in Pennsylvania and elsewhere is all that some lawmakers and state officials needed to conclude they want no part of the procedure. Stories abound of possible links between drilling and contamination of well water, earthquakes and more.

    Group seeking more renewable energy in Maine misses 2012 deadline

    AUGUSTA, Maine — Supporters of a citizens’ initiative that would require utilities to produce more clean and renewable energy failed to gather enough signatures to put a question on the November ballot.

    Maine Citizens for Clean Energy was scheduled to meet at the State House on Monday afternoon, presumably to announce that it had gathered more than the 57,000 signatures needed for a citizens’ initiative.

    Instead, the group canceled its event early Monday and announced later in the day that it will continue to gather signatures with the intent of bringing the issue back in 2013.

    “Going for the 2012 ballot was always a race against the clock. Despite the incredible enthusiasm from the public and from hundreds of campaign volunteers, the clock was just a little too fast for us to hit the deadline for the 2012 ballot,” said David Farmer, spokesman for Maine Citizens for Clean Energy.

    Just two weeks ago, as the initiative faced increasing opposition led by Gov. Paul LePage, supporters said they were confident that they would meet Monday’s deadline for signatures.

    The initiative sought to increase the amount of Maine’s electricity that comes from new, renewable energy sources — such as wind and solar — and also would require utilities to invest in energy efficiency whenever it would reduce energy costs for ratepayers.

    Wis. regulators defend renewable energy suspension

    MADISON, Wis.— Wisconsin regulators defended a decision Wednesday to suspend renewable energy funding from a popular utilities program, despite criticism from businesses that it damages the state’s renewable energy marketplace.

    Public Service Commission spokeswoman Kristin Ruesch said a Focus on Energy program geared toward renewable energy was over budget and not cost effective. But she said they’re still analyzing how it may be restored later this year.

    The suspended program, introduced in 2002, offers monetary incentives to businesses and residents to install renewable energy systems. In recent years, between 8 to 10 percent of the Focus program’s recent $85-$90 million budget was set aside for it.

    But Ruesch said the Focus program has a smaller budget now. The state budget signed by Gov. Scott Walker placed a 1.2 percent cap on how much residents can be charged through utility bills to pay for the Focus program.

  • Renewable Energy Law News – Week of January 16, 2012

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     Vermont Statehouse 2012: A legislative preview

    On Tuesday, 180 lawmakers will converge on the Statehouse after a seven month hiatus for Round 2 of the 2011-2012 biennium. Judging from interviews with committee chairs, the upcoming session will be fast and furious. Lawmakers have an impressive array of complicated issues to address in four short months, and there is little expectation that the session will drag past the first week in May (this is an election year after all).

    Long-term recovery plans post-Irene will figure prominently on the docket. Expect to see lively debate on proposals for the new state psychiatric hospital, the state office complex, a reordering of transportation priorities, and legislation to address property losses, flood insurance issues, municipal borrowing and tax abatements. (The latter is already in motion; lawmakers are expected to forgive about $2 million to $4 million in property taxes to the state Education Fund in the first few weeks of the session.)

    There are a number of old business items that must pass through the belly of the snake no matter what. The biggie here is the budget (the 2013 gap between revenues and expenditures is $75 million, plus $25 million worth of budget adjustments for fiscal year 2012); closely followed by the miscellaneous tax bill, the fee bill and the capital bill. The latter will earmark how much money the state will borrow to pay for new state offices and the replacement for the Vermont State Hospital.

    Gabrielle Stebbins: “Renewable Energy Vermont will push for a tax on the dry-cask storage of nuclear waste to keep the Clean Energy Development Fund going.”

    Free Press: Gov. Peter Shumlin and the Legislature have put renewable energy very, very high on their agendas. How is Vermont doing at encouraging and implementing renewable electrical energy sources?

    Stebbins: Vermont is one of the national leaders in transforming how we use energy. Renewable sources already supply 50 percent of our electricity, so we’re on a great path, but of course we have much more to do.

    Free Press: But much of the energy we use isn’t electrical energy, it is fuel to heat our homes and power our cars …

    Stebbins: Certainly that’s true. Electricity is only one-third of our energy demand. The other two-thirds are for heating our buildings and travel purposes. Both of these sectors require multi-steps to address. We need to keep up the great work that our efficiency utilities and weatherization agencies provide, which can save considerably and helps us meet the remaining heating needs with Vermont’s wood resources. We are ready to lead in this direction. One study recently estimated that if only one-fifth of Vermont buildings transferred from traditional fuel to biomass fuels used in modern, efficient boilers, it could create about 7,000 stable local energy jobs.

    Vermont considers renewable energy law

    The Vermont Legislature is considering a proposal to enact a renewable portfolio standard, a law requiring utilities to source a specified percentage of their electricity from eligible renewable resources. If enacted,     Bill S-170 (72-page PDF) could change Vermont’s energy landscape.

    Today, Vermont is the only New England state not to have a statutory renewable portfolio standard, or RPS. Instead, Vermont’s approach to renewable energy has focused on SPEED, or the Sustainably Priced Energy Enterprise Development Program. SPEED’s goal is that by 2012, at least 10% of the state’s 2005-era electric load be served by new sources of renewable energy, or 20% of total load by 2017. To further that goal, SPEED created incentives such as a feed-in tariff designed to encourage new renewable development. Unlike true RPS programs in other states, the Vermont program’s targets are not strictly binding.

    Bill S-170 would take Vermont away from the goal-based model and toward a firm renewable energy mandate. The bill would create a two-tiered RPS, with a “tier one” for projects coming into service during 2005-2012 and a “tier two” for projects coming online in 2013 and later. The bill would require utilities to source power from new renewable resources in each of these categories, plus additional power from existing renewable facilities. In 2013, utilities would have to source 40% of their power from existing renewable resources, plus 10% more from “tier one” new resources. Over time, the requirement would grow; by 2025, utilities would have to add in 40% from “tier two” resources, adding up to environmental attributes representing 90% of total annual retail sales.

  • Renewable Energy Law News Week of 12/1

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     What Will Become Of The Kyoto Climate Treaty?

    As diplomats from around the world gather in Durban, South Africa, for talks about climate change, a big question looms: What will become of the Kyoto climate treaty, which was negotiated with much fanfare in 1997. The treaty was supposed to be a first step toward much more ambitious actions on climate change, but it is now on the brink of fading into irrelevance. That could have major implications for the future of United Nations climate talks.

    Even under the best of circumstances, the Kyoto protocol would have made a barely measurable dent in the amount of greenhouse gases flowing into the Earth’s atmosphere.

    First, the United States decided not to ratify the treaty, so our emissions aren’t covered by the pact. Then China leapfrogged the U.S. to become the world’s biggest emitter of carbon dioxide. But China is treated like a developing country under the Kyoto treaty, which means it has no obligations. Even so, Europe and a few other nations have been soldiering on.

    23 Governors, 369 orgs throw support behind four-year PTC extension bill

    Most recently, a broad, nonpartisan coalition of 369 members, including manufacturing, farm and business interests, issued a letter endorsing a four-year extension to the Production Tax Credit (PTC), wind energy’s key federal tax incentive. Legislation recently introduced by Representatives Dave Reichert (R, WA-08) and Earl Blumenauer (D, OR-03) seeks to grant a four-year extension to the existing PTC for wind energy (H.R. 3307, the “American Renewable Energy Production Tax Credit Extension Act”).


    Signatories to the letter include the National Association of Manufacturers, the American Farm Bureau Federation, the Edison Electric Institute (the trade group for investor-owned utilities), the Western Governors’ Association, the United Steelworkers and many members of the environmental community.

    “Farmers and business people know a good deal when they see one, and that is exactly what clean, affordable, homegrown wind energy provides for the American people,” said AWEA CEO Denise Bode. “With the support of a key federal tax incentive, wind energy is powering one of America’s fastest-growing manufacturing sectors. Over the last six years, U.S. domestic production of wind turbine components has grown 12-fold to more than 400 facilities in 43 states, shifting manufacturing jobs from overseas back to the U.S. By extending the PTC we will be able to continue growing U.S. wind energy manufacturing jobs rather than lose them to other countries.”