Virginia Jumping in to Offshore Wind
In late February, the Associated Press reported that the Minerals Management Service received proposals from two Virginia companies for leases on the outer continental shelf to develop offshore wind farms. Apex Wind Energy Inc. is proposing to lease 116,000 acres for an undetermined number of wind turbines with the potential to generate up to 1,500 megawatts of power, and Seawind Renewable Energy Corp. envisions building 240 turbines to generate enough power for more than 250,000 homes annually, according to a company statement.
Both wind farms would be located 12 miles off of Virginia Beach.
The Virginia Offshore Wind Coalition estimates the development of a wind power hub in Virginia has the potential to become an $80 billion industry creating more than 10,000 jobs. Coalition members include the Cities of Virginia Beach and Norfolk, Apex Offshore Wind, AREVA, BAE Systems Ship Repair, Colonna’s Shipyard, Dominion Virginia Power, Earl Energy, Fugro Atlantic, Old Dominion Electric Cooperative, Science Applications International Corporation, Seawind Renewable Energy Corporation, Weeks Marine and W. F. Magann.
RFP for Renewable Resources.
NV Energy issued its Spring 2010 Request for Proposals seeking new renewable resources. NV Energy hopes to use the RFP to meet its RPS requirement of serving 12% of retail load with renewable energy in 2010. Bidders should also be aware that NV Energy's non-refundable bid deposits have changed: projects 10 MW of larger must submit a $10,000 deposit ($7,500 if the same facility was bid into the 2009 RFP); projects under 10 MW must submit a $5,000 deposit ($3,500 if the same project was bid into the 2009 RFP). Responses to the RFP are due April 16.
Details regarding NV Energy's Spring 2010 RFP can be found by clicking here.
Proposed Legislation to Limit ITC Grants for Renewable Projects
Proposed legislation in the Senate would greatly limit the effectiveness of the grant in lieu of tax credits for renewable energy projects under section 1603 of the American Recovery and Reinvestment Act.
The section 1603 grant currently applies to renewable energy projects, such as wind, solar, geothermal and biomass, that are placed in service before 2011 or for which construction begins in 2009 or 2010 (and that are placed in service by certain dates). In its current form, if a project qualifies for the grant, the Treasury Department is required to pay the grant.
Expressing concern that a significant portion of the grants paid so far have gone to non-U.S. companies, Senator Charles Schumer (NY) and three other Democratic senators have sponsored a bill that would make payment of the grant subject to the discretion of the Treasury Department. It also would make the grant subject to the Buy American requirements of the stimulus bill, and would require that Treasury conduct an analysis of the "domestic job preservation and creation provided by" a project for which a grant application is submitted.
Various trade associations involved in renewable energy (such as AWEA, GEA and SEIA) are taking immediate action to register their opposition. Their focus will be on the incorrect assumptions underlying the proposal (for example, that it does not create U.S. jobs) and that, if enacted, it likely would destroy the effectiveness of the program.
We encourage our readers to register their strong opposition with their members of Congress and with the trade associations with which they are associated. The more opposition that is registered, and the longer the proposal drags out, the less likely it is to be enacted.
Read the March 4, 2010 Stoel Rives Law Alert on this proposed legislation.
SHOW ME THE MONEY: NEW ARPA-E FUNDS
DOE issued three Funding Opportunity Announcements (FOAs) on March 2 that offer $100 million in American Recovery and Reinvestment Act funding for the third round of its Advanced Research Projects Agency - Energy (ARPA-E) program. The FOAs were announced at the first ARPA-E summit in Washington, D.C., and focus on innovations in three areas of technology: grid storage, power converters, and cooling systems for buildings. The goal is to promote U.S. leadership in the emerging global market for these advanced energy technologies, while cutting greenhouse gas emissions and reducing U.S. electrical consumption by as much as 30%.
The FOAs can be found at https://arpa-e-foa.energy.gov/Default.aspx
Michigan GLOW Council Issues Legislative Recommendations for Offshore Wind
Michigan's Great Lakes Wind Council (GLOW Council), an advisory body within the Michigan Department of Energy, Labor & Economic Growth to examine issues and make recommendations related to offshore wind development in Michigan, has issued recommendations for a regulatory framework for offshore wind in Michigan's Great Lakes. These recommendations follow the GLOW Council's September 1, 2009 report (see previous blog entry), which contained proposed steps forward to developing an offshore wind industry in Michigan.
The recommendations, dated March 3, 2010, include a process that the Council recommends for inclusion in any bill introduced into the legislature to regulate offshore wind energy development in the Great Lakes, as well as recommendations for changes to transmission siting laws when the transmission relates to service of an offshore wind energy development.
White Paper Explains New Advanced Renewable Fuel Standard/RFS2
My colleague Graham Noyes and Clayton McMartin of Clean Fuels Clearinghouse recently published a white paper on the massive and staggeringly complex revision of the federal Advanced Fuel Standard (RFS) issued by the U.S. Environmental Protection Agency on February 3, 2010. Graham and Clayton describe how this second generation renewable fuel initiative (RFS2) will bring industry and government together in ways never before experienced by the fuels industry.
With a view to helping market participants develop comprehensive cost/benefit and compliance strategies, Graham and Clayton structure their discussion according to the following key topics:
- Legal background and new statutory requirements of RFS2;
- Compliance implications of updates to the Renewable Identification Numbers (“RINS”) process; and
- Issues important to particular market participants, including producer obligations, new fuel pathways, importer issues and RIN trading economics.
Download a free copy of the Renewable Fuel Standard/RFS2 White Paper (PDF)
EPA Delays Regulation of GHGs as Stationary Source Emissions
From Stoel Rives partners Lee Smith and Krista McIntyre:
In response to a letter drafted by eight democratic senators and general industry adverse reactions, the EPA announced on February 22, 2010 that there would be delays to implementation of the regulation of green house gases as stationary source emissions under the Clean Air Act, and included additional conditions to the implementation. It is expected that the EPA will phase in permit requirements and regulation of GHG for large stationary sources beginning in calendar year 2011.
The additional conditions include only requiring facilities that are applying for air permits for non-greenhouse gas emissions to be permitted under the new GHG permitting system in the first half of 2011, and permitting at a level higher than the 25,000 ton level originally proposed, for the latter half of 2011 through 2013. The letter can be found here.
SHOW ME THE MONEY: $1.37 BILLION LOAN GUARANTEE FOR CSP
DOE announced a conditional commitment for more than $1.37 billion in loan guarantees to BrightSource Energy, Inc. in support of the construction and start-up of three utility-scale concentrated solar power plants (CSP) in the Mojave Desert of southeastern California. The loan guarantee is funded under the American Recovery and Reinvestment Act and is predicated on BrightSource meeting financial and environmental requirements before closing on the loan. The Bureau of Land Management is leading a federal review of the project with support from DOE. Pending local, state, and federal regulatory approval, the new plants will generate approximately 400 megawatts (MW) of electricity using the company's proprietary technology. This output would nearly double the existing generation capacity of CSP facilities in the United States.
The three-plant Ivanpah Solar Complex will be located on federally owned land near the Nevada border and will be the world's largest operational concentrated solar power complex. BrightSource will use solar power tower technology, which uses thousands of flat mirrors, or "heliostats" to concentrate the sun's heat onto a receiver mounted at the top of a tower. Water pumped to the receiver is boiled into steam, which drives a turbine to produce electricity. The first Ivanpah plant is expected to begin construction in the second half of 2010 and come on line in 2012. Commercial operation for the second plant is slated for mid-2013, with the third plant following later that year. Once operational, the project will supply power to approximately 140,000 California homes.
Brightsource says the project will create 1,000 temporary jobs and 86 permanent jobs.
For additional information: see the DOE press releaseand DOE's Loan Guarantee Program Web site.
Southern California Public Power Authority RFP
Here's a new opportunity for renewable energy developers. The Southern California Public Power Authority has issued a request for proposals seeking renewable energy generation "with supporting infrastructure(s) as structured projects through (i) facility ownership; or (ii) power purchase agreement with ownership option(s), in one or more facilities." SCPPA is a California joint powers authority that plans to purchase an undivided equity share in facilities, issue tax-exempt debt financing, and sell output at cost to its municipal utility members. SCPPA will also consider straight or pre-pay power purchase agreements that include a facility purchase option.
Responses are due May 28, 2010. Follow the link for the solicitation materials: www.scppa.org/Downloads/RFP/Renewable_Energy_Projects_052810.pdf
Register Now for Live Meeting/Teleconference: Perspectives on Current Issues Facing Midwest Wind Projects
RENEWABLE ENERGY & DEMAND-SIDE MANAGEMENT COMMITTEE
Live Meeting/Teleconference
Midwest Wind Development: Perspectives on Current Issues Facing Regional Wind Projects
February 23, 2010
12:00 noon - 1:30 p.m. (Eastern Time)
11:00 a.m. - 12:30 p.m. (Central Time)
9:00 a.m. - 10:30 a.m. (Pacific Time)
In this seminar, the expert panelists will discuss current issues for developing commercial wind projects in the Midwest. In particular, the panelists will address:
- State regulatory issues for regional wind projects;
- Current prospects for developing wind energy on the Great Lakes;
- Community wind projects: current prospects for small scale wind projects;
- MISO cost allocation and market/operational issues affecting regional wind projects.
| Moderator: | David Gilles, Godfrey & Kahn, S.C. | |
| Presenters: | David Sapper, Customized Energy Solutions (Presenting from Madison Host Location)
William H. Holmes, Stoel Rives, LLP (Presenting from Minneapolis Host Location) Jeffery C. Paulson; Jeffery C. Paulson & Associates, Ltd. (Presenting from Minneapolis Host Location) |
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| Organizers: | David Gilles, Godfrey & Kahn, S.C. Jeff Dennis, Edison Electric Institute |
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| Host Locations: | Godfrey & Kahn, S.C. (beverages and light lunch provided)
Stoel Rives LLP (beverages and light lunch provided) McCarthy, Sweeney & Harkaway, P.C. (beverages provided) |
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| Questions for the Panelists: | Please send any questions for the panelists to David Gilles at dgilles@gklaw.com at any time prior to the Program. | |
REGISTRATION INFORMATION
To register for this Live Meeting/Teleconference, please complete and return the registration form.
Pre-registration is required and registration forms along with payment must be returned by no later than February 18, 2010. If you have questions, please contact Marlo Brown at marlo@eba-net.org.
Host Locations:
Godfrey & Kahn, S.C., One East Main Street, Suite 500, Madison, WI 53703
Stoel Rives LLP, Minneapolis City Center, 33 South Sixth Street, Suite 4200, Minneapolis, MN 55402
McCarthy, Sweeney & Harkaway, P.C., 1825 K Street N.W., Suite 700, Washington, DC 20006
