California PUC Moves to Allow Unbundled RECs
The California Public Utility Commission issued a draft decision on October 29th authorizing the use of unbundled and tradable renewable energy certificates (“RECs” or “TRECs”) for compliance with California’s RPS.
Continue Reading...New York Establishes Wind Industry Code of Ethics
On October 30th, the New York Attorney General announced a Wind Industry Ethics Code aimed at assuring the public that wind development in the state is done ethically and legally. The Code is the result of an investigation launched by the Attorney General into allegations of improper actions by wind developers to influence landowners and public officials. According to the Attorney General's office, the Code:
- Bans wind companies from hiring municipal employees or their relatives, giving gifts of more than $10 during a one-year period, or providing any other form of compensation that is contingent on any action before a municipal agency
- Prevents wind companies from soliciting, using, or knowingly receiving confidential information acquired by a municipal officer in the course of his or her officials duties
- Requires wind companies to establish and maintain a public Web site to disclose the names of all municipal officers or their relatives who have a financial stake in wind farm development
- Requires wind companies to submit in writing to the municipal clerk for public inspection and to publish in the local newspaper the nature and scope of the municipal officer’s financial interest
- Mandates that all wind easements and leases be in writing and filed with the County Clerk
- Dictates that within thirty days of signing the Wind Industry Ethics Code, companies must conduct a seminar for employees about identifying and preventing conflicts of interest when working with municipal employees
The Attorney General also established a Task Force charged with monitoring companies to verify their compliance with the Code.
WOW - Wind on the Water in Wisconsin?
In Spring 2008, the Wisconsin Public Service Commission opened a docket and created an external Study Group to complete a study to assist with examining the technical feasibility, economic potential, environmental impacts, and legal requirements associated with developing wind energy on Lake Michigan and Lake Superior. Last Friday, the Study Group released its draft report, with the final report due by December 31, 2008. The draft report is a comprehensive analysis of key issues in the areas of engineering and economics (including transmission and the cost of operation and maintenance), the human environment (including the freshwater ecosystem), legal issues (including consultation of federal, state, local and tribal authorities), and community involvement (including public perception). The draft report does not make a recommendation for or against the development of offshore wind in the Great Lakes, but identifies possible next steps to further evaluate the feasibility of such projects.
The draft report is open for public comment, and the PSC will take comments until Monday, November 10. The docket number is 5-EI-144.
Utah PSC Gives OK to Wind Farm Transmission Line
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The Utah Public Service Commission issued an order last week approving the request by Milford Wind Corridor Phase I, LLC and Milford Corridor Phase II, LLC (collectively, “Milford Wind”) for a certificate of public convenience and necessity (“CPCN”) for the construction of a 90-mile transmission line interconnecting the wind farm to facilities for ultimate delivery of output to Southern California (Docket No. 08‑2490-01).
Although the Commission applied the CPCN statute only to Milford Wind’s transmission line, the exemption it applied with respect to the generation facilities is applicable only to cogeneration facilities or independent power production facilities that produce electric energy “solely by the use, as a primary energy source, of biomass, waste, a renewable resource, a geothermal resource, or any combination of the preceding sources.” As it now reads, that exemption would not be available to other types of generation projects that might be constructed by independent power producers in Utah.
As I noted previously, the Commission initially concluded early in this proceeding that legislation enacted this year exempted Milford Wind from Commission jurisdiction and regulation with respect to Milford Wind’s entire project, including the transmission line. However, the Commission revisited its determination in response to a motion for rehearing filed by the Utah Associated Municipal Power Systems (“UAMPS”), and ultimately agreed with UAMPS and the Division of Public Utilities that the exemption provided by the new legislation does not apply to transmission facilities. Thus Milford Wind was required to go forward and obtain a CPCN for the transmission line.
Whether legislation will be proposed in next year's general session of the Utah State Legislature to further address the question of the Commission's jurisdiction over independent power producers remains to be seen.
Congress Extends PTC and ITC--More Analysis to Follow
In an email alert that we just sent out, my colleagues in the Stoel Rives Tax Section report:
Today the House passed, and President Bush signed into law, H.R. 1424, which includes the Energy Improvement and Extension Act of 2008 (the Act). The Act contains the much-anticipated extension of the production tax credit (PTC) and investment tax credit (ITC) sunset dates.
The Act extends the PTC placed-in-service sunset date for certain wind and refined coal facilities until December 31, 2009, and extends the PTC placed-in-service sunset date for certain other qualifying facilities until December 31, 2010. The Act also expands the PTC to include certain marine and hydrokinetic renewable energy facilities placed in service on or before December 31, 2011.
The Act extends the ITC placed-in-service sunset date for solar, fuel cell and microturbine property until December 31, 2016 and expands the ITC to include combined heat and power system property, qualified small wind energy property, and geothermal heat pump system property.
In addition, H.R. 1424 contains a variety of other renewable energy tax provisions, including provisions allowing the energy credit to offset alternative minimum tax liability; increasing the amount of the biodiesel and renewable diesel fuel credits and extending the sunset dates until December 31, 2009; authorizing new clean renewable energy bonds and qualified energy conservation bonds; and extending the energy efficient commercial buildings deduction and the new energy efficient home credit.
Our Tax Section is working on preparing a more detailed analysis of the tax aspects of HR 1424. If you'd like to receive updates concerning H.R. 1424 and other renewable energy and clean tech issues, please subscribe to our Renewable Energy Mailing List.
