Update: Animal Rights Group Seeks Injunction to Halt Wind Project on ESA Grounds
As a brief update to the "Animal Rights Group Seeks Injunction to Halt Wind Project on ESA Grounds" article we posted on September 4, 2009, the Court in Animal Welfare Institute et al. v. Beech Ridge Energy LLC held a 4-day bench trial, which ended on October 29, 2009. The Court currently has the case under advisement, but once the Court issues an opinion, we will post a new article describing the implications from the Court’s opinion. Stay tuned.
DOE Awards $620 Million for Smart Grid and Energy Storage Projects
Yesterday, DOE announced awards of $620 million in American Recovery and Reinvestment Act (“ARRA”) funds for Smart Grid demonstration projects and large-scale energy storage systems. The $620 million is broken down as follows:
• $435 million to support 16 fully integrated, regional Smart Grid demonstrations in 21 states, representing over 50 utilities and electricity organizations with a combined customer base of almost 100 million consumers. The Smart Grid demonstration projects incorporate smart meters, distribution and transmission system monitoring devices and DOE wants the awardees to be role models for the deployment of integrated Smart Grid systems on a broader scale. An additional $1 billion will come from the private sector for a total of $1.6 billion in Smart Grid projects nationally.
• $185 million to fund 16 utility-scale energy storage projects including advanced battery system, flywheels, and compressed air energy systems.
A copy of the DOE’s press release can be found at http://www.energy.gov/news2009/8305.htm
Upcoming Webinar: Stimulus Bill Part 3 - The DOE Loan Guarantee Program for Clean Energy Projects
We invite you to join us for the third installment of our complimentary Stimulus Bill Webinar series. This session will focus on the Department of Energy’s (DOE) Loan Guarantee Program, which received nearly $6 billion in Stimulus Bill funding. The DOE recently redesigned the program in an effort to bring private capital back to large-scale renewable energy project development. Since the release of the Financial Institution Partnership Program (FIPP) solicitation, there have been some promising initial signs with several prominent U.S. and European-based banks actively supporting projects.
Our panel of experts includes a current DOE program official with knowledge of the program's intricacies, an investment banker who was a former director of the program and a Stoel Rives attorney who is assisting clients through the application process. The webinar will discuss the innovative and commercial programs, FIPP, the evolving rules for the program, the application process and the type of projects the program was developed to support.
Speakers:
Richard Corrigan, Senior Advisor, Department of Energy's Loan Guarantee Program
Walter S. Howes, Former Director of DOE's Loan Guarantee Program, current Managing Partner, Verdigris Capital LLC
Graham Noyes, Former VP of Sales and Business Development, Imperium Renewables LLC; current Attorney, Stoel Rives LLP
When:
Wednesday, December 2, 2009
10 a.m. Pacific; 11 a.m. Mountain; noon Central; 1 p.m. Eastern
Cost:
Complimentary
Register:
Register online at http://www.stoel.com/webcasts
Will Wyoming Tax Electricity Generated From Wind Energy Projects?
On November 18, 2009, the Wyoming interim Joint Revenue Committee (the "Committee") considered two bills, each of which proposed to tax wind generated electricity. Neither bill passed the committee on tie votes of 6-6 (4-4 House members and 2-2 senate members). One of the bills sponsored by Sen John Schiffer, R-Kaycee, chairman of the Committee (legisweb.state.wy.us/interimCommittee/2009/10LSO-0126w4.pdf) proposed a tax of $.0010 upon each kilowatt hour for electricity produced and sold in the State of Wyoming. An exemption was provided for electricity produced for the personal consumption of the producer. A power producer using coal or other fuels would break even on the generation tax through a credit equal to the severance tax portion of their electricity production costs. The proposed tax works out to be an approximately 5 percent tax on generation. The second bill considered by the Committee was sponsored by Rep. David Miller, R-Riverton, (legisweb.state.wy.us/interimCommittee/2009/10LSO-0062w2.pdf). Rep. Miller's bill was similar to Sen. Schiffer's bill, but would only provide the credit to traditional power producers if they agree to use 90 percent of the credit on electricity generation or transmission projects and put the other 10 percent into the state's low income energy assistance program. Proponents of the proposed tax cited a number of factors in favor of the bill including the fact that wind projects should contribute to state and local governments equally with other energy industries. For example, Wyoming imposes a severance tax on natural resources, which includes (approximately) a 6 percent tax for oil and gas and a 7 percent tax for coal. Opponents of the tax bills, including the group of wind energy developers represented by the Wyoming Power Producers Coalition, argued, among other things, that (i) wind energy projects already pay property taxes and provide other financial benefits to the local communities and (ii) the taxation issue should be studied carefully so as not to discourage wind energy development in Wyoming.
Continue Reading...Upcoming Webinar: The Treasury Grant Program - Follow-up and Q&A
Join us for Structured Tax Incentives Part Deux! Our follow-up webinar will again include Vicky McDowell, Chief Administrator of the Treasury ITC Grant program. Unlike the first session, we will not use a formal presentation; instead, we will cover in greater detail the issues raised in your comments and will attempt to answer as many of your questions as we can.
We invite and encourage you to submit questions to us in advance. Please email your questions by Monday, November 16, to Nicole Lyman at nmlyman@stoel.com or call (612) 373-8842.
Speakers:
Greg Jenner, a tax partner in our Minneapolis office, has worked extensively on energy-related tax issues. Previously, he served as Deputy Assistant Secretary and Acting Assistant Secretary of the Treasury for Tax Policy from 2002 through 2004.
Victoria McDowell is the Deputy Administrator for the Alcohol and Tobacco Tax and Trade Bureau (TTB). In 2009, she was detailed to Main Treasury to be Chief Administrator of the Treasury ITC Grant Program.
Kevin Pearson, a tax partner in our Portland office, focuses principally on federal income tax law, including both transactional matters and tax controversy matters.
When:
Thursday, November 19, 2009
10 a.m. Pacific; 11 a.m. Mountain; 12 p.m. Central; 1 p.m. Eastern
Cost:
Complimentary
Register:
Register online at http://www.stoel.com/webcasts.
California Solar Initiative issues Second Grant Solicitation
The California Solar Initiative (“CSI”) has announced the release of a second Grant Solicitation for its Research, Development, Demonstration, and Deployment Program.
Up to $15 million in funding is available for improved PV production technologies and innovative business models. Eligible applicants include individuals, businesses, public entities, non-profit institutions, universities, or national laboratories. Award amounts will range from $200,000 up to $3 million. Each project is required to have a minimum of 25% cost sharing (which may include funding for related activities under the American Recovery and Reinvestment Act).
A pre-bid webinar will held on November 18, 2009 at 10:00 a.m. (PST). The deadline for submitting grant proposals is January 13, 2010 by 4:00 p.m. (PST). CSI estimates that approvals will be sent out in April 2010.
For more information, see: http://www.calsolarresearch.ca.gov/Current-Solicitations/solicitations-second.html
Public Service Commission of Utah Investigates Third-Party Power Purchase Agreements For Renewable Energy Generation
On October 12, 2009, the Public Service Commission of Utah ("PSC") joined the ranks of several other states in the west, including Oregon, when it established a docket to investigate whether, and the extent to which, certain third-party arrangements for renewable energy generation are subject to the PSC's jurisdiction. www.psc.utah.gov/utilities/misc/miscindx/0999912indx.html, Pursuant to the notice, the PSC may consider the following issues:
- Whether the third-party is a public utility under Utah law;
- Whether the third-party is a public utility under Utah law when arrangements are entered into primarily as a financing mechanism for distributed renewable energy generation systems whereby a third-party owns the renewable generation equipment, which is installed on a utility customer's premises, there is a long-term contract with the customer to supply a portion of that customer's electricity use, and payments are based on kilowatt-hours;
- Whether the third-party is a public utility under Utah law when (i) there is a single relationship between the third-party owner of the generation and a customer or (ii) there are multiple customers taking power from the same third party;
- Whether the third-party is a public utility under Utah law when arrangements involve the leasing of distributed generation equipment from non-utility lessors to lessees that are also retail customers of utilities.
Comments and/or legal briefs regarding the above issues must be filed with the PSC by November 16, 2009. A technical conference to discuss the specific terms and conditions surrounding third-party financing arrangements and other issues will be held on November 23, 2009, at 1:30 p.m. to 4:00 p.m., Fourth Floor Hearing Room Room 401, Heber M. Wells State Office Building, 160 East 300 South, Salt Lake City, Utah.
Come Visit Us at E3, The Midwest's Premier Energy, Economic and Environmental Conference, on Nov. 17, 2009
As a proud Exhibit Hall sponsor of E3, the Midwest’s premier energy, economic and environmental conference, Stoel Rives LLP would like to encourage you to attend this annual event. Hosted by the University of Minnesota’s Initiative for Renewable Energy and the Environment, E3 will focus this year on the intersection of innovative technologies and policies, environmental benefits and emerging market opportunities across the renewable energy spectrum.
Stoel Rives attorneys Mark Hanson, Bill Holmes and Greg Jenner are part of the event faculty. Mark will moderate a panel presentation on the challenges and opportunities of converting carbon dioxide to fuels. Bill will moderate a panel discussing exactly how sophisticated smart power grids need to be in order to scale up renewables as a major U.S. energy contributor. Greg, meanwhile, will participate in a panel discussion on the most efficient and effective strategies for financing renewable energy projects.
For more information and to register, please visit the following link: http://bit.ly/XUUjJ. We hope to see you there, and encourage you to visit our booth (#24). In addition to our presenters, Debra Frimerman, Kevin Johnson, Kevin Prohaska, Katie Roek, Mary Sennes, Joe Thompson and Vicki Twogood will be available to discuss any questions you may have. Don’t forget to pick up complimentary copies of our Law of Series handbooks, including The Law of Solar, The Law of Wind, The Law of Biofuels, The Law of Building Green, Lava Law,and our most recent additions The Law of Algae and Show Me the Money: The Law of the Stimulus (2d ed).
Insights from Stoel Rives' Webinar on The Stimulus Bill: Structured Tax Incentives
During yesterday's webinar entitled “The Stimulus Bill: Structured Tax Incentives” Greg Jenner (Stoel Rives LLP attorney), Victoria McDowell (Chief Administrator of the Treasury ITC Grant Program), and Kevin Pearson (Stoel Rives LLP attorney) walked webinar participants through the background of the American Recovery and Reinvestment Act grant program and the application process.
Ms. McDowell provided insightful comments about to the application process, including the timing of submitting an application and the importance of including all supporting documentation. Ms. McDowell stated that Treasury is in the process of preparing additional guidance on the “beginning of construction” requirement. Currently, either physical work of a significant nature must have begun to meet the requirement or, under a safe harbor provided by Treasury, an applicant must have paid or incurred more than 5 percent of the total cost of the project (excluding the cost of land and any preliminary activities). Ms. McDowell’s comments suggested that forthcoming revisions from Treasury will further simplify the “beginning of construction” requirement. For more information on this and other key legal issues related to the Stimulus Bill, please join us for these future webinars:
- November 18, 2009
Grants & Applications – The Process and the Pitfalls - November 19, 2009 (just added)
Follow up Webinar on Structured Tax Incentives – The 1603 Grant Program - December 2, 2009
The DOE Loan Guarantee Program Long-Term and Ongoing
Each session will be 60 minutes and feature a question & answer period. The panels will also respond in real time to questions submitted by listeners.
REGISTER HERE: http://www.stoel.com/webcasts
