2010 International BIOMASS Conference and Expo - May 4-6, 2010

This year's International BIOMASS Conference and Expo will be held in Minneapolis, Minnesota on May 4-6.  The 6 program tracks will provide specified topic panels and discussions on Crop Residues, Dedicated Energy Crops, Forest and Wood Processing Residues, Livestock and Poultry Wastes, MSW and Urban Wastes as well as Food Processing Residues.

Please join Mark Hanson, Jennifer Martin, David Quinby, Kevin Johnson, Kevin Prohaska, Joe Thompson, Edna Vassilovski, Mary Sennes, Katie Roek , Bill Holmes and Debra Frimerman for a Stoel Rives-sponsored lunch on Day 1 of this year's International Biomass Conference or stop by Booth #609 in the Expo to speak with our attorneys.   We'll also be debuting our new Law of Biomass, the latest installment in the highly regarded Stoel Rives' "Law of" series, and complimentary copies of the new book will be on offer at our booth.

David Quinby, partner in the Minneapolis office, will moderate Track 4: Livestock & Poultry Waste: Downstream Approaches to Upgrading Biogas Quality, Wednesday, May 5 at 3:30 p.m. and Jennifer Martin, partner in the Portland office, will present as part of the Bonus Panel: Biomass to Energy Projects: Key Issues to Consider in Power Purchase and Feedstock Agreement, Thursday, May 6 at 1:30 p.m.

We look forward to seeing you at the Conference! To learn more or to register for this event, please visit: http://biomassconference.com/ema/DisplayPage.aspx?pageId=About.

•  When: 5/4/2010

•  Where: Minneapolis Convention Center, Minneapolis, MN

CPUC Approves 500 MW PG&E Program

The California Public Utilities Commission ("CPUC") has given the green light to a five-year solar photovoltaic program to develop up to 500 MW of solar PV facilities in Pacific Gas and Electric Co.'s ("PG&E") service area.

The program is designed to allow PG&E and third parties to develop PV facilities:

  • Under the utility-owned part of the program, PG&E may install up to 250 MW of PV facilities over 5 years, at a rate of 50 MW per year.  Each facility will have between 1 and 20 MW of capcity and will be located in PG&E's service area. The CPUC has allocated up to $1.454 billion for capital costs which will be adjusted if PG&E develops less than 250 MW over the five-year duration of the PV program.  PG&E will solict competitive bids for the construction  of the facilities, which it will own and operate.
  • Under the third-party-owned part of the program, PG&E can solicit energy from up to  250 MW of PV facilities which  located in PG&E's service area and which are owned by third parties - same size and annual installation restrictions apply.  Pricing for this portion will be based on competitive bids, with the successful bidders entering into a 20-year power purchase agreement with PG&E.

In an effort to secure good rates, CPUC is requiring PG&E  to use an independent evaluator to review the bids on both parts of the program.

PG&E built a 2 MW pilot project  in Vacaville, CA to demonstrate the viability of this program. The CPUC decision allows PG&E to recover the costs of construction the pilot project.

Interior Secretary Approves Cape Wind Project

Secretary of the Interior Ken Salazar announced today that he was approving the Cape Wind Project, the Nation’s first deep water offshore wind project. Secretary Salazar’s decision overcomes a recommendation from the Advisory Council on Historic Preservation (ACHP) to disapprove the Project because of impacts to properties listed in or eligible for listing in the National Register of Historic Places, including Nantucket Sound. Earlier this year the Keeper of the National Register determined the Sound is eligible for listing in the National Register for several reasons, including as a traditional cultural property because of its association with cultural practices or religious beliefs of two Indian tribes.

The Cape Wind Project would deploy 130 wind turbines. It is the Nation’s first commercial wind project to be located in marine waters. Several opponents have announced plans to file suit to block the Project.

Secretary Salazar’s decision sends an important signal on the Administration commitment to develop renewable energy resources despite objections from some environmental groups, local governments and Indian tribes. The Project is supported by Massachusetts Governor Deval Patrick, who stood beside Secretary Salazar when the Secretary announced his decision.

Check back here for more details as they are released, and please contact Cherise Oram, Michael O'Connell or any of our other renewable energy attorneys for more details!

TransCanada challenges Massachusetts RPS

Stoel Rives litigation partners Beverly Pearman and Jeremy Sacks have prepared the following report on TransCanada’s recent challenge to the Massachusetts RPS:

On April 16, 2010, TransCanada Power Marketing, Ltd. (“TransCanda”) filed suit in the U.S. District Court for the Central District of Massachusetts arguing that Massachusetts is unconstitutionally discriminating against out-of-state renewable energy producers. TransCanada purchases energy from generators and resells it to distribution companies and retail customers in the northeast United States. It is a U.S.-based subsidiary of TransCanada Corporation, a Canadian entity that, among other things, owns significant pieces of energy infrastructure in Canada and the United States, including power generation facilities. TransCanada’s suit challenges two Massachusetts programs that it claims benefit in-state economic interests while burdening out-of-state interests in violation of the U.S. Constitution’s Commerce Clause. It is seeking declaratory and injunctive relief as well as damages under 42 USC § 1983.

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U.S. DOE Releases Funding Opportunity Announcement for Marine and Hydrokinetic Technology Development

Today, the U.S. Department of Energy (the "DOE") released the long-awaited Financial Assistance Funding Opportunity Announcement ("FOA") titled "Marine and Hydrokinetic Technology Readiness Advancement Initiative."  Federal funding for this initiative for fiscal year 2010 is expected to be up to $15.36 million, with the possibility of continued funding at, or near, that level for up to an additional two years.  (Because all federal funding is subject to annual appropriations, these figures should be treated as estimates.)

The DOE has recognized that marine hydrokinetic ("MHK") technologies can provide renewable, environmentally responsible, and predictable baseload electricity to load centers along the nation's coastlines.  And to help accelerate the development and deployment of these technologies, the DOE intends to advance the technological and operational readiness of MHK systems and components across a range of technology readiness levels ("TRLs") through this Funding Opportunity Announcement.

Although TRLs have been used for years by both NASA and the Department of Defense to develop advanced, mission-critical systems, this is the first time TRLs have been used by the DOE to assess the technological readiness of new renewable energy technologies.  Recognizing that MHK devices and components are still largely in the early stages of research and development, the DOE has adopted a simplified TRL structure for purposes of this Funding Opportunity Announcement.  The DOE is seeking applications in two topic areas: (1) MHK Technologies Concept Development (TRLs 1-3) and (2) MHK Technology Readiness Level Advancement (TRLs 4-9). 

Funding will be made available in each topic area for both "systems" and "components."  The DOE organized and grouped the TRLs into four discrete funding categories:

  1. Discovery / Concept Definition / Early Stage Development, Design and Engineering (TRL 1-3);
  2. Proof of Concept (TRL 4);
  3. System Integration and Technology Laboratory Demonstration (TRL 5/6); and
  4. Open Water System Testing, Demonstration, and Operation (TRL 7/8).

Each category has prescribed funding levels and project performance periods.  A brief summary of the expected number of awards in each topic area and the associated expected federal funding is included below.  For a complete funding breakdown for systems and components, see the Funding Opportunity Announcement.

Topic Area Summary

Topic Area Period of Performance Expected Number of Awards Total  Estimated Federal Funding Estimated FY 2010 Federal Funding

MHK Technologies Concept Development

(TRLs 1-3)

    12 months

           8 

  (4 systems, 4 components)

       $1.6M          $1.6M

MHK Technology Readiness Level Advancement

(TRLs 4-9)

  18-36 months

    (see FOA)

           18 

  (11 systems, 7 components)

      $36.72M        $13.76M

 

Applications are due to DOE by 11:59 PM Eastern Time on June 7, 2010.

Advisory Council on Historic Preservation Recommendations Regarding Procedures for Energy Project Development

From our colleague Michael O'Connell:

On April 2, 2010, the Advisory Council on Historic Preservation (ACHP) issued recommendations on Department of the Interior (Interior) procedures for coordination of energy project development and protection of historic properties. Among other measures, the ACHP recommended that: (a) Interior agencies “engage in effective tribal consultations early in the project planning and review process to enable full understanding and appreciation of tribal views on energy development and its potential to affect properties of religious and cultural significance to them;” (b) give “due deference” to the views of Indian tribes regarding the impact on historic properties that are integral to the cultural and religious identify of tribes; (c) ACHP develop guidance with the Council on Environmental Quality on coordination of National Historic Preservation Act (NHPA) and National Environmental Policy Act review processes; (d) ACHP and Interior develop guidance to assist other federal agencies in assessing effects of energy projects, “especially wind and solar projects,” on historic properties that comprise large areas, with special emphasis on properties of cultural and religious importance to Indian tribes; and (e) ACHP clarify the distinction between “direct” and “indirect” effects to historic properties and when visual effects may constitute “direct” effects.

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GVSU and MAREC Seek Partner for Met Tower in Lake Michigan

Grand Valley State University (GVSU) and its Michigan Alternative and Renewable Energy Center (MAREC) have issued a Request for Proposals seeking funding partners to develop an offshore research platform and wind assessment meteorological (MET) tower installation.  GVSU and MAREC have acquired $3.1 Million in grants and research monies to fund a portion of the Project.  Partners are being sought to: contribute the additional funds, expertise, and resources needed to complete the Project beyond those already committed by GVSU/MAREC and federal/state sources; design the MET Tower/Research Platform; construct the MET Tower/Research Platform (to be completed by September 1, 2011); and provide the overall operation and maintenance of the structure to support data collection and research.

A pre-proposal conference is being held at GVSU on May 3, 2010, and proposals are due June 10, 2010.

Free Webinar on New Advanced Renewable Fuel Standard/RFS2

A quick follow up on my post last month regarding my colleague Graham Noyes’ white paper on the EPA’s sweeping revision of the federal Advanced Renewable Fuel Standard (RFS2). On April 20, Graham and his co-author Clayton McMartin will participate in a live Q&A webinar with Biofuels Journal publisher Myke Feinman on the new RFS2. Topics will include:
 

• The Four Categories of Fuel under RFS2

• Why All Producers Must Register Their Facilities

• What RINs will be Reinstated, Why, How, and When

• Lifecycle Analysis (GHG) and the Impact on Biofuel Markets

• Integration of RFS1 and RFS2

• Sweeping Changes in the RIN Program with RFS2

• Violations and Penalties

• The Seven Types of RINs

• The "Nesting" of Standards and the Potential Impact on Business

• EPA's New Role with the Moderated Transaction System (EMTS)
 

Registration and participation in the webinar is FREE. Click here to register for the advanced renewable fuel standard (RFS2) webinar with Biofuels Journal.
 

REMINDER: Upcoming DOE Funding for Marine Hydrokinetics

On March 11, 2010, I posted a blog about the U.S. Department of Energy's (the "DOE") upcoming Funding Opportunity Announcement ("FOA") for hydrokinetic technology development.  The DOE issued a Notice of Intent announcing the FOA earlier that week.  To access the Notice of Intent, click here, and enter "hydrokinetic" in the search field. 

The DOE was expected to issue the FOA by March 31, 2010.  This blog is intended as a reminder that all interested parties should make sure they have followed the necessary steps to apply or submit questions regarding the FOA.  For official procedures, see the Notice of Intent.

To respond to FOAs, either as an applicant to to submit questions, parties must first be registered with FedConnect.  In order to register for FedConnect, a party must:

  • Have a Duns and Bradstreet Data Universal Numbering System (a "DUNS Number").  If you do not know your company's DUNS Number or if your company does not have one, you can search for it or request one here; and
  • Be registered with the Central Contractor Registry (the "CCR").  If you are not currently registered for the CCR, you can register at the CCR website.

If you are the first person to register in your company for FedConnect, you will need your company's CCR MPIN.  If your company is already registered with the CCR, then you can find out who has your CCR MPIN by going to the CCR website and clicking "Search CCR."  A company's CCR must be updated annually.  To update your company's CCR, visit the CCR renewal website.

NOTE:  CCR and FedConnect registration can take at least 21 days to complete.  Since the DOE is expecting a quick turnaround on the FOA once it is released, interested parties should begin the registration process as soon as possible.

Nebraska Public Power District Wind and Renewables RFPs

The Nebraska Public Power District has two open RFPs that may be of interest to renewable energy developers. 

In Request for Proposal (RFP) 10018, the District announced that it intends to expand its power supply by adding wind-powered resources to its generation portfolio . The District seeks proposals to provide power from wind projects between 50 megawatts (MWs) and 300 MWs capacity.  The resulting PPAs would have a term of 20 years.  Bids are due by 5:00 pm Central Time on June 4, 2010.

The District also issued Request for Proposal (RFP) 10005, a separate request for energy, capacity and  environmental attributes from small renewable energy projects.  The solicitation defines a small project as one with a nameplate capacity at each location of less than ten (10) MW but greater than the maximum size allowed in the interconnecting utility’s Net Metering Policy.   Bids are due by 5:00 pm Central Time on September 1, 2010.

The District's contact for each RFP is Sarah Hopwood, Tel 402 563-5405, Fax 402 563-5034
sjhopwo@nppd.com.

Rhode Island PUC Rejects Offshore Wind PPA

Last week, the Rhode Island Public Utilities Commission rejected a power purchase agreement (PPA) between Deepwater Wind and National Grid, the state's largest utility, stating that the deal’s projected cost of electricity did not qualify as “commercially reasonable” under a test required by state law.  Deepwater would have charged National Grid 24.4 cents per kilowatt-hour in 2013, the first year of the contract. Prices would increase 3.5 percent per year after that.

The state previously passed legislation requiring National Grid to purchase the energy output from an offshore wind project.  The PPA that was ultimately signed was for the output of a 28.8 MW project near Block Island. 

The news of the PUC rejection comes shortly after receipt of $23.3 million in stimulus funds by the Quonset Business Park to improve piers, roads and rails and to install a crane in preparation for offshore wind development.  Deepwater Wind has signed an agreement to lease 117 acres in the Quonset Business Park to store and assemble components, and ultimately create 800 jobs, as projected by Deepwater.

DOT, EPA Boost Fuel Economy, Set GHG Emission Limits for Light Vehicles

The U.S. Department of Transportation (“DOT”) and the U.S. Environmental Protection Agency (“EPA”) have established new federal rules for greenhouse gas (“GHG”) emissions standards for all new passenger cars and light trucks sold in the US.  The rules improve fuel efficiency, could save the average buyer up to $3,000 over the life of a 2016 model year car, conserve about 1.8 billion barrels of oil, and reduce nearly a billion tons of GHG emissions over the life of a new vehicle.

The joint issue of rules allows automakers to comply with one set of rules, instead of three different sets (DOT, EPA, and a state standard).

 

NHTSA and EPA believe automakers can meet the new standards by adopting  existing efficiency technologies such as lighter materials, more efficient engines, transmissions, tires, and  air conditioning systems.

 

For more information, see the DOT press release, the final rule (PDF 6.93 MB), and the Web page for the EPA climate regulations.

Solar Development Guidelines Released by Arizona Game and Fish Department

On March 12, 2010, the Arizona Game and Fish Department ("AGFD") released finalized guidelines for solar development in Arizona ("Solar Guidelines"), the objective of which "is to assist energy developers in identifying potential impacts to wildlife and wildlife habitats from their proposed development and potential alternatives to avoid, minimize, and/or mitigate for these negative impacts."  The AGFD encourages local governments and permitting authorities to integrate the recommended study proposals described in the Solar Guidelines.  The document is organized around five basic project development steps:

  1. Wildlife Protection Regulations
  2. AGFD Regulations and Review
  3. Gather preliminary information and conduct site screening
  4. Identify potential impacts to wildlife
  5. Mitigation

The Solar Guidelines were compiled by the AGFD employees and have not undergone any external public review or input from the solar energy industry.  It should be noted that some of the information contained in the Solar Guidelines was taken from the AGFD's wind guidelines.  In light of the fact that county officials often defer to the AGFD in matters of wildlife concerns, special attention should be given to the section of the Solar Guidelines focused on "Avoiding or Minimizing Impacts" and the recommendations contained therein.

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