Colorado Public Utilities Commission Proposes New Rules Governing Transmission Planning
On July 28, 2010, the Colorado Public Utilities Commission (the "Commission") issued a Notice of Proposed Rulemaking ("NOPR") regarding rules related to electric transmission facilities planning (the "Proposed Rules"). The Proposed Rules are based, in large part, on the input provided by all interested parties in the workshops and written comments in connection with Docket Nos. 08I-227E and 09M-616E and in response to certain legislative and policy changes impacting transmission planning significantly. In response to these legislative and policy changes, some of the key issues that need to be addressed in transmission planning include transmission-related challenges to satisfying State of Colorado's renewable energy portfolio standard for electricity generation, distributed generation set-asides, and requirements that the Commission give the fullest possible consideration to cost-effective implementation of new clean energy and energy efficient technologies. In implementing the Proposed Rules, the Commission recognizes that "both state-wide coordinated transmission planning and a meaningful involvement in such planning by stakeholders and the Commission are essential." NOPR at 2-3. In addition, the Commission concluded that "an effective transmission planning approach needs to be long-term and pro-active rather than just-in-time and reactive."
Under the Proposed Rules, the Commission will rely on the Colorado Coordinated Planning Group ("CCPG") as the primary means by which jurisdictional electric utilities will develop the ten-year transmission plans and the twenty-year conceptual plans contemplated under the rules, in consultation with other CCPG members and stakeholders. Overall, the Proposed Rules set forth the general objectives associated with the biennial filing of the following:
Continue Reading...Senators Propose Making Energy Storage Property Eligible for ITC & CREBs
Last week, Senators Jeff Bingaman (D-NM), Ron Wyden (D-OR), and Jeanne Shaheen (D-NH), introduced legislation that would add grid-connected energy storage property to the list of technologies eligible for the federal investment tax credit (the "ITC"). Under the Storage Technology for Renewable and Green Energy Act of 2010 (the "STORAGE 2010 Act"), eligible energy storage property would include hydroelectric pumped storage and compressed air energy storage, regenerative fuel cells, batteries, superconducting magnetic energy storage, flywheels, thermal energy storage systems and hydrogen storage. Systems that can sustain a power rating of at least one megawatt for a minimum of one hour would be eligible for a 20% tax credit under the ITC program. Should the bill become law, the tax credit would provide significant assistance to intermittent energy resource developers that are seeking new ways to shape and firm their projects' output.
The STORAGE 2010 Act would limit the available credits to $1.5 billion, and no single project may be allocated more than $30 million.
Importantly, the bill creates special extended deadlines for hydroelectric pumped storage facilities. Whereas the majority of energy storage property considered under the bill would be required to be placed in service within two years of the date the ITC was allocated, pumped storage facilities would have three years to secure required licenses and permits, five years to begin construction, and eight years to be placed in service.
Compressed air energy storage systems would enjoy similar extended deadlines- i.e., would be reqired to begin construction within three years and be placed in service within five years.
The bill would also allow grid-connected energy storage property to qualify for Clean Renewable Energy Bonds under section 54C of the Internal Revenue Code. The full text of the bill can be viewed here.
CPUC Staff Issues White Paper on Electric Energy Storage (EES)
Energy Electricty Storage (EES) is likely to become more and more important as intermittent solar and wind energy resources penetrate the grid. EES may be a very useful and perhaps essential way to manage the variability of intermittent renewable energy resources to allow developers to continue building wind and solar projects at an accelerating pace.
On July 9, 2010, the Policy and Planning Division of the California Public Utility Commission (CPUC) issued an interesting Staff White Paper entitled "Electric Energy Storage: An Assessment of Potential Barriers and Opportunities." The report is worth reading for those who are interested in the future of renewable energy and the roll that EES can play in enhancing the deployment of intermittent renewables.
The report describes "a promising new set of Electric Energy Storage ("EES") technologies [that] appear to provide an effective means for addressing the growing problems of reliance on an increasing percentage of intermittent renewable generation resources." The report observes that EES can provide several basice services, such as (1) supplying peak electricity demand by using electricity generated during periods of lower demand (e.g., storage of wind energy generated at night for use during daily peak periods), (2) balancing electricity supply and demand fluctuations over a period of minutes, and (3) deferring expansion of electric grid capacity (including generation, transmission and distribution).
Potential storage technologies include pumped hydro, compressed air energy storage ("CAES"), batteries, thermal storage (e.g., solar thermal plants), flywheels, unltracapacitors and superconducting magnetic storage--the report provides short but helpful description of each technology. Storage presents interesting legal and policy issues, because "[r]egulators are uncertain how EES technologies should fit into the electric system, in part because EES services provide multiple services such as generation, transmission and distribution." In addition, "regulators do not yet know how EES costs and benefits should be allocated among these three main elements of the electric system."
The report makes a number of recommendations, including that the CPUC should conduct a rulemaking to develop policies to remove barriers to the deployment of EES technology in California. The report also proposes that the CPUC consider placing EES within California's energy resources loading order, require utilities to incoporate EES into their integrated resource planning processes, encourage CAISO to change ancillary service market rules to allow EES systems to more easily bid into regulation markets, and integrate EES into utility transmission planning.
The report concludes that "the major barrier for deployment of new storage facilities is not necessarily the technology, but the absence of appropriate regulations and market mechanisms that properly recognize the value of the storage resource and financially comepnsate the owners/operators for the services and benefits they provide."
You can find the report here.
CPUC Staff Issues White Paper on Electric Energy Storage (EES)
Energy Electricty Storage (EES) is likely to become more and more important as intermittent solar and wind energy resources penetrate the grid. EES may be a very useful and perhaps essential way to manage the variability of intermittent renewable energy resources to allow developers to continue building wind and solar projects at an accelerating pace.
On July 9, 2010, the Policy and Planning Division of the California Public Utility Commission (CPUC) issued an interesting Staff White Paper entitled "Electric Energy Storage: An Assessment of Potential Barriers and Opportunities." The report is worth reading for those who are interested in the future of renewable energy and the roll that EES can play in enhancing the deployment of intermittent renewables.
The report describes "a promising new set of Electric Energy Storage ("EES") technologies [that] appear to provide an effective means for addressing the growing problems of reliance on an increasing percentage of intermittent renewable generation resources." The report observes that EES can provide several basice services, such as (1) supplying peak electricity demand by using electricity generated during periods of lower demand (e.g., storage of wind energy generated at night for use during daily peak periods), (2) balancing electricity supply and demand fluctuations over a period of minutes, and (3) deferring expansion of electric grid capacity (including generation, transmission and distribution).
Potential storage technologies include pumped hydro, compressed air energy storage ("CAES"), batteries, thermal storage (e.g., solar thermal plants), flywheels, unltracapacitors and superconducting magnetic storage--the report provides short but helpful description of each technology. Storage presents interesting legal and policy issues, because "[r]egulators are uncertain how EES technologies should fit into the electric system, in part because EES services provide multiple services such as generation, transmission and distribution." In addition, "regulators do not yet know how EES costs and benefits should be allocated among these three main elements of the electric system."
The report makes a number of recommendations, including that the CPUC should conduct a rulemaking to develop policies to remove barriers to the deployment of EES technology in California. The report also proposes that the CPUC consider placing EES within California's energy resources loading order, require utilities to incoporate EES into their integrated resource planning processes, encourage CAISO to change ancillary service market rules to allow EES systems to more easily bid into regulation markets, and integrate EES into utility transmission planning.
The report concludes that "the major barrier for deployment of new storage facilities is not necessarily the technology, but the absence of appropriate regulations and market mechanisms that properly recognize the value of the storage resource and financially comepnsate the owners/operators for the services and benefits they provide."
You can find the report here.
The Week in Biofuels, A (U.S.) Patent (Application) Perspective
From our colleague Edna Vassilovski:
The following U.S. patent applications published this week relating to biofuels.
U.S. Pat. Pub. No. 20100184161 (The Regents of the University of California) discloses a thermophilic endo-beta-1,4 xylanase derived from Acidothermus cellulolyticus useful in the hydrolysis of lignocellulosic material.
U.S. Pat. Pub. No. 20100184151 (Iogen) discloses a process in which a recycle stream containing calcium carbonate and/or calcium hydroxide is used to pH adjust acid pretreated lignocellulosic feedstock. The calcium carbonate and/or calcium hydroxide arises from calcium native to the lignocellulosic feedstock. According to the specification, the process can lead to significantly reduced amounts of alkali and therefore improved economics.
U.S. Pat. Pub. No. 20100184130 relates to a method for increasing the oil yield from the green biomass of plants, and a plant that has been genetically modified such that its green biomass has at least 10-fold the amount by weight of triacylglycerols and at least 2-fold the amount by weight of total extractable fatty acids as compared to the green biomass of its non-genetically modified counterpart.
US Pat. Pub. No. 20100181034 (Greenfield Ethanol Inc.) relates to a lignocellulosic biomass pretreatment process wherein the amount of inhibitory compounds of downstream hydrolysis and fermentation are reduced. The process includes exposing biomass to steam at elevated temperature and pressure for a preselected amount of time and during which time volatile and/or liquid purge streams are systematically operated to remove inhibitory compounds.
Interagency Ocean Policy Task Force Issues Final Recommendations
On Monday, July 19, 2010, the White House Council on Environmental Quality ("CEQ") issued the Final Recommendations of the Interagency Ocean Policy Task Force. The Final Recommendations are the culmination of a process that began on June 12, 2009 when President Obama formed the Task Force and tasked it with developing recommendations to enhance national stewardship of the ocean, coasts, and the Great Lakes and promote the long-term conservation of those resources.
The Final Recommendations will likely be carried over into an Executive Order to be signed by the President, which will establish a National Policy for the Stewardship of the Ocean, Coasts, and Great Lakes and create a National Ocean Council to enhance ocean governance and coordination between federal and state agencies. The Final Recommendations also express the Task Force's unanimous agreement that the United States should acceed to the Convention on the Law of the Sea and ratify its 1994 Implementing Agreement.
The CEQ's press release is available here. Attorneys at Stoel Rives are reviewing the Final Recommendations and assessing their impact on, among other things, offshore renewable energy development including offshore wind and marine and hydrokinetic projects. Stay tuned for more on this important development.
THIS WEEK IN BIOFUELS, A (PCT) PATENT PERSPECTIVE
From our colleague Edna Vassilovski:
July 15, 2010: WIPO published over a dozen patent applications relating to biofuels. DuPont, Novozymes, BP Biofuels UK, Xyleco and Borregaard Industries each had one or more PCT applications publish as follows:
1. DuPont.
Seven PCT applications published relating to pretreatment of biomass for second generation biofuels. The majority of the applications are directed to organic solvent pretreatment processes in which lignin is extracted and enzymatic saccharification is enhanced.
WO2010080464 discloses pretreating biomass in the presence of an organic solvent solution under alkaline conditions in the presence of ammonia and optionally an additional nucleophile to fragment and extract lignin without loss of hemicellulose.
WO2010080462 discloses pretreating biomass in the presence of organic solvent under alkaline conditions in the presence of elemental sulfur and optionally one or more alkylamine and/or one or more additional nucleophiles to fragment and extract lignin.
WO2010080461 discloses pretreating biomass using an organic solvent under alkaline conditions in the presence of one or more sulfide (hydrosulfide) salt and optionally one or more additional nucleophile to fragment and extract lignin.
WO2010080460 discloses pretreating biomass using an organic solvent solution under alkaline conditions in the presence of one or more organo-mercaptan such as thioglycolate and optionally one or more additional nucleophile to fragment and extract lignin.
WO2010080434 discloses pretreating biomass using an organic solvent solution under alkaline conditions in the presence of one or more alkylamine and optionally one or more additional nucleophiles to fragment and extract lignin. According to the specifications of each of the above applications, the disclosed processes surprisingly result in significantly improved lignin fragmentation and extraction and high carbohydrate retention.
WO2010080436 discloses pretreating biomass through simultaneous oxidative degradation and selective extraction of lignin using a solvent solution comprising water in combination with at least one Mn(III) salt.
WO2010080489 discloses pretreating biomass under conditions of high solids and low ammonia concentration and contacting the biomass with a gas comprising about 0.1 to about 20 percent by volume ozone.
Continue Reading...Minnesota Angel Investment Tax Credit
Governor Tim Pawlenty signed into law the Small Business Investment Tax Credit, also known as the “Angel Tax Credit,” on April 1, 2010. The Angel Tax Credit is expected to stimulate investment in Minnesota businesses utilizing or developing new technologies, including those related to renewable energy and energy efficiency and conservation. Qualified investors are eligible for a 25 percent individual tax credit (maximum of $125,000 per year per individual or $250,000 per year for those married and filing jointly) for an investment made in a qualified small business. A total of $11 million in credits is currently allocated for 2010. The Minnesota Department of Employment and Economic Development (DEED), which will administer the program, recently made available the application requirements and certification forms on its website.
Qualified Investors
The following is a general list of criteria for investors to consider in whether they may qualify for certification under the Angel Tax Credit program:
- Be a natural person.
- Meet the requirements of an accredited investor under Regulation D.
- If not an accredited investor, be a non-accredited investor investing in exempt filings per Minn. Stat. 80A.46 (13) or (14) or Minn. Stat. 80A.50 (b).
- Not receive more than 50 percent of their annual gross income from the business.
- Be certified by DEED before investment is made. Non-accredited investors making exempt transactions may file for certification within 30 days of making investment. There is a certification filing fee of $350.
- Make a minimum qualifying investment of $10,000. Three or more investors may join to create a fund. Funds have a minimum investment of $30,000, which may be divided among investors as the fund wishes.
Qualified Businesses
A qualified business must be engaged in technological innovation in Minnesota through the use or research and development of proprietary technology in specified “qualified high technology fields” which include aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical devices, pharmaceuticals, diagnostics, biologicals, chemistry, or veterinary science. The following is a general list of criteria for businesses to consider in whether they may qualify for certification under the Angel Tax Credit program:
- Be headquartered in Minnesota.
- Have a minimum of 51 percent of employees and 51 percent of payroll in Minnesota.
- Have fewer than 25 employees.
- Pay employees annual wages of at least 175 percent of poverty level, currently $18.55 per hour. Does not apply to business’ executives, officers, board members, 20 percent-plus owners.
- Not have been in operation for more than 10 years.
- Not previously have received private equity investments of more than $2 million.
- Not have been disqualified from investment under Minn. Stat. 80 A.50 (b)(3) Small corporation offering registration disqualifications.
- Not have generated more than $4 million in investments that have received an Angel Tax Credit. The Angel Tax Credit is capped at $1 million per business.
- Be certified by DEED before investment is made. The certification filing fee is $150.
For more information on the Minnesota Angel Investment Tax Credit, please visit the Angel Tax Credit section of the DEED website.
Upcoming BETC Deadline--July 30, 2010
Pursuant to recently issued temporary regulations, the Oregon Department of Energy has imposed a July 30, 2010 deadline for projects seeking a BETC that have projected facility costs of $6 million or greater. See the link below for specific details.
EPA Issues Proposed RFS2 Rules for 2011
The EPA has issued proposed RFS2 rules for 2011 that provide some indications that the agency is dedicated to jump starting the advanced biofuels industry. Most notably, the EPA held fast to an overall mandate of 13.95 billion gallons of renewable fuel. While the agency intends to deviate downward on cellululosic biofuels with a cut of 90% or more anticipated, the proposed rule maintains the overall Advanced biofuel mandate at 1.35 billion gallons and the Biomass-based diesel requirement at 800 million gallons. Thus the agency is paying significant attention to the existing capacity of the biodiesel industry despite the lack of approval for the blender's credit six months into the year. Biofuel supporters hope that this policy gap will be addressed shortly or that RIN values will continue to increase for Biomass based diesel.
The proposed rule contains two other notable components: tentative but retroactive RIN credit for canola, sorghum, pulpwood and palm oil biofuel producers; and a petition process for foreign countries to avoid the onerous feedstock obligations that now apply in favor of the aggregate approach available within the US. The referenced feedstocks have been under consideration by EPA for Life Cycle Analysis since prior to the original RFS2 Final Rule was released but the work has still not been completed. The severe challenge for this group of biofuel producers is that EPA has previously indicated that RIN generation would trigger only when the pathway was certified. EPA's proposed new flexibility is an improvement but still falls short of providing full RIN value for these producers due to the lag time and uncertainty associated with the approach. The proposed petition process for foreign countries is an apparent attempt to level the playing field for foreign producers who now must trace and certify feedstocks such as soy and corn in a manner not required within the US.
The rules will be published in the Federal Register shortly and the public comment period will likely run to approximately August 13th.
SHOW ME THE MONEY: DOE Offers $1.85 Billion in Solar Loan Guarantees
Saturday was a great day for solar energy: the DOE offered two conditional loan guarantee commitments:
- $1.45 billion loan guarantee to Abengoa Solar Inc. for the construction and start-up of a concentrating solar power (CSP) generating facility in Solana, Arizona and a
- $400 million loan guarantee to Abound Solar Manufacturing for the assembly of state-of-the-art thin-film, cadmium-telluride solar panels.
ABENGOA SOLAR: Once operational, the CSP plant will add 250 MW of capacity to the electrical grid using parabolic trough solar collectors and a six-hour thermal energy storage system (the first of its kind in the United States). The plant which will be about 70 miles southwest of Phoenix, will use mirrors to direct sunlight onto receiver tubes that will heat molten salt fluid to over 700°F. The system's heat will turn steam turbines and the thermal energy storage can provide power during cloudy days and evenings. The plant will supply power to approximately 70,000 homes through a long-term PPA with Arizona Public Service Company.
Abengoa Solar estimates the project will employ approximately 1,600 workers during construction, of which 80 will be permanent jobs. As an added benefit, two assembly factories will be constructed on the site, and a new mirror manufacturing facility will be needed to supply more than 900,000 mirrors to the plant.
ABOUND SOLAR: A $400 million conditional loan guarantee has been offered to Abound Solar Manufacturing for the assembly of state-of-the-art thin-film, cadmium-telluride solar panels. The assembly will take place in in Longmont, Colorado, and Tipton, Indiana. Abound estimates that the project will create approximately 2,000 jobs during construction, as well as 1,500 permanent jobs.
Abound’s manufacturing technology was jointly developed by NREL, Colorado State University, and the National Science Foundation and deposits thin films of cadmium-telluride onto glass panels. This technology reduces overall product costs and provides better film quality, efficiency and reliability. Abound anticipates that it will produce millions of solar panels annually (enough panels to support up to 840 MW of new solar power per year) for less than it costs to produce crystalline silicon modules.
New Tool for Renewable Energy Investors, Entrepreneurs, and Companies
On June 30, 2010, the U.S. Department of Energy ("DOE") launched its Technology Commercialization Portal (the "Portal"). The Portal is an online resource that provides a mechanism for investors, entrepreneurs and companies to identify new technologies coming out of DOE laboratories and other participating research institutions. Relevant technologies include:
- Advanced Materials
- Biomass and Biofuels
- Building Energy Efficiency
- Electricity Transmission and Distribution
- Energy Analysis Models, Tools and Software
- Energy Storage
- Geothermal
- Hydrogen and Fuel Cell
- Hydropower, Wave and Tidal
- Industrial Technologies
- Solar Photovoltaic
- Solar Thermal
- Vehicles and Fuels
- Wind Energy
The Portal contains marketing summaries about the various DOE technologies that are available for licensing. Each marketing summary describes a technology's applications, advantages, benefits and state of development. Further, the Portal also provides access to information on patents and patent applications that have been created using DOE funding since 1992.
The Portal is located at http://techportal.eere.energy.gov/
