CPUC Adopts Decision Implementing RPS Portfolio Content Categories
A legal update from our colleagues Seth Hilton and Allison Smith:
On December 15, 2011, the California Public Utilities Commission adopted Decision 11-12-052, implementing Portfolio Content Categories for the 33% Renewables Portfolio Standard (RPS) Program in California. The Decision implements portions of Senate Bill (S.B.) x1-2, which created the 33% RPS Program. S.B. x1-2 established three categories of RPS-eligible electricity, applicable to RPS contracts executed after June 1, 2010:
- Category One includes electricity from RPS-eligible resources that have their first point of interconnection with a California balancing authority, RPS-eligible resources with a dynamic transfer arrangement with a California balancing authority, and RPS-eligible resources scheduling their electricity directly into a California balancing authority without substituting electricity from another source.
- Category Two includes firmed and shaped RPS-eligible electricity.
- Category Three includes transactions that do not meet the criteria of Category One or Two, including unbundled renewable energy credit (REC) transactions.
Click here to read the entire update on the Portfolio Content Categories and this decision.
Hydropower Regulatory Efficiency Act of 2011 Introduced in the House of Representatives
Today, Reps. Cathy McMorris Rodgers (R-WA) and Diana DeGette (D-CO) introduced H.R.3680, the "Hydropower Regulatory Efficiency Act of 2011", in the U.S. House of Representatives. Here is a summary of the bill's major provisions:
- Would exempt small hydroelectric facilities of 10 MW or less from the Federal Energy Regulatory Commission ("FERC") licensing process (currently, the exemption applies to facilities of 5 MW or less);
- Would remove conduit hydroelectric facilities of 5 MW or less from FERC jurisdiction (such facilities would not be required to file for a license or an exemption from licensing);
- Would exempt all conduit hydroelectric facilities of 40 MW or less from the FERC licensing process (currently, the exemption applies to facilities of 15 MW or less, or 40 MW or less in the case of municipal water supply projects);
- Would permit the development of conduit hydroelectric facilities on Federal land;
- Would provide FERC the ability to extend preliminary permits for up to an additional 2 years in certain circumstances;
- Would require FERC to investigate the feasibility of a 2-year licensing process for the development of (1) hydroelectric facilities at nonpowered dams and (2) closed-loop pumped storage facilities;
- Would require the Department of Energy to study the potential for conduit hydropower development and potential sites for pumped-storage facilities located near existing or potential sites of intermittent renewable energy projects (e.g., solar, wind); and
- Would require the President to submit a report to Congress on actions taken by the DOE and other Federal agencies pursuant to the memorandum of understanding on hydropower that was signed on March 24, 2010.
Many of these provisions are similar to those contained in S.629, the "Hydropower Improvement Act of 2011", which was introduced in the Senate on March 17, 2011 by Sen. Lisa Murkowski (R-AK). Notably, however, approximately $100 million in research and development funding included in S.629 was not included in the House bill.
The National Hydropower Association ("NHA") and Stoel Rives partner Cherise Oram, a member of the NHA's Legislative Committee, have worked closely with Members on both sides of the aisle over the past several months to develop the language of H.R.3680. NHA supports the bill and is pleased with both the bipartisan support of its original co-sponsors and the additional interest that has been shown by democrats and republicans in different regions of the country.
Proposed Decision Would Allow Solar PV Projects to Opt-In to California Energy Commission Permitting Process
Next Wednesday, the California Energy Commission will consider adoption of a Proposed Decision that would “expand” the Commission’s jurisdiction over the permitting of energy facilities in California. The Proposed Decision arises from a motion by Solar Trust of America asking the Energy Commission to find that photovoltaic electrical generating facilities may voluntarily submit to the Commission’s exclusive permitting jurisdiction. For thirty-five years, the Commission has acted as the “one-stop shop” for the permitting of thermal energy facilities greater than 50 megawatts capacity in California, including gas-fired, geothermal and solar-thermal power plants. However non-thermal facilities (e.g. wind and solar PV) and projects under 50 megawatts were excluded from CEC jurisdiction. The Proposed Decision provides an interpretation of an existing statutory “opt in” provision, which would allow solar photovoltaic projects (and logically, by extension, other non-thermal projects of less than 50 megawatt) to opt in to the Energy Commission’s permitting process and avoid local permitting jurisdiction. The Commission’s jurisdiction over a proposed energy facility generally dispenses with the need to obtain most other local, regional, and state permits, though it does not eliminate the obligation to comply with applicable local, regional, and state laws and regulations. Solar Trust’s motion to open up the Commission’s state-level permitting process for the first time to strictly non-thermal projects has been of interest to a variety of sectors and numerous parties participated in the briefing leading to the Proposed Decision. The Proposed Commission Decision Affirming that Warren-Alquist Act Section 25502.3 Applies to Photovoltaic Electrical Generating Facilities is available for public comment preceding the December 14 hearing.
FERC Rules Against Bonneville Power Administration's Environmental Redispatch Policy
A legal update from our colleagues Steve Hall, Dina Dubson and Jason Johns:
On December 7, 2011, the Federal Energy Regulatory Commission issued an order holding that the Bonneville Power Administration violated Section 211A of the Federal Power Act by curtailing wind energy under BPA’s Environmental Redispatch policy and requiring BPA to file a revised transmission tariff within 90 days from the date of the order.
PIRP Changes Off the Agenda for December CAISO Board Meeting
On November 30, the California Independent System Operator Corporation ("CAISO") announced that it would not push for changes to the Participating Intermittent Resources Program ("PIRP") at the December 15-16 Board of Governors meeting. The announcement came as welcome news to intermittent renewables advocates as the CAISO and stakholders have spent the past year negotiating issues set out in one Straw Proposal, five Revised Straw Proposals, and a Draft Final Proposal on changes to PIRP eligibility requirements and cost allocation, bid cost recovery ("BCR"), and a lowering of the energy bid floor. Instead of making changes to PIRP now, the CAISO will revisit the discussions in the second quarter of 2012- when it is scheduled to begin a stakeholder process to review decremental bidding options for participating intermittent resources in the Renewable Integration- Market and Product Review, Phase 2 initiative. Changes to the BCR netting methodology and the incremental lowering of the energy bid floor are still scheduled for review by the CAISO Board this month.
Upcoming Energy Conference Highlights
Through industry presentations and publications as well as through our blog, our energy attorneys are dedicated to helping you stay informed and knowledgeable about legal developments that affect your business.
Visit our website for the latest calendar of events. Upcoming highlights include:
Distributed Solar Summit 2011
November 30-December 2 – San Diego, CA
This event is a unique opportunity for the entire distributed solar community to connect and discuss successful strategies for funding distributed solar projects. Stoel Rives attorneys Morten Lund and Brian Nese will moderate discussion panels covering “The California Market – Market Environment and Business Opportunities,” “Asset and Portfolio Capital Providers' Appetite for Investing in Distributed Solar,” and “EPC/Installers Views on Contracting Relationships.” As a sponsor, Stoel Rives is offering a 15% registration discount with code 118926.
Siting & Permitting Renewable Energy Projects in the West
December 7-9 – San Diego, CA
On December 8 hear Tim McMahan co-present “Impact of the Endangered Species Act, NEPA and Other Environmental Legislation on Current and Planned Projects,” and Tim Taylor participate in the discussion panel “Strategies for Working Successfully with the Regulators to Get Projects Permitted and Developed.” Wayne Rosenbaum will chair the Pre-Conference Workshop on December 7.
Hydropower’s Evolving Role in Western Power Grid Reliability
December 12-13 – Sacramento, CA
Join Stoel Rives attorneys Chad Marriott, Bill Holmes and Barbara Brenner for one of the year's most important hydroelectric power events. On December 13, Bill Holmes will present "Storage: How Changing Policies and Technologies Influence Hydropower Utilization," and Chad Marriott will present "Recognizing the Role of Small Hydro in the West."
US-China Wind 2011: Building Strategic Cooperation
December 13-15 – San Francisco, CA
Join Stoel Rives’ Mike Mangelson, William Clydesdale, David Benson, and Ed Einowski as they examine the factors driving developments of the US and Chinese wind power markets. Mike Mangelson will serve as the pre-summit chair, at which time William Clydesdale will present “Negotiating the Joint Venture Agreement.” During the main summit, chaired by Ed Einowski, David Benson will present “Alternative Financing Structures.” As the Platinum Sponsor of this event, Stoel Rives is offering a 15% registration discount with code 116011.
2012 Pacific West Biomass Conference & Trade Show
January 16-18 – San Francisco, CA
This event focuses on biomass utilization in the western US, and brings together area producers of biomass-derived electricity, heat, and power with waste generators, utility executives, equipment manufacturers, and more. On January 16, Lee N. Smith will moderate the discussion panel "Capitalizing on Energy Rich Waste Streams and Technical Approaches for their More Varied Conversion," and Greg Jenner will serve as a panelist for "Capitalization Strategies in Challenging Financial Environment." Stoel Rives is a proud sponsor of this event.
Projects & Money 2012
January 18-20 – New Orleans, LA
Stoel Rives is proud to be a Gold Sponsor for this one-stop meeting center for project professionals working to kick off their project finance plans. Stoel Rives attorney David Benson will be in attendance, and Stoel Rives attorney Julia Pettit will moderate the discussion panel "Buying and Selling Project Assets (Project M&A)" on January 19. Stoel Rives is pleased to offer a 10% registration discount with code 120366.
Wind & Solar Integration Summit
January 18-20 – Scottsdale, AZ
Stoel Rives attorneys Stephen Hall and Bill Holmes come together with policy makers, transmission owners and operators, and renewable energy developers to network and exchange valuable information about operational changes and their impact on distributed solar and grid-scale wind energy. Bill Holmes will serve as Summit Chair, and Stephen Hall will present "Approaches to Handling Environmental Redispatch and Curtailment.”
PV Project Due Diligence Requirements
January 23-24 – San Diego, CA
Hear Stoel Rives attorney Howard Susman present "Project Contractual Relationships" on Monday, January 23 as he covers such issues as PPAs, financing, siting and permitting, and more.
Next Generation Bio-Based Chemicals Summit
January 23-26 – San Diego, CA
Join Stoel Rives attorneys David Quinby, Christopher Voss and Jere Webb for this innovative biotech/biofuels event with a comprehensive, in-depth focus on sustainably sourced chemicals — and the platforms, resources, business models and tools required to deliver them. Stoel Rives is a Platinum Sponsor for this event.
EUEC 2012
January 30-February 1 – Phoenix, AZ
See over 600 professional presentations on 12 specialized tracks, and browse over 200 exhibits. Allison Smith will present "Strategies for Complying with Current GHG Regulations in California,” and Kristen Castaños will present "Utility-Scale Solar Projects in California - The Keys to Development Permits in Desert Areas and on Farmland."
Wind Power Finance & Investment Summit
February 8-10 – San Diego, CA
Join Ed Einowski and members of the Stoel Rives Wind team as they participate in one of the best deal-making and networking events in the wind industry. Stoel Rives is proud to be a Platinum Sponsor for this event.
Solar Power Finance & Investment Summit
February 27-March 1 – San Diego, CA
Join Stoel Rives attorneys Howard Susman, Julia Pettit, David Benson, Morten Lund and Greg Jenner to learn about putting together solar power project deals. Hear investors discuss their future plans and what they seek when getting involved in deals in 2012 and beyond. David Benson will Chair, Julia Pettit will moderate, “The Buying and Selling of Distributed Solar Projects,” and Morten Lund will moderate, “Financing 2-20 MW Scale Projects.” Stoel Rives is proud to be a Platinum Sponsor at this event.
