Good News and Bad News for DOE's Loan Guarantee Program
There has been a wave of good and bad news this past week regarding the DOE's Loan Guarantee Program. On the positive side, Secretary Chu announced on Friday that the Department would be adding an additional compliance period for the Innovative Solicitation. The current deadline for the Part I application under the program is August 24th. Secretary Chu announced the applications would be accepted until October 5th thus providing six more weeks of time to applicants. Secretary Chu did not extend the Part II deadline and cannot extend the September 30, 2011 start construction deadline as that deadline was established by the Stimulus Bill itself. Still, the extension was generally viewed as a respite and perhaps an indication of a willingness to further extend the program.
On the bad news side, the Senate approved the FMAP state aid bill to avert teacher layoffs and pay for Medicaid which is to be funded in part by taking $1.5 billion in funds that the Stimulus Bill appropriated to the DOE Loan Guarantee program. Clearly driven by Pay-Go requirements, this is a reminder of the $2.0 billion fleecing that the Loan Guarantee Program suffered when Cash for Clunkers program was passed. While it has been promised that the funds will be restored, the fact that the Cash for Clunkers funding has not yet been restored raises concern about whether the restoration will occur.
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/
DOE Awards $24 Million for Algal Biofuels Research
On Monday, the DOE announced that is had awarded up to $24 million to three research consortiums for the commercialization of algae-based biofuels. The three consortia include partners from academia, national laboratories, and private industries located across the country. Projects are expected to continue for three years.
The three awardees are:
- The Sustainable Algal Biofuels Consortium led by Arizona State University, will get up to $6 million for testing the acceptability of algal biofuels as replacements for petroleum-based fuels, investigating the biochemical conversion of algae to fuels and products and analyzing the physical chemistry properties of algal fuels and fuel intermediates.
- The Consortium for Algal Biofuels Commercialization led by the University of California, San Diego, will receive up to $9 million developing algae as a robust biofuels feedstock by focusing on algal crop protection, algal nutrient utilization, and genetic tools.
- The Cellana, LLC Consortium led by Cellana, LLC, of Hawaii, will also receive up to $9 million for examining the large-scale production of fuels and feed from microalgae grown in seawater, new algal harvesting technologies with pilot-scale cultivation test beds, and for developing marine microalgae as animal feed for the aquaculture industry.
DOE: up to $11 Million for Biofuels Technology Development
The DOE announced today that it will provide up to $11 million over three years for improving the conversion via pyrolysis of non-food biomass to biofuels, that can use the existing fueling infrastructure. (Pyrolosis is the process that decomposes biomass using heat without oxygen to produce bio-oil.)
Successful applications for projects will (among other things):
- Address how to make corrosive bio-oils compatible with the current infrastructure
- Catalytically de-oxygenate the molecular fragments in bio-oils
- Demonstrate the ability to produce a liquid transportation hydrocarbon fuel that can be blended at up to 30 percent by weight with petroleum fuels, or produce an upgraded bio-oil compatible with existing petroleum refining unit operations
- Include an analysis of greenhouse gas reductions using the applicant’s technology
DOE anticipates selecting three to four projects under this announcement and will require a minimum of 20% cost share from applicants. Eligible applicants include universities, national laboratories, or companies.
The deadline for the applications is July 9, 2010. Go to Grants.gov. for a copy of the funding opportunity and application.
Washington Revising its State Energy Strategy
The Washington State Department of Commerce (formerly the Department of Community, Trade and Economic Development or CTED) has announced that it is attempting to revise Washington’s comprehensive energy plan (the “State Energy Strategy”).
The State Energy Strategy was last revised in 2003, and it does not serve current energy realities and forecasts. Therefore, the Washington State Legislature has tasked the Department of Commerce with updating the State Energy Strategy while taking account the following three goals and nine principles:
Continue Reading...The Law of Biomass is Available Now
We are pleased to announce that the first edition of THE LAW OF BIOMASS is available now. THE LAW OF BIOMASS is a guide which contains insights and lessons that our team has developed through our position as a market leader in renewable energy legal issues. THE LAW OF BIOMASS focuses on electricity generated from biomass sources. As changes in the energy markets and views on natural resources create a compelling case for renewable and sustainable energy, biomass is emerging as a positive solution.
We hope that you find THE LAW OF BIOMASS useful. To request a copy of THE LAW OF BIOMASS, please visit our website: http://www.stoel.com/lawofseries.aspx.
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
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.
Tradable RECs Now Count Toward California's RPS
On Thursday March 11, 2010, the California Public Utility Commission (the "CPUC") created a market for tradable renewable energy credits ("TRECs") in the state. That's big news. In its 149-page decision, the CPUC stated that investor-owned utilities ("IOUs"), energy service providers, and community choice aggregators may now use TRECs to comply with California's ambitious renewable portfolio standard ("RPS"). These entities are now permitted to purchase a portion of their RPS compliance from generation sources other than those they own (e.g., distributed solar generation facilities within the state and certain out-of-state facilities).
Continue Reading...
Proposed Legislation to Limit ITC Grants for Renewable Projects
Proposed legislation in the Senate would greatly limit the effectiveness of the grant in lieu of tax credits for renewable energy projects under section 1603 of the American Recovery and Reinvestment Act.
The section 1603 grant currently applies to renewable energy projects, such as wind, solar, geothermal and biomass, that are placed in service before 2011 or for which construction begins in 2009 or 2010 (and that are placed in service by certain dates). In its current form, if a project qualifies for the grant, the Treasury Department is required to pay the grant.
Expressing concern that a significant portion of the grants paid so far have gone to non-U.S. companies, Senator Charles Schumer (NY) and three other Democratic senators have sponsored a bill that would make payment of the grant subject to the discretion of the Treasury Department. It also would make the grant subject to the Buy American requirements of the stimulus bill, and would require that Treasury conduct an analysis of the "domestic job preservation and creation provided by" a project for which a grant application is submitted.
Various trade associations involved in renewable energy (such as AWEA, GEA and SEIA) are taking immediate action to register their opposition. Their focus will be on the incorrect assumptions underlying the proposal (for example, that it does not create U.S. jobs) and that, if enacted, it likely would destroy the effectiveness of the program.
We encourage our readers to register their strong opposition with their members of Congress and with the trade associations with which they are associated. The more opposition that is registered, and the longer the proposal drags out, the less likely it is to be enacted.
Read the March 4, 2010 Stoel Rives Law Alert on this proposed legislation.
POSSIBLE RESTRUCTURING OF 1603 GRANTS
Congress is considering a complete rewrite of the 1603 grant program. Some of the changes being considered are very helpful while others would be extremely troubling. Please continue reading to get the full story ...
Continue Reading...
Stoel Rives Clients Receive Huge Tax Credit Awards
Stoel Rives would like to congratulate REC Silicon and SolarWorld on their awards of tax credits by the IRS and DOE. These two companies, combined, received over 10 percent of all the tax credits awarded nationwide under section 48C of the tax code.
On Friday, January 8, the Department of Energy awarded to 183 companies $2.3 billion in tax credits for projects designed to expand, re-equip or establish manufacturing facilities for the production of equipment used to produce renewable and other green energy. The $2.3 billion was the full amount authorized by Congress in the stimulus bill as part of new section 48C of the tax code.
Applications for the credit far exceeded the dollar amount of credits available. Stoel Rives is proud to have been directly involved with these companies in preparing the complex applications for the credit. REC Silicon received the largest award of any company -- $154.8 million. SolarWorld received the seventh largest award -- $82.2 million. These credits will provide these companies with a dollar-for-dollar offset against their federal income tax liability.
There is considerable discussion in Congress regarding adding additional funds to the section 48C program, which will permit another round of awards. Please contact your favorite Stoel Rives attorney if you have any questions about these awards or extension of the section 48C credit.
February 9 Breakfast Seminar on Developing, Permitting and Financing Biomass Facilities
During the WORLD AG EXPO in Tulare, CA on February 9, Stoel Rives will be hosting a Breakfast Seminar on Developing, Permiting and Financing Biomass Facilities. The seminar will take place in the Sequoia Room of the Hampton Inn and Suites, 1100 N. Cherry Street, which is near the Expo Site. The Seminar will be complimentary (breakfast included), and attendees will receive a copy of The Law of Biomass - the newest and 10th book in the Stoel Rives "Law of" series.
Please join attorneys John M. Eustermann, Michael N. Mills, Rebecca B. Sandberg, Lee N. Smith and Joe R. Thompson as they address the following agenda items:
- California Environmental Regulatory Update
- Successfully Bringing a Project to Commercial Operations
- Financing Your Biomass Project
The first portion of our seminar will explore new legislation and regulations affecting initial decision-making and the permitting process for biomass facilities. The second portion will discuss those issues the project developer will need to deal with in order to successfully develop a financeable project. The final hour will be dedicated to the financing aspect of biomass projects.
Click here for more details and to register for The Resurgence in Biomass Facilities: What You Need to Know to Develop, Permit and Finance Your Project .
