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.
Secretary Chu Announces $80M for Biofuels
DOE Secretary Chu's announcement today regarding $80 million of ARRA funding for biofuels is potentially a positive development for the long-term development of the biofuels industry. What is worrisome from a practical perspective is the division of funding. The National Alliance for Advanced Biofuels and Bioproducts, centered in St. Louis, received $44 million to develop a systems approach for the sustainable commercialization of algal biofuel and bioproducts. The National Advanced Biofuels Consortium, based here in the Pacific Northwest, received up to $34 million to develop infrastructure compatible biomass-based fuels. Meanwhile eight infrastructure projects received up to $1.6 million to support expanded fueling infrastructure for ethanol blends. While the Administration is ahead of the curve in recognizing the importance of long-term support for the development of advanced biofuels, it is overlooking the increasingly challenging environment in first generation biofuels. Simply put- and purely in my opinion- there will be no second generation of biofuels if the first generation does not again thrive. The ethanol industry has hit a blend wall that the EPA has not been willing to help them overcome in the short term. Adding $1.6 million in E-85 infrastructure is but a chip in that wall when one considers the massive costs involved in building a national infrastructure. On the biodiesel side, the current industry has not yet received an extension of its tax credit and was already facing severe challenges. The investors who supported the expansion of the first generation biofuels industry are still tracking their investments and the policy support for the industry. While government funding will further the development of the science of advanced biofuels, private sector involvement will be essential to the ultimate commercialization of these fuels. To accomplish its ultimate goals, the Administration will need to begin to address these issues in a systematic manner.
Zino Green Investment Forum
The ZINO Society, a Seattle-based angel investment group, announced last week that its annual “ZINO Green Investment Forum” would be held on March 4, 2010, at the McKinstry Innovation Center in Seattle. Up to fifteen early-stage companies in “green tech, clean tech, and sustainable products or services” will be selected by the ZINO Green screening board to present their businesses to angel investors and business leaders attending the investment forum. Finalists will be selected to compete for a $50,000 award from ZINO’s investment fund.
Last year’s winner of ZINO Society’s $50,000 GreenFund award was Hydrovolts, the developer of a hydrokinetic turbine. After winning the award last year, Burt Hamner, CEO of Hydrovolts, stated that “Our new technology makes it possible to generate renewable energy from fast water currents that could not be tapped before, using a really novel turbine design. It’s a challenge to explain [our technology] quickly and the presentation, coaching and business model feedback we received from ZINO Society members was incredibly helpful.” Hydrovolts went on to win the 2009 Clean Tech Open National Sustainability Award.
Stoel Rives has been a proud sponsor of The Zino Society since its inception.
The application to apply to present at ZINO Green may be found at https://angelsoft.net/angel-group/zino-society. More information about the event is available at ZINO’s website http://www.zinosociety.com/calendar/1143/ or by contacting Rob Brown at r.brown@zinosociety.com or 206-621-0466.
Stoel Rives is Pleased to Support the Efforts of the Evergreen Team
The goal of the award-winning Evergreen production team is to document, promote and present the clean technology story to audiences of decision makers, regulators, citizens and students in Washington State, the Pacific Northwest and international markets.
In December 2009, the Evergreen team traveled to Copenhagen to document the efforts of the Washington delegation at the United Nations Climate Conference. Videos from this trip, including a report from the Summit for Mayors, conference updates, interviews and "Voices on the Street, are available at http://evergreenfilm.org/home.html.
Stoel Rives is pleased to support Evergreen's effort to promote Washington State as an international leader in clean technology and behavioral change. Learn more about Evergreen at http://evergreenfilm.org.
USPTO Announces Pilot Program to Speed Up Green Tech Patents
An update on intellectual property issues from my colleague, John Rafter:
On December 7, 2009 the U.S. Patent and Trademark Office ("USPTO") announced the launch of a pilot program to accelerate the examination of certain green technology patent applications.
Under the Green Technology Pilot Program, patent applications pertaining to environmental quality, energy conservation, development of renewable energy, or greenhouse gas emissions reduction will be advanced out of turn for examination without meeting all of the current requirements of the accelerated examination program (e.g., examination support document). The catch: the USPTO will accept only the first 3,000 petitions to make special, and the petitions must be filed before December 8, 2010 (unless the program is extended). For further details click here.
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).
Minnesota Renewable Energy Projects RFP
The State of Minnesota’s Office of Energy Security (OES) is requesting proposals from organizations that are engaged in or will engage in the manufacture of renewable energy systems or fuels, energy storage systems, geothermal energy systems for heating and cooling, components of these systems, or equipment for the manufacture of these systems or components.
The maximum award is $1 million. Up to a total of $2 million is available to all recipients. OES anticipates that two to six projects will be selected for awards under this solicitation.
All work to be performed within a proposed scope of work must be completed no later than June 30, 2011. An applicant must provide at least 40 percent of the total cost of the proposed scope of work. Applicant’s match may be cash or in-kind.
Each applicant must submit a notice of intent no later than December 4, 2009 to be eligible. Final proposals are due on December 18, 2009. OES anticipates provisional notification of successful applicants no later than January 29, 2010. Final selection will be contingent on determination by U.S. Department of Energy of compliance with the National Environmental Policy Act.
For more information and to download a copy of the RFP, please visit www.energy.mn.gov and click on Active Request for Proposal (RFP).
USPTO Rescinds Controversial Patent Regulations Package Proposed by Previous Administration
An update on intellectual property issues from my colleague, John Rafter:
Having previously moved to stay proceedings in the Tafas v. Doll case pending the induction of David Kappos as the new Director of the U.S. Patent and Trademark Office (“USPTO”), the USPTO announced on October 8, 2009 that it will join with plaintiff GlaxoSmithKline to file a motion dismiss the lawsuit related to regulations affecting the ability to secure patent protection for inventions.
The USPTO attempted to institute these new regulations to reduce the backlog of pending patent applications by lessening the USPTO’s prosecution burden and improving prosecution speed of patent applications. The rules attempted to shift some of the prosecution burden to patent applicants and also attempted to limit the number of patent claims and continuation applications that an applicant could file.
For technology companies, provided the case is dismissed as expected, this announcement means that the prosecution of patents at the USPTO will proceed as usual. However, the new USPTO Director Kappos still has the task of how to get the pendency of patents under control; it now takes at least 2-3 years to get a patent from filing to issue, and that time frame is getting longer. For more information, see http://www.stoel.com/showalert.aspx?Show=5928.
$13 Million Awarded from the Rural Energy for America Program
In an earlier blog, my colleagues, Debra Frimerman and Janet Jacobs reported about the Rural Energy for America Program (“REAP”), in general and specifically in regards to small wind projects. REAP is a Department of Agriculture (“USDA”) program that provides grants and loan guarantees to agricultural producers and rural small businesses to purchase renewable energy systems, make energy efficiency improvements and conduct feasibility studies for renewable energy systems. Eligible renewable energy systems include those that generate heat, electricity or fuels from wind, solar, biomass, geothermal, hydro power, and hydrogen based feed stocks.
The USDA has announced that it has awarded more than $13 million in REAP funds for 233 renewable energy projects in 38 states. Examples of the awards include a $1.8 million guaranteed loan and $500,000 grant for Milford Wind Energy, LLC; a $435,271 guaranteed loan and $435,271 grant for Unaka Forest Products, Inc.; and a $15,000 grant to Pacifica Marine, Inc.
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November 17: Energy, Economics and Environment (E3) Conference
The University of Minnesota’s annual conference on Energy, Economics and the Environment – E3 – will be held in St. Paul on November 17. Hosted annually by the University of Minnesota’s Initiative for Renewable Energy and the Environment (IREE), this year’s conference will explore current technologies, environmental benefits and market opportunities in renewable energy.
Stoel Rives will be a sponsor of the E3 conference and will, as usual, host a booth at the event. Minneapolis tax partner Greg Jenner will join a panel to discuss “What’s the most efficient and effective strategy for financing renewable energy projects?” To review the agenda and register for the conference, click here.
Free Webinar on Loan Guarantee Program Hosted by DOE
The U.S. Department of Energy is hosting a free webinar on "How to Build a Strong Application" for the DOE Loan Guarantee Program on Tuesday, September 8, 2009 from 1:00 PM - 2:00 PM EST. The webinar is intended to explain the loan guarantee program and help lenders and applicants navigate the application process. DOE will also be providing suggestions on how to create a strong loan guarantee application.
DOE recently released two solicitations under the program for innovative energy efficiency, renewable energy and advanced transmission and distribution technologies and transmission infrastructure investment projects. DOE is particularly interested in wind, closed-loop biomass, open-loop biomass, geothermal, landfill gas, trash-to-energy, hydropower and solar projects that are able to commence construction before September 30, 2011.
DOE will be hosting a series of free webinars on the application process over the next few months.
Friday Webinar on Commercialization of Advanced Biofuels (Algae)
On Friday August 28, Eric Lindeman of The Energy Daily will be moderating a webinar about "Advanced Biofuels: What Are the Commercial Possibilities? Why All the Interest in Algae?" My partner, the always-entertaining John Eustermann, will be speaking at the Webinar along with Connie Lausten (VP, Regulatory and Legislative Affairs, New Generation Biofuels (NGBF)) and Glenn Johnston (VP, Regulatory Affairs, GEVO, Inc.). You can sign up for the Webinar at http://www.theenergydaily.com/events/bio_fuels_webinar/
Stoel Rives recently published its new "Law of Algae", a guide to the business and legal issues affecting the development of a commercial scale algae biofuels facility. We've introduced The Law of Algae in an on-line “wiki” format because the processes, technologies, and issues are changing rapidly with the commercialization of algae. The wiki format enables us to update the book frequently to bring you the most current information, so feel free to stop by often!
Washington Technology Center Provides No-Cost Access to MEMS Fabrication Equipment
Today, the Washington Technology Center announced the launch of its Microfabrication Laboratory Access Program. The new program provides access to sophisticated micro-electromechanical systems ("MEMS") fabrication equipment to small companies in Washington State. The goal of the program is to stimulate innovative technologies.
The new Microfabrication Laboratory is one of three state funded programs in Washington. The facility is 15,000 square feet and small businesses with less than 100 employees can apply for up to three months of free lab access (valued at up to $12,300). Eligible projects include, but are not limited to proof of concept, prototyping, testing, process development, and small-scale production. A more complete description of the program is available here.
Continue Reading...Show me the Money: Green Jobs Grants
Recently, the U.S. Department of Labor has issued $500 million for green job training. This money is being released through a series of competitive grants.
If you are an organization within Washington State, the Governor's Office requests that you submit a brief information form to the Governor's Evergreen Jobs Leadership Team. The Team is compiling a list of potential applicants which will be posted on a public website. The information on this list will be available for stakeholders to find grant partners and leverage resources.
A copy of the form is available here: http://www.wtb.wa.gov/documents/clearinghousegrantform.doc
Show me the Money: Applications Available for the Washington State Energy Program
Washington previously received $60.9 million in Recovery Act funding for its State Energy Program (“SEP”). The Washington Legislature later provided $38.5 million to the Washington State Community, Trade and Economic Development (“CTED”) agency to administer a loan and grant program for eligible projects in the areas of energy efficiency, renewable energy and clean energy innovation (see our earlier blog entry here for more details). The deadline for submitting a notice of intent to apply is July 27, 2009 at 5:00 p.m. Pacific time, and the application is due August 17, 2009 at 5:00 p.m. Pacific time.
I attended an informational meeting held by CTED on July 13, 2009. The meeting provided an overview of the loan and grant program, as well as funding details, eligibility guidelines and evaluation criteria. Eligible projects can receive between $500,000 to $2 million in loans and grants in the first round, with the requirement that applicants provide other sources of funding at least equal to the amount of the loan or grant request. The non-SEP funding may include amounts spent or committed to the project since January 1, 2009. Projects will be evaluated based on the feasibility and quality of the project plan, the experience and qualifications of the project team, the ratio of matching funds to SEP funds, job creation, and energy savings/production. CTED intends to announce award decisions in September 2009.
Show me the Money: Applications Available now for Washington's State Energy Program
On July 1, 2009, Washington State’s Department of Community, Trade and Economic Development (“CTED”) issued application guidelines and forms for its State Energy Program (“SEP”) (available by clicking here). The American Recovery and Reinvestment Act of 2009 (the “Recovery Act”) provided $60.9 million in new funding for Washington’s SEP. Subsequently, the Washington Legislature allocated $38.5 million to CTED to administer a loan and grant program for energy efficiency and renewable energy program (see our client alert, available here, regarding the legislative action).
Continue Reading...Show me the Money: $7.5 Million Available to Develop Commercial Energy Efficiency Training Programs
On June 26, 2009, the Department of Energy ("DOE") released a funding opportunity announcement ("FOA") to deploy $7.5 million in Recovery Act funds to further its goals of reducing energy consumption and achieving net zero-energy buildings (defined as buildings that produce as much energy as they consume). In order to reach these goals, DOE recognizes that a workforce must be created to help existing buildings reach, and new buildings keep, their full energy efficiency potential.
This specific FOA provides ten to thirty individual awards from $250,000, to $750,000 to develop training programs for three specific sets of commercial building specialists:
- Equipment technicians,
- Operators, and
- Energy commissioning agents/auditors
Entities involved with energy efficiency, professional development associations, trade training/development associations, universities, community colleges, technical trade schools, and apprenticeship programs are encouraged to apply.
Applications must be submitted by September 1, 2009 at 8:00 p.m. Eastern Time
Stoel Rives Expands Its San Diego Office
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We welcome energy attorneys Morten Lund and David Quinby to the firm’s San Diego office as members of the Energy and Telecommunications group. They join attorneys Howard Susman and Brian Nese. The San Diego office has relocated to a larger space at 12265 El Camino Real, Suite 303, to accommodate further expansion (new contact information below). |
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The California energy team's capabilities also include real estate, land use and permitting, equipment procurement and construction, state and federal regulation, environmental matters, and dispute resolution. Stoel Rives has received a national ranking for its Renewables and Alternative Energy practice from Chambers USA: America's Leading Lawyers for Business (2009), rating among the top law firms in this category. The firm has been at the forefront of growth in renewables in recent years and represents many of the industry leaders in solar, wind energy, geothermal, biomass, hydroelectric, ocean, combined-cycle natural gas, carbon sequestration and biofuels project development in California, the United States, Canada and abroad. For more information about the Stoel Rives Renewable Energy Group, visit www.stoel.com/renewableenergy or contact: Howard Susman at |
Show me the Money: $12.9 million available for Geologic Sequestration Training and Research
The Department of Energy ("DOE") has released $12.93 million to fund geologic sequestration training and research. $7.93 million is available for awards to all universities, colleges, and college-affiliated research institutes and $5 million is available for awards to historically black colleges and universities or other minority institutes listed on the Office of Civil Rights's accredited post secondary minorities institution list.
Individual awards will be made across five areas of interest:
- Simulation and Risk Assessment
- Monitoring, Verification, and Accounting
- Well Completion, stimulation, and Integrity
- Capture and Transport- including pipeline transport and pre-combustion capture
- Post-Combustion capture- including oxy-combustion capture
DOE anticipates awarding 42 awards ranging from $100,000 to $300,000 to fund research projects involving field projects for hands-on training opportunities.
Green Trademarks and Eco-Friendly Claims
Jere Webb, a partner in our Trademarks and Intellecutal Property Group, recently wrote the following interesting piece about green marketing claims:
It is evident that virtually every business now is trying to position itself as being “green”. For a discussion of restrictions on “green advertising”, particularly the FTC’s green ad guidelines (the “Green Guides”), and similar efforts at the state level, see “Green Claims Advertising – What You Can Say and What You Can’t”. The FTC is reviewing the Green Guides and likely will amend them in the near future. For comments submitted in the review process and additional information, see Green Guides.
The newer arena is green trademarks. The United States Patent and Trademark Office is now routinely rejecting, based on descriptiveness, multiword trademarks, that start with or contain the word GREEN. An example is the mark GREEN JOURNEY for hybrid cars. But in the same application, the applicant sought to register for clothing, and the Trademark Office accepted the mark, but with a disclaimer of the word GREEN. It found that the two word mark was merely “suggestive” of clothing, not “descriptive”. See "Green" Trademarks Face Hostile Climate in USPTO.
For an example of a green mark that passed muster, the Trademark Trial and Appeal Board (TTAB) recently reversed an examining attorney’s descriptiveness refusal for the mark GREEN INDIGO for clothing, finding it to be an “incongruous” term for clothing and therefore merely suggestive and not descriptive. The case is In re Jones Investment, Inc. (TTAB Jan. 21, 2009.)
The lesson is: If you want to include the word “GREEN” in a trademark, some careful review and advice from a trademark lawyer is in order.
Want to read more? See “Eco-Friendly Claims Go Unchecked” (USA Today June 22, 2009). The FTC’s brochure “Sorting Out Green Advertising Claims” can be found here: http://www.ftc.gov/bcp/edu/pubs/consumer/general/gen02.pdf
Show me the Money: Florida, Idaho, and Kansas State Energy Programs Received $77.1 Million from the Recovery Act
On June 24, 2009, the Department of Energy (“DOE”) announced more than $204 million in Recovery Act funding to ten states for their State Energy Programs ("SEPs").
Here is a summary of how the monies will be used in Florida, Idaho, and Kansas:
Florida's SEP will fund energy efficiency, renewable energy, and alternative fuels projects in the state. Florida will deploy these funds through several loan and grant programs to promote the commercialization of new clean technologies. Florida was awarded $50.4 million, and will receive an additional $63 million after demonstrating successful implementation of its SEP.
Idaho's SEP will launch a set up new programs, including the Renewable Energy Business Development Program, to further renewable energy development in the state while creating new jobs and stimulating the economy. Further, new zoning regulations will be created to attract renewable energy developers and projects. Idaho received $11.4 million and will receive more than $14 million in additional funding after demonstrating successful implementation of its SEP.
Kansas's SEP will launch several initiatives to boost energy efficiency in commercial buildings, increase financial options for renewable energy, and increase cost savings for individual homeowners in its state. A portion of the money will also be deployed to create a new utility rate price plan and to fund an energy audit rebate plan. Kansas received $15.3 million and expects to receive an additional $19 million after demonstrating successful implementation of its SEP.
My colleagues are blogging on the other states that received funds.
Show me the Money: Conneticut and Utah State Energy Programs
Today, the Department of Energy (“DOE”) announced more than $204 million in Recovery Act funding to ten states for their State Energy Programs ("SEPs").
Here is a summary of how the monies will be used in Connecticut and Utah:
Connecticut will use its SEP funding to further a variety of programs. Examples include the deployment of alternative-fuel vehicles and in-home energy audits. In-home energy audits involve a specialist performing an energy assessment, weatherizing the home, and installing energy conservation devices. After demonstrating successful implementation of its plan, the state will receive an additional $19 million, for a total of $38 million.
Utah will use its SEP funding to collect data about potential renewable energy resources in the state and to improve energy efficiency. The energy efficiency program will provide financial incentives to upgrade residential, commercial, public education, and government buildings. New construction developments will also qualify for rebates if they meet specific energy efficiency goals. After demonstrating successful implementation of its plan, the state will receive an additional $17 million, for a total of $35 million.
My colleagues are blogging on the other 8 states that received funds today.
Advanced Technology Vehicles Manufacturing Loan Program Update
June 23, 2009: the Obama Administration announced $8 billion in conditional loan commitments for Ford, Nissan and Tesla to support the development of innovative, advanced vehicle technologies. Ford Motor Company received a commitment of $5.9 billion to retool several to produce more fuel efficient models; Nissan received a commitment of $1.6 billion to retool their Tennessee factory to build advanced electric automobiles and an advanced battery manufacturing facility; and a commitment of $465 million was made to Tesla Motors to manufacture electric drive trains and electric vehicles in California.
These are the first conditional loan commitments reached as part of the Department of Energy's Advanced Technology Vehicles Manufacturing program. The Department plans to make additional loans under this program over the next several months to large and small auto manufacturers and parts suppliers up and down the production chain with fuel-efficient technologies
Show me the Money: $10 million for Climate Showcase Communities
On June 16, 2009, the Environmental Protection Agency ("EPA") issued a request for applications ("RFA") for its Climate Showcase Communities Grant Program. The RFA provides $10 million for programs to help lower green house gas ("GHG") emissions through energy and resource management.
Eligible activities are those that reduce GHG emissions in the following priority areas:
- Use or supply of green power products, on-site renewables, and other clean energy supply options;
- Energy performance in municipal operations (including municipal energy, water, and waste-water utilities);
- Energy performance in residential, commercial, agricultural, aqua-culture, and/or industrial buildings;
- Land use, transportation, or community master planning;
- Reduction of vehicle miles traveled;
- Solid waste management;
- Agricultural, aqua-cultural, and natural resource management;
- Heat island management;
- Removal of barriers for greenhouse gas management, through the development of effective programs, policies, or outreach; or
- Other innovative activities which generate measurable reductions of greenhouse gases
The EPA expects to award up to 30 cooperative agreements. Individual awards can be as high as $500,000, but most awards will range in value from $300,000 to $500,000. Eligible entities include local governments, Indian tribes, and intertribal consortiums.
Applicants must submit an informal notice of Intent to Apply by July 1, 2009 and full applications are due July 22, 2009 at 4:00 p.m. EDT.
Show me the Money: Net-Zero Energy Commercial Building
The Department of Energy ("DOE") expects to establish net-zero energy performance for all U.S. commercial buildings by 2050. DOE has issued a funding opportunity announcement ("FOA") to support this goal. $1 million will be awarded to fund the collection of information on technologies for individual components and systems to support this goal.
DOE Funds Seven Advanced Battery Projects for Electric Drive Vehicles
On June 16, 2009, the Department of Energy ("DOE") announced the funding of seven research projects for the development of advanced batteries for electric drive vehicles. The projects focus on improving performance and decreasing the cost of batteries for plug-in hybrid electric vehicles ("PHEVs"). PHEVs are designed to be driven in electric-only mode and can be recharged from a standard electric outlet.
These research projects were selected under a Funding Opportunity Announcement ("FOA") released on February 29, 2008. So far, a total of ten projects have been awarded under this FOA. The most recent awardees include:
| Company | Award | Project Description |
| A123Systems, Inc. | $1.1 million | High throughput electrode fabrication process for lithium ion battery technology |
| Angstron Materials LLC, K2 Energy Solutions, General Motors Corp., and HST Auto | up to $3.2 million | Hybrid nano carbon fiber/graphene platelet-based high-capacity anodes for lithium batteries |
| EnerDel Inc. | up to $3.3 million | Chemical shuttle agent that will eliminate the danger of overcharging lithium ion batteries |
| MaxPower Inc. | up to $500,000 | Adapt MaxPower's present battery management systems for lithium-ion batteries to recognize the imminent appearance of an internal short circuit |
| North Carolina State University and American Lithium Energy LLC | up to $1.35 million | High-energy composite nanofiber anodes for materials for lithium ion batteries |
| SION Power Corp | up to $800,000 | Lithium sulfur (Li-S) rechargeable battery chemistry |
| TIAX LLC | up to $2.36 million | Understanding and preventing internal short circuits in lithium ion cells |
Show me the Money: Seminar for Identifying Funding for Renewable Energy Projects
The American Recovery and Reinvestment Act provides almost $94 billion dollars in direct and indirect spending to clean energy company and projects. See Show me the Money: A Guide to Sources of Funding through the American Recovery and Reinvestment Act.
On June 17, 2009, I will be speaking in Cle Elum, Washington about how to get your project "shovel ready" for Stimulus Funding. The seminar will also include sessions on identifying sources of funding and application mechanics.
Commercial Scale Carbon Sequestration
On June 12, 2009, the Department of Energy ("DOE") announced that an agreement has been entered to develop the nation's first commercial scale, fully integrated, carbon capture and sequestration project in the country.
The Project will be constructed by the FutureGen Alliance and will serve as a flagship facility to demonstrate commercial scale carbon capture and storage. DOE will issue a Record of Decision on the project by the middle of July. Funding will be phased and conditioned based on completion of NEPA review.
The Project will receive funding from the following sources:
- $1 billion from Recovery Act funds for carbon capture and storage research
- $73 million from other federal funding
- $400-600 million cost share from the FutureGen Alliance (based on 20 member companies contributing $20-30 million each over a four to six year period)
Show me the Money: $256 Million Investment to Improve Energy Efficiency
On June 1, 2009, the Department of Energy ("DOE") announced plans to deploy $256 million from the American Recovery and Reinvestment Act ("Recovery Act") to be used to improve the energy efficiency of the American economy. Three recent DOE Funding Opportunity Announcements ("FOAs") have been issued in conjunction with this Recovery Act announcement. Additionally, a related FOA has been announced using funds appropriated outside of the Recovery Act. The recently announced funding will support projects in three areas: (1) sustainable energy infrastructure and energy efficient industrial technologies, (2) improved energy efficiency for information and communication technology and (3) advanced materials in support of clean energy technologies and energy-intensive processes.
Click here for more complete details.
Show Me the Money: Renewable Energy Financing in the Farm Bill
In an earlier blog, my colleague, Debra Frimerman reported about the Rural Energy for America Program (REAP). REAP provides grants and loan guarantees to agricultural producers and rural small businesses to purchase renewable energy systems, make energy efficiency improvements and conduct feasibility studies for renewable energy systems.
REAP is a program under the Food, Conservation, and Energy Act of 2008 (the "2008 Farm Bill"). The 2008 Farm Bill also includes numerous other programs to help develop renewable energy in rural areas and promote the production of sustainable feedstocks for renewable energy production. Please see this recent alert for specifics.
LLC Law Monitor
Renewable energy developers often use limited liability companies (LLCs) as project companies and to form entities for other purposes. My partner Doug Batey has started a new law blog that will likely be helpful to those charged with setting up, understand and maintaining these LLCs. Here's today's announcement:
Stoel Rives LLP is pleased to introduce its new LLC law blog, LLC Law Monitor, at www.llclawmonitor.com
The LLC Law Monitor focuses on the rapidly developing laws affecting limited liability companies. LLCs are a popular form of business entity and are a relatively new development in the law. LLC statutes vary from state to state, and cases of first impression are being decided by state courts every month.
In light of this new and evolving legal environment, Stoel Rives has launched LLC Law Monitor to provide business executives, attorneys, accountants and other professionals engaged in or working with LLCs with timely updates and insights on the new and developing laws shaping this burgeoning business sector.
LLC Law Monitorauthor Douglas L. Batey has nearly 30 years of experience advising executives on corporate and business legal matters. His experience includes counseling clients in a wide range of industries on company formation, mergers and acquisitions, and general corporate governance matters.
We hope that you will find the LLC Law Monitor helpful.
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Douglas L. Batey |
Washington's American Recovery and Reinvestment Act Comprehensive Application
On May 11, the Washington Department of Community, Trade, and Economic Development (“CTED”) filed an application with the United States Department of Energy to receive American Recovery and Reinvestment Act (“ARRA”) funds for Washington’s State Energy Program (“SEP”). The application contains funding for renewable energy, energy efficiency, and farm energy assessments. Once the SEP is approved, funding will commence through CTED with advice from the Clean Energy Leadership Council.
Continue Reading..."Show Me The Money"
We announce the publication of a guide to federal clean energy funding opportunities under the $787 billion American Recovery and Reinvestment Act (“ARRA”). Titled “Show Me The Money,” the guide reviews the various programs and potential sources of federal funding for clean energy companies and projects. The guide addresses funding opportunities under the ARRA for each of the following energy industry areas: wind, solar, biofuels, biomass, smart grid, transmission, geothermal, marine and hydrokinetic, green building, energy efficiency, advanced battery and fuel cell technology, clean energy equipment manufacturing, green vehicles and clean coal. The guide also contains information about some of the funding opportunities and updates at the federal and state level which we will continue to track closely.
$150 Million to Fund ARPA-E Transformation Energy R&D Projects
On April 27, 2009, the first Funding Opportunity Announcement (FOA) under the Advanced Research Projects Agency-Energy (ARPA-E) was announced offering up to $150 million to fund transformation energy research and development projects. These funds are part of the $400 million appropriated to ARPA-E under the American Reinvestment and Recovery Act. Individual awards of $500,000 to $20 million are available to eligible projects. This FOA is aimed at projects that have a well-formed R&D plan that can make a significant contribution towards enhancing the economic and energy security of the United States by reducing imported energy, reducing energy-related gases, including GHG, and improving energy efficiency.
To be eligible, an interested applicant must submit a concept paper to ARPA-E that briefly outlines the technical concept for its project between May 12 and June 2. Early submission is strongly encouraged. Successful applicants will then be asked to submit full applications. More information on this FOA is available at www.grants.gov.
Clean Energy Projects To Become Eligible for Washington State's Energy Freedom Program
Washington State's legislature has passed a bill expanding the Energy Freedom Program and the uses to which the Energy Freedom Account can be put. Previously, funds from the Energy Freedom Account could be applied to biofuels projects only, and appropriations from the Energy Freedom Account to a separate account - the Green Energy Incentive Account - could be used solely to develop alternative fuels fueling stations and related projects. The bill extends the Program to clean energy projects, energy efficiency and energy technologies and establishes a Energy Recovery Account as another means of funding innovative renewable energy projects through loans or grants. A more detailed Client Alert will be issued once Governor Gregoire signs the bill.
President Obama Clamps Down on Lobbyists and First Amendment
On March 20th, President Obama issued a directive to the heads of executive branch departments and agencies. The directive is aimed at achieving the laudable goal of ensuring merit based decision-making for grants and other forms of stimulus funds provided by the American Recovery and Reinvestment Act of 2009 (usually referred to as the Stimulus Bill). It seems that while candidate Obama promised repeatedly during his campaign to limit the influence of lobbyists in Washington DC, the passage of the Stimulus Bill has sent record numbers of lobbyists to D.C. to scramble for federal dollars.
In apparent response to this, President Obama has singled out registered lobbyists and regulated their contacts with the executive branch. His directive provides that “executive department or agency officials shall not consider the view of a lobbyist registered under the Lobbying Disclosure Act of 1995, concerning particular projects, applications, or applicants for funding under the Recovery Act unless such views are in writing.” Officials are directed to inquire regarding the possible presence of registered lobbyists both upon the scheduling and commencement of phone calls and in-person conversations “with any person or entity concerning particular projects, applications, or applicants for funding under the Recovery Act.” If any registered lobbyists are detected, the directive forbids them from attending the meeting or participating in the phone call.
Not surprisingly, the American League of Lobbyists (ALL) has objected to the Obama Administrations restrictions. In a demonstration that politics does indeed sometimes make strange bedfellow, ALL has been joined by the ACLU and the Citizens for Responsibility and Ethics in Washington (CREW). In a letter to the President released Tuesday, these three groups requested that President Obama rescind the constitutionally offensive provisions of the directive immediately.
As tempting a political target as they may be, registered lobbyists have a place in our political system and rights under our Constitution. The President should heed the groups’ advice and tailor his directive to enable transparency while not muzzling any voices--including those paid to advocate.
Stoel Teams with EUCI to Present Law of Renewable Energy Webinars
Stoel Rives LLP is teaming up with EUCI to present a series of webinar’s based on our series of “Law of” books about renewable energy. The Law of Renewable Energy web conferences will address the major legal issues associated with the development of renewable energy projects. The web conferences will include the following topics:
Tax and Project Finance Structuring Issues for Renewable Energy Projects
April 27, 2009
Real Estate and Site Rights for Renewable Energy Projects
May 11, 2009
PPAs for Renewable Energy Projects
May 18, 2009
Siting and Permitting for Renewable Energy Projects
June 1, 2009
EPC, Major Component, Construction and Balance of Plant Contracts for Renewable Energy Projects
June 8, 2009
Regulatory and Transmission Issues for Renewable Energy Projects
June 15, 2009
Please sign up here if you’d like to get your own copy of any book in our “Law of” series. We update the “Law of” books regularly, and we'll have copies of the Law of Wind (5th edition) at Booth No. 3148 at the AWEA conference in Chicago on May 4-7, 2009. In addition, please sign up here if you’d like to receive our Stoel Rives Energy Law Alerts and other periodic updates.
Stimulus Bill Funding for Data Center and Telecom Technology Energy Efficiency, Smart Grid, Enhanced Geothermal Systems, and More
The American Recovery and Reinvestment Act of 2009, also known as the “Stimulus Bill,” allocated billions of dollars in funding for renewable energy, energy efficiency, energy storage, and other projects under the energy and climate change umbrella. Of the vast sums of money available for such projects, $16.8 billion goes to the U.S. Department of Energy’s (“DOE”) Office of Energy Efficiency and Renewable Energy (“EERE”). Another $4.5 billion in direct spending on smart grid demonstration projects will be overseen by DOE’s Office of Electricity Delivery and Energy Reliability.
On March 5th, DOE’s EERE Industrial Technologies Program (“ITP”) released a Notice of Intent to issue funding for technologies that increase the energy efficiency of server-based information and communication technology (“ICT”) systems housed in data centers and telecommunications central offices. The solicitation seeks proposals for projects that would increase the efficiency of IT equipment, software, power systems, and cooling systems. The solicitation also extends to the demonstration and field-testing of pre-commercial technologies in these areas, as well as in distributed generation or alternative power technologies used to power ICT systems. ITP intends to release the solicitation sometime this month.
DOE also recently announced its intention to issue a Funding Opportunity Announcement (“FOA”) for smart grid demonstrations. In addition, DOE issued two FOAs for enhanced geothermal systems (“EGS”). The EGS FOAs offer up to $84 million over six years, including $20 million for the 2009 fiscal year. Check out our recent Energy Law Alert for more information on DOE funding for smart grid demonstrations and enhanced geothermal systems.
Because of the relatively short window for responding to FOAs, DOE recommends that prospective applicants complete several one-time pre-application steps. Information on submitting applications is available at www.grants.gov.
Utah Governor Urged to Withdraw from Western Climate Initiative
On February 13, the Utah Public Utilities and Technology Committee voted to favorably recommend a House Resolution urging Governor Huntsman to withdraw Utah from the Western Climate Initiative. The resolution, 1st Sub. H.R. 3, contains recitals referring to “Utah’s abundant and clean burning coal,” the lack of balance in the Governor’s Blue Ribbon Council on Climate Change, the absence of economic analysis of the costs and benefits associated with carbon reduction mandates, and other concerns regarding the economic impact of a cap and trade mandate. The resolution is among a number of proposed resolutions and bills addressing energy issues, including H.J.R 9, Joint Resolution on Cost-Effective Energy Efficiency and Utility Demand-Side Management, H.J.R. 12, Joint Resolution Supporting Hydrogen Power From Advanced Coal and Carbon Capture and Sequestration Technology, and House Bill 412, Energy Policy Amendments.
Governor Schwarzenegger Strikes Again: 33% RPS by 2020 and Streamlined Renewable Energy Permitting in California
Governor Schwarzenegger’s been keeping busy on California’s big-ticket environmental issues. Yesterday the Governor’s office issued Executive Order S-14-08, with the laudable goal of accelerating the development of renewable energy resources . . . not to mention bolstering California’s economy with clean-tech jobs. Governor Schwarzenegger announced the Order at what will be the largest solar panel manufacturing facility in North America. The Governor’s remarks on his Executive Order highlighted that investing in renewable energy projects will help us fight climate change, “while driving the state’s green economy.”
Executive Order S-14-08 calls for California to get 33% of our electric energy from renewable sources by 2020. The current Renewable Portfolio Standard (RPS), instituted in SB 107 in 2006, requires that 20% of California’s power come from renewable sources by 2010. Unlike the current RPS, the Governor's new target applies to both investor-owned utilities and public utilities. A recent ballot initiative in California, which would have applied California's RPS to public utilities, failed on November 7th, after being opposed by a broad coalition of environmental groups and renewable energy industry groups. The Governor says he will propose legislation that will codify the 33% RPS for all retail sellers of electricity.
The Order also implements an MOU signed yesterday by the California Energy Commission (CEC), the California Department of Fish and Game (DFG), the U.S. Bureau of Land Management (BLM), and U.S. Fish and Wildlife Service.
Starting in February 2009, renewable energy projects should enjoy a streamlined project approval process before a special joint unit of DFG and CEC. But exactly how will these two agencies “immediately create,” as the Order directs, a one-stop process for permitting renewable energy generation power plants? For thermal power plants over 50 MW, including geothermal and solar thermal facilities, the CEC already is, supposedly, the one-stop shop.
Continue Reading...Congress Extends PTC and ITC--More Analysis to Follow
In an email alert that we just sent out, my colleagues in the Stoel Rives Tax Section report:
Today the House passed, and President Bush signed into law, H.R. 1424, which includes the Energy Improvement and Extension Act of 2008 (the Act). The Act contains the much-anticipated extension of the production tax credit (PTC) and investment tax credit (ITC) sunset dates.
The Act extends the PTC placed-in-service sunset date for certain wind and refined coal facilities until December 31, 2009, and extends the PTC placed-in-service sunset date for certain other qualifying facilities until December 31, 2010. The Act also expands the PTC to include certain marine and hydrokinetic renewable energy facilities placed in service on or before December 31, 2011.
The Act extends the ITC placed-in-service sunset date for solar, fuel cell and microturbine property until December 31, 2016 and expands the ITC to include combined heat and power system property, qualified small wind energy property, and geothermal heat pump system property.
In addition, H.R. 1424 contains a variety of other renewable energy tax provisions, including provisions allowing the energy credit to offset alternative minimum tax liability; increasing the amount of the biodiesel and renewable diesel fuel credits and extending the sunset dates until December 31, 2009; authorizing new clean renewable energy bonds and qualified energy conservation bonds; and extending the energy efficient commercial buildings deduction and the new energy efficient home credit.
Our Tax Section is working on preparing a more detailed analysis of the tax aspects of HR 1424. If you'd like to receive updates concerning H.R. 1424 and other renewable energy and clean tech issues, please subscribe to our Renewable Energy Mailing List.
Ocean Energy Makes Waves Again
For those who are following the development of ocean and wave energy on the West Coast of the United States and Canada, The Oregonian published an interesting article by Gail Kinsey-Hill entitled Off Oregon's Coast, Wave Energy Makes a Splash. The article provides a good overview of the latest Oregon developments in ocean and wave energy, describing the big payoffs, the challenges, the concerns of crabbers and fishermen, and the competing technologies (including Ocean Power Technologies' buoy-like "point absorbers" and Pelamis' sausage-like sea snake).
As The Oregonian's article suggests, those interested in learning more about cutting edge ocean technology should consider attending Oregon's Third Annual Ocean Renewable Energy Conference at the Mill Convention Center in Coos Bay. The two day conference will be held this Thursday and Friday (September 25-26). The event is hosted by Oregon Wave Energy Trust, and you can learn more about the conference and register for it at oregonwave.org.
My partner Cherise Oram, one of the nation's leading legal experts on ocean, tidal and other forms of hydrokinetic energy, will be speaking on a panel discussing how wave projects are developed from concept to commercialization. She'll have on hand plenty of complimentary copies of the new second edition of Stoel Rives' Law of Ocean and Tidal Energy , or you can download your own today.
Algae Takes Wing
The August 16-22, 2008 issue of NewScientist features a very interesting article called "A tank of the green stuff" (pages 34-37). Airlines are facing volatile and rising fuel costs, plus the risk of fuel shortages. Unlike land transport, which it least in theory can be converted to run entirely on electricity, air travel depends on energy-dense kerosene. As if that weren't bad enough, the aviation industry is a significant source of carbon dioxide emissions that will come under increasing scrutiny as countries try to manage and eventually reduce their emissions.
So the airlines are looking seriously at turning biofuels into aviation fuel. The problem with first generation biofuels (apart from an unfortunate but solvable tendency to clog in high-altitude cold conditions) is that they require large amounts of feedstock to produce. When Virgin Atlantic airlines test-flew a 747 from London to Amsterdam earlier this year, it used a biofuel made from coconut and babssu oil produced by Imperium Renewables of Seattle. But according to NewScientist, that flight alone would have consumed 3 million coconuts had it been run entirely on biofuels. That's why Virgin and its partners stressed that the flight was "proof of concept." Because of the large volumes involved, NewScientist estimates that biofuels derived from Jatropha and even biomass (e.g., waste timber) would use up huge swathes of land (much larger than France and Germany, respectively) .
Enter algae. Biofuel from algae could be produced, in theory, at 36 tonnes per hectare. To satisfy the 2007 consumption of jet fuel, that would require commiting 66,000 square kilometers to algae produce--an area about the size of Ireland. That certianly sounds a bit more manageable!
There are many technical hurdles between now and commercial production of algae, but the airlines may provide an important catalyst for the development of this new technology. Related stories on the topic can be found in The Minneapolis Star-Tribune and Biodiesel Magazine.
Recognizing that algae is likely to be among the most important next generation of biofuels, Stoel Rives is in the process of preparing the new Law of Algae, which will be our eighth "Law of" book (unless, of course, we can come up with a catchier title between now and the publication date), Stay tuned--the new book should be available in October. Please subscribe to our Renewable Energy Mailing List if you'd like to receive notice when the Law of Algae is published.
Industry News: Sopogy Engineering Contest Underway
Hawaii-based Sopogy Inc. is holding a design skills contest for HVAC, plumbing and solar engineers. The contest challenges engineers to design practical installations using MicroCSP solar technologies. All designs submitted to the contest will be open-sourced and posted online at SopoApps.com.
The contest period is open now and ends October 1, 2008. Judging will be conducted by an independent panel of industry experts. Key factors in judging include production efficiency, cost, completeness and best overall design. A reception for the winners will be held at Solar Power International 2008 in San Diego. For more information on the contest, visit the Sopogy Apps web site.
In related Sopogy news, the company has elected T. Michael May - the recently retired president and CEO of Hawaiian Electric Co. - to its board of directors. At Hawaiian Electric, May was responsible for developing and executing the company's long-term growth strategies. He joined the company as a senior vice president in 1992 and was elected president and CEO in 1995.
More Good News for Solar!
Coming on the heels of the Oregon PUC's decision in the Honeywell case (see Steve Hall's blog below), scientists at MIT announced today that they had discovered a cheap way to separate oxygen from hydrogen using techniques learned from studying plant photosynthesis. Once separated, the hydrogen and oxygen can be used to power a fuel cell. During the daytime, a home would run on solar power--at night, it would draw energy stored in the fuel cell.
Could this development be a game changer? The full story is to be published in Science today--in the meantime, check out ScienceDaily.
The New (2nd) Edition of the "Law of Biofuels"
Stoel Rives has now published seven original Law of books covering various topics in the renewable energy industry. To write these books, our attorney-authors draw on over 20 years of legal and business experience in wind, geothermal, biofuels, and other renewable energy resources. The books are intended to provide a succinct but thorough overview of industry segments in a way that is practical, business-oriented and not overly legalistic.
Of course, the renewable energy world is changing constantly. This Renewable + Law Blog is our effort to stay on top of these issues as quickly as they emerge. But at least once each year, we also update our Law of books. The update process helps us develop a deep and immediate understanding of complex issues, and it's a great way to build a proficient team of lawyers who know how to work efficiently together.
The Law of Biofuels (2d Ed) will be making its debut at the Stoel Rives booth (No. 718) at The American Coaliton for Ethanol (ACE) conference on August 12-14 at the Qwest Center in Omaha, Nebraska . You can also order it or download it online. The new book includes a chapters on Next Gen Biofuels, technology and licensing, financing, tax, siting and permitting, construction, commercial contracts, and real estate. Biofuels attorneys from all of Stoel Rives' contributed their insights to this book
At the ACE conference, my partner David Quinby, an old hand at biofuels and energy M&A, will be speaking on a panel addressing "Ethanol Today & Tomorrow: Growing and Selling Considerations," in which he will explain how biofuels plants can grow, diversify, recapitalize or sell in today's world of narrow margins and volatile markets. Dave promises an exciting presentation, a little like "The Dark Knight" but with more humor.
