Janet Jacobs
Janet Jacobs practices in the Corporate, Securities and Finance practice group and the Renewable Energy practice group. Janet represents clients in corporate governance matters, mergers and acquisitions, corporate, securities and financing transactions, with an emphasis on the development, structuring, financing and acquisition of biofuels, solar and wind projects. She also advises her clients on their business operations and significant corporate transactions.
SHOW ME THE MONEY: NEW ARPA-E FUNDS
DOE issued three Funding Opportunity Announcements (FOAs) on March 2 that offer $100 million in American Recovery and Reinvestment Act funding for the third round of its Advanced Research Projects Agency - Energy (ARPA-E) program. The FOAs were announced at the first ARPA-E summit in Washington, D.C., and focus on innovations in three areas of technology: grid storage, power converters, and cooling systems for buildings. The goal is to promote U.S. leadership in the emerging global market for these advanced energy technologies, while cutting greenhouse gas emissions and reducing U.S. electrical consumption by as much as 30%.
The FOAs can be found at https://arpa-e-foa.energy.gov/Default.aspx
SHOW ME THE MONEY: $1.37 BILLION LOAN GUARANTEE FOR CSP
DOE announced a conditional commitment for more than $1.37 billion in loan guarantees to BrightSource Energy, Inc. in support of the construction and start-up of three utility-scale concentrated solar power plants (CSP) in the Mojave Desert of southeastern California. The loan guarantee is funded under the American Recovery and Reinvestment Act and is predicated on BrightSource meeting financial and environmental requirements before closing on the loan. The Bureau of Land Management is leading a federal review of the project with support from DOE. Pending local, state, and federal regulatory approval, the new plants will generate approximately 400 megawatts (MW) of electricity using the company's proprietary technology. This output would nearly double the existing generation capacity of CSP facilities in the United States.
The three-plant Ivanpah Solar Complex will be located on federally owned land near the Nevada border and will be the world's largest operational concentrated solar power complex. BrightSource will use solar power tower technology, which uses thousands of flat mirrors, or "heliostats" to concentrate the sun's heat onto a receiver mounted at the top of a tower. Water pumped to the receiver is boiled into steam, which drives a turbine to produce electricity. The first Ivanpah plant is expected to begin construction in the second half of 2010 and come on line in 2012. Commercial operation for the second plant is slated for mid-2013, with the third plant following later that year. Once operational, the project will supply power to approximately 140,000 California homes.
Brightsource says the project will create 1,000 temporary jobs and 86 permanent jobs.
For additional information: see the DOE press releaseand DOE's Loan Guarantee Program Web site.
Show Me the Money: $12 million for Early Stage Solar Technologies
The Department of Energy (“DOE”) announced today that the National Renewable Energy Laboratory (“NREL”) will invest up to $12 million in total funding ($10 million from funds allocated to NREL under the American Recovery and Reinvestment Act (“ARRA”)) in four companies - three California and one North Carolina - to take early stage PV and CSP technologies to commercialization.
Each company will receive up to $3 million (and the benefit of NREL’s support and expertise) to take prototype and pre-commercial PV technologies and develop pilot/demo projects or full-scale manufacturing projects. Payment of the awarded $3 million will be made over time as each company completes specified project milestones.
DOE is investing more than $117 million in solar energy through ARRA.
Show Me the Money (and the Light): $37 Million for Solid State Lighting
The Department of Energy today announced the award of more than $37 million in American Recovery and Reinvestment Act funds to 17 projects supporting solid-state lighting core research, product development, and domestic manufacturing.
Solid-state lighting, which uses light-emitting diodes (“LEDs”) and organic light-emitting diodes (“OLEDs”) instead of incandescent bulbs, has the potential to be ten times more energy-efficient than traditional incandescent lighting.
Lighting needs account for almost one-quarter of the total electricity used in the United States today. Those needs could be reduced by as much as one-third by 2030 if cost-effective solid-state lighting is adopted on a national basis.
Link to the full story and the list of selected projects: http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=287
ARRA SGIG Grants Taxable?
Concern is mounting over whether the smart grid awards and project grants to be distributed by the Department of Energy (“DOE”) will be taxable in the hands of the recipients. Certain grants administered by federal, state, or local programs for renewable energy projects located in the US may be reportable by the recipient. The 100 smart grid award recipients, who are waiting for their share of the promised $3.4 billion from the DOE, are anxious to resolve this issue as many of them prepared their budgets (and the DOE may have made the awards) on the assumption that the awards were going to be tax-exempt.
The DOE is working closely with the awardees and the Treasury Department to reach resolution and hopes to provide guidance shortly. We’ll be following this story closely – stay tuned for developments.
Show Me The Money: $2.3 Billion for Clean-Tech Manufacturing Jobs
January 8, 2010: today President Obama announced the award of $2.3 billion in American Reinvestment and Recovery Act (“ARRA”) Advanced Energy Manufacturing Tax Credits for tens of thousands of clean energy jobs on 183 clean energy manufacturing projects across the 43 states. United States, including the domestic manufacture of wind turbine and solar panels. The tax credits will support job creation in the domestic clean tech manufacturing industry and are a step towards meeting the President's goal of doubling the US’ use of renewable energy in the next three years.
Show Me the Money: $47 Million for Efficiency in IT & Communications
Today Energy Secretary Chu announced that the Department of Energy will award $47 million for 14 nation-wide projects that will support the development of new technologies improving energy efficiency in the information technology (IT) and communications sectors – specifically, data processing, data storage, and telecommunications industries. The increase in energy consumption in these sectors is a direct corollary of the industries’ brisk expansion. Improving energy efficiency will provide significant energy and cost savings.
EPA: Possible Increase in "Blend Wall"
The U.S. Environmental Protection Agency (“EPA”) expects to make a final determination in mid-2010 regarding a potential increase in the current 10% allowable ethanol content in fuel, the so-called “blend wall”.
In May 2009, Growth Energy, a biofuels industry association headed up by General Wesley Clark, requested a waiver that would allow the use of up to 15 % ethanol in gasoline. As mandated by the Clean Air Act, EPA was required to respond to the waiver request by December 1, 2009. The EPA responded earlier this week in a letter explaining that despite not completing all the applicable tests, early test results on 2 vehicles indicated that engines in newer (i.e. later than 2001) vehicles could probably handle an ethanol blend higher than the current limit. The EPA’s final determination will follow completion of testing on 19 vehicles (the number recommended by the Department of Energy (“DOE”)) which may take another 6 months.
The EPA recognizes that the limit on blends must be raised to achieve the renewable fuel mandate of 36 billion gallon by 2022. EPA has been reviewing public comments and working with DOE to determine the feasibility of a higher ethanol blend. Concerns include the impact on engine component longevity when a higher blend is used long term and appropriate labeling at the fuel pump.
Full text of the letter: http://www.epa.gov/otaq/additive.htm
DOE Awards $620 Million for Smart Grid and Energy Storage Projects
Yesterday, DOE announced awards of $620 million in American Recovery and Reinvestment Act (“ARRA”) funds for Smart Grid demonstration projects and large-scale energy storage systems. The $620 million is broken down as follows:
• $435 million to support 16 fully integrated, regional Smart Grid demonstrations in 21 states, representing over 50 utilities and electricity organizations with a combined customer base of almost 100 million consumers. The Smart Grid demonstration projects incorporate smart meters, distribution and transmission system monitoring devices and DOE wants the awardees to be role models for the deployment of integrated Smart Grid systems on a broader scale. An additional $1 billion will come from the private sector for a total of $1.6 billion in Smart Grid projects nationally.
• $185 million to fund 16 utility-scale energy storage projects including advanced battery system, flywheels, and compressed air energy systems.
A copy of the DOE’s press release can be found at http://www.energy.gov/news2009/8305.htm
California Solar Initiative issues Second Grant Solicitation
The California Solar Initiative (“CSI”) has announced the release of a second Grant Solicitation for its Research, Development, Demonstration, and Deployment Program.
Up to $15 million in funding is available for improved PV production technologies and innovative business models. Eligible applicants include individuals, businesses, public entities, non-profit institutions, universities, or national laboratories. Award amounts will range from $200,000 up to $3 million. Each project is required to have a minimum of 25% cost sharing (which may include funding for related activities under the American Recovery and Reinvestment Act).
A pre-bid webinar will held on November 18, 2009 at 10:00 a.m. (PST). The deadline for submitting grant proposals is January 13, 2010 by 4:00 p.m. (PST). CSI estimates that approvals will be sent out in April 2010.
For more information, see: http://www.calsolarresearch.ca.gov/Current-Solicitations/solicitations-second.html
