The USDA, DOE and USN responded to the Blueprint by signing a Memorandum of Understanding  (the “MOU”). The MOU outlines a plan for the Agencies to partner with the private sector to construct or retrofit several drop-in biofuel plants and refineries. The agencies have stated goals of limiting our nation’s dependence on foreign oil for national, providing tactical and strategic advantages for our military and creating economic opportunities in rural communities. We expect that the USDA will take the lead on addressing feedstocks, the DOE will take the lead on technology, and the USN will be the initial primary consumer of the advanced biofuels.

Each of the Agencies have committed to spending $170 million over the next three years and an Executive Steering Group (the “ESG”) will be established to coordinate the programs. It is expected that the ESG will work with the Agencies to develop and release solicitations to industry beginning in December 2011. The solicitations will be issued in accordance with the Defense Production Act (50 U.S.C. App. 2061 et seq), the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq), the Economy Act (31 U.S.C. 1535) and other appropriate authorities. Consequently, rights in inventions made as a consequence of, or in direct relation, of these solicitations will be administered in accordance with the applicable Agency’s governing laws and policies.

Examples of eligible vehicles include:

• Vehicles using alternative fuels recognized by the Energy Policy Act (complete list here: http://www1.eere.energy.gov/vehiclesandfuels/epact/about/epact_fuels.html);
• Fuel Cell Electric Vehicles;
• Electric Hybrid Vehicles (including certain Plug-in Hybrid Vehicles);
• Hydraulic Hybrid Vehicles;
• Neighborhood Electric Vehicles; and
• Certain Bio-Diesel Vehicles (if replacing gasoline powered vehicles). 

Infrastructure projects must be related to the storage, distribution, dispensing of advanced fuels or electric vehicle supply equipment. Examples of eligible infrastructure projects include:

• New dispensing facilities, or additional equipment or upgrades to existing refueling sites;
• Facility upgrades or building modifications necessary to accommodate alternative fuels for fleet garages and other maintenance centers;
•  Solar charging systems dedicated to providing on-site vehicle motive electrification

Funding requests must be between $100,000 and $400,000 with a minimum 10% non-federal match. Precise requirements of this grant are located at http://www.pugetsoundcleancities.org/documents/CleanCitiesFY09FOAModification007.pdf

• 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/

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:

1)      Maintain competitive energy prices;

2)      Foster a clean energy economy and jobs; and

3)      Meet obligations to reduce greenhouse gas emissions.

Principles:

1)      Pursue all cost-effective energy efficiency and conservation as the state's preferred energy resource, consistent with state law;

2)      Ensure that the state's energy system meets the health, welfare, and economic needs of its citizens with particular emphasis on meeting the needs of low-income and vulnerable populations;

3)      Maintain and enhance economic competitiveness by ensuring an affordable and reliable supply of energy resources and by supporting clean energy technology innovation, access to clean energy markets worldwide, and clean energy business and workforce development;

4)      Reduce dependence on fossil fuel energy sources through improved efficiency and development of cleaner energy sources, such as bioenergy, low-carbon energy sources, and natural gas, and leveraging the indigenous resources of the state for the production of clean energy;

5)      Improve efficiency of transportation energy use through advances in vehicle technology, increased system efficiencies, development of electricity, biofuels, and other clean fuels, and regional transportation planning to improve transportation choices;

6)      Meet the state's statutory greenhouse gas limits and environmental requirements as the state develops and uses energy resources;

7)      Build on the advantage provided by the state's clean regional electrical grid by expanding and integrating additional carbon-free and carbon-neutral generation, and improving the transmission capacity serving the state;

8)      Make state government a model for energy efficiency, use of clean and renewable energy, and greenhouse gas-neutral operations; and

9)      Maintain and enhance our state's existing energy infrastructure.

The Department of Commerce is opening a collaborative process to update and revise the State Energy Strategy and has invited stakeholders to participate. In order to assist collaboration, the Department of Commerce has created a website hosting information about past energy strategies, guiding legislation, advisory and technical committee activities, and a schedule of events. Moreover, the public can sign up for list serve to receive updates and provide feedback.

·         $81 million to Bluefire LLC for a Mississippi project to produce up to 19 million gallons of ethanol fuel annually from woody biomass, mill residue, and municipal solid waste.

·         $50 million to Sapphire Energy, Inc. for a New Mexico project to produce algal fuels using the Dynamic Fuels refining process.

·         $23 million to Clearfuels Technology Inc. for a Colorado scale project to produce renewable diesel and jet fuel from woody biomass.

A complete list of awards is available here.

If you are attending the conference, please stop by our exhibit booth (No. 1744), which is centrally located in the “PV Cells and Modules” section of the Exhibit floor. Stoel Rives attorneys Howard Susman, Morten Lund, Pat Boylston, Gregory Jenner, Stephen Hall, Kristen Castaños, David Quinby and Adam Walters will be in attendance. 

In the Strategic Plan, FERC is establishing the use of smart grid technologies in 50% of all new transmission projects by 2014. This goal will be met through the (i) increased the development of smart grid standards and protocols (through a process coordinated by the National Institute of Standards and Technology) and (ii) the implementation of rate treatment policies favorable to smart grid technologies in the interim period between development and approval of smart grid standards. FERC has set the following Annual Performance Targets:

·         FY2010: Assessment of transmission planning process best practices, including the potential for collaborative decision making, and issue a Notice of Proposed Rulemaking as appropriate

·         FY 2011: As appropriate, issue Final Rule on transmission planning process best practices

·         FY 2012: Implement Final Rule as appropriate

·         FY 2013: Monitor implementation and performance

·         FY 2014: Evaluate performance and seek changes as necessary

On October 2, 2009, the U.S. Department of Energy (DOE) announced the Geothermal Research Initiative, a program to demonstrate low temperature geothermal electrical power generation systems using oilfield fluids produced at the Rocky Mountain Oilfield Testing Center. This program is moving forward as a collaboration between the Office of Fossil Energy and the Office of Energy Efficiency and Renewable Energy’s Geothermal Technologies Program.

The Geothermal Research Initiative will demonstrate the versatility, reliability, and deployment opportunities which utilize the co-produced water from oilfield operations. These systems are designed to offset the electricity usage of the oilfield while also creating a second use for water which would otherwise be discarded. The DOE believes that the co-produced water can become a significant energy resource with an estimated 10 barrels of hot water being produced along with each barrel of oil in the United States.

The program will produce operational and performance data which will be freely available to the public. The goal of the program is to educate industry and the public about the potential for geothermal energy production from co-produced water and establish the best systems for particular climates. 

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.

Washington’s competitive grant program is administered through its Department of Commerce. Today, the Department of Commerce has announced the issuance of final guidelines for applications by smaller cities and counties for funds from the Energy Efficiency and Conservation Block Grant Program. Cities with populations lower than 35,000 and counties with populations lower than 200,000 are eligible to apply. Eligible cities and counties may choose to sub-grant their funds to other local governments, non-profits, or the private sector consistent with the guidelines.

The application guidelines, form, and frequently asked questions are available at www.commerce.wa.gov/recovery. The Department of Commerce will host a webinar on September 10, 2009, 9:00-11:00a.m., to review the final guidelines and answer questions. You can register for the webinar at https://www2.gotomeeting.com/register/352879171. For more information contact Heather Ballash at energy_policy@commerce.wa.gov.

On August 20 the Australian government announced the passage of a bill quadrupling its Renewable Energy Target (RET) to ensure that 20% (approximately 45,000 GWh) of Australia’s electricity is generated from renewable energy sources by 2020.

How does Australia’s RET Scheme Work?

The RET scheme is an expansion of Australia’s Mandatory RET scheme introduced in 2001, the first of its kind in the world. It works through the creation and sale of Renewable Energy Certificates (RECs) by renewable power generators to “liable parties” (mainly large-scale electricity utilities and consumers), who must provide a designated quantity of REC’s to Australia’s renewable energy regulator to demonstrate compliance and avoid having to pay charges for any shortfall. One of the changes brought about the new legislation is to increase from $40/MWh to $65/MWh.

Renewable energy sources eligible for accreditation under the RET scheme include: solar, wind, hydro, tidal, wave, biomass and geothermal, as well as solar water heaters and other smaller generation units. Hydro has historically dominated Australia’s renewable energy landscape, but recent project announcements and funding opportunities for wind and solar projects signal greater diversification of the industry, particularly for proven technologies.        

On a per capita basis Australia’s public investment in infrastructure in the last twenty years has dwarfed that of the U.S. Why? Aside from the infusion of tax revenues from Australia’s natural resources boom, the answer in short is a combination of political will and cooperation amongst Australia’s federal and state governments at a level that the U.S. can only dream of. This can be seen, for instance, in the Australia’s National Pubic Private Partnership (PPP) Policy Framework, a product of federal and state government cooperation to make Australia one of the world’s leaders in successfully implementing the PPP model as a vehicle for driving social infrastructure, transport and other large-scale development.

The new renewable energy target, coupled with recently announced government funding programs, such as the Clean Energy Initiative, and the emissions trading scheme the Rudd government has proposed (the Carbon Pollution Reduction Scheme), signals Australia’s commitment to renewable energy. This author, having experienced Australian innovation and willpower on large infrastructure projects first-hand, has little doubt that the new RET Target will herald the rapid expansion of commercial renewable energy power projects in Australia in the next decade.

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.

For more information regarding opportunities for small businesses operating in clean tech and renewable energy industries please see our recent alert regarding the Small Business Innovation Research ("SBIR") and Small Business Technology Transfer ("STTR") programs.  Also, Washington based companies should be aware of the Washington State Energy Program that is being administrated through the Washington Department of Commerce (formerly "Community, Trade, and Economic Development" or "CTED").  Click here for an alert explaining Washington's Energy Freedom Program.  Click here for a recent blog posting regarding applications for funding under Washington's State Energy Program.

Colorado was awarded over $31.8 million today. Colorado will use its weatherization funds to weatherize more than 16,750 homes over the next three years. The money will be deployed through the Colorado Energy $aving Partners Program (“E$P), which manages weatherization in the state. The E$P will perform provide green job training to promote the weatherization effort, and eleven local agencies will assist in retrofitting cost-effective measures in homes. After demonstrating success in the execution of its plan, Colorado will receive additional funds of approximately $40 million, for a total of more than $79 million.

Connecticut was awarded over $25.7 million today. Connecticut will use its weatherization funds to weatherize more than 7,400 homes and re-weatherize an additional 100 homes over the next three years. The money will be deployed through the Department of Social Services, which manages weatherization in the state. Homes will receive an energy audit before even the more common weatherization activities are performed. After demonstrating success in the execution of its plan, Connecticut will receive additional funds of $32 million, for a total of more than $64 million.

Hawaii was awarded over $1.6 million today. Hawaii will use its weatherization funds to weatherize more than 650 homes over the next three years. The money will be deployed through the Hawaii Office of Community Services, which manages weatherization in the state. The Office of Community Services will provide training and technical assistance to local agencies to increase energy conservation and lower utility bills for low-income families. After demonstrating success in the execution of its plan, Hawaii will receive additional funds of $2 million, for a total of more than $4 million.

The McNary-John Day Line runs 79 miles from the McNary Substation in Oregon, through Washington, and ending at the John Day Substation in Oregon.  The BPA has stated that the new line will help promote wind and other renewable energy generation in the Pacific Northwest. 

The McNary-John Day Line will be energized by 2012 and provide transmission service for over 575 megawatts of electricity. 

After reexamining Title XVII, the DOE has concluded that the statute does not require a first lien on all project assets.  DOE has discovered that its current requirement that it be in lien position is in conflict with the financing structure of many energy projects.  For example, many utility scale power plants are jointly owned by public power agencies, cooperative power systems and investor-owned utilities.  In these cases, it may not be commercially feasible to obtain a lien on all project assets or the credit of a sponsor may be sufficient to support a more modest pledge of assets.

Furthermore, DOE has found that other parties are interested in participating as co-lenders, co-guarantors, or insurers of Title XVII loans.  However, these other parties expect to share, on a pari passu basis, in any collateral securing such loans.

Consequently, DOE proposes two amendments to the current rules:

1. Delete the requirement of a first priority lien on all project assets and leave to the Secretary (of DOE) the determination of an appropriate collateral package, as well as intercreditor arrangements; and
2. Allow the Secretary (of DOE) to determine if pari passu lending is in the best interests of the United States

• Through the Federal Rulemaking Portal
• Email to lgprogram@hq.doe.gov
• Postal Mail / Hand Delivery / Courier to: 
  David G. Franz, Director, Loan Guarantee Program Office
  Office of the Chief Financial Officer
  1000 Independence Ave., S.W.
  Washington, D.C. 20585-0121

More information may be had by contacting David Franz at the above address or by calling 202-586-8336

$3.5 million is available to fund refueling infrastructure related to higher ethanol blends.  Potential projects include modifications, upgrades, or expansions of fuel pumps at retail gas stations.

$2 million is available to fund national campaign projects that increase public awareness of the benefits, safety, and use requirements of higher ethanol blends.

Applications for this FOA are due October 4, 2009.

SEGIS activity began in 2008 with a partnership between DOE, Sandia National Laboratories, industry, utilities, and universities interested in complete system development.  Funded projects are related to the integration of solar technologies into the U.S. electrical grid while maintaining or improving power quality and reliability.

PVPowered of Bend, Oregon.  Up to $3 million is available to fund a project that optimizes interconnections across the full range of emerging PV module technologies through innovative systems integration.  This project includes the following partners: PVPowered, Portland General Electric, South Dakota State University, Schweitzer Engineering Laboratories, and SENSUS.

Petra Solar of South Plainfield New Jersey.  Up to $2.9 million is available to fund a project that supports improving reliability and resiliency so that high levels of PV integration can be adapted.  This project includes the following partners: Petra Solar, University of Central Florida, and fifteen electric utilities.

Princeton Power of Princeton, New Jersey.  Up to $2.8 million is available to fund a project that focuses on lowering manufacturing costs through integrated controls for energy storage and the development of new inverter designs.  This project includes the following partners: Princeton Power, Transistor Device Inc, LaGuardia Community College, Idyllwild Municipal Water District, National Oceanographic and Atmospheric Administration, Princeton Plasma Physics Laboratory, Premier Power, SPG Solar, and Spire.

Apollo Solar of Bethel, Connecticut.  Up to $1.5 million is available for the creation of innovative inverters using energy storage and two-way communications between solar electrical systems and utilities.  This project includes the following partners: Apollo Solar, Saft Batteries, the Electric Power Research Institute, and California Independent System Operator.

Florida Solar Energy Center / UCF.  Up to $1.3 million is available to solve technical challenges that impede the deployment of higher PV penetration levels in larger scale systems.  This project includes the following partners:  Florida Solar Energy Center, Satcon Technology Corporation, SENTECH, Inc., Cooper Power Systems EAS, Northern Plains Power Technologies, and Lakeland Electric Utilities.

Today, the Department of Energy announced more than $54 million in Recovery Act funding to four states under its State Energy Program ("SEP"). Here is how the funds will be used in Nevada, Rhode Island, Vermont, and Wisconsin:

Vermont will use its SEP funds to establish programs that advance energy efficiency across multiple sectors. Specifically, Rhode Island will support businesses and homes in their effort to reduce energy consumption, in addition to updating the state’s building energy codes. After demonstrating success in the execution of its plan, Rhode Island will receive additional funds of nearly $12 million, for a total of almost $24 million.

Wisconsin will use its SEP funds to help improve the energy efficiency of existing industrial facilities, in addition to investing in businesses that manufacture clean energy technologies and components. The state will also offer loans to a broad audience. After demonstrating success in the execution of its plan, Wisconsin will receive additional funds of nearly $28 million, for a total of over $55 million.

Rhode Island will use its SEP funds to offer financial assistance for renewable energy and energy efficiency projects in the public, private, and residential sectors, in addition to facilitating the installation of thermal solar renewable energy systems in low-income households. After demonstrating success in the execution of its plan, Vermont will receive additional funds of nearly $11 million, for a total of almost $22 million.

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

Today, the Department of Energy ("DOE") announced that they are hosting a webinar regarding this FOA.  The webinar will be held July 30, 2009 at 11:00 a.m. Eastern.  Through this webinar, DOE will provide a brief overview of the FOA and will participate in a question and answer period.  However, all questions must be submitted in advance (by July 27, 2009 at 2:00 p.m. Eastern) to windDynamometer@go.doe.gov

To attend this webinar, register in advance by clicking here.