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.
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.
Upcoming Webinar: Stimulus Bill Part 3 - The DOE Loan Guarantee Program for Clean Energy Projects
We invite you to join us for the third installment of our complimentary Stimulus Bill Webinar series. This session will focus on the Department of Energy’s (DOE) Loan Guarantee Program, which received nearly $6 billion in Stimulus Bill funding. The DOE recently redesigned the program in an effort to bring private capital back to large-scale renewable energy project development. Since the release of the Financial Institution Partnership Program (FIPP) solicitation, there have been some promising initial signs with several prominent U.S. and European-based banks actively supporting projects.
Our panel of experts includes a current DOE program official with knowledge of the program's intricacies, an investment banker who was a former director of the program and a Stoel Rives attorney who is assisting clients through the application process. The webinar will discuss the innovative and commercial programs, FIPP, the evolving rules for the program, the application process and the type of projects the program was developed to support.
Speakers:
Richard Corrigan, Senior Advisor, Department of Energy's Loan Guarantee Program
Walter S. Howes, Former Director of DOE's Loan Guarantee Program, current Managing Partner, Verdigris Capital LLC
Graham Noyes, Former VP of Sales and Business Development, Imperium Renewables LLC; current Attorney, Stoel Rives LLP
When:
Wednesday, December 2, 2009
10 a.m. Pacific; 11 a.m. Mountain; noon Central; 1 p.m. Eastern
Cost:
Complimentary
Register:
Register online at http://www.stoel.com/webcasts
DOE to release eagerly awaited commercial solicitation
On a webinar yesterday, Michael Fraser, Senior Program Manager at the DOE, advised that the DOE plans to release a commercial solicitation for the loan guarantee program later this month or in early October. The current solicitation that is active for renewable energy projects requires that projects satisfy the innovative requirement. A project is defined as innovative only if it has not been employed in three or more similar applications in the US of five years duration. Thus many established renewable energy projects such as those utilizing wind or geothermal technology that is tested and proven, cannot apply under the current solicitation. The release of a commercial soliciation has been eagerly awaited by renewable energy project developers. These loans will be backed by private banks as well with DOE typically only guaranteeing 80-90% of the loan. DOE hopes that this structure will motivate private lenders to perform much of the due diligence necessary and only bring shovel-ready and bankable projects to the table. Interest rates on the loan are anticipated to run at Treasury plus 25 to 75 basis points. This is a very attractive interest rate but there are substantial fees associated with the program that will offset a portion of this value. The other key factor for projects to consider is whether they will be able to meet American Reinvestment and Recovery Act requirements and thus be eligible to have their credit subsidy costs covered by government funding. I am cautiously optimistic that DOE will be successful with these efforts and we will see a flurry of good projects moving forward Q1-Q2 2010 with the assistance of this program.
First Treasury Grants in Lieu of ITC Awarded
Treasury Secretary Tim Geithner and Energy Secretary Steven Chu announced the first awards of cash grants in lieu of the investment tax credit (ITC) today. The total award value was over $502 million. Recipients include projects in Colorado, Connecticut, Maine, Minnesota, New York, Oregon, Pennsylvania and Texas. Click here for a detailed list of the awards announced today. Additional awards will be announced in the coming weeks.
For more information on this program and the application process, please see the Stoel Rives Energy Law Alert: Treasury Issues Guidance on Applications for Grants in Lieu of the ITC and PTC.
SHOW ME THE MONEY II AVAILABLE NOW
We announce the publication of the second edition to our “Show Me The Money - the Law of Stimulus Bill”. The second edition of the guide reviews the various programs and potential sources of federal funding for clean energy companies and projects. Like the first edition published in May, the second edition 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 contains information about the funding opportunities released up to August 10, 2009, and we will be tracking federal and state level hrough our client alerts and blogs.
Click here to access Show Me the Money II.
Show me the Money: $66 Million for State Weatherization Assistance Programs
Today, the Department of Energy (“DOE”) announced more than $66 million in Recovery Act funding to four states for their weatherization assistance programs. The funding will help weatherize over 26,000 homes, lower energy costs, reduce pollution, and create green jobs across the country. Here is how the funds will be used in Alaska, Colorado, Connecticut and Hawaii:
Alaska was awarded over $7.2 million today. Alaska will use its weatherization funds to weatherize more than 1,500 homes over the next three years. The money will be deployed through the Alaska Housing Finance Corporation (“AHFC”), which manages weatherization in the state. The AHFC has created a statewide call center for client intake and is working with five local organizations to administer the program. After demonstrating success in the execution of its plan, Alaska will receive additional funds of $9 million, for a total of more than $18 million.
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.
Show me the Money: DOE Proposes Amendments to its Loan Guarantee Program
Today, the Department of Energy (DOE) issued a notice of proposed rulemaking to amend 10 CFR Part 609, the rule regulating the loan guarantee program authorized by section 1703 of Title XVII of the Energy Policy Act of 2005. The two principal goals of section 1703 of Title XVII are to encourage commercial use of new or significantly improved energy-related technologies and to achieve substantial environmental benefits. (See these recent alerts regarding the DOE loan guarantee program and the related application process)
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:
- 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
- Allow the Secretary (of DOE) to determine if pari passu lending is in the best interests of the United States
Interested parties have 30 days to provide comments to the proposed rule. Comments may be submitted in the following manner:
- 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
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: $162 million Deployed to Seven State Energy Programs
From our colleague Christina Asavareungchai:
Today, the Department of Energy announced more than $162 million in Recovery Act funding to seven states and territories under their State Energy Programs (“SEPs”). Here is how the funds will be used in Colorado, Delaware, Indiana, Louisiana, Massachusetts, Pennsylvania, and Puerto Rico:
Colorado will use its SEP funds to remove financial barriers to the rapid acceleration of renewable energy and energy efficiency projects. Colorado will also help state agencies cut their energy use, in addition to significantly expanding an existing rebate and grants program for renewable energy projects. After demonstrating success in the execution of its plan, Colorado will receive additional funds of over $24 million, for a total of more than $49 million.
Delaware will use its SEP funds to help finance energy efficiency measures in homes, small businesses, commercial buildings, and manufacturing facilities. Delaware will also offer additional rebates for solar photovoltaic and solar hot water systems, small wind applications, and geothermal systems for buildings. After demonstrating success in the execution of its plan, Delaware will receive additional funds of over $12 million, for a total of more than $24 million.
Indiana will use its SEP funds to offer financial assistance for the deployment of energy efficient technologies and to finance training programs and educational outreach about the merits of energy conservation. After demonstrating success in the execution of its plan, Indiana will receive additional funds of over $34 million, for a total of more than $68 million.
Louisiana will use its SEP funds to support energy efficiency measures in commercial buildings, as well as new and existing homes. Louisiana will also finance energy efficiency retrofits for government buildings and will encourage the use of efficient street lighting. After demonstrating success in the execution of its plan, Louisiana will receive additional funds of over $35 million, for a total of almost $72 million.
Massachusetts will use its SEP funds to promote energy efficiency statewide, finance energy efficiency upgrades of public facilities, and facilitate the demonstration of energy efficiency solutions. After demonstrating success in the execution of its plan, Massachusetts will receive additional funds of over $27 million, for a total of almost $55 million.
Pennsylvania will use its SEP funds to help finance clean energy projects initiated by businesses, nonprofit organizations, universities, local governments, and utilities, in addition to establishing a revolving loan fund aimed at facilities projects, resource efficiency, and clean energy technologies. After demonstrating success in the execution of its plan, Pennsylvania will receive additional funds of almost $50 million, for a total of almost $100 million.
Puerto Rico will use its SEP funds to provide financial assistance for private sector energy projects, as well as for building retrofits in both the public and private sectors. Puerto Rico will also support the revision of building codes, the switch to more energy efficient traffic lights, and the establishment of an education and mass media outreach program. After demonstrating success in the execution of its plan, Puerto Rico will receive additional funds of over $18 million, for a total of over $37 million.
Show me the Money: Recovery Act Finance Opportunities Conference
On July 17, 2009, the Puget Sound Regional Council hosted a Regional American Recovery and Reinvestment Act Coordination meeting. At this meeting, there was a presentation on Bond Financing, Loan Guarantees, and Tax Credits plus a discussion on monetizing energy efficiency savings.
In case you missed this meeting, I want you to be aware of a couple of resources.
First, on July 31, 2009, there is a workshop regarding Recovery Act Finance Opportunities in Washington. The workshop will be hosted by the Washington Department of Commerce (formerly the Department of Community Trade and Economic Development or CTED) and held in Bellevue, and you can register here.
Second, our tax group has issued an informative, yet concise, alert regarding the grant in lieu of the production tax credit (available here).
SHOW ME THE MONEY:Funding of $85 million for Algal and Advanced Biofuels
The U.S. Department of Energy (“DOE”) today announced Recovery Act funding of up to $85 million over a three year period for the development of algae-based biofuels and advanced, infrastructure-compatible biofuels. DOE wants leading scientists and engineers from universities, private industry, and government to collaborate in developing advanced biofuels and a thriving domestic bio-industry. Examples of advanced biofuels include green aviation fuels, green gasoline, and green diesel from a variety of biomass feedstocks.
The DOE will award between $25 million and $50 million to one or two teams that develop cost-effective algae-based biofuels. The remaining $35 million will be awarded to one team that can use the existing infrastructure to produce, distribute and transport algae-based biofuels.
Only teams may apply and applications are due September 14, 2009. No letters of intent are required.
Show Me the Money:$300 Million Rebate for Purchases of Energy Efficient Appliances
U.S. Department of Energy (DOE) Secretary Steven Chu today announced the availability of nearly $300 million in funding from the American Recovery and Reinvestment Act for state-run rebate programs for consumer purchases of new ENERGY STAR® qualified home appliances.
The new funding will be awarded according to a formula to states and territories that submit a plan specifying which ENERGY STAR appliance categories will be included in the program, the amount of the rebate level and other information. States and territories must first file an initial application expressing their intent to participate by August 15, 2009, followed by a full application by October 15, 2009. States and territories will receive 10% of the funds after submitting the initial application with the balance awarded after their program plans are approved. DOE anticipates that a vast majority of funding will be awarded by November 30, 2009. The complete Funding Opportunity Announcement, under number DE-FOA-000011.
Treasury Issues Guidance on Applications for Grants in Lieu of the ITC and the PTC
The American Recovery and Reinvestment Act of 2009 (ARRA), which was enacted in February, permits an applicant to receive a grant from Treasury in lieu of claiming investment tax credits (ITCs) or production tax credits (PTCs).
Today the U.S. Treasury Department issued much-anticipated guidance concerning applications to receive cash grants in lieu of claiming income tax credits for certain renewable energy projects. Although the guidance includes a sample application form, the U.S. Treasury has stated that it will not accept applications until August 1.
If you have questions about today's Treasury Department guidance and grants in lieu of ITCs or PTCs, contact:
Chris Heuer at ckheuer@stoel.com
Greg Jenner at gfjenner@stoel.com
Carl Lewis at cslewis@stoel.com
Kevin Pearson at ktpearson@stoel.com
Adam Kobos at ackobos@stoel.com
Show Me the RMBs: Analysis of Foreign Investment Opportunities in China's Stimulus Package
Stoel Rives attorneys Geoff Revelle and Jerry Chiang have written a detailed analysis of how foreign investors and companies can take advantage of China’s $4 trillion RMB stimulus package. Enacted in November 2008, the package focuses on 10 sectors of the Chinese economy, including rural infrastructure and health care, with the goals of creating jobs and increasing China’s GDP.
Revelle and Chiang note that while the main beneficiaries of the stimulus funding are government-owned or privately-owned Chinese companies, opportunities for foreign companies will still emerge in areas such as high-tech products and value-added services that Chinese firms cannot provide. In his analysis, Revelle provides an overview of investing in China, a review of the major sectors of the Chinese economy targeted by the stimulus package, and best practices recommendations for foreign companies interested in China's stimulus funding.
Revelle has also prepared a PowerPoint on the topic, which can be found at http://www.stoel.com/showarticle.aspx?Show=5678.
Show me the Money: Washington Regional Recovery Act Meetings
For those of you interested in Stimulus Funding for your Renewable Energy or Clean Tech projects, I will be attending most of the following Prosperity Partnership’s Regional ARRA Coordination meetings.
The meetings are located at the Puget Sound Regional Council's meeting rooms at 1011 Western, Suite 500 in Seattle, WA.
- July 17 from 2-4 pm - Presentations regarding Recovery Act Bond Financing, Loan Guarantee & Tax Credits
- August 7, 2-4 pm – Presentations by Departments of Labor and Agriculture
- August 14, 2-4 pm – Presentations by Department of Education, & Onvia
- September 11, 2-4pm – Accountability, Transparency and Reporting Workshop
- September 25, 2-4 pm – “Share Your Project Session,” Part 2
The Prosperity Partnership also has a nice Regional ARRA Coordination website available here: http://prosperitypartnership.org/recovery.htm The Prosperity Partnership has also published a helpful guide: “Basic Introduction to Energy-Related ARRA Funding Opportunities”
DOE Announces $59 million in Conditional Loan Guarantees
On July 2, 2009, the Department of Energy ("DOE") announced $59 million in conditional loan guarantees in the form of $16 million for a wind turbine assembly plant and $43 million for a 20 megawatt flywheel energy storage plant.
Nordic Windpower, USA has been conditionally offered a $16 million loan to support the tooling and commercial-scale set up of its assembly plant in Pocatello, Idaho. This assembly plant produces one megawatt two blade turbines which are 10% less costly to manufacture, install, operate, and maintain than competing systems.
Beacon Power was conditionally offered a $43 million loan to support the construction of a 20 megawatt flywheel energy storage plant in Stephentown, New York. The flywheel system is utilizing a newly developed technology to provide frequency regulation services by absorbing and discharging energy to maintain the consistency of power on the electric grid.
Prosperity Partnership Issues a Guide to Recovery Funds
The Prosperity Partnership, a coalition of over 300 government, business, labor and community organizations from King, Kitsap, Pierce, and Snohomish counties in the state of Washington, has developed a beginner’s guide to the Recovery Act entitled: “A Basic Introduction to Energy-Related ARRA Funding Opportunities.” The goal of the guide is to help local (i.e. Washington state) entities identify and apply for ARRA funding opportunities, especially competitive grants or contracts. The focus of the guide is on energy-related funding opportunities, and contains useful information describing the process for submitting applications for federal and Washington state funds.
You can download the guide at http://prosperitypartnership.org/recovery/PP-ARRAGuide.ppt.
Show Me the Money: $153 Million for Seven States
U.S. Department of Energy Secretary Steven Chu today announced more than $153 million in Recovery Act funding to support energy efficiency and renewable energy projects in Arkansas, Georgia, Kentucky, Mississippi, Montana, New York, and the U.S. Virgin Islands. With today's announcement, these states and territories will now have received 50% of their total Recovery Act State Energy Program (“SEP”) funding. The initial 10% of total funding was previously available to states to support planning activities; the remaining 50% of funds will be released once states meet reporting, oversight, and accountability milestones required by the Recovery Act. Transparency and accountability are important priorities for SEP and all Recovery Act projects. Throughout the program's implementation, DOE will provide strong oversight at the local, state, and national level, while emphasizing with states the need to quickly award funds to help create new jobs and stimulate local economies. For more information, see http://apps1.eere.energy.gov/news/progress_alerts.cfm/pa_id=196
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.
SHOW ME THE MONEY: $4.15 Billion Available for Smart Grid Projects
On June 25, 2009, the Department of Energy (“DOE”) issued a Funding Opportunity Announcement (“FOA”) to deploy over $4.15 billion from the American Recovery and Reinvestment Act (“Recovery Act”) to be used to fund smart grid projects. These funds are being deployed through two FOAs. The first FOA provides $3.4 billion to support the Smart Grid Investment Grant (“SGIG”) program and is related to projects that further one or more smart grid functions as listed in Section 1306(d) of the Energy Independence and Security Act of 2007 (“EISA”). The second FOA provides $615 million to support the Smart Grid Demonstration Program (“SGDP”) and is related to projects that demonstrate new and more cost-effective smart grid technologies.
For more information, see our latest client alert available by clicking here.
DOE Announces $154 million in Funding for State Energy Programs
Yesterday, the Department of Energy (“DOE”) announced more than $154 million in Recovery Act funding to four states for their State Energy Programs (“SEPs”). The funds were awarded to California, Missouri, New Hampshire, and North Carolina. The funding is to be provided in two stages to the four states with the second stage requiring successful performance at the first level. The funding is to be utilized in the areas of energy efficiency, workforce training, education and related programs.
California will use its SEP funds to finance a statewide retrofit program, provide clean energy to buildings and facilities, and develop a public education and outreach program focusing on the advantages of energy efficiency. In addition, California will use its SEP funds to further develop a green workforce in the areas of energy efficiency and clean energy. After demonstrating success in the execution of its plan, California will receive additional funds of more than $113 million, for a total of $226 million.
Missouri will use its SEP funds to increase energy efficiency through various measures, including the expansion of existing home efficiency programs, building energy codes, and training programs. Missouri will also examine its most energy-intensive industrial/manufacturing sectors for energy-saving opportunities and will increase energy efficiency through a program that may include energy audits, rebates, and low-interest loans. After demonstrating success in the execution of its plan, Missouri will receive more than $28.6 million of additional funds, for a total of over $57 million.
New Hampshire will use its SEP funds to advance energy efficiency and renewable energy through building codes, competitive loans and grants, and financial and technical assistance to businesses and other institutions. New Hampshire will also support energy efficiency upgrades to colleges, universities, and state-owned buildings. After demonstrating success in the execution of its plan, New Hampshire will receive more than $12 million of additional funds, for a total of over $25.8 million.
North Carolina will use its SEP funds to promote energy efficiency and renewable energy through competitive grants, revolving loans, and education and training programs designed to encourage investment in energy-related technologies. The state will also establish a training program in its community colleges and universities to prepare workers for the green economy. After demonstrating success in the execution of its plan, North Carolina will receive $38 million of additional funds, for a total of $76 million.
U.S. Department of Labor Announces US $500M For Green Job Training
U.S. Dept of Labor announced five grant competitions this week, totaling US $500 million, to fund projects out of Recovery funds that prepare workers for green jobs in the energy efficiency and renewable energy industries. Four of the competitions are designed to serve workers in need of training through various national, state and community outlets. These include Energy Training Partnership Grants, Pathways Out of Poverty Grants, State Energy Sector Partnership and Green Capacity Building Grants. The fifth competition, for State Labor Market Information Improvement Grants, will fund state workforce agencies that will collect, analyze and disseminate labor market information and develop labor exchange infrastructure to direct individuals to careers in green industries. See: link to DOL page: http://www.doleta.gov/grants/find_grants.cfm
Show me the Money: Mandatory Registrations to be Eligible for Stimulus Funding
In general, parties that are considering applying for Stimulus Act funding for their project must preregister at the following websites:
- Applicants must obtain a Dun and Bradstreet Universal Numbering System number (DUNS)
DUNS website: http://www.dnb.com/US/duns_update/ - Applicants must register with the Central Contractor Registration (CCR)
CCR website: http://www.ccr.gov/ - Applicants must register with FedConnect to submit their application.
FedConnect website: www.fedconnect.net
Numerous parties have reported that these websites may take several days to process registration requests. As such, I recommend that you register immediately if you are considering federal funding as a component of your project.
If you have trouble completing your registration in time for an application deadline, please use the following phone numbers to inquire about your registration status:
- DUNS Customer Assistance: 1-800-234-3867
- CCR Assistance Center: 1-888-227-2423
- FedConnect Support: 1-800-899-6665
Show me the Money: $57 million Deployed to 30 Biomass Projects
On June 11, 2009, the Department of Agriculture ("USDA") announced that thirty projects, located in fourteen states, would receive $57 million in Recovery Act funding. Of these funds, $49 million will be for wood-to-energy grants and $8 million is for biomass utilization.
These funds will serve two important objectives. First, the funds will promote the development of biofuels from wood and stimulate renewable energy infrastructure. Second, the projects will create a market for low value woody biomass that would otherwise constitute fuel for wildfires.
For information about specific projects, please call the United States Forest Service or go to http://fs.usda.gov
Show me the Money: USDA funded Research for Small Businesses
The Department of Agriculture ("USDA") is now accepting proposals for its Small Business Innovation Research Program ("SBIR"). SBIR has $18.5 million available to fund research projects that address important problems facing American agriculture. Research areas include, but are not limited to:
- Biofuels and biobased products;
- Air, water, and soils;
- Rural development;
- Aquaculture; and
- Animal Manure management
Individual awards can be as high as $90,000 and proposals are due September 3, 2009. For more information click here.
Click here for more information on USDA funding opportunities.
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.
Show me the Money: Carbon Capture and Benficial Carbon Dioxide Use
On June 8, 2009, the Department of Energy (“DOE”) issued a Funding Opportunity Announcement (“FOA”) to deploy over $1.4 billion from the American Recovery and Reinvestment Act (“Recovery Act”) to be used to lower our nation’s carbon emissions. The FOA will support projects in two areas: (1) the capture and sequestration of carbon dioxide emissions from industrial sources, and (2) demonstration of innovative concepts for beneficial CO2 use.
Applications under this FOA are Due August 7, 2009.
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: $24 million Funding Opportunity for Wind Energy Research and Development
On June 2, 2009, the Department of Energy ("DOE") issued a Funding Opportunity Announcement ("FOA") providing $24 million for the development of consortia between universities and industry to focus on critical wind energy challenges.
DOE intends on awarding two to three grants of $8-12 million. The grants will be used to address two areas:
- Partnerships for Wind Research and Turbine Reliability. Universities in wind resource areas are encouraged to apply with industry partners to study major challenges facing today's wind industry. DOE is highly encouraging research in turbine reliability, but projects are eligible if they meet one or more challenges described in the 20% Wind Energy by 2030 report.
- Wind Energy Research & Development. Universities are encouraged to apply with industry partners for grants to fund R&D to advance material design, performance measurements, and analytical models related to wind energy development. The goals of this research shall be to improve power systems operations, wind turbine and/or component manufacturing, and interdisciplinary systems integration.
Applicants interested in either area must file a letter of intent by June 16, 2009 and FOA applications are due by July 29, 2009.
*****UPDATE******
On June 19, 2009, DOE announced an extension to the deadline for submittal of a letter of intent for this program. Letters of intent must now be submitted by June 29, 2009. Applications are due on July 29, 2009.
Show me the Money: $350 million in Stimulus Funds Available Now for Geothermal Projects
On May 27, 2009, President Obama announced that the Department of Energy ("DOE") would deploy $350 million from the American Recovery and Reinvestment Act ("Recovery Act") to be used to expand development, deployment, and use of geothermal energy throughout the United States. Four recent DOE Funding Opportunity Announcements ("FOAs") have been issued in conjunction with this announcement. The recently announced Recovery Act funding will support projects in five areas: (1) geothermal demonstration projects, (2) enhanced geothermal systems ("EGS") research and development, (3) innovative exploration techniques, (4) the creation of a national geothermal data system and a resource assessment and classification system, and (5) ground source heat pumps.
For more specific information, see this alert
Show Me the Money: $117.6 million in Stimulus Funds Available Now for Solar Energy
On May 27, 2009, President Obama announced that the Department of Energy ("DOE") is to provide $117.6 million to support the widespread commercialization of clean solar technologies and to scale up U.S. solar manufacturing and production. The funds are intended to promote partnerships between DOE's national laboratories, universities, local government, and the private sector to promote and improve the U.S. solar industry. The DOE issued two funding opportunity announcements ("FOA") for high-penetration solar deployment and market transformation and one program announcement related to concentrated solar power research and foundational photovoltaics.
For more specific information, see this recent alert.
IRS Provides Guidance on Electing ITC in Lieu of PTC
On Friday, June 5, the Internal Revenue Service issued Notice 2009-52, which provides guidance informing taxpayers how to elect to claim the Investment Tax Credit under IRC § 48 in lieu of the Production Tax Credit under IRC § 45 with respect to qualifying projects. This election was provided for as part of the American Recovery and Reinvestment Act of 2009 (ARRA”).The election to claim the ITC in lieu of the PTC applies to the following types of renewable energy facilities:
Wind; Biomass (both closed- and open-loop); Geothermal; Landfill gas; Trash facilities; Qualified hydropower; and Marine and hydrokinetic.
Notice 2009-52 appears to provide the exclusive means by which taxpayers may make the election. To qualify, a taxpayer must claim the ITC with respect to qualified property that is an integral part of the facility on a completed Form 3468. Form 3468 must be filed with the taxpayer’s income tax return for the year in which the property is placed in service.
A separate election must be made for each qualifying facility.
Observation:This requirement may be very important if the Service defines “qualifying facility” very narrowly. For example, if the qualifying facility for a wind farm is each turbine, the election procedure will be extremely onerous. There is no indication in Notice 2009-52 of how the Service will define a facility for this purpose.
The following information must be provided with each election:
1. Name, address, taxpayer ID number, and telephone number of the taxpayer.
2. For each qualified investment credit facility:
(i) A detailed technical description of the facility, including generating capacity.
(ii) A detailed technical description of the energy property placed in service during the taxable year as an integral part of the facility, including a statement that the property is an integral part of such facility.
(iii) The date that the energy property was placed in service.
(iv) An accounting of the taxpayer’s basis in the energy property.
(v) A depreciation schedule reflecting the taxpayer’s remaining basis in the energy property after the energy credit is claimed.
3. A statement that the taxpayer has not and will not claim a grant under Section 1603 of ARRA for property for which the taxpayer is claiming the energy credit.
4. A declaration, applicable to the statement and any accompanying documents,
signed by the taxpayer, or signed by a person currently authorized to bind the taxpayer
in such matters, in the following form:
Under penalties of perjury, I declare that I have examined this statement, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this statement are true, correct, and complete.
Observation: The Notice does not address what constitutes what property will be considered “integral” to a qualified facility. Presumably, this will be addressed in subsequent guidance.
Finally, the Notice requires that the taxpayer making the election retain adequate books and records, including the information required to be provided by the Notice and all supporting documentation.
Observation: The Notice is focuses on the procedural aspects of the PTC to ITC election. It provides virtually no guidance on grants in lieu of the ITC under Section 1603 of ARRA, and offers little in the way of substantive guidance. Treasury is expected to issue such substantive guidance on these and other issues in the coming months.
Please contact your favorite Stoel Rives attorney with any questions.
$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.
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.
UPDATE -- Deal Reported Among Senate Democrats
Within the last hour, it is being reported that Senate Democrats have reached an agreement with certain Republican Senators and the White House on the outlines of a compromise stimulus bill that can pass the Senate. Although details are sketchy, apparently WH Chief of Staff Rahm Emanuel met with Senate Democratic leaders and swing Republicans to hammer out the agreement. It is being suggested that the bill, in its altered form, could be passed as early as tonight (Friday).
The Senate adjourned last evening without taking final action on the stimulus bill. Senate leadership has speculated publicly that they currently do not have sufficient votes to pass the measure in its current form.
A group of 12 Senators -- Democrats and Republicans -- led by Susan Collins (R-ME) and Ben Nelson (D-NE) -- have been working behind the scenes on an alternative proposal to address many concerns expressed by members. This effort reportedly would strip as much as $100 billion from the bill. While the group has, apparently, found it difficult to achieve a consensus on the proposal, the leadership decided it was important to give the group more time to work rather than continue floor debate.
Majority Leader Harry Reid has stated that the Senate would reconvene on Saturday morning. Saturday sessions are fairly unusual and extremely unpopular among members. As a result, it may be difficult for the Leader to make that happen.
