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On June 8, 2010, Utah Governor Gary Herbert launched a formal planning process for the Utah Energy Initiative.  Over the past several months the members of the Utah Energy Initiative Task Force and various subcommittees have conducted public hearings and a series of meetings to gather input for purposes of drafting a 10-year strategic energy plan.  The Energy Initiative Task Force issued a draft report on November 3, 2010.  Written comments on the draft report are due by November 10, 2010 and should be submitted to abuchholz@utah.gov.  A public hearing at which public comment will be accepted will be held on November 10, 2010 from 5:00 to 7:00 p.m., at the Senate Building (State Capitol complex east building), Room 215, Salt Lake City, Utah.

The energy plan outlined in the report contains the following themes:

  1. Economic Development and Energy Jobs
  2. Energy Development and Environment
  3. Energy Efficiency, Conservation and Demand-Response
  4. Transportation and Air Quality
  5. Transmission, Infrastructure and Transportation
  6. Developing and Applying Technology and Science

Continue Reading Utah Energy Initiative Task Force Issues Draft Plan

On August 12, 2010, Energy Secretary Steven Chu announced a new loan guarantee solicitation for renewable energy manufacturing projects.  The Commercial Technology Renewable Energy Manufacturing Projects solicitation (the "Solicitation") is supported by the American Recovery and Reinvestment Act (the "Recovery Act") through Section 1705 of the Loan Guarantee Program and is focused primarily on providing new green energy jobs and the deployment of renewable energy technologies that reduce greenhouse gas emissions.

The solicitation specifically identified "Eligible Projects" to include renewable energy manufacturing projects or facilities located in the United States that:

  • Manufactures Commercial Technology products that support the generation of electricity or thermal energy from renewable resources;
  • Has Project Costs greater than seventy-five million dollars ($75,000,000);
  • Is able to obtain a credit rating equivalent of "BB" or better from Standard & Poor’s or Fitch, or "Ba2" or better from Moody’s, as evaluated without the benefit of any DOE guarantee or any other credit support;
  • Will create or retain jobs in the United States; and
  • Otherwise meets all applicable requirements of Title XVII, including Section 1705, the Solicitation, including all attachments and all applicable requirements of the Recovery Act.

The Solicitation also provided, for illustrative purposes, examples of the types of Eligible Projects that may qualify, which include the following:

  • wind energy component or systems manufacturing facilities;
  • solar photovoltaic (PV) component or system manufacturing facilities;
  • concentrated solar power component or system manufacturing facilities;
  • hydropower component or system manufacturing facilities;
  • geothermal component or system manufacturing facilities;
  • other geothermal power cycle component or system manufacturing facilities; or
  • ocean wave, tidal, and river current (e.g. hydrokinetic) component or system manufacturing facilities

Continue Reading Clean Energy Jobs Focus of New Manufacturing Solicitation Issued by the DOE

On July 28, 2010, the Colorado Public Utilities Commission (the "Commission") issued a Notice of Proposed Rulemaking ("NOPR") regarding rules related to electric transmission facilities planning (the "Proposed Rules").  The Proposed Rules are based, in large part, on the input provided by all interested parties in the workshops and written comments in connection with Docket Nos. 08I-227E and 09M-616E and in response to certain legislative and policy changes impacting transmission planning significantly.  In response to these legislative and policy changes, some of the key issues that need to be addressed in transmission planning include transmission-related challenges to satisfying State of Colorado’s renewable energy portfolio standard for electricity generation, distributed generation set-asides, and requirements that the Commission give the fullest possible consideration to cost-effective implementation of new clean energy and energy efficient technologies.  In implementing the Proposed Rules, the Commission recognizes that "both state-wide coordinated transmission planning and a meaningful involvement in such planning by stakeholders and the Commission are essential."  NOPR at 2-3.  In addition, the Commission concluded that "an effective transmission planning approach needs to be long-term and pro-active rather than just-in-time and reactive."

Under the Proposed Rules, the Commission will rely on the Colorado Coordinated Planning Group ("CCPG") as the primary means by which jurisdictional electric utilities will develop the ten-year transmission plans and the twenty-year conceptual plans contemplated under the rules, in consultation with other CCPG members and stakeholders.  Overall, the Proposed Rules set forth the general objectives associated with the biennial filing of the following:  Continue Reading Colorado Public Utilities Commission Proposes New Rules Governing Transmission Planning

U.S. Energy Secretary Steven Chu recently announced conditional commitments to provide loan guarantees in connection with two geothermal projects located in Oregon and Nevada.  Specifically, on June 10, 2010, Secretary Chu announced that the Department of Energy offered a $102 million conditional commitment for a loan guarantee to U.S. Geothermal, Inc. to construct a 22 megawatt

The National Renewable Energy Laboratory ("NREL") recently announced the release of the "Western Wind and Solar Integration Study"  (the "WWSIS"), which investigated the operational impact of up to 35% energy penetration of wind, photovoltaic, and concentrating solar power on the power system operated by the WestConnect group of utilities in Arizona, Colorado, Nevada, New Mexico and Wyoming.  The WestConnect group includes the following:  Arizona Public Service, El Paso Electric Co., NV Energy, Public Service of New Mexico, Salt River Project, Tri-State Generation and Transmission Cooperative, Tucson Electric Power, Western Area Power Administration, and Xcel Energy.

The WWSIS was prepared by GE Energy and conducted over two and a half years by a team or researchers in wind power, solar power, and utility operations.   The WWSIS was designed to answer questions that utilities, Public Utility Commissions, developers, and regional planning organizations had about renewable energy use in the West, such as:

  • What is the operating impact of up to 35% renewable energy penetration and how can this be accommodated?
  • How does geographic diversity help to mitigate variability?
  • How do local resources compare to remote, higher quality resources delivered by long distance transmission?
  • Can balancing area cooperation mitigate variability?
  • How should reserve requirements be modified to account for the variability in wind and solar?
  • What is the benefit of integrating wind and solar forecasting into grid operations?
  • How can hydro generation help with integration of renewables?

Continue Reading Release of the “Western Wind and Solar Integration Study”

On March 12, 2010, the Arizona Game and Fish Department ("AGFD") released finalized guidelines for solar development in Arizona ("Solar Guidelines"), the objective of which "is to assist energy developers in identifying potential impacts to wildlife and wildlife habitats from their proposed development and potential alternatives to avoid, minimize, and/or mitigate for these negative impacts."  The AGFD encourages local governments and permitting authorities to integrate the recommended study proposals described in the Solar Guidelines.  The document is organized around five basic project development steps:

  1. Wildlife Protection Regulations
  2. AGFD Regulations and Review
  3. Gather preliminary information and conduct site screening
  4. Identify potential impacts to wildlife
  5. Mitigation

The Solar Guidelines were compiled by the AGFD employees and have not undergone any external public review or input from the solar energy industry.  It should be noted that some of the information contained in the Solar Guidelines was taken from the AGFD’s wind guidelines.  In light of the fact that county officials often defer to the AGFD in matters of wildlife concerns, special attention should be given to the section of the Solar Guidelines focused on "Avoiding or Minimizing Impacts" and the recommendations contained therein.Continue Reading Solar Development Guidelines Released by Arizona Game and Fish Department

Federal tax benefits, such as the Section 1603 Grant, investment tax credits and production tax credits, continue to be an important driver in financing renewable energy projects.  Several of my colleagues will be discussing these tax benefits and other incentives related to project financing in a webinar hosted by Infocast on Wednesday, March 31, 2010 at 1:00

The Colorado Division of Property Taxation will hold an important open public meeting Thursday, January 14, 2010, to discuss the "tax treatment of transmission lines".  Details of the proposed options will be posted on the Division’s website under the "state assessed tab."  In the notice provided by the Division, the agenda for the meeting