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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…

The Wyoming Game and Fish Department ("WGFD") has extended the public comment period on a draft document:  "Wind Energy Issues:  Impacts and Mitigation for Wildlife in Wyoming" from December 18, 2009 to February 1, 2010.  The document provides recommendations for assessing impacts to wildlife from wind energy projects, for collecting data, and for mitigating effects on…

On December 7, 2009, Energy Secretary Steven Chu announced the issuance of a final rule amending the October, 2007 Final Regulations implementing the Loan Guarantee Program under Section 1703 of Title XVII of the Energy Policy Act of 2005 (the "Section 1703 Program").  The amendments implemented through the final rule were first identified in a Notice of Proposed Rulemaking and Opportunity for Comment  issued by the Department of Energy ("DOE") on August 7, 2009.  The comment period for the proposed amendments ended on September 22, 2009; the comments received by the DOE from the industry and other interested parties were largely supportive of the proposed amendments.

In a nutshell, the amendments to the regulations outlined in the final rule are designed to:

  • provide flexibility in the determination of an appropriate collateral package to secure the guaranteed loan obligations;
  • eliminate the requirement that the Secretary receive a first priority lien on all project assets as a condition for obtaining the loan guarantee;
  • facilitate collateral sharing and related intercreditor arrangements with other project lenders; and
  • provide a more workable interpretation of certain statutory provisions regarding DOE’s treatment of collateral that is more consistent with the intent and purposes of Title XVII.

Continue Reading U.S. Department of Energy Announces Final Rule Amending Regulations for Loan Guarantee Program

On November 18, 2009, the Wyoming interim Joint Revenue Committee (the "Committee") considered two bills, each of which proposed to tax wind generated electricity.  Neither bill passed the committee on tie votes of 6-6 (4-4 House members and 2-2 senate members).  One of the bills sponsored by Sen John Schiffer, R-Kaycee, chairman of the Committee (legisweb.state.wy.us/interimCommittee/2009/10LSO-0126w4.pdf) proposed a tax of $.0010 upon each kilowatt hour for electricity produced and sold in the State of Wyoming.  An exemption was provided for electricity produced for the personal consumption of the producer.  A power producer using coal or other fuels would break even on the generation tax through a credit equal to the severance tax portion of their electricity production costs.  The proposed tax works out to be an approximately 5 percent tax on generation.  The second bill considered by the Committee was sponsored by Rep. David Miller, R-Riverton, (legisweb.state.wy.us/interimCommittee/2009/10LSO-0062w2.pdf).  Rep. Miller’s bill was similar to Sen. Schiffer’s bill, but would only provide the credit to traditional power producers if they agree to use 90 percent of the credit on electricity generation or transmission projects and put the other 10 percent into the state’s low income energy assistance program.  Proponents of the proposed tax cited a number of factors in favor of the bill including the fact that wind projects should contribute to state and local governments equally with other energy industries.  For example, Wyoming imposes a severance tax on natural resources, which includes (approximately) a 6 percent tax for oil and gas and a 7 percent tax for coal.  Opponents of the tax bills, including the group of wind energy developers represented by the Wyoming Power Producers Coalition, argued, among other things, that (i) wind energy projects already pay property taxes and provide other financial benefits to the local communities and (ii) the taxation issue should be studied carefully so as not to discourage wind energy development in Wyoming.Continue Reading Will Wyoming Tax Electricity Generated From Wind Energy Projects?

On October 12, 2009, the Public Service Commission of Utah ("PSC") joined the ranks of several other states in the west, including  Oregon, when it established a docket to investigate whether, and the extent to which, certain third-party arrangements for renewable energy generation are subject to the PSC’s jurisdiction.   www.psc.utah.gov/utilities/misc/miscindx/0999912indx.html,  Pursuant to the notice, the…

Next week, the Anaheim Convention center hosts Solar Power International, which bills itself as ‘North America’s largest business to business solar industry event.’ With over 900 exhibitors (Stoel Rives included) and 25,000 attendees expected, there is no doubt that this conference will be one of the largest and most heavily attended solar industry events…

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…

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))…