My partner Seth Hilton will be presenting on Tuesday March 1st on Tradable Renewable Energy Credits in California.

Tradable Renewable Energy Credits in California
Tuesday, March 1 at 12:00 p.m. CST/ 10:00 a.m. PST

In January, 2011, the California Public Utilities Commission lifted its moratorium on the use of Tradable Renewable Energy Credits for compliance

The California Renewable Energy Action Team’s (REAT) final Best Management Practices and Guidance Manual for Desert Renewable Energy Projects is now available. The Manual was adopted by the California Energy Commission on December 15, 2010. The final version posted online last week includes the minor additions from the December 15 meeting.

The REAT is made up of the California Energy Commission, California Department of Fish and Game, U.S. Fish and Wildlife Service, and the U.S. Department of Interior Bureau of Land Management. The REAT has the task of helping accelerate the permitting of renewable energy facilities in the California Mojave and Colorado Deserts, while minimizing environmental impacts and conserving natural resources in these areas. This will facilitate California’s larger goals of generating 33% of the state’s electricity from renewable sources by 2020. For more background information on the REAT and Executive Order S-14-08, creating the Team, see our previous legal alert

 

The REAT is preparing a Desert Renewable Energy Conservation Plan for the California Mojave and Colorado Deserts ecological areas. The Best Management Practices and Guidance Manual provides interim guidance to facilitate renewable energy during preparation of the comprehensive Conservation Plan. The Manual is designed to provide guidance to renewable energy developers on designing and siting renewable energy projects in these desert areas. The Manual’s stated goals also include assisting agencies in reviewing and permitting renewable energy projects and accelerating environmental review of renewable energy projects, though there is less practical material on these goals.

 

The Manual mainly details actions that should be taken prior to filing an application for a renewable energy project to streamline the permitting process. Many of the recommendations, though, are what savvy developers would strive for in any project:  start coordinating early with agencies with long permitting lead times and provide them with complete materials so the process is not delayed, design and site your project to lessen environmental impacts and make sure it is not in conflict with local requirements, plans, or zoning, and complete your long-lead items in the environmental review process, like season-specific surveys, early. In fact, the Manual states “if the majority of the actions are not addressed it is likely that environmental review and decision-making will take additional time.” While it isn’t groundbreaking advice, it is useful for developers new to California or to serve as a checklist. The Manual, disappointingly (but perhaps not surprisingly) doesn’t provide agencies with any new means to shortcut the laborious permitting process. The main pre-filing recommendations are:Continue Reading Will California’s Best Management Practices and Guidance Manual help streamline renewable energy permitting in the California deserts?

Congress’ experiment with establishing federal siting authority for transmission lines suffered another setback after a Ninth Circuit Court of Appeals decision issued yesterday, February 1, 2011, vacated the Department of Energy’s (“DOE”) 2007 Transmission Congestion Study that had designated national interest electric transmission corridors in mid-Atlantic and Southwestern states. This ruling is the latest of

An entry from our colleague Jake Storms:

While wineries and vineyards have long been moving toward being “green,” several have taken the next step by installing renewable energy generation onsite. One of the most recent is August Cellars, just outside Newberg, Oregon. The winery recently installed a 150-foot-tall, 50-kilowatt wind turbine. August Cellars maneuvered around the somewhat prohibitive cost of the project (between $70,000 and $100,000) by not actually owning the turbine, but instead leases the turbine from a third party with an option to buy.

August Cellars is following in the footsteps of such giants as Constellation Wines, which, in September 2010, announced it would increase its solar photovoltaic (PV) usage to nearly 4MW with new installations at its Estancia, Ravenswood, and Clos du Bois wineries in California. These systems would expand on the company’s already existing use of solar PV at its Gonzales winery. Constellation will own the systems and take advantage of the tax credits. Once completed, the installations will cover nearly 100% of the energy needs of Estancia and Ravenswood, 75% of Clos du Bois, and 60% of Gonzales and is projected to save the wine giant nearly $1 million annually from reduced energy costs.

The move by wineries toward renewables is not merely a “West Coast thing” either. Red Caboose Winery, a 10,000-case rural winery located in Meridian, Texas, recently released a statement that it would be using a USDA Rural Energy for America Program (REAP) grant of $15,617 to help install a solar PV system. According to the owners, the new system will allow the winery to have a net annual energy consumption of zero.Continue Reading Renewable Electricity and Wine – A Perfect Pairing

A legal update from our colleague Seth Hilton:

Ten months after initially authorizing the use of tradable renewable energy credits (TRECs), the California Public Utilities Commission (CPUC) today lifted its moratorium on approval of TREC transactions. CPUC Dec. 11-01-025. Today’s decision, however, retains restrictions on TREC transactions that could limit the amount of out-of-state

Yesterday, December 16, 2010, the Federal Energy Regulatory Commission (FERC) conditionally approved a proposal by the Midwest Independent Transmission System Operator (MISO) that significantly changes how large transmission upgrades are funded across the MISO region.

MISO’s proposal creates a new category of transmission projects called Multi-Value Projects (MVPs) for upgrades that are determined to enable