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The 2019-2020 California Legislative Session has reached its first deadline.  February 22, 2019 marked the deadline by which bills could be introduced for the first half of the Legislative Session. Lawmakers will begin Spring Recess April 12 and reconvene April 22.  The last day for bills to be passed out of the house of origin is May 31, 2019.

Below is a list of some of the key bills Stoel Rives’ Energy Team will be monitoring throughout the Legislative Session.  We note that some bills do not contain language beyond the “intent of the Legislature.”  However, we will continue to monitor these bills in case of substantive amendments.  These bills are set forth separately below under the heading “Legislative Intent.”

The majority of the bills introduced this Legislative Session relate in some way to California’s efforts to reduce greenhouse gas emissions and move to cleaner sources of generation, including legislation governing electric vehicles, energy storage, and renewable energy.  A number of bills introduced in February also attempt to address the impacts of wildfires, or to reduce wildfire risk.


ASSEMBLY BILLS

AB 40 (Ting, D)   Zero-emission vehicles: comprehensive strategy.

Status: Introduced December 3, 2018; referred to Committees on Transportation and Natural Resources January 24, 2019.

AB 40 would require by no later than January 1, 2021, the State Air Resources Board to develop a comprehensive strategy to ensure that the sales of new motor vehicles and new light-duty trucks in the state have transitioned fully to zero-emission vehicles, as defined, by 2040, as specified.
Continue Reading Key Energy Related Bills Introduced in the 2019-2020 Legislative Session

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…

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:

  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

Continue Reading Show me the Money: DOE Proposes Amendments to its Loan Guarantee Program

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:

 Continue Reading Show me the Money: $162 million Deployed to Seven State Energy Programs

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…