Yesterday the EPA released the third major Notice of Violation (“NOV”) against a biofuel producer in the past six months under the Renewable Fuel Standard (“RFS”). The NOV states that EPA has determined that Green Diesel, LLC of Houston, Texas, generated 60,034,033 invalid Renewable Identification Numbers (“RINs’) with a current market value of perhaps $85 million. Coming on the heels of the resolution of the Clean Green Diesel and Absolute Fuels NOVs, this NOV is likely to trigger immediate market reaction.
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Clean Energy Jobs Focus of New Manufacturing Solicitation Issued by the DOE
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
Massachusetts Suspends In-State Requirement for Renewable Energy Generation and Modifies Solar Carve Out
From our colleagues Beverly Pearman and Jeremy Sacks:
Massachusetts Department of Public Utilities (“DPU”) has modified the two programs challenged by TransCanada Power Marketing Ltd. (“TransCanada”) in a federal law suit. TransCanada filed its complaint on April 16, 2010, alleging that portions of the Green Communities Act that were intended to increase in-state renewable energy resources were unconstitutional because they favor Massachusetts producers in violation of the Commerce Clause. The Commerce Clause generally prohibits states from enacting laws that burden out-of-state businesses in order to give a competitive advantage to in-state businesses.
The first modification came in early June as a result of settlement negotiations. Massachusetts modified the Solar Carve-Out program to grandfather in rates for Alternative Compliance Payments (“ACP”) that were contractually committed or renewed before January 1, 2010. ACP are paid by electric companies that do not hold the required amount of Solar Renewable Energy Credits (“SRECs”) that must be produced only by facilities located in Massachusetts. In exchange for this rule change, TransCanada dismissed its claims challenging the Solar Carve Out on June 9, 2010, but continued to press forward with its Commerce Clause challenge to a Request for Proposals for Long-Term Contracts for Renewable Energy Projects (the “RFP”) issued by the Massachusetts Department of Energy Resources (“DOER”) this year.
Zino Green Investment Forum
The ZINO Society, a Seattle-based angel investment group, announced last week that its annual “ZINO Green Investment Forum” would be held on March 4, 2010, at the McKinstry Innovation Center in Seattle. Up to fifteen early-stage companies in “green tech, clean tech, and sustainable products or services” will be selected by the ZINO Green screening board to
News from the Sustainability Front
My partner Eric Grasberger and I were recently interviewed for an article in the Oregon State Bar Bulletin (October 2009) entitled "Advancing the New Economy: Oregon Lawyers Embrace Sustainability," by Barry Woods. The article, which we’ve summarized here, provides an interesting take on how lawyers at Stoel Rives and other law firms are integrating
Six Years, Not Ten–New Time Limits Govern Certain Claims against Designers, Consultants and Contractors
Owners and developers of commercial buildings in Oregon, "green" or otherwise, should be aware that, effective January 1, 2010, the Oregon Legislative Assembly has reduced the time period within which to assert claims against those who performed design, planning, surveying, architecture, engineering, construction, repair, or construction supervision or inspection of or for the building, from
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
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.
Continue Reading DOE Announces $154 million in Funding for State Energy Programs
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
Western Governors Consider Regional and National Polices Regarding Global Climate Change
At the Western Governors’ Association Annual Meeting on June 15, 2009, the Western Governors heard a sobering and candid report from Secretary of Energy Steven Chu, which, at its core, indicated that climate change is real and happening faster than scientists previously warned. According to Secretary Chu, "the news is getting scary . . . but the most scary thing in my mind is the [scientific] observations. People can be entitled to their own opinions, but they are not entitled to their own facts." A few of the observations cited by Secretary Chu included the following:
- Loss of 1/2 of the Northern polar ice cap in the last 10 years
- Sea level rise
- 40% of the British Columbia pine is dead
- Extreme water stress in the Western United States (with exception to the Pacific Northwest) as a result of decreased snow pack and changing weather patterns
Secretary Chu was particularly concerned with the continued melting of the permafrost in the Northern Hemisphere, which he predicted could have "runaway effects" due to the massive release of CO2 and methane from the biomass that has accumulated over time.
President of the World Bank, Robert B. Zoellick, also participated in the discussion on climate change, indicating that the rule making that will be necessary for implementing climate change policies will stay with us for decades and will be some of the "toughest negotiations" he has ever seen. Mr. Zoellick stressed the importance of having the Governors plugged into the rule making process since this will be the framework that the states will have to live with. There was also an acknowledgment among the group that the farmers and ranchers are skeptical about climate change, but that this is a key stakeholder group that needs to be part of the equation. Governor Bill Richardson commented that the key will be the creation of a carbon offset market that will work. Secretary of Agriculture, Tom Vilsack, concurred indicating that a carbon offset market will be critical to the survival of rural communities.