Renewable + Law

Show Me the Money: $141 Million Awarded Under State Energy Program

dmdubson@stoel.com (Dina Dubson) — Fri, 10 Jul 2009 15:19:41 -0800

From our colleague Christina Asavareungchai:

Today, the Department of Energy announced more than $141 million in Recovery Act funding to six states and territories under its State Energy Program (“SEP”). Here is how the funds will be used in Hawaii, Maine, Nebraska, New Mexico, the Northern Mariana Islands, and Texas:

Hawaii will use its SEP funds to directly finance high-performance buildings, retrofits, and other energy-saving measures, in addition to training professionals in the building and design industry about energy efficiency. After demonstrating success in the execution of its plan, Hawaii will receive additional funds of nearly $13 million, for a total of almost $26 million.

Maine will use its SEP funds to improve energy efficiency across multiple sectors. The funds will facilitate the establishment of more energy-efficient building codes, as well as the expansion of programs that aim to improve the energy efficiency of businesses and homes. After demonstrating success in the execution of its plan, Maine will receive additional funds of more than $13 million, for a total of over $27 million.

Nebraska will use its SEP funds to promote energy efficiency and renewable energy. The state will establish more efficient building energy codes, offer energy efficiency training, and fund programs that offer low-interest loans to the commercial and industrial sector. After demonstrating success in the execution of its plan, Nebraska will receive additional funds of more than $15 million, for a total of over $30 million.

New Mexico will use its SEP funds to offer financial incentives for the purchase of fuel-efficient vehicles, alternative fuels, and investments in related infrastructure. The state will also fund building retrofits, energy audits, the establishment of energy codes, and the expansion of the Weatherization Assistance Program. After demonstrating success in the execution of its plan, New Mexico will receive additional funds of nearly $16 million, for a total of almost $32 million.

The Northern Mariana Islands will use its SEP funds to improve the energy efficiency of its buildings, establish energy efficiency policies, and educate the public about energy efficiency. After demonstrating success in the execution of its plan, the territory will receive additional funds of more than $9 million, for a total of over $18 million.

Texas will use its SEP funds to establish a revolving loan program for improving energy efficiency at public facilities and to offer competitive grants to state agencies, schools, hospitals, and communities for the implementation of renewable energy technologies. Texas will also use its funds to provide training for green jobs and to launch an educational campaign designed to teach the public about the link between energy conservation, reduced emissions, and job creation. After demonstrating success in the execution of its plan, Texas will receive additional funds of $109 million, for a total of almost $219 million.

USDA Small Wind Grants Cover 25% of Costs

jfjacobs@stoel.com (Janet Jacobs) — Fri, 10 Jul 2009 12:07:44 -0800

Farmers, ranchers and rural business owners have until July 31, 2009 to apply for a Rural Energy for America Program ("REAP") grant from the USDA for the purchase and installation of small wind turbines. The grants provide up to 25% of the total installed cost of a small wind turbine system, and together with the Federal Investment Tax Credit ("ITC"), can cover up to 50% of the costs of the system for an eligible candidate. Additional funds may also be available from local utility cooperatives or rural electric associations which give rebates to their members.

Applications must be submitted to local USDA Rural Development offices by July 31, 2009. However, the application itself takes time to complete, and applicants should give themselves 2 weeks to fill it out.

Treasury Issues Guidance on Applications for Grants in Lieu of the ITC and the PTC

whholmes@stoel.com (William H. Holmes) — Thu, 09 Jul 2009 20:34:05 -0800

The American Recovery and Reinvestment Act of 2009 (ARRA), which was enacted in February, permits an applicant to receive a grant from Treasury in lieu of claiming investment tax credits (ITCs) or production tax credits (PTCs).

Today the U.S. Treasury Department issued much-anticipated guidance concerning applications to receive cash grants in lieu of claiming income tax credits for certain renewable energy projects. Although the guidance includes a sample application form, the U.S. Treasury has stated that it will not accept applications until August 1.

Click here to read the full analysis on this guidance including grant details, eligibility and the application process at www.stoel.com.

If you have questions about today's Treasury Department guidance and grants in lieu of ITCs or PTCs, contact:

Chris Heuer at (503... or ckheuer@stoel.com
Greg Jenner at (612... or gfjenner@stoel.com
Carl Lewis at (206) 3... or cslewis@stoel.com
Kevin Pearson at (5... or ktpearson@stoel.com
Adam Kobos at (50... or ackobos@stoel.com

Show Me the RMBs: Analysis of Foreign Investment Opportunities in China's Stimulus Package

whholmes@stoel.com (William H. Holmes) — Thu, 09 Jul 2009 17:38:44 -0800

Stoel Rives attorneys Geoff Revelle and Jerry Chiang have written a detailed analysis of how foreign investors and companies can take advantage of China’s $4 trillion RMB stimulus package. Enacted in November 2008, the package focuses on 10 sectors of the Chinese economy, including rural infrastructure and health care, with the goals of creating jobs and increasing China’s GDP.

Revelle and Chiang note that while the main beneficiaries of the stimulus funding are government-owned or privately-owned Chinese companies, opportunities for foreign companies will still emerge in areas such as high-tech products and value-added services that Chinese firms cannot provide. In his analysis, Revelle provides an overview of investing in China, a review of the major sectors of the Chinese economy targeted by the stimulus package, and best practices recommendations for foreign companies interested in China's stimulus funding.

Revelle has also prepared a PowerPoint on the topic, which can be found at http://www.stoel.com/showarticle.aspx?Show=5678.

Show me the Money: Up to $31 Million for the Building America Partnerhsip

jslaney@stoel.com (John Laney) — Thu, 09 Jul 2009 17:13:19 -0800

On June 29, 2009 the Department of Energy ("DO") issued a Funding Opportunity Announcement to provide up to $31 million in grants to implement the Building America ("BA") program. The BA program is part of DOE's Building Technologies Program, and its long-term goal is to develop cost-effective, production-ready systems in five major climate zones that will result in zero energy homes, which produce as much energy as they use, by 2020. The BA program does not pay for home improvements; rather, it pays for showing the home building industry how to minimize the cost of building or retrofitting with significantly improved energy efficiency.

Today, in response to a question that I submitted, DOE has clarified that multi-family homes could qualify as homes under the BA program.

Our full client alert is available by clicking here.

Show me the Money: Washington Regional Recovery Act Meetings

jslaney@stoel.com (John Laney) — Thu, 09 Jul 2009 14:11:54 -0800

For those of you interested in Stimulus Funding for your Renewable Energy or Clean Tech projects, I will be attending most of the following Prosperity Partnership’s Regional ARRA Coordination meetings.

The meetings are located at the Puget Sound Regional Council's meeting rooms at 1011 Western, Suite 500 in Seattle, WA.

July 17 from 2-4 pm - Presentations regarding Recovery Act Bond Financing, Loan Guarantee & Tax Credits
August 7, 2-4 pm – Presentations by Departments of Labor and Agriculture
August 14, 2-4 pm – Presentations by Department of Education, & Onvia
September 11, 2-4pm – Accountability, Transparency and Reporting Workshop
September 25, 2-4 pm – “Share Your Project Session,” Part 2

The Prosperity Partnership also has a nice Regional ARRA Coordination website available here: http://prosperitypartnership.org/recovery.htm The Prosperity Partnership has also published a helpful guide: “Basic Introduction to Energy-Related ARRA Funding Opportunities”

Show me the Money: Applications Available now for Washington's State Energy Program

jslaney@stoel.com (John Laney) — Thu, 09 Jul 2009 14:03:42 -0800

On July 1, 2009, Washington State’s Department of Community, Trade and Economic Development (“CTED”) issued application guidelines and forms for its State Energy Program (“SEP”) (available by clicking here). The American Recovery and Reinvestment Act of 2009 (the “Recovery Act”) provided $60.9 million in new funding for Washington’s SEP. Subsequently, the Washington Legislature allocated $38.5 million to CTED to administer a loan and grant program for energy efficiency and renewable energy program (see our client alert, available here, regarding the legislative action).

Eligible energy efficiency, renewable energy, and clean energy projects may be eligible for SEP funding between $500,000 and $2 million.

Eligible energy efficiency projects are those that use technologies that have been deployed at commercial scale that result in the reduction in energy consumption through increases in the efficiency of energy use, production, or distribution, and high-efficiency cogeneration. Ineligible projects are those that are eligible for Recovery Act Funding for community wide urban residential and commercial energy efficiency upgrades as described in (i) Chapter 379, Laws of 2009; (ii) Low income weatherization projects and programs which are eligible for funding through the state’s low-income weatherization program; (iii) Loans support to financial institutions for energy efficiency projects as described in Chapter 379, Laws of 2009; (iv) state energy efficient appliance rebates; and (v) green jobs training as described in Chapter 536, Laws of 2009.

Eligible renewable energy projects are those that are located in Washington and use existing commercial scale technologies that generate liquid fuels, process heat or electricity using algae, bark, biodiesel, biomass, biosolids, food waste, fresh water, gas from sewage treatment facilities, landfill gas, geothermal, pulping liquors, sawdust, solar, hydrokinetics, wind, wood chips and various other waste products. Ineligible projects include those that use the following feedstocks: municipal solid waste, wood from old growth forests, and chemically treated wood.

Eligible clean energy innovation projects include are those that offer innovative new technologies or service delivery models for energy efficiency, renewable energy, or other areas of clean energy. Projects must have a solid chance at commercial scale deployment within two to three years. Ineligible projects include carbon sequestration projects, lab scale projects, and those excluded under federal SEP guidelines.

Interested parties must file a notice of intent to apply by July 27, 2009 at 5:00 p.m. Pacific.

Full applications are due on August 17, 2009 at 5:00 p.m. Pacific.

Information workshops will be held on July 13, 14, 15, and 16. Click here for the specific dates and times. I will be attending the July 13 workshop in Everett, WA. An informational webinar will also be held on July 23.

Advanced Biofuel Producer Payments - FY 2009 Deadline Approaching!

dhfrimerman@stoel.com (Debra Frimerman) — Thu, 09 Jul 2009 12:03:20 -0800

Advanced biofuels producers must enroll by August 11, 2009 to be eligible to receive payments from the USDA for FY 2009 production under Section 9005 of the 2008 Farm Bill. Eligible producers of advanced biofuels may receive payments for advanced biofuels produced from October 1, 2008 through September 30, 2009 (FY 2009). $30 million is available for distribution under this program for advanced biofuels producers in FY 2009.

The amount of payments made to individual producers will depend on the number of program participants and the volume of advanced biofuels being produced. Payments will be made in one lump sum to eligible producers after FY 2009. Contact your local USDA Rural Development State Office for application materials or to learn more.

Treasury, Energy Announce More than $3 Billion in Recovery Act Funds for Renewable Energy Projects

bccarter@stoel.com (Blair Carter) — Thu, 09 Jul 2009 11:04:10 -0800

Today, the U.S. Department of the Treasury (the "Treasury") and the U.S. Department of Energy (the "DOE") announced an estimated $3 billion for the development of renewable energy projects around the country. Funded through the American Recovery and Reinvestment Act ("ARRA"), the program will provide direct payments in lieu of tax credits in support of an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

ARRA authorized the Treasury to make direct payments to companies that create and place in service renewable energy facilities beginning January 1, 2009. A company can only apply for payment after the renewable energy property has been placed in service. Previously these companies could file for a tax credit to cover a portion of the renewable energy project's costs; under the new program, applicants would agree to forgo tax credits down the line in favor of an immediate reimbursement of a portion of the property expense. This direct payment program allows for an immediate stimulus in local economies.

In recent years, the tax credit has been widely used. As an example, in 2006, approximately $550 million in tax credits were provided to 450 businesses. However, the rate of new renewable energy installations has fallen since the economic downturn, as projects have had a harder time obtaining financing. The Treasury and DOE expect a fast acceleration of businesses applying for the announced energy funds in lieu of the tax credit.

To expedite implementation of the program, the DOE and Treasury have made the terms, conditions, guidance, and sample application available at www.treas.gov/recovery/1603.shtml. The Treasury and DOE are not accepting applications yet, but these available forms will allow companies to prepare applications and expedite the implementation of the program when the government is ready for submissions on August 1, 2009. The DOE and Treasury have 60 days to process the application once submitted.

TREASURY GUIDANCE -- GRANT IN LIEU OF ITC

gfjenner@stoel.com (Greg Jenner) — Thu, 09 Jul 2009 09:14:14 -0800

UPDATE!!!!!

Just informed by Treasury that guidance will "go live" at noon EDT.

Go towww.treas.gov/recovery/1603.shtml

Nuclear Theory Research Funding Opportunity Announcement

bccarter@stoel.com (Blair Carter) — Wed, 08 Jul 2009 15:20:55 -0800

On June 29, 2009, the Office of Nuclear Physics, Office of Science, and Department of Energy (“DOE”) announced a Funding Opportunity Announcement (“FOA”) providing for $6 million for collaborative research projects between universities, non-profit organizations, and Federally Funded Research and Development Centers, including the DOE National Laboratories, to focus on theoretical research topics of nuclear physics.

DOE intends on awarding two to three topical collaborations starting in Fiscal Year 2010. These topical collaborations will typically be supported at $300,000 to $500,000 per year, although applications with smaller funding requirements will be considered. Each application should specifically address the following:

· The opportunity afforded by the proposed research, its relevance to the Nuclear Science Advisory Committee (“NSAC”) Performance Measures, and opportunities identified in the NSAC long range plan;

· The specific goals of the collaboration, as well as a timeline and milestones for reaching those goals;

· The relevance and impact of this opportunity on experimental nuclear physics; and

· The opportunities for training and placing permanent researchers in nuclear theory.

Applicants interested in this FOA must submit a formal application by September 1, 2009. For more information on applying, go to http://www.science.doe.gov/grants/Colab.html.

DOE Extends Application Deadline for FOA on Combined Heat and Power Technologies

dmdubson@stoel.com (Dina Dubson) — Wed, 08 Jul 2009 12:33:33 -0800

Today, the U.S. Department of Energy (“DOE”) issued a revised Funding Opportunity Announcement (“FOA”) of up to $40 million to speed up the development and implementation of combined heat and power (“CHP”) technologies. The FOA covers large, medium, and small CHP systems and aims to finance research, development, and demonstration of stationary CHP systems that focus on increasing efficiency and reducing greenhouse gas emissions. The FOA intends to facilitate development of technologies that are highly efficient, capable of meeting future emissions requirements, and able to substitute for or reduce natural gas usage. The deadline for applications has been extended to July 21, 2009. For more information on this FOA, go to Grants.gov.

DOE Announces $59 million in Conditional Loan Guarantees

jslaney@stoel.com (John Laney) — Wed, 08 Jul 2009 10:31:29 -0800

On July 2, 2009, the Department of Energy ("DOE") announced $59 million in conditional loan guarantees in the form of $16 million for a wind turbine assembly plant and $43 million for a 20 megawatt flywheel energy storage plant.

Nordic Windpower, USA has been conditionally offered a $16 million loan to support the tooling and commercial-scale set up of its assembly plant in Pocatello, Idaho. This assembly plant produces one megawatt two blade turbines which are 10% less costly to manufacture, install, operate, and maintain than competing systems.

Beacon Power was conditionally offered a $43 million loan to support the construction of a 20 megawatt flywheel energy storage plant in Stephentown, New York. The flywheel system is utilizing a newly developed technology to provide frequency regulation services by absorbing and discharging energy to maintain the consistency of power on the electric grid.

United States Joins the International Renewable Energy Agency

jfjacobs@stoel.com (Janet Jacobs) — Wed, 08 Jul 2009 10:20:30 -0800

The United States officially joined the International Renewable Energy Agency (“IRENA”) last week, increasing the number of countries participating in the organization to 136, including several African countries, the Middle East, Europe, Australia, Greenland, India, Japan, and parts of South America. The new agency will engage governments in making a rapid transition toward using renewable energy in their respective countries.

The United States is also expanding its international efforts north of the border. Last week, DOE hosted the first U.S.-Canada Clean Energy Dialogue Roundtable, with clean energy leaders from private industry and from the U.S. and Canadian governments present, to discuss how the two nations can work together to develop clean energy technologies and combat climate change. Specific areas for further bilateral cooperation under the Clean Energy Dialogue include renewable and energy efficiency technologies, carbon capture and sequestration, and smart grid technologies.

Treasury Guidance -- Grant in Lieu of ITC

gfjenner@stoel.com (Greg Jenner) — Wed, 08 Jul 2009 07:47:44 -0800

UPDATE!!!!!!

We have just been informed that the release of the Treasury guidance for the grant in lieu of ITC has been postponed until tomorrow -- Thursday, July 9. This is being done in order to all ow Treasury to first brief Members of Congress and their staffs on the details of the guidance.

Stay tuned for further updates.

Show me the Money: $10.5 Million for Solar America Cities

jslaney@stoel.com (John Laney) — Tue, 07 Jul 2009 16:42:20 -0800

Today, the U.S. Department of Energy (“DOE”) announced new funds of up to $10.5 million to inform and educate local governments nationwide about solar energy. As part of the Solar America Cities program, a joint effort with 25 cities dedicated to increasing their use of solar energy, the DOE has assembled educational materials about the benefits and value of solar energy. The DOE will now work with outreach organizations to share these materials and tools with local government officials, with the aim of speeding up the implementation of solar energy. The application deadline is October 15, 2009, with selections expected to be announced no later than December 15, 2009.

For more information, click here for our recent Energy Alert.

Treasury Guidance -- Grant in Lieu of ITC

gfjenner@stoel.com (Greg Jenner) — Tue, 07 Jul 2009 16:29:46 -0800

We have just been informed by the Treasury Department that they plan to release their first set of guidance on the new grant in lieu of the ITC (section 1603 of ARRA) tomorrow afternoon (Wednesday, July 8). We are not certain yet of the time, although we're told it will be in the afternoon at a press event..

We will publish updates as more information becomes available.

Show me the Money: $7.5 Million Available to Develop Commercial Energy Efficiency Training Programs

jslaney@stoel.com (John Laney) — Tue, 07 Jul 2009 15:28:16 -0800

On June 26, 2009, the Department of Energy ("DOE") released a funding opportunity announcement ("FOA") to deploy $7.5 million in Recovery Act funds to further its goals of reducing energy consumption and achieving net zero-energy buildings (defined as buildings that produce as much energy as they consume). In order to reach these goals, DOE recognizes that a workforce must be created to help existing buildings reach, and new buildings keep, their full energy efficiency potential.

This specific FOA provides ten to thirty individual awards from $250,000, to $750,000 to develop training programs for three specific sets of commercial building specialists:

Equipment technicians,
Operators, and
Energy commissioning agents/auditors

Entities involved with energy efficiency, professional development associations, trade training/development associations, universities, community colleges, technical trade schools, and apprenticeship programs are encouraged to apply.

Applications must be submitted by September 1, 2009 at 8:00 p.m. Eastern Time

Prosperity Partnership Issues a Guide to Recovery Funds

jfjacobs@stoel.com (Janet Jacobs) — Mon, 06 Jul 2009 17:53:35 -0800

The Prosperity Partnership, a coalition of over 300 government, business, labor and community organizations from King, Kitsap, Pierce, and Snohomish counties in the state of Washington, has developed a beginner’s guide to the Recovery Act entitled: “A Basic Introduction to Energy-Related ARRA Funding Opportunities.” The goal of the guide is to help local (i.e. Washington state) entities identify and apply for ARRA funding opportunities, especially competitive grants or contracts. The focus of the guide is on energy-related funding opportunities, and contains useful information describing the process for submitting applications for federal and Washington state funds.

You can download the guide at http://prosperitypartnership.org/recovery/PP-ARRAGuide.ppt.

EPA Extends RFS 2 Comment Period

gnoyes@stoel.com (Graham Noyes) — Mon, 06 Jul 2009 15:48:56 -0800

Last week, the US EPA extended the rulemaking period on RFS 2 until September 25, 2009. This extends the period by 60 days. While this rulemaking is highly complicated and contentious, it is unclear that extending the comment period will improve this situation. In addition, the effective date of the regulations continues to be delayed. This could undermine Congress' intentions in passing the Energy Independence and Security Act that established RFS 2. Let's hope EPA is able to move quickly and efficiently in finalizing and implementing the regulations.