Renewables – Page 14 – Global Power Law & Policy

FERC Staff Seeks Comments on Participation of Electric Storage Resources in Wholesale Electricity Markets

Apr 22 2016

Last week, the Federal Energy Regulatory Commission (“FERC”) opened a proceeding in Docket No. AD16-20 for FERC Staff to consider a wide range of issues related to electric storage resources, including whether barriers exist in the United States’ organized wholesale energy markets that are frustrating the participation of electric storage resources in those markets and leading to unjust and unreasonable wholesale electricity prices. The new proceeding was also a topic of discussion during FERC’s monthly meeting on Thursday, April 21, 2016, with each Commissioner expressing significant interest in the energy storage issues to be considered and studied by FERC Staff. For purposes of the proceeding, FERC Staff has taken a broad view of electric storage resources, defining such resources to include all facilities “that can receive electric energy from the grid and store it for later injection of electricity back to the grid . . . regardless of their size and storage medium, or whether they are interconnected to the transmission system, distribution system, or behind a customer meter.”

To kick-off the proceeding, FERC Staff sent letters to California Independent System Operator Corp., ISO New England, Inc., Midcontinent Independent System Operator, Inc., New York Independent System Operator , PJM Interconnection L.L.C., and Southwest Power Pool, Inc. (collectively, the “RTOs and ISOs”), requesting that by May 2, 2016, they submit information about current market rules and procedures applicable to electric storage resources’ participation in each respective market. In a concurrent notice issued in the same docket, FERC Staff also invited other comments on whether current market rules are blocking the participation of electric storage resources in the organized markets and whether there are specific rule changes that could facilitate the participation of such resources. FERC Staff is asking other commenters to specifically address the RTOs’ and ISOs’ May 2, 2016 responses, and set May 23, 2016 as the deadline for such other comments. The types of data requested from the RTOs and ISOs and the related topics on which FERC Staff is seeking comment are outlined below.

Eligibility to participate in the organized wholesale electric markets. FERC Staff has asked each of the RTOs and ISOs to explain whether electric storage resources are currently eligible to participate in capacity, energy, and/or ancillary services markets, and if not, what justifies their ineligibility. FERC Staff is also seeking comments on whether clarification of particular market rules or tariff provisions would remove undue barriers to the participation of electric storage resources.
Minimum technical criteria and performance requirements to participate in the organized wholesale electric markets. In addition to requesting information from the RTOs and ISOs on the current technical criteria and performance requirements (e.g., minimum capacity sizes, bid sizes, or run times) that must be met to participate in the wholesale markets, FERC Staff is seeking input on whether certain technical criteria or performance requirements are unjustified and unfairly prevent market participation by electric storage resources. FERC Staff has also requested input on alternative minimum criteria or eligibility requirements and the potential effect of such alternatives on system reliability and market operations.
Bid parameters applicable to electric storage resources. The operational capabilities of electric storage resources to receive, store, and later sell electricity distinguish electric storage resources from conventional generation. Thus, FERC Staff is seeking input on whether current market rules for bid parameters could and should be revised to better reflect electric storage resources’ operational capabilities, and whether making such revisions would improve RTOs’ and ISOs’ ability to model and dispatch electric storage resources. Given the broad array of technologies encompassed by FERC Staff’s definition of electric storage resources, FERC Staff also asks that commenters address whether specific technologies warrant different bid parameters or whether a general set of rules could apply to all types of electric storage resources.
Electric storage resources interconnected at the distribution level and aggregation of electric storage resources. FERC Staff recognized that electric storage resources may be able to participate in the wholesale markets despite being interconnected at the distribution level. Therefore, FERC Staff is seeking input on what market opportunities are or should be available for distribution-connected electric storage resources and the impact of electric storage resources participating in the wholesale markets while simultaneously providing distribution-level services. FERC Staff has also asked the RTOs, ISOs, and other commenters to address opportunities and means to aggregate multiple electric storage resources into a single resource that serves as the wholesale market participant.
Energy purchases by electric storage resources and pricing of energy purchases by electric storage resources. FERC Staff asked the RTOs and ISOs to explain the current bid requirements for electric storage resources that are purchasing energy and whether they must pay the locational marginal price for their energy purchases or instead pay a different rate for their receipt of energy from the grid. FERC Staff is also interested in understanding whether the appropriate pricing of energy purchases may be affected by what services the electric storage resources are providing or whether the electric storage resources is interconnected to the transmission system, distribution system, or behind the meter.

This proceeding is yet another signal that energy storage issues are at the forefront of FERC’s regulatory initiatives. As noted in a prior blog post, FERC is already scheduled, in a technical conference on May 13, 2016, to address issues and potential impediments to the interconnection of electric storage resources. Parties interested in the development and deployment of electric storage resources will want to be involved in these proceedings and keep a close eye on the issues raised by commenters. These proceedings and the issues spotlighted for FERC could be precursors to new rulemakings and regulatory changes with the potential to affect the development and direction of new or expanded markets and revenues streams for electric storage resources. We will certainly be monitoring these proceedings and will keep you posted.

Next Steps for Community Solar After the Passage of Oregon’s Landmark Clean Energy Legislation

Apr 12 2016

Oregon’s landmark “Clean Electricity and Coal Transition Plan,” Senate Bill 1547 (SB 1547), was recently signed into law by Governor Kate Brown. Among other things, the new law increases Oregon’s renewable portfolio standard to 50 percent by 2040 and requires Oregon’s investor-owned utilities to eliminate coal-fired resources from the electricity allocated to Oregon’s ratepayers by 2030. We will be posting an analysis of the new law shortly, but in this post we wanted to focus on the part of SB 1547 that will establish a community solar program in Oregon.

U.S. Senate Currently Debating Legislation to Reauthorize the FAA, Extend Energy Tax Credits

Apr 11 2016

The U.S. Senate is currently debating legislation to reauthorize the Federal Aviation Administration (FAA). It is likely that the bill will contain a tax title including energy tax provisions. There is increasing support for an extension of the Investment Tax Credit for biomass, geothermal and fuel cells. Also under discussion are other proposals, including tax credits for biofuels, carbon capture and sequestration.

Some conservative groups are voicing opposition to any renewable energy tax provisions. However, key Senate Republicans and Democrats indicate that an agreement is close.

Timing for House action on a FAA bill and possible tax title is unclear.

We will provide an update next week.

Winds of Change for Alternative Energy Tax Incentives in 2016

Jan 21 2016

Congress has some unfinished business on alternative energy policy, which may provide unusual legislative opportunities in an election year. While tax credits for wind and solar power received long-term extensions in the year-end omnibus legislation enacted at the end of 2015, other types of alternative energy were left out — reports have suggested unintentionally — spurring some in Congress to seek a remedy in 2016. Additionally, the Department of the Treasury (“Treasury”) and the Internal Revenue Service (IRS) initiated a rulemaking process to further define and clarify the types of property qualifying for the investment tax credit (ITC) under section 48 of the Tax Code. These developments, along with ongoing congressional interest in comprehensive energy policy legislation, could make 2016 a pivotal year for stakeholders in the alternative energy industry.

Read the full alert on K&L Gates HUB

FAST Act Expedites Permitting and Environmental Review for Large Infrastructure Projects

Jan 08 2016

Expedited permitting and environmental review for complex infrastructure projects may soon be a reality. Buried at the end of its most recent transportation reauthorization package (the “FAST Act” or “Act”) is a significant new initiative intended to fundamentally change the way that federal agencies evaluate environmental impacts from, and issue permits for, construction of large infrastructure projects. [1]

National Environmental Policy Act (“NEPA”) review and environmental permitting for complex infrastructure projects can be costly and protracted. For instance, a U.S. Government Accountability Office Report stated that the average completion time for an Environmental Impact Statement (“EIS”) in 2012 was 4.6 years. [2] Between 2003 and 2012, the Department of Energy paid contractors an average fee of $6.6 million, and as much as $85 million, to prepare EISs. [3] The cost to prepare an EIS is often borne by project sponsors. Some transportation and water resources projects currently benefit from expedited permitting and environmental review procedures, [4] but the FAST Act is the first time that Congress has attempted to coordinate NEPA review across federal agencies and industry sectors.

Read the full alert on K&L Gates HUB

Oregon PUC Opens Docket to Implement an Energy Storage Program; Workshop Scheduled for January 27, 2016

Jan 06 2016

The Oregon Public Utilities Commission (the “OPUC” or “Commission”) opened Docket No. UM 1751 in compliance with House Bill 2193. As discussed in an earlier blog post, HB 2193 requires electric companies to procure qualifying energy storage systems by January 1, 2020, subject to authorization by the OPUC. Section 3(1) of the legislation requires the Commission to adopt guidelines no later than January 1, 2017 for an electric company to use when submitting a proposal for one or more energy projects by January 1, 2018.

Bill Holmes to Present at Renewable Energy Law 2016 in Texas

Jan 05 2016

K&L Gates partner Bill Holmes will present at the Renewable Energy Law 2016 CLE conference on February 9-10, 2016 in Austin, Texas, hosted by the University of Texas School of Law and the Oil, Gas and Energy Resources Law Section of the State Bar of Texas.

Mr. Holmes will co-moderate the session “Trends in Buying and Selling Renewable Energy: Commercial, Industrial and Wholesale Transactions,” in which he and other presenters will discuss the role of long-term PPAs and hedges in the procurement of renewables by utilities as well as commercial and industrial demand for renewable energy from offsite and on-site sources.

For more information, visit the Renewable Energy Law 2016 website.

Paris Climate Talks Conclude: Key Takeaways from a Critical Meeting

Dec 14 2015

Intense climate negotiations in Paris have now concluded for the 21st “conference of the parties” (or COP-21) under the United Nations Framework Convention on Climate Change. Until quite late in the process, many big-picture questions remained unresolved, including the enforceability of emissions limitations plans under the agreement, compensation for loss, and the target limit for global temperature rise. The resolution of these questions will be summarized below, with initial commentary on the results of the negations and questions going forward.

Leading up to and during the negotiations, media reports reflected optimism among global stakeholders seeking limits to greenhouse gas emissions, and expectations for an historic deal ran high. This ambitious agenda redoubled during the talks themselves, when low-lying island nations and scientists sought to tighten temperature increase targets from 2 degrees Celsius to 1.5 degrees Celsius. As discussed below, while the agreement reflects a new level of commitment to cutting carbon, the high expectations were not met entirely in the final accord.

Public Meetings on the Clean Energy Fund II: Next Up: Spokane, WA on December 17

Dec 14 2015

A series of public meetings are being held across Washington State to provide an update on the Washington State Legislature’s Clean Energy Fund II. The Clean Energy Fund provides grants to projects that support development, demonstration and deployment of clean energy technologies and is administered by the Department of Commerce’s State Energy Office. Personnel from the Department of Commerce will be at each meeting to provide information and answer questions.

The next meeting is being held in Spokane, Washington at Avista Utilities. The meeting details are:

When: Thursday, December 17, 2015
2:00-4:00 p.m.
Where: Avista Utilities
1411 E. Mission Avenue
Spokane, WA 99202

If you are interested in attending the meeting on December 17 in Spokane, you can register here. We will keep you updated on future scheduled meetings and updates on the Clean Energy Fund II. More information on the Clean Energy Fund II can be found here.

Renewable Power Purchase Agreement Presentation Next Week

Dec 02 2015

Law Seminars International will present a discussion on renewable power purchase agreements (PPAs) next Thursday, December 10 from 12:00-1:30 p.m. PST featuring Bill Holmes of K&L Gates and other renewables industry professionals. The presentation will cover what makes a renewable PPA different from other contracts, how renewable PPAs address the complex regulatory system governing electric power, common risk sharing terms in renewable PPAs, key financial terms, and the latest ideas for “synthetic” PPAs and other new approaches allowing large companies to participate directly in the market for renewable power.

Catagory:Renewables