The Americas – Page 17 – Global Power Law & Policy

FERC Issues Rule to Reduce Regulatory Burdens for Generators That Own Generator Tie-Lines

Apr 30 2015

I. Introduction

Last month, the Federal Energy Regulatory Commission (“FERC”) issued its final rule on Open Access and Priority Rights on Interconnection Customer’s Interconnection Facilities (“Order No. 807” or “Final Rule”)[1]. Order No. 807 is intended to reduce the regulatory burdens for generators that own generation tie-lines (referred to in the Final Rule as “Interconnection Customer’s Interconnection Facilities” or “ICIF”)[2], and to promote the development of generation resources. The Final Rule makes three significant changes to the treatment of ICIF under FERC’s regulations. First, it establishes a blanket waiver of the Open Access Transmission Tariff (“OATT”), Open Access Same-Time Information System (“OASIS”) and the Standards of Conduct requirements for all ICIF owners who in the past were subject to such requirements solely as a result of their ownership of ICIF. Second, the Final Rule requires that all third-party requests for service on ICIF eligible for the blanket waiver be made pursuant to Sections 210, 211 and 212 of the Federal Power Act (“FPA”). Finally, the Final Rule establishes a five-year safe harbor period during which ICIF owners who are eligible for the blanket waiver will benefit from a rebuttable presumption that they or their affiliates have definitive plans to use any excess capacity available on the ICIF.

Oregon Considers Energy Storage Legislation

Mar 13 2015

The Oregon legislature is considering a bill that would require the state’s large electric utilities to procure one or more “qualifying energy storage systems” by January 1, 2020. H.B. 2193 would apply to any entity that is engaged in the business of distributing electricity to retail electricity consumers in Oregon (not including a consumer-owned utility) if the entity makes sales of electricity to retail customers in an amount that equals 3 percent or more of all electricity sold to retail electricity customers in Oregon. An energy storage system is deemed to be “qualifying” if it is “cost-effective,” and the legislation contemplates that each electric company would procure one or more such systems having the capacity to store not less than 5 megawatts of electricity but not more than an amount of electricity that is equal to one percent of the company’s peak load for 2014. H.B. 2193 would allow an electric company to recover in its rates all costs prudently incurred in procuring one or more cost-effective energy storage systems, “including any above-market costs associated with procurement.”

A Bright Outlook for Solar Energy in South Carolina

Mar 12 2015

South Carolina’s major utilities recently submitted their proposed distributed energy resource programs to the South Carolina Public Service Commission (PSC) for approval. The proposals come in the wake of the South Carolina Distributed Energy Resource Act of 2014 (commonly referred to as Act 236), which went into effect on June 2, 2014. Applauded as landmark legislation resulting from collaboration among utilities, electric cooperatives, environmental advocates, and solar businesses, Act 236 paves the way for the development of solar power and other renewable energy sources in South Carolina. Read more here.

FERC Issues Proposed Policy Statement Clarifying the Use of Hold Harmless Commitments in Section 203 Applications

Feb 04 2015

On January 22, 2015, the Federal Energy Regulatory Commission (“Commission”) issued a Proposed Policy Statement on Hold Harmless Commitments (“Policy Statement”), in which it proposed changes to the basis on which it will review transactions subject to Section 203 of the Federal Power Act (“FPA”).[1] Specifically, the Policy Statement proposes clarifications to the rules regarding the identification of transaction-related costs and use of hold harmless commitments, which are often included in Section 203 applications for transactions involving traditional franchised public utilities as a means of demonstrating that a proposed transaction will not adversely affect ratepayers. As part of a hold harmless commitment, an applicant typically commits not to seek recovery of transaction-related costs in Commission-jurisdictional rates unless the applicant can demonstrate that the costs are off-set by transaction-related savings. The Commission must ensure that a proposed transaction does not have an adverse impact on jurisdictional rates and has traditionally allowed applicants to use a hold harmless commitment to satisfy this prong of the Commission’s analysis. Read More

IRS Releases New Guidance on Small Wind Turbine Projects

Jan 15 2015

On January 13, 2015,, the Internal Revenue Service (IRS) released Notice 2015-4, which provides new guidance on the small wind energy project credit under Section 48 of the Internal Revenue Code (IRC). In particular, the guidance provides that small wind energy projects must meet certain performance and quality standards to qualify for the credit. The official notice is scheduled to be published on January 26 in Internal Revenue Bulletin 2015-4.

Notice 2015-4 provides that Section 48-eligible property must use a wind turbine that has a nameplate capacity of not more than 100 kW and meets the performance and quality standards as set forth in either:

(1) American Wind Energy Association (AWEA) Small Wind Turbine Performance and Safety Standard 9.1-2009; or

(2) International Electrotechnical Commission (IEC) 61400-1, 61400-12, and 61400-11.

Small wind turbines must meet the AWEA or IEC standards that are in effect at the time of acquisition of the turbine.

The manufacturer of the turbine may provide a taxpayer with a certification that the manufacturer’s turbine meets one of the standards listed above, and taxpayers may rely on such certifications when claiming the credit under Section 48. However, manufacturers should be aware that issuing erroneous certifications or failing to satisfy certain documentation requirements could trigger penalties under IRC Section 7206 (fraud and making false statements) or IRC Section 6701 (aiding and abetting an understatement of tax liability).

Notice 2015-4 is effective for small wind energy property acquired or placed in service after January 26, 2015.

Department of Commerce’s BE-13 Mandatory Survey of New Foreign Direct Investment in the United States

Jan 08 2015

New Requirement to Report Foreign Direct investment in the U.S.

The Bureau of Economic Analysis of the U.S. Department of Commerce announced in September 2014 that it was reinstating a mandatory requirement that U.S. companies report new foreign investment through the filing of one of a family of survey forms designated as BE-13. BE-13 forms are filed electronically here.

Authority for the Survey

The authority for the survey is based on the International Investment and Trade in Services Survey Act, 90 Stat. 2059, 22 U.S.C. § 3101. The Act grants broad authority to the President “to collect information on international investment and United States foreign trade in services, whether directly or by affiliates, including related information necessary for assessing the impact of such investment and trade, to authorize the collection and use of information on direct investments owned or controlled directly or indirectly by foreign governments or persons, and to provide analyses of such information to the Congress, the executive agencies, and the general public.” 22 U.S.C. § 3101(b).

Infocast’s Corporate Energy Sourcing Summit 2015

Dec 10 2014

12-14 January 2015
The Westgate Hotel
San Diego, CA

Presenters: William H. Holmes, Paul C. Lacourciere

K&L Gates is a Platinum Sponsor at Infocast’s Corporate Energy Sourcing Summit 2015, with partner Bill Holmes leading the Summit as Chair. This event focuses on the latest intelligence on financing, business cases, risk, sourcing & sustainability from the leading market players, while evaluating business cases for new strategies and solutions including on & off-site renewables, demand response, efficiency, fuel cells and energy storage. The Summit will be a source of actionable strategies and insights from peers in other sectors including bigbox/retail, manufacturing, data centers, real estate, airports, and universities. The Summit will offer up numerous opportunities to meet key dealmakers, learn about their plans for the upcoming year, and capitalize on new prospects that will lead to successful deals.

House Tax Extenders Package Would Renew the Wind PTC and Other Energy Provisions

Dec 03 2014

Congress is poised to enact a one-year retroactive tax extenders package that would renew a variety of tax incentives—including the production tax credit (PTC) for wind—through the end of 2014. On Wednesday, December 3, the House passed the Tax Increase Prevention Act of 2014 (H.R. 5771) by a vote of 378-46, sending the bill to the Senate for its consideration before the end of the Lame Duck session. Read More

Renewable Energy Tax Incentives At Risk in Lame Duck

Nov 11 2014

Tax incentives for renewable energy could be at serious risk in Congress’ upcoming lame duck session. Reports indicate that Senator Pat Toomey (R-PA) and other conservatives plan to try to block renewable incentives from being included in a year-end “tax extenders” package. Read More

2014 Election Guide: A Guide to Changes in Congress

Nov 05 2014

Riding a wave of voter discontent, Republicans in the mid-term election took control of the U.S. Senate and increased their majority in the House. The results offer an opportunity for collaboration between the Congress and the Obama Administration, and to restart the legislative process.

To help you assess yesterday’s election, K&L Gates has prepared a comprehensive guide that summarizes the results and their impact on the 114th Congress, which will convene in January. The Election Guide lists all new members elected to Congress, updates the congressional delegations for each state, and provides a starting point for assessing the coming changes to the House and Senate committees.

Please click here to download the most up-to-date version of the 130 page Election Guide, which will be updated on an ongoing basis as more of the close races are called and committees are finalized. For additional information regarding the effects of the recent elections, please contact Tim Peckinpaugh or any member of the Public Policy and Law practice.

To view the complete guide online, click here.

Additional Resources

Further insights on the implications of the mid-term elections can be found in two recent webinars featuring members of the K&L Gates policy team. See the links below.

The Mid-Term Elections: What They Mean for Major National Policies

Election 2014: Its Impact on Federal Policy-Making in 2015

Catagory:The Americas