Global Power Law & Policy – Page 34 – Legal and policy developments affecting the global power industry.

Senate Finance Committee Releases New technology-neutral Energy Credits Legislation

May 05 2017

By Elizabeth C. Crouse and Mary Burke Baker

On Thursday, Senator Ron Wyden (D-OR), ranking member of the Senate Finance Committee, released new technology-neutral energy credits legislation that would revolutionize the existing Investment Tax Credit and Production Tax Credit provisions. The legislation features a graduated credit rate schedule based on the level of carbon emissions as compared to a carbon emissions baseline (keyed to “current” national average carbon emissions) that would be available without regard to technology or energy input. In a move that is consistent with cutting-edge energy innovations and responsive to the needs and concerns of many large power consumers and utilities, the credits would expressly be available for energy storage and carbon capture technology installed at power plants placed in service before January 1, 2019. Energy storage would include hydroelectric pumped storage, thermal storage, fuel cells, and–crucially–batteries, among others. Under Wyden’s legislation, the maximum credit rates would be 30% for the ITC and, for the PTC, 2.3 cents per kilowatt hour of electricity produced. In addition, the PATH Act “sunset” provisions on the PTC and ITC would be repealed and the proposal would temporarily extend other energy provisions during a transition period.

The proposed legislation would also create a technology-neutral clean fuel production credit, homeowner versions of the ITC, performance-based incentives for energy efficiency improvements to residential and commercial buildings, and clean energy bonds generally based on existing government bonds frameworks.

Although there are differences of opinion in the Congress on whether the tax code should offer energy incentives, Sen. Wyden’s proposal could come into play this year either as part of tax reform or the infrastructure debate. Senate Democrats recently released a blueprint for infrastructure that includes technology neutral energy reform.

Members of the K&L Gates LLP policy group are closely monitoring this and other tax and energy regulatory reform matters.

K&L Gates Blockchain Energizer – Volume 3

May 04 2017

A bi-weekly update on applications of blockchain technology in the energy industry

By Molly Suda, Buck B. Endemann, and Benjamin L. Tejblum

There is a lot of buzz around blockchain technology and its potential to revolutionize a wide range of industries from finance and healthcare to real estate and supply chain management. Reports estimate that over $1.4 billion was invested in blockchain startups in 2016 alone, and many institutions and companies are forming partnerships to explore how blockchain ledgers and smart contracts can be deployed to manage and share data, create transactional efficiencies, and reduce costs.

While virtual currencies and blockchain technology in the financial services industry have been the subject of significant debate and discussion, blockchain applications that could transform the energy industry have received comparatively less attention. Every other week, the K&L Gates’ Blockchain Energizer will highlight emerging issues or stories relating to the use of blockchain technology in the energy space.

IN THIS ISSUE

Blockchain-Powered Crowdfunding Brings Solar Energy to Africa
Illinois Considering Blockchain Technology to Streamline Government Programs
Arizona Paves the Way for Smart Contracts

To view more information on theses topics in Volume 3 of The Blockchain Energizer, click here.

CPUC Requires Additional 500 MW of Energy Storage from California IOUs

May 02 2017

By Buck Endemann, William Holmes, Andrea Lucan

Under AB 2514, California’s landmark energy storage law passed in 2013, California’s three Investor-Owned Utilities (“IOUs”) (Southern California Edison (“SCE”), Pacific Gas & Electric (“PG&E”), and San Diego Gas & Electric (“SDG&E”)) are required to install 1,325 MW of energy storage by 2024.[1] Recent California Public Utilities Commission (“CPUC”) decisionmaking under a later-passed energy storage law, however, has added an additional 500 MW to the IOUs’ procurement obligations. Read More

K&L Gates Blockchain Energizer – Volume 2

Apr 21 2017

By Molly Suda, Buck B. Endemann, and Benjamin L. Tejblum

While virtual currencies and blockchain technology in the financial services industry have been the subject of significant debate and discussion, blockchain applications that could transform the energy industry have received comparatively less attention. Every other week, the K&L Gates’ Blockchain Energizer will highlight emerging issues or stories relating to the use of blockchain technology in the energy space.

IN THIS ISSUE

Blockchain Technology – A Possible Solution to China’s Air Pollution Problems?
Blockchain Technology Deployed to Optimize Crude Oil Trading
Blockchain Technology Gaining Ground in the Energy Industry

To view more information on theses topics in Volume 2 of The Blockchain Energizer, click here.

The Business of of Wind in the Northwest – Presented by The Seminar Group

Apr 18 2017

How is big business putting wind to work? Why does it make financial sense? This event, presented by The Seminar Group, will explore answers to these questions and discuss the status of wind power development in the west, wind power siting, utility perspectives of renewables, Cal ISO expansion, and equity financial structures and tax considerations.

Portland partner Bill Holmes is serving as Program Chair for this progrm Thursday, May 4 at the World Trade Center in Portland, Oregon.

In addition, Seattle partner David Benson will serve as a faculty member for the program.

Bill will present on the Status of Wind Power Development in the West and David will speak on a panel covering Equity, Financial Structures and Tax Considerations.

To learn more about this event and register, click here.

Trade Group Complains that PJM’s Frequency Regulation System Unduly Discriminates Against Energy Storage Resources

Apr 17 2017

By William M. Keyser, Molly Suda, and Michael L. O’Neill

The Energy Storage Association (ESA) filed a complaint with the Federal Energy Regulatory Commission (FERC or Commission) alleging that PJM Interconnection, L.L.C. (PJM) has adjusted its system operations to unduly discriminate against certain market participants. ESA argues that PJM changed the rules of its frequency regulation market, without prior FERC approval, and that those rule changes unduly discriminate against limited energy resource participants, such as energy storage providers.

FERC has set May 15, 2017, as the deadline for parties to comment, intervene, or protest ESA’s complaint. Commenting and/or intervention are important procedural tools that allow interested parties to protect and advocate for their interests. Given the potentially broad impact of this complaint on PJM’s energy and frequency regulation market design, numerous entities may seek to participate in this proceeding. K&L Gates will continue to follow this proceeding closely.

To read the full alert on K&L Gates HUB, click here.

K&L Gates Blockchain Energizer Vol. 1

Apr 13 2017

A bi-weekly update on applications of blockchain technology in the energy industry

By Molly Suda, Buck B. Endemann, and Benjamin L. Tejblum

While virtual currencies and blockchain technology in the financial services industry have been the subject of significant debate and discussions, blockchain applications that could transform the energy industry have received comparatively less attention. Every other week, the K&L Gates Blockchain Energizer will highlight emerging issues or stories relating to the use of blockchain technology in the energy space.

Our inaugural edition features:

The Brooklyn Microgrid – Powered by Blockchain
Share & Charge – A Blockchain-based Electric Vehicle Charging Marketplace
ING and Societe Generale Contemplate Blockchain-powered LNG Trading

To view more information on theses topics in our first edition of The Blockchain Energizer, click here.

To subscribe to subsequent bi-weekly alerts, please contact Alé Simmons.

Executive Order Directs Federal Agencies to Reconsider Federal Initiatives Focused on Greenhouse Gas Emissions and Climate Change

Apr 03 2017

By William J. Moltz, David J. Raphael, Sandra E. Safro, Ankur K. Tohan, Michael L. O’Neill

President Donald Trump signed an Executive Order on March 28, 2017, entitled “Promoting Energy Independence and Economic Growth” (“Order”), which is designed to prompt reconsideration, and in some cases revocation, of the Obama Administration’s actions to address greenhouse gas emissions and climate change. The Order directs several federal agencies to review, and possibly withdraw, specific policy initiatives like the Environmental Protection Agency (“EPA”) Clean Power Plan rulemaking and the U.S. Department of the Interior (“Interior”) 2015 and 2016 rules on oil and gas production on federal lands. In addition, the Order directs the U.S. Council on Environmental Quality (“CEQ”) to rescind its 2016 final guidance document regarding the consideration of greenhouse gas emissions and climate change impacts in environmental reviews performed under the National Environmental Policy Act (“NEPA”). More broadly, the Order also directs all federal agencies to review “all agency actions” that “potentially burden the development or use of domestically produced energy resources.”

As discussed in greater detail below, the Order may have far-reaching implications for U.S. policy on energy production, greenhouse gas regulation, and climate change that could have spillover impacts for energy infrastructure development. A vigorous debate is certain to follow with interested stakeholders evaluating strategic options including notice and comment rulemaking, litigation, and legislative advocacy.

To read the full alert on K&L Gates HUB, click here.

Oregon Lawmakers Consider Carbon Pricing Legislation

Mar 30 2017

By Ankur K. Tohan, Alyssa A. Moir, Buck B. Endemann, Christina A. Elles

This is the second installment in the West Coast Carbon Policy Update — Three Part Series, which will examine carbon policies along the West Coast in Washington, Oregon, and California.

On March 28, 2017 President Trump signed an executive order instructing the Environmental Protection Agency to withdraw and rewrite the Clean Power Plan, but lawmakers in Oregon are pushing ahead with statewide efforts to reduce greenhouse gas (“GHG”) emissions. Oregon lawmakers are currently considering several carbon pricing bills — including a cap-and-trade program, a carbon tax, a cap-and-fee program, and a GHG emission rule issued by the state’s environmental agency — that will add a pricing component to the state’s GHG goals.

To read the full alert on K&L Gates HUB, click here.

WUTC Proposes Changes to Planning Paradigms and IRP Models for Energy Storage Technologies

Mar 28 2017

By Vanessa Pronovost, Eric Jay, Molly Suda, and William Holmes

The Washington State Utilities and Transportation Commission (the “WUTC”) has issued a Draft Report and Policy Statement on Treatment of Energy Storage Technologies in Integrated Resource Planning and Resource Acquisition (the “Draft Report”) in connection with two consolidated dockets, UE-151069 and U-161024 (the “Dockets”). The Draft Report is intended to provide useful guidance regarding energy storage technologies to investor-owned utilities (“IOUs”), vendors seeking to promote energy storage for use by IOUs, and anyone interested in the use of energy storage on electric distribution systems. The WUTC is seeking comments to the Draft Report by 5:00 pm on Monday, April 3, 2017 for the WUTC’s consideration in preparing its final policy statement on the Dockets.

Before issuing the Draft Report, the WUTC held two formal workshops and solicited two rounds of comments. Commenters generally agreed that current integrated resource planning (“IRP”) models are inadequate for purposes of capturing the benefits of energy storage technologies. The following is a summary of the WUTC’s conclusions and guidance with respect to investments in energy storage technologies.