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Proposals for Community Solar Programs in Oregon due Friday, August 7, 2015

Aug 06 2015

Under Section 3 of Oregon’s recently enacted HB 2941, the Oregon Public Utility Commission has opened Docket No. UM 1746 to examine a range of community solar programs that allow individual customers to share in the costs and benefits of solar facilities, focusing on the attributes of different community solar program designs. The Commission is required to submit a recommendation on program design to the legislature by November 1, 2015.

In order to meet the November 1, 2015 deadline, the Commission has created a non-traditional process and accelerated timeline to obtain stakeholder input and finalize the Commission’s recommendation. The Commission has requested that interested parties submit proposals for community solar program designs by this Friday, August 7, 2015, in advance of the first staff workshop scheduled for August 11, 2015. Read More

EPA releases final version of Clean Power Plan

Aug 03 2015

EPA issued the Clean Power Plan in its final form today, August 3, 2015. The rule in effect reshapes energy policy nationwide by setting state-by-state carbon emission standards that all states must achieve through a combination of producing energy more efficiently, reducing energy demand, shifting away from coal-fired generation toward natural gas, nuclear power, and renewable energy, and encouraging state and regional policies such as renewable portfolio standards and cap-and-trade programs. The final rule contains significant changes from the version proposed in 2014, including backing down from an initial earlier deadline for compliance, axing energy efficiency as the fourth “building block” for state targets, increasing the targeted GHG reductions to 32% below 2005 levels by 2030 (up from 30%), and using uniform carbon emissions rates for similar types of power plants.[1] Read More

Oregon Enacts Energy Storage Legislation

Jun 25 2015

On June 1, 2015, the Oregon legislature passed House Bill 2193-B, which requires certain electric companies to procure qualifying energy storage systems by January 1, 2020, subject to authorization by the Oregon Public Utility Commission (the “Commission”). An electric company may recover in rates all costs prudently incurred in the procurement of the energy storage system(s), including any above-market costs associated with procurement. The final version of the bill enjoyed broad support, passing the Oregon Senate by a vote of 17-12 and the House by a vote of 56-3. Governor Kate Brown signed the bill into law on June 10.

To read the full alert, click here.

Oregon Moves Ahead on Energy Storage

May 26 2015

The Oregon Department of Energy (ODOE) recently announced that in June 2015 it will issue a request for proposals (RFP) for an electrical energy storage demonstration project. The U.S. Department of Energy will make $250,000 in federal funding available for the selected project, and ODOE and Oregon BEST will supply an additional $45,000. The RFP is intended to incent 500 kW or larger storage projects that “improve electric transmission and/or distribution system operations, service quality, and reliability.” The RFP will be technology neutral, and ODOE hopes to receive bids from “utilities, energy storage technology vendors, energy service suppliers and electric utility customers.” Applicants will need to have either a “committed utility partner” or a letter of support from the utility with which the project will interconnect—potential bidders may want to begin laying the groundwork for those arrangements pending the RFP’s issuance. The recipient of the award will be expected to provide a minimum 50% cost share and will need to “start” the project in 2015. (ODOE’s press release does not explain what will be required to “start,” and presumably the RFP will address that question.)

ODOE’s press release can be found here. The RFP announcement will appear on ODOE’s energy storage web site in June.

This announcement comes hard on the heels of news that the Oregon Senate Business and Transportation Committee passed H.B. 2193 out to the full Senate following a hearing on May 20. The proposed legislation would direct electric companies, if authorized by Oregon’s Public Utility Commission, to procure certain energy storage systems. The bill passed the Oregon House by a vote of 58-2. We’ll report on the final version of the bill if it is enacted, which seems likely—in the meantime, a summary of an earlier version of the legislation can be found here.

Funding for Washington’s Clean Energy Fund II Hangs in the Balance

May 14 2015

Funding for Washington’s Clean Energy Fund (“CEF”) II hangs in the balance as the Washington State Legislature entered the 15th day of its first special session following the close of the 2015 regular session. A special session was necessary because neither a general fund budget nor a capital budget has been passed.

The CEF, which was established for the first time in the 2013 capital budget, is managed by the state Department of Commerce and supports clean energy projects and technologies statewide. Governor Inslee proposed $60 million for CEF II in his 2015 capital budget. The House has $40 million for CEF in the House’s 2015 proposed capital budget, and the Senate has $0.

Budget leaders in Olympia are meeting to develop compromise general fund and capital budgets, and the future of CEF II must be resolved in those negotiations.

The 2013 CEF was used to fund energy storage demonstration projects proposed by Avista Utilities, Puget Sound Energy, and Public Utility District No. 1 of Snohomish County, Washington ($15 million). The 2013 CEF funds also were used for revolving loan fund grants to support residential and commercial energy efficiency projects ($15 million). The remainder of the 2013 CEF ($6 million) will be used by Washington research institutions as matching funds for federal grants.

For more information, click here visit the CleanTech Alliance website.

North Carolina General Assembly Active on Renewable Energy Issues in 2015 Long Session

May 13 2015

Two bills with significant renewable energy provisions were among those that survived the North Carolina General Assembly’s self-imposed “crossover” deadline of April 30, 2015. Most substantive bills must pass at least one house of the legislature before the crossover deadline in order to remain eligible for consideration in the 2015-16 legislative biennium. However, some bills and portions of bills that do not make crossover can still be included in the budget or as amendments to bills that did beat the deadline.

The two energy bills that made it through crossover provide for (i) a very limited extension of North Carolina’s renewable energy tax credit, and (ii) a reduction of the only mandatory renewable energy portfolio standard in the southeast. The bill providing for a limited extension of the state renewable energy tax credit was signed into law by Governor Pat McCrory and went into effect immediately. The portfolio standard reduction has passed the House and is being debated in the Senate as of this writing. Both bills are described in this alert.

To read the full alert, click here.

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

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