Sustainability Law Blog

By a slim 219-212 margin, the U.S. House passed the American Clean Energy and Security Act, known more commonly by the names of its authors, Representatives Henry Waxman and Edward Markey. The bill will cut U.S. carbon emissions by 17% by 2020, by 42% by 2030, and 83% by 2050, as compared to 2005 levels. The bill also establishes a cap-and-trade system for greenhouse gas emissions credits that applies to all electricity generation sources, and to other industrial sources that emit more than 25,000 tons of carbon dioxide per year. The bill also empowers the Environmental Protection Agency to regulate greenhouse gas sources emitting more than 10,000 tons per year. The bill establishes a sliding scale as to how emissions credits are distributed – at first, most credits will be distributed at no cost, but over time a greater percentage of credits will be auctioned, with proceeds used for low-income energy assistance programs.

Additionally, the bill establishes a federal renewable portfolio standard requiring 6% of energy to be generated from renewable sources nationwide by 2012, increasing to 9.5% in 2014, 13% in 2016, 16.5% in 2018 and 20% in 2021. The bill also strengthens numerous energy efficiency standards, and of particular importance to western states, the bill gives the Federal Energy Regulatory Commission authority over siting high-priority transmission lines in the Western U.S.

The bill's prospects in the Senate are uncertain.

Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.

As the Oregon legislative session wrapped up June 29, numerous bills headed to the Governor's desk for signature or veto. The two most controversial bills are HB 2472b and 2940b. The first bill rolls back the Business Energy Tax Credit for large renewable energy projects by reducing the maximum available credit from 50% of eligible costs or $20 million, to 35% of eligible costs or $10 million. HB 2940b expands the list of resources eligible for credit against the state's renewable portfolio standard by allowing utilities to count biomass facilities built before 1995. Renewable energy advocates are pressuring the Governor to veto these two bills.

Several other less controversial bills also passed the Legislature, which the Governor is expected to sign. They include:

• SB 101a, which establishes a greenhouse gas emissions standard of 1,100 pounds of carbon dioxide per megawatt hour of electricity generated, a standard that effectively prohibits construction of any new coal-fired generation in the state.
• HB 2190, which eliminates the residential and business energy tax credits for hybrid gasoline-electric vehicles and instead extends the business energy tax credit to electric vehicle manufacturing facilities.
• HB 3039b, which establishes a solar power feed-in tariff pilot project. See my blog at the start of the legislative session for more information on the benefits of a feed-in tariff.

Finally, the Governor signed SB 76b, which caps at $180 million the possible exposure of PacifiCorp customers for the cost of removing four hydroelectric dams on the Klamath River as part of a tentative agreement between Oregon, California, the Department of Interior and several Indian tribes. This would result in about a $1.50 monthly increase to PacifiCorp ratepayers for about 10 years. Total dam removal costs are estimated at about $450 million.

Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.

The much-anticipated guidelines and application instructions for renewable energy cash grants available under the February 2009 stimulus bill have been released by the Department of Treasury. Section 1603 of the stimulus bill (formally known as the American Recovery and Reinvestment Act of 2009, or ARRA) provides for cash grants in lieu of tax credits equal to 30% of a renewable energy project's cost.

The cash grant program will be used mostly by wind developers, many of whom have delayed projects while waiting to see how the regulations turn out. The regulations resolved two important issues in favor of developers. First, the regulations confirm that application for an Section 1603 grant will not, by itself, trigger review of the project under the National Environmental Policy Act (NEPA). Second, projects receiving grants will not be obligated to pay prevailing wages under the Davis Bacon Act of 1931.

Applications may be made online at treasury.gov through October 1, 2011. Payment will be made to qualified applicants within 60 days after approval or the date the project is placed in service, whichever is later. The Treasury anticipates receiving about 5,000 applications.

Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.

Ecolutions is a once a month free happy hour event for young professionals with a passion for the environment and sustainability held at The Agency Ultra Sport Lounge and sponsored by the Holy Names Heritage Center. Ecolutions is an opportunity for individuals to interact with environmental pioneers and discuss and debate pressing ecological challenges and help forge creative solutions – it’s not a lecture series, but a forum for discussion. Topics change each month (see July through September descriptions below). So, if you are looking for something to do on a Monday night, check it out:

What: Ecolutions, “Redefining Eating,” a dialogue regarding food and how the choices we make affect the economy, environment, our culture and health. The discussion will highlight the means and methods of the food industry and the U.S. Food and Drug Administration.
When: July 20, 2009 at 6pm
Where: The Agency, 1939 SW Morrison St., adjacent to PGE Park

What: Ecolutions, “Recyclable Plastics – What Does it Really Mean,” plastics recycling leader Dennis Denton of Denton Plastics will discuss the realities of recycled plastics so you as consumer can make more informed decisions when purchasing products.
When: August 10, 2009 at 6pm
Where: The Agency

What: Ecolutions, “Water Renaissance,” a discussion regarding our water consumption choices and how we can use tap water wisely.
When: September 14, 2009 at 6pm
Where: The Agency

The Holy Names Heritage Center also sponsors the successful “History Pub” series at the McMenamin’s Kennedy School. Due to the success of the “History Pub” series, the Sisters of the Holy Names desired to create a program that presented environmental stewardship concepts since the Sisters have been involved in the care of the earth for 150 years in the Northwest. Ecolutions is also sponsored by grants from The Meyer Memorial Trust and Norm Thompson founders, John and Jane Emrick.

If you are interested in attending and want more information, please click
here.

Post authored by Ari A. Okano, attorney practicing in the Business and Intellectual Property Groups.