Sustainability Law Blog

Oregon Governor Vetoes Contentious Bills Affecting Renewable Energy

2009-08-27T17:27:23Z

Governor Ted Kulongoski vetoed two bills passed by the 2009 Oregon Legislature that related to renewable energy. HB 2472b would have rolled back the Business Energy Tax Credit for large renewable energy projects by reducing the maximum available credit from 50% of eligible costs not to exceed $20 million, to 35% of eligible costs not to exceed $10 million. HB 2940b would have expanded the list of resources eligible for credit against the state's renewable portfolio standard by allowing utilities to count biomass facilities built before 1995.

In vetoing the legislation, the Governor expressed his belief that the changes went too far and put Oregon at a competitive disadvantage in the growing renewable energy sector, one of the few sectors performing well in difficult economic times. Renewable energy advocates celebrated the Governor's veto.

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

Feds Make Available $3 Billion in Cash Grants For Renewable Energy

2009-08-24T16:51:35Z

The U.S. Departments of Energy and the Treasury are accepting applications for a program that will make direct payments in lieu of tax credits to companies that create and place in service renewable energy facilities, under Section 1603 of the American Recovery and Reinvestment Act. The agencies estimate they will pay out at least $3 billion to approximately 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities. Applications should be made as soon as possible as the grants will be awarded only until the program funding is exhausted. The government estimates that $3 billion in grants will leverage between $10-14 billion in additional private capital investment. Interested applicants should contact their legal and financial advisors promptly for further information.

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

Portland and Seattle Among Test Markets for Electric Vehicle Program

2009-08-18T17:18:42Z

The U.S. Department of Energy has funded a pilot program by eTec Corporation and Nissan North America to deploy up to 5,000 electric vehicles (EVs) in five U.S markets in 2010, including Portland and Seattle. Program participants will have the opportunity to buy new Nissan EV's at about the cost of an average family sedan, which are expected to be able to travel about 100 miles on a single charge. The federal money is part of a $2.4 billion program to fund battery research and manufacturing, EV development and installation of EV infrastructure.

Portland General Electric (PGE) has already installed 20 EV charging stations in the Portland Metro area and Salem. The program will work with PGE and three Seattle utilities to install an additional 2,550 charging stations in Portland and Seattle, and will install personal charging stations at no cost in the homes of program participants. ZipCar, a popular car sharing service, will also participate in the EV program in Seattle.

I already use ZipCar and love it. I think I'll look into participating in the pilot program.

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

Waxman-Markey Climate Bill Passes the House

2009-07-31T16:45:19Z

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.

Oregon Legislature Passes Numerous Climate Change and Renewable Energy Bills

2009-07-27T16:22:29Z

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.

Department of Treasury Releases Guidelines for Obtaining Renewable Energy Grants

2009-07-23T16:54:08Z

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 – a New Happy Hour “Think and Drink” for Ecologically Minded Young Professionals

2009-07-09T21:00:00Z

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.

BPA Seeks Additional Funding To Study Options For Renewable Power Storage

2009-06-23T17:28:41Z

BPA has requested $2 million in grants from the U.S. Department of Energy to study use of pumped storage as a tool in balancing uneven power supplies from wind energy. Pump storage projects generally involve the use of wind power to pump water uphill, which is stored until energy demand increases, at which time the water is released downhill to drive energy-generating turbines. Energy Secretary Steven Chu has often promoted pump storage as a promising option for evening out wind energy output, and the Federal Energy Regulatory Commission recently approved a pump storage project on the Little Potlatch Creek in Idaho. Numerous companies are investigating other potential pump storage project sites in Oregon and Washington, including Symbiotics, a Utah-based hydropower developer that also seeks to retrofit existing dams that currently do not have hydroelectric capabilities.

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

City of Portland Launches Online Solar Evaluation Tool

2009-06-18T17:19:45Z

Following the lead of San Francisco, Portland launched a new website last week that will allow people to zoom in on a satellite image of any rooftop in the city to determine its suitability for solar panels. The site also provides information on carbon and energy cost savings, tax credits, and other incentives for solar development. The City hopes the Oregon Clean Energy Map will boost the City's profile as part of the growing Oregon solar energy industry sector. The City developed the site through a $200,000 cash grant from the U. S. Department of Energy's Solar America Cities program.

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

Practical Tips for Water-Wise Gardening

2009-06-08T22:19:39Z

On May 20, David Petersen and I participated on behalf of Tonkon Torp's Sustainability Law Practice in the West Linn-Wilsonville School District's Sustainability Showcase. While perusing the displays put up by the various businesses and local government agencies, I was able to pick up some useful information about water-wise gardening in the Pacific Northwest, including a great guide created by horticulture and conservation experts to assist the general gardener in making informed decisions about how to use water more efficiently in their landscapes. Following are some tips from this guide that I find very useful:

• The fact that most automatic irrigation timers are set to go off in the early mornings puts a great strain on water utilities, which must often super-size their facilities to meet early-morning water demand. A better time period for setting irrigation timers is during off-hours, i.e., between 11 pm and 5 am.

• A yard has numerous microclimates formed or affected by influences such as the house, balconies, rooftops, fences, walls, large rocks or trees, and paved surfaces. You can create a healthier landscape by selecting plants most suited to a particular microclimate.

• Only plant (or allow to remain, as the case may be) turf areas where grass is practical and functional. Good alternatives to grass are ground covers (particularly good for steep slopes where grass is hard to maintain and foot traffic is infrequent) and hardscape features such as pathways or patios.

• Only use organic mulch to cover the soil in your garden. Plastic mulches tend to increase soil temperatures and do not stimulate the activity of beneficial soil organisms that improve soil structure and biology.

• Last and certainly not least, water wisely: (i) water based on soil conditions and plant needs; (ii) water deeply but infrequently; (iii) use drip hoses instead of sprinklers; and (iv) water in accordance with the weather.

There are some beautiful water-efficient Demonstration Gardens in the Willamette Valley if you'd like to see what a water-wise garden looks like on the ground, including a 7,000 sq. ft. garden at Clackamas Community College and a 1.3 acre garden at the Tualatin Valley Water District.

Happy water wise gardening!

Post authored by Jeanette Schuster, attorney practicing in the Sustainability and Real Estate and Land Use Groups.

New Industry Standard for the Assessment of Vapor Intrustion into Structures on Property Involved in Real Estate Transactions

2009-06-03T22:13:53Z

Parties engaged in real property transactions, mergers and acquisitions, and real property development should be aware that in March 2008, ASTM International (originally known as the American Society for Testing and Materials) released a standard, numbered E-2600-08, that defines good commercial and customary practice in the US for conducting a vapor intrusion assessment ("VIA") on a parcel of property involved in a real estate transaction. The purpose of a VIA is to determine whether subsurface chemicals may be migrating as vapors from contaminated soil or groundwater on the property (or within close proximity to the property) into existing or planned structures on the property. While neither the US Environmental Protection Agency nor the Oregon Department of Environmental Quality currently requires the implementation of VIAs as an element of Phase I environmental site assessments ("ESAs"), lenders will likely require them in the future to eliminate the possibility of an unacceptable risk to humans at the property.

ESAs are "above-ground" property inspections that include a review of the property's historical use, ownership and aerial photographs, a site visit, and interviews of owners and local government officials, but do not involve testing the soil or groundwater. They are standard practice in real estate transactions because they allow purchasers of real property (assuming the ESAs are performed correctly) to claim one of the three protections, so called "innocent purchaser" defenses, available against potential CERCLA (or "Superfund") claims. Consequently, if VIAs are going to become a required component of Phase I ESAs, environmental due diligence in real estate transactions will likely become more costly and time-intensive.

Post authored by Jeanette Schuster, attorney practicing in the Sustainability and Real Estate and Land Use Groups.

Impact of the California Renewable Portfolio Standard

2009-05-28T21:43:00Z

Recently Pacific Gas and Electric Company (PG&E) announced it has entered into a series of contracts with BrightSource Energy, Inc. for a record total of 1,130 megawatts (MW) of solar power. These power purchase agreements cover seven projects, the first of which is expected to begin operation in 2012. All seven of the projects are expected to produce enough power each year to equal the consumption of about 530,000 average homes.

This announcement shows the impact the California renewable portfolio standard is having. California has one of the nation's most ambitious renewable portfolio standards, requiring electric utilities to increase procurement from eligible renewable energy resources by at least 1% of their retail sales annually, until they reach 20% by 2010. Governor Schwartzenneger has signed an executive order establishing a goal of serving retail consumers with 33% of their power from renewable resources by 2020. According to the California Public Utilities Commission, PG&E serves 11.4% of their 2007 retail electricity sales with eligible renewable power. PG&E and other California utilities are working hard to reach the aggressive goals established for renewable energy in 2010 and 2020.

Post authored by David White, partner practicing in the Sustainability Practice Group.

Installed Wind Capacity in U.S. Forecast to Grow 165% by 2015

2009-05-22T16:32:01Z

Pike Research, a cleantech market research firm, has forecast that installed wind capacity in the U.S. will reach 320 gigawatts by 2015, which is an increase of 165% over 2008. This forecast is 20% lower than other forecasts put out by the wind energy industry, but still shows that wind energy has favorable prospects for growth over the next 5 years as compared to other industries. Pike believes that as the credit markets loosen up we will see reinvestment in the wind energy sector faster than in other sectors of our economy. I think this relative optimism was reflected in the general positive tone of Windpower 2009 in Chicago a few weeks ago.

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

BETCs and the Oregon Legislature

2009-05-19T17:30:39Z

Most of us who have been working with the alternative energy industries went into this session of the Oregon Legislature with fear and loathing. Given the budget crisis, it was easy to see the Business Energy Tax Credits (BETC) as a likely victim in the effort to shore up the state's sagging revenues. This hasn't been the case with respect to alternative energy manufacturing. In fact, the major reform of the BETC program (HB2472) pointedly rejected any attempt to weaken this valuable tool for recruiting these industries to the state. This bill passed out of the Revenue Committee with a 6-2 vote and one of the "no's" voted that way because he likes the program as it is and didn't want to make even the minor changes that were made (mostly impacting large wind generating projects and biomass projects).

The House Sustainability and Economic Development Committee expanded, somewhat, the use of BETC's with HB2180. This bill allows limited use of the BETC for co-generation projects and authorizes the Department of Energy to adopt rules that will clarify how one qualifies for a biomass project. It also extends the program to the purchasers of "plug-in hybrid vehicles." The net result of this bill should be to encourage legitimate projects in many of the alternative energy fields go forward, while allowing the Department to be selective by creating rules that will give them the ability to deny the credit on more questionable projects. This bill has passed the first committee and now has subsequent referral to House Revenue.

This is a great recognition on the part of the House of Representatives of the importance of alternative energy manufacturing in the long-term revenue picture for the State of Oregon. It is also standing about as firm as one could expect on the commitment to a "greener Oregon." In this budget climate that's about all we can hope for.

Post authored by Tom Hughes, consultant in the Government Relations and Public Policy Group.

Windpower 2009 Conference and Exhibition - Last Day

2009-05-11T21:26:41Z

Windpower 2009 has come to a close. I took away two primary impressions from the conference. First, the industry is a jobs driver -- 22,000 people attended and only a small minority were there for the jobs fair. People are employed in this business and working enthusiastically. Second, the conference showed how windpower is maturing as an industry -- as one person I met said, the companies that had big displays at prior conventions put up smaller displays, and the little guys multiplied exponentially. Rather than the 100 or so players you would see five years ago, the industry now has tens of thousands of companies involved. There is depth and diversity in the supply chain that reflects an industry putting down strong roots in our economy. I'm already looking forward to Windpower 2010 in Dallas.

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