Renewable Energy Update

October 20, 2009

Feds, Schwarzenegger sign pact to aid renewable energy efforts  
L.A. Times - October 12

Interior Secretary Ken Salazar and California Governor Arnold Schwarzenegger signed a memorandum of understanding to streamline siting and approval of renewable energy facilities on public lands.  The memorandum, the first between a state and the federal government involving energy production, aims to expedite about 30 solar, wind and geothermal projects on track to break ground by the end of 2010 and become eligible for more than $15 billion in federal stimulus funds.

Renewable Energy Focus

Governor signs solar power feed-in tariff bill into law
Dow Jones Newswires - October 12
Governor Schwarzenegger signed legislation that will create a European-style above-market tariff, called a feed-in tariff, for small solar-panel generators.  The proposal seeks to expand the market by requiring California utilities to buy power from solar-panel generators of 1.5-3.0 megawatts in size, at set rates above what the utilities would pay for wholesale power from conventional sources.  Some solar companies said the bill's pricing scheme would create a feed-in tariff of about 15 to 17 cents a kilowatt-hour, which they said would not be high enough to spur significant investment. Others said the program would create opportunities for lower-cost projects for which there is not currently a market.

Sen. Kerry: Yes We Can (pass climate change legislation)
New York Times - October 10

In this opinion piece, Senator John Kerry writes, "Conventional wisdom suggests that the prospect of Congress passing a comprehensive climate change bill soon is rapidly approaching zero."  The senator continues:  "The message to those who have stalled for years is clear:  killing a Senate bill is not success; indeed, given the threat of agency regulation, those who have been content to make the legislative process grind to a halt would later come running to Congress in a panic to secure the kinds of incentives and investments we can pass today.  Industry needs the certainty that comes with Congressional action.  We are confident that a legitimate bipartisan effort can put America back in the lead again and can empower our negotiators to sit down at the table in Copenhagen in December and insist that the rest of the world join us in producing a new international agreement on global warming."

U.S. solar firms' 3Q accounting may get hard look
Reuters - October 14

Solar companies are likely to report their brightest earnings in a year as the industry emerges from a brutal downturn, but analysts warn aggressive accounting may cast a shadow on the sector's outlook.  The industry has seen its profit margins and sales growth erode in the past 12 months as a glut of supply and a dearth of financing in the industry stunted the business, which had been expanding by more than 40% per year.  Still, analysts expect companies such as First Solar Inc, SunPower Corp and Chinese-based Suntech Power Holdings to report more demand in the third quarter, helped by a U.S. government economic stimulus spending and increased lending by big banks that pulled back in 2008.

DOE announces steps to strengthen enforcement of energy efficiency standards
Department of Energy - October 13

The U.S. Department of Energy (DOE) announced three new steps to strengthen its ability to enforce energy efficiency standards. The steps include the formation of an enforcement team within the Office of the General Counsel. Second, the Department announced a program to randomly review manufacturers’ compliance with DOE certification requirements. Finally, the Department issued guidance further detailing its energy efficiency enforcement regulations.

California to charge fee for emissions
Green Inc. - October 12

Beginning late next year, California pollution regulators will charge companies for emitting greenhouse gases.  The statewide fee, believed to be the first in the country, will help California pay for the monitoring and regulation of its carbon emissions required by its climate change law.  The fee is expected to raise $63 million within the first year and hit about 380 companies that produce, distribute, refine or use natural gas, coal, electricity, crude or distillates.  The targeted companies represent 85% of the state’s greenhouse gas emissions.  Businesses will pay 15 cents per metric ton of carbon dioxide they or their customers emit in the first three years of the program.  In 2014, when the state pays off loans it took out to pay for the program, the fee will likely fall to 9 cents per metric ton.

Report reveals trends in global clean-tech job development, growth
Clean Edge - October 14

In its first look at the state of clean-tech jobs in the U.S. and globally, Clean Edge, Inc. investigates how these jobs are changing the face of industry, where the hotbeds of growth exist, and whether current clean-tech salaries are living up to their 'green-over blue-collar' promise.  According to the report, the top 15 metro areas in the U.S. for clean-tech job activity, based on an analysis of job postings, investment and patent activity, and other data, include the San Francisco Bay Area at No. 1.

Solar Decathlon gets students building zero-energy home
CNET - October 10

The idea of a net zero-energy home as a science experiment or something you'd move into as soon as it was done are both on display at this year's Solar Decathlon student competition. Students put together high-tech homes that cost well over $700,000 and simpler ones that could be made for as little as $80,000. The contest pits 20 colleges against each other to build the best house powered only by solar energy. Student teams assemble their creations on the National Mall where they are judged in 10 contests and viewed by the public.
Related News:
Team Germany wins Solar Decathlon

Startups urged to work together to develop algae biofuel industry
Daily Transcript - October 9

Developers of algae biofuel were told at a conference to form alliances, protect their intellectual property and not be afraid to accept government funding.  One way companies can protect their IP is through patent pools, where several companies form a consortium to share their patented technology.

Notable Renewable Energy Projects and Deals

U.S. Army selects ACCIONA Solar Power to develop its largest-ever renewables project
BusinessWire - October 15
The U.S. Army Corps of Engineers has selected the team of ACCIONA Solar Power and the Clark Energy Group to develop a large-scale solar energy project (the first phase, consisting of 5 sites that total 500 MW) at one of its most iconic installations:  the Fort Irwin military complex in the Mojave Desert.  The base is the U.S. Army’s largest training ground and also houses NASA’s Goldstone Deep Space Communications center.  ACCIONA Solar Power and Clark Energy Group’s joint project will develop approximately 500 MW of solar power, a figure that could be increased to 1,000 MW at a later stage.

PG&E taps Arizona solar project
Green Inc. - October 16
Pacific Gas and Electric Company (PG&E) asked regulators to approve the purchase of electricity from an Arizona solar power plant.  NextLight Renewable Power will construct the 290-megawatt Aqua Caliente photovoltaic farm on private land in Yuma County, Arizona.  The company signed a deal with PG&E in June to supply 230 megawatts from a solar power plant to be built outside of Los Angeles.  According to the filing, Arizona regulators have already approved the project, and NextLight expects to obtain county building permits within a few months.  If the California Public Utilities Commission approves the 28-year contract, construction will begin in 2010 and electricity will begin to be generated by 2012 as the first phase of the solar farm comes online.  The entire project is set to be completed by 2014.

Microsoft launches SERA smart grid software architecture
Clean Edge News - October 15
Microsoft has developed the Smart Energy Reference Architecture (SERA) as part of its foray into smart grid technology.  Microsoft describes SERA as the company's first comprehensive reference architecture that addresses technology integration throughout the full scope of the smart energy ecosystem.  SERA is designed to help utilities by providing a method of testing the alignment of information technology with their business processes to create an integrated utility.  According to the company, SERA will help thousands of smart devices seamlessly plug into the grid due to common standards and interoperability frameworks.

Waste Connections announces long-term renewable energy project at landfill
Reuters - October 12
Waste Connections, Inc. has entered into a long-term agreement to expand its landfill gas to energy operations at the Potrero Hills Landfill in Northern California.  Under the 25-year agreement with DTE Biomass Energy, landfill gas will be recovered and converted into renewable electric power.  The project is expected to produce enough electricity to power approximately 7,000 homes per year.


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Allen Matkins Leck Gamble Mallory & Natsis LLP, founded in 1977, is a California law firm with over 230 attorneys practicing out of seven offices in California. The firm's broad based areas of focus include construction, corporate, real estate, project finance, business litigation, taxation, land use, environmental, bankruptcy and creditors' rights, intellectual property and employment and labor law. More...

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Recent Events

Allen Matkins has attended numerous events addressing developments in the renewable energy field in 2009.
A summary can be found here.

 

Allen Matkins hosted the successful panel discussion on Renewable Energy Project Finance. For a copy of the program materials, click here.

Upcoming Events

Solar Power Project Development
San Diego, CA
October 22

 

Solar Power International

Anaheim, CA
October 27-29

Allen Matkins will be there!

 

Urban Land Institute
2009 ULI Fall Meeting and Urban Land Expo

San Francisco, CA
November 3-6

Allen Matkins will be attending. Please let us know if you plan to be there.

 

Green Technology
Green California Schools Summit

Pasadena, CA
December 9-11

 

Clean-tech Investors Summit
Palm Springs, CA
January 20-21, 2010

 

2010 VerdeExchange Green Marketmakers Conference

Los Angeles, CA
January 24-25, 2010

Renewable Energy Technology Conference and Exhibition (RETECH)

Washington, D.C.
February 3-6, 2010

 

Recent Opportunities

 

Inland Empire Utilities Agency Request for Proposals For Fuel Cell Installation at Regional Plant 1 in Ontario, California

 

City of Willows Opportunity

 

New Submission Deadlines Released for the California Energy Commission Alternative and Renewable Fuel and Vehicle Technology Program

 

Los Angeles Department of Water and Power Renewable Energy Supply Rolling Request for Proposals

 

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