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 Vermont first state in nation to ban fracking for oil and gas

With a 103-36 vote in the House of Representatives, Vermont on Friday became the first state to ban hydraulic fracturing to extract oil or natural gas. The bill passed the Senate earlier this week.

The House debate was short. Heidi Scheuermann, R-Stowe, raised concerns that Vermont was banning the practice without knowing what natural gas resources it was giving up. “We have no idea if some farmers in Franklin County might be able to take advantage of an economic opportunity on their property,” she said in floor debate. Scheuermann urged the House to vote for a moratorium, which would sunset after a number of years.

David Deen, D-Westminster, argued that there was a small “semantic difference” between a ban and a moratorium, since no legislature can bind a future legislature. “If we put a ban in place at this time, by this time next year, that ban could either be a moratorium or lifted.”

Vermont renewable energy bill gets last-minute overhaul

It was do or die for the energy bill on Wednesday. After a fight on the Senate floor over the House proposal to expand the buildout of renewable energy projects over the next 10 years, the legislation was on life support by Tuesday night.

The options? The legislation would either pass, die in committee or delay the end of the session.

Wednesday morning a whirlwind of closed door meetings in the governor’s ceremonial office, cursory committee testimony and whisperings in hallway ensued.

A handful of lawmakers hammered out a plan with the Shumlin administration in the morning, a lawyer from legislative counsel then redrafted the bill and lawmakers in Senate Finance spent less than an hour taking testimony from the commissioner of the Department of Public Service. By day’s end the Senate was set to debate the hastily reworked legislation. The bill passed 21-4 late in the evening.

Can you say sausage?

When S.214 (H.468) landed from its missile-like trajectory onto the Senate floor, the legislation, formerly known as the Renewable Portfolio Standard bill, it no longer contained renewable portfolio standards. Presto change, the requirements for utilities to retain renewable energy credits had vanished. Instead, the legislation calls for another study (the RPS recommendations came from a Public Service Board study conducted last year per a legislative request) and expands the “standard offer” program for small renewable projects.

Arizona Legislature Exempts the Sale of Renewable Energy Credits from State Sales Tax

Affirming its commitment to the development of renewable energy resources, the Arizona legislature recently passed legislation exempting the sale and/or use of Renewable Energy Credits (generally referred as "RECs") from Arizona's transaction privilege tax, which operates similar to a sales tax. Given that Arizona's state transaction privilege tax is over seven percent in most counties, and that city tack on an additional 2 to 3 percent tax, the decision to exempt the sale of RECs from a 10 percent tax is a significant development that should encourage the development of renewable energy in Arizona.

Arizona’s Renewable Energy Standard

In 2006 the Arizona Corporation Commission, which is the state agency that governs public utilities, enacted the Renewable Energy Standard and Tariff. This “RES Tariff,” which became effective in 2007, requires that by 2025, at least 15 percent of energy supplies come from eligible renewable energy, with smaller amounts required in earlier years. Of the total renewable energy requirement, 30 percent must come from distributed energy renewable resources by 2025, again with smaller amounts required in earlier years.

A “distributed energy resource” is small-scale power generation technology used to provide an alternative or enhancement to the traditional electric power system and is located on the customer’s side of the power meter. Rooftop or parking lot solar panel arrays are examples of a distributed energy resource, and can be contrasted with solar power plants operated by the utilities themselves. Under the RES Tariff, 50 percent of the distributed energy resource must come from residential customer systems while the remaining 50 percent must come from non-residential, non-utility applications.

Renewable Energy Law News - Week of April 23

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 More than 100 renewable energy and associated Vermont businesses urge legislative action

MONTPELIER, Vt — Demonstrating the size and diversity of Vermont’s renewable energy economy, more than 100 businesses that work in the renewable energy industry are urging legislative action before the session closes on a package of clean energy legislation.

In a letter led by Renewable Energy Vermont to Governor Peter Shumlin, Lieutenant Governor Phil Scott, and lawmakers, the businesses urged passage of five House-passed, bipartisan bills, stating that “our industry is growing and it is strong,” but “to remain competitive, we need to continue to foster a strong local industry.”

The letter continued, “Vermont has worked hard to develop our in-state, clean energy economy. Now is not the time to let this effort slide, letting the wave of the future move on to other states and countries. Predictability and pro-growth policies are vital to our continued success.”

Tennessee solar tax bill dead for this session

Tennessee - A controversial bill on the taxation of solar installations will go to a summer study committee, effectively killing the bill for this session, with proponents opting to regroup on a complex debate.

The Comptroller of the Treasury’s Office, which had initiated the legislation, made the announcement this afternoon. Jason Mumpower, the comptroller's chief of staff, said proponents decided to delay the issue for study, rather than try to ram it through in the last days of session with so many questions lingering.

"While there has been a good discussion during this session about how solar businesses should be assessed, it is not advisable to seek a quick resolution of the concerns that have been raised during the session's waning days," Mumpower said in a statement.
 
Arizona Governor signs two new solar energy friendly bills into law this week

Arizona is set to become friendlier to solar energy as Governor Jan Brewer signs two new legislations into law this week. The state boasts of a large amount of solar energy capacity that has, until very recently, been untapped. Solar energy advocates have been working to promote the power for several years, but initiatives to progress the alternative energy have long been stunted by legislative complications. This week, however, Governor Brewer signed two solar-friendly bills into law that could make Arizona one of the leaders in solar power.

The first is House Bill 2830, which removes the 2013 deadline for schools to install their own solar energy systems. The initial deadline was criticized because many felt that it presented an unfair problem for Arizona’s numerous school districts. These districts have been working to become more energy efficient and adopt alternative energy systems. This has been somewhat complicated, especially in regards to solar power, because of the expensive nature of these systems. Districts will now be allowed more time to adopt solar energy systems.

The second is Senate Bill 1229. This legislation clarifies a problem concerning the sale of Renewable Energy Credits. Since the program was introduced in 2001, it has been the subject of controversy. Concerns regarding whether sales tax can be imposed on the Renewable Energy Credits has been the crux of several legislative battles. That will no longer be the case, however, as the legislation frees Renewable Energy Credits from sales tax. The legislation also declares that Arizona residents are only liable for paying sales tax on energy they purchase from the state’s energy grid, not electricity they do not purchase from the grid.

Renewable Energy Law News - Week of April 16

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Vermont is Helping to Lead the Nation in Transforming Our Energy System

We come from Vermont. We know our small state cannot reverse global warming on our own, but we can provide a model for America which helps lead our nation and the world to a more sustainable and secure energy future. 

We see three major imperatives. 

First, we must act to reverse global warming. The scientific consensus is clear that global warming is real, that it is caused by human activities and that it will only get worse if we do not take bold efforts now. At a time when many members of Congress do not even acknowledge that global warming is happening, in Vermont we are taking action. Vermont has more than 100 grassroots citizen-led town energy committees that are working with state agencies to transform our energy system away from fossil fuels and into energy efficiency and such clean sources of sustainable energy as solar, geothermal, biomass and wind. 

 Refundable Federal Tax Credit Could Remove Barrier to Community Wind

Since it will take a battle to extend federal tax credits for wind power anyway, why not make community wind development easier at the same time?

Last month, President Obama’s Treasury Department released proposed reforms to a number of business taxes including the federal Production Tax Credit (PTC) for wind power projects. The reform proposal would make the tax credit permanent, but more importantly, it would make it refundable.

A regular tax credit reduces the amount of taxes a business or person pays dollar for dollar, down to zero. In the case of the PTC, it provides 2.2 cents for every kilowatt-hour produced by the wind power project, over 10 years. But for the many individuals and businesses that don’t owe a lot of taxes, they have limited use. That’s why there’s an entire “tax equity industry” made up of large banks and Wall Street firms that partner with wind and solar developers to reduce their tax bills. The drawback of these partnerships is that as much as half of the tax credit’s value is consumed by the Wall Street firms and not the renewable energy project.

Virginia governor to add signature to energy bills

RICHMOND, Va. - Gov. Bob McDonnell is promoting legislation that he says will help Virginia become the "energy capital of the East Coast."

McDonnell added his signature Tuesday to 13 pieces of energy-related legislation. The legislation promotes development of the state's energy resources and supports alternative and renewable energy strategies, according to the governor's office.

McDonnell has promoted an "all-of-the-above" approach to energy development. That includes fossil fuel development such as coal and renewable sources of energy such as wind and solar power.

In a news release following the signing, McDonnell said that the state must work with must work with industry and stakeholder groups to continue to aggressively work to harness the resources to provide affordable and reliable energy for homes and businesses.

Florida energy bill that affects south Lee Algenol's expansion becomes law

TALLAHASSEE - In a political squeeze because of a bill that includes tax breaks for renewable-energy production, Gov. Rick Scott late Friday allowed the controversial measure to become law without his signature.

Scott's decision could anger tea party members and some conservative groups that placed heavy pressure on him to veto the bill (HB 7117). But it effectively gives a victory to Agriculture Commissioner Adam Putnam and lawmakers who say the state needs to take steps toward developing renewable fuels.

It could also prevent a Southwest Florida company from expanding.

Algenol Biofuels Inc. wants to make ethanol from algae at its commercial farm in south Lee County, the first such enterprise in Florida. But at the state level, the concern is that the algae, if it escapes during a storm, for example, could pose an environmental threat.

Renewable Energy Law News - Week of April 2

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 Bipartisan US Senate bill would extend wind tax credits by two years

Seven US Republican and Democratic senators on Thursday introduced a bill that would extend for two years the federal production tax credit for wind energy that is set to expire at the end of 2012.

"Congress should renew the wind energy tax credit to develop clean energy alternatives and good paying jobs," Iowa's Charles Grassley, the senior Republican on the Senate Finance Committee, said in a statement.

"Tax relief has succeeded in developing this clean, renewable and innovative energy source and it ought to be continued with the degree of certainty that encourages continued investment," he said.

The bill also would extend renewable energy tax credits for biomass, geothermal, landfill gas, trash, hydropower, and marine and hydrokinetic power by one year to January 1, 2015.

Democrats joining Grassley in sponsoring the bill are Mark Udall and Michael Bennet of Colorado, Tom Harkin of Iowa and Ron Wyden of Oregon. Republicans co-sponsoring the bill, dubbed the "American Energy and Job Promotion Act" were Scott Brown of Massachusetts and Dean Heller of Nevada.

California Legislation Would Benefit Renewable Energy Projects 

Assemblyman Ben Hueso, D-79th District-Calif., has introduced a bill that would allow property-tax revenue to be used to promote renewable energy projects.

The legislation, A.B.2551, would authorize a legislative body to establish an infrastructure financing district in a renewable energy zone area, as defined, for the purpose of promoting renewable energy projects. The bill would exempt the creation of the district from the voter-approval requirement.

Existing law authorizes counties and cities to form infrastructure financing districts, in accordance with a prescribed procedure, and requires that a district finance only public capital facilities of community-wide significance, as specified. In addition, existing law authorizes a legislative body, by ordinance, to adopt an infrastructure financing plan and create the district with the full force and effect of law, if 23 of the registered voters within the territory of the proposed district are in favor of creating the district.

Renewable Energy Law News - Week of March 19

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Vermont House votes to pursue renewable energy

MONTPELIER -- With summer temperatures in Vermont on the first day of spring, House members gave preliminary approval Tuesday to a bill to address climate change.

"We see its evidence everywhere and we see it at an ever increasing rate," Rep. Margaret Cheney said on the House floor while the thermometer reached 75 degrees outside.

The Norwich Democrat described a bill that sets a goal that Vermont get 75 percent of its electricity from renewable sources by 2032. It calls for a renewable portfolio standard, in which the state’s utilities would be required to get increasing amounts of the power they sell from green sources over the next 20 years.

The measure received preliminary approval on a voice vote. It is up for final House approval Wednesday before moving to the Senate.

Cheney said the bill is not ambitious enough for some environmentalists, but said the House Natural Resources and Energy Committee, of which she is vice chairwoman, tried to balance environmental and economic concerns. 

Wisconsin Wind Siting Rules Effective March 16

After years of uncertainty, the Wisconsin legislature allowed statewide wind energy siting rules to go into effect today. The new rules (known as “PSC 128”) require wind turbines to be located at least 1,250 feet from the nearest residence and at a distance 1.1 times the height of the wind turbine from the nearest property line. Cities, villages, towns, and counties are prohibited from enacting an ordinance imposing more restrictive requirements than the statewide rules.

In 2009, the legislature directed the Wisconsin Public Service Commission (“PSC”) to develop rules that limit the restrictions local governments may impose on wind energy projects. The purpose of these rules was to ensure consistent local procedures and regulation of wind energy. On December 27, 2010, the PSC adopted the final wind energy siting rules (Wisc. Admin. Code Ch. PSC 128). But on March 1, 2011, the day the rules were to take effect, the legislature’s Joint Committee for the Review of Administrative Rules voted to suspend PSC 128. This year, the legislature considered a proposal to indefinitely suspend the rules, but adjourned yesterday without taking action. As a result, PSC 128 automatically became effective today.

Renewable Energy Law News - Week of March 12

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 Senate Fails to Pass Energy Tax Credit Extensions

The Senate failed to pass an amendment that would have extended a set of expiring tax credits for wind energy, biofuels, energy efficient homes and other tax breaks.

The wind energy production tax credit and the other tax breaks are set to expire at the end of the year. The amendment, introduced by Sen. Michael Bennet, D-Colo., needed 60 votes to pass in the Senate, but failed by a vote of 49-49 on Tuesday. However, a new bill was introduced Thursday in an attempt to extend the tax credit again.

“I’m disappointed that the wind energy PTC extension did not move forward today,” Bennet said in a statement Tuesday. “I have visited with Colorado companies and met with Colorado workers who stand to suffer a huge economic blow if Congress can’t get its act together and extend this critical tax credit. With thousands of high-quality jobs at stake across our state and the entire country, we need to provide certainty for this industry, so we do not derail its current growth. Standing on its own, this tax credit has bipartisan support, and Colorado companies are counting on us to get it across the finish line. I will continue the fight and look for the next opportunity to extend the wind energy tax credit. We cannot afford to delay. Congress needs to act now before more Americans lose their jobs.”

 Adam Putnam's Renewable-Energy Bill Passes In Florida

Florida Agriculture Commissioner Adam Putnam on Friday morning cheered the House's passage of the energy bill he has been pushing throughout the 2012 session. With the House passing the measure 116-2, it is now on its way to Gov. Rick Scott. Two Republicans voted against the measure, Eric Eisnaugle of Orlando and Marlene O'Toole of The Villages.

“The Florida House of Representatives cast its final vote today in support of advancing Florida’s energy future,” Putnam said. “Florida’s energy bill, which will increase diversity in the state’s energy portfolio, expand energy production and create much-needed jobs for Floridians, is now headed to the governor’s desk for signature.

“With overwhelming support in both chambers, the Legislature is sending a clear message that Florida is focused on its future. We’re putting Florida’s energy policy back on the right track, positioning Florida to secure a stable, reliable and diverse supply of energy,” Putnam added before thanking Rep. Scott Plakon, R-Longwood, and Rep. Seth McKeel, R-Lakeland.

New Proposal Would Limit AZ Renewable Energy Rules

PHOENIX (AP) — A bill that would give the Legislature a say over energy rules adopted by the Arizona Corporation Commission is being scaled back.

An amendment proposed for consideration by a Senate committee Wednesday would rewrite the bill approved by the House.

The new version would bar the commission from requiring a utility to meet a renewable energy standard greater than those now in effect.

Glendale Republican Rep. Debbie Lesko recently won House approval of her original bill only after promising fellow representatives to scale it back.

Renewable Energy Law News Week of March 5

Administration produces renewable portfolio standard proposal

Two months into the legislative process, the Vermont Department of Public Service weighed in this week with a proposal for the renewable portfolio standard bill that has ping-ponged back and forth in the House Committee on Natural Resources and Energy.

The department proposes a goal for the state of 75 percent renewable energy by 2032, including 35 percent “new renewable” and 10 percent small-scale generation.

The committee has seen multiple drafts, some more stringent than others in moving Vermont toward a law that would require utilities to provide a percentage of their electricity portfolio from renewable sources.

Army Issues Draft RFP for $7 Billion in Renewable Energy Contracts

On Friday February 24, 2012, the U.S. Army Engineering & Support Center in Huntsville, Alabama issued a draft request for proposals (Solicitation No. W912DY-11-R-0036, the “Draft RFP”) titled “Large Scale Renewable Energy Production for Federal Installations.”

The objective of the solicitation, in its current form, is to procure renewable and alternative energy through power purchase agreements (PPAs) or contractual equivalents for terms of up to 30 years. The government does not want to acquire generation assets, only energy. Projects may be located on or near any federal property located within the United States, including Alaska, Hawaii, territories, provinces or other property under the control of the United States. “The intent is to award contracts to all qualified and responsible offerors, both large and small businesses.”