More Studies on Green Jobs

Following on the heels of a study from the Pew Charitable Trusts we reported on last week at the Vermont Environmental and Land Use Law blog, two more reports from think tanks and environmental groups suggest that clean-energy investments have the potential to kick-start the economy, employ millions of workers nationwide, especially those at the lower end of the economic scale.

The Political Economy Research Institute (PERI) and the Center for American Progress provide state-based information of where jobs are most likely to be generated.

According to the report for Vermont:

Investments in a clean-energy economy will generate major employment benefits for Vermont and the rest of the U.S. economy. Our research finds that Vermont could see a net increase of about $300 million in investment revenue and 4,000 jobs based on its share of a total of $150 billion in clean-energy investments annually across the country. This is even after assuming a reduction in fossil fuel spending equivalent to the increase in clean energy investments.

Adding 4,000 jobs to the Vermont labor market in 2008 would have brought the state’s unemployment rate down to 3.6 percent from its actual 2008 level of 4.8 percent.

Here is the link to the other report released today, Green Prosperity: How Clean-Energy Policies Can Fight Poverty and Raise Living Standards in the United States.

Image Source: Richard Masoner.

Vermont Public Service Board Opens Docket 7523 to Review Vermont Renewable Energy and Efficiency Act of 2009 Interim Standard Offer Contract Prices

The Vermont Public Service Board (PSB) has opened Docket No. 7523 to review the interim "standard offer" contract prices for small scale renewable generators established under the Vermont Renewable Energy and Efficiency Act of 2009 (which was the subject of one of our prior posts). The PSB must complete this review by September 15, 2009.

In Docket 7253, the PSB is required to 1) assess whether interim prices stated in the statute constitute "a reasonable approximation" of the final prices the PSB will establish applying the statutory criteria, and 2) adjust any price found not to constitute such an approximation.

The statutory interim prices will apply pending the PSB's final determination of standard offer prices, which must take place no later than January 15, 2010. The statute directs the PSB to set final prices based on the cost of each type of renewable energy, and allowing for a rate of return on equity not less than the highest rate received by a Vermont investor-owned electric utility. It also, however, allows the PSB substantial flexiblity to adjust prices as it deems necessary to provide "sufficient incentive for the rapid development and commissioning of plants."

On June 19, 2009, PSB staff held a prehearing conference and workshop at which participants discussed the scope of the docket and identified an extensive list of substantive and procedural issues relating to contract pricing as well as other aspects of standard offer program eligibility and implementation. Subgroups were established to address Standard Contract Terms and Wheeling. Board staff plan to hold a second workshop, most likely an all-day event, in early July.

The PSB intends to establish a website for Docket 7253, where it will post relevant documents. We will provide a link once the PSB website is available.

IRS guidance on claiming investment tax credits for wind, biomass, geothermal, and other PTC facilities

The 2009 Stimulus legislation (ARRA) permits owners of PTC facilities, such as wind, biomass, and others, to elect a 30-percent tax credit, based on the cost of the facility, at the time the project is placed in service, rather than the 10-year PTC, which is calculated based on sales of electricity. Last week, the IRS issued Notice 2009-52, which explains the process for making this election.

The election to claim the ITC in lieu of the PTC applies to the following types of renewable energy facilities:

• Wind;
• Biomass (both closed- and open-loop);
• Geothermal;
• Landfill gas;
• Trash facilities;
• Qualified hydropower; and
• Marine and hydrokinetic.

To qualify, a taxpayer must claim the ITC with respect to qualified property that is an integral part of the facility on a completed Form 3468. Form 3468 must be filed with the taxpayer’s income tax return for the year in which the property is placed in service.

A separate election must be made for each qualifying facility. At this time; however, there is no guidance on how to define a "qualifying facility."