Archive: June 2018

1
K&L Gates Blockchain Energizer – Volume 30
2
Nine States to Collaborate to Release a New Action Plan to Accelerate the Adoption of Electric Vehicles
3
Loose Lips Sink Ships: Public Statements and the Contractual Rights to Renewable Energy Credits in Solar Power Purchase Agreements
4
Balancing the Interconnect: FERC Reforms Large Generator Interconnection Process in a Manner That Could Benefit Energy Storage
5
K&L Gates Blockchain Energizer – Volume 29
6
Join Us for LSI’s Energy Storage Conference on June 11 & 12 in Seattle, WA

K&L Gates Blockchain Energizer – Volume 30

By Buck Endemann, Ben Tejblum, and Daniel Cohen

There is a lot of buzz around blockchain technology and its potential to revolutionize a wide range of industries from finance and health care to real estate and supply chain management. Many institutions and companies are forming partnerships to explore how blockchain ledgers and smart contracts can be deployed to manage and share data, create transactional efficiencies, and reduce costs. To subscribe to the Blockchain Energizer newsletter, please click here.

While virtual currencies and blockchain technology in the financial services industry have been the subject of significant debate and discussion, blockchain applications that could transform the energy industry have received comparatively less attention. Every other week, the K&L Gates’ Blockchain Energizer will highlight emerging issues or stories relating to the use of blockchain technology in the energy space.

IN THIS ISSUE

  • Walmart Patent Application Envisions Blockchain-based Demand Response, Internet-of-Things Ecosystem.
  • Clean Energy Blockchain Network Partners with Silicon Valley Power to Advance California Low Carbon Fuel Standard Goals.
  • Hydro-Québec Temporarily Halting Service Requests from Cryptocurrency Miners.

To view more information on theses topics in Volume 30 of the Blockchain Energizer, click here.

Nine States to Collaborate to Release a New Action Plan to Accelerate the Adoption of Electric Vehicles

By William M. Keyser and Toks A. Arowojolu

On June 20, 2018, the Multi-State Zero Emission Vehicle (ZEV) Task Force released an Action Plan designed to accelerate the adoption of electric vehicles in the United States. The Action Plan presents 80 strategies and recommendations for states, automakers, charging and fueling infrastructure companies, utilities, and other partners to achieve rapid ZEV market growth in five core areas:

  • consumer education and outreach;
  • charging and hydrogen fueling infrastructure;
  • consumer purchase incentives;
  • light-duty fleets; and
  • dealerships

The Action Plan’s recommendations reflect transportation-focused efforts to combat climate change for the future. By promoting the adoption by mainstream consumers of ZEVs, which include plug-in hybrid, battery electric, and hydrogen fuel cell vehicles, the goal is to achieve “near-and long-term” greenhouse gas (GHG) reduction targets that have been implemented in various states.

I. Background

The Multi-State ZEV Task Force includes nine states—California, Connecticut, Maryland, Massachusetts, New York, Oregon, Rhode Island, Vermont, and New Jersey that collectively comprise one-third of the U.S. vehicle market. The Task Force was formed in 2013 under a Memorandum of Understanding (MOU) signed by the Governors of California and the initial seven states that adopted California’s ZEV regulations, which are more stringent than the federal vehicle emission standards. New Jersey joined the Task Force in 2018.

The Multi-state ZEV Task Force released its first Action Plan in May 2014 to support the implementation of the states’ new ZEV regulations. The 2014 Action Plan focused on eleven key initiatives, including adopting financial incentives and education programs that have been implemented by various states.

II. The New Action Plan

The new Action Plan builds on the early successes of the 2014 Action Plan by “redoubling state efforts” and “establishing clear priorities for action for the next critical period in the evolution of the market.” Promoting transportation electrification promises to deliver “substantial energy security and economic benefits as cleaner electricity derived from renewable energy and other low-carbon sources replaces imported gasoline and diesel as transportation fuels.”

Among the 80 ideas, key recommendations from the five priority areas include the following:

Consumer Education and Outreach

  • States should support local grass roots efforts to increase consumer experience with ZEVs, such as ride and drives, rental programs, and pop-up ZEV show rooms.
  • Automakers and dealers should increase brand-specific advertising as new ZEV models become available and fund brand-neutral consumer awareness campaigns, such as Drive Change. Drive Electric.
  • Utilities should include funding for consumer education in transportation electrification program proposals submitted to public utility commissions (PUCs).

Charging and Hydrogen Fueling Infrastructure

  • States should develop plans to guide the deployment of electric vehicle supply equipment (EVSE) to support the broad portfolio of charging needs at home, work, around town, at destination locations, and on the road.
  • States should open PUC proceedings to consider alternative demand charge rate designs, waivers or other options for public charging to provide the least burdensome price signals to EVSE hosts.

Consumer Purchase Incentives

  • States should collaborate with automobile manufacturers, dealers, utilities, other parties to advocate for the continued availability of federal tax credits.
  • States should continue to offer and promote existing state rebates, income tax credits, and sales and excise tax exemptions.
  • Automakers and dealers should continue to engage with state and local ZEV and EVSE incentive programs regarding monetary and non monetary incentives such as preferential parking, discounted tolls, and High Occupancy Vehicle lane access.

Light-Duty Fleets

  • States should advance the electrification of public fleets by offering financial incentives to state and local government fleets for acquisition of ZEVs and EVSE.
  • Fleet Manager Associations should provide information and guidance to members about the benefits of ZEVs and charging/fueling technologies and costs through ZEV-focused information sessions and trainings.

Dealerships

  • States should highlight dealerships with successful ZEV practices and engage with dealers through the Task Force Dealership Workgroup to identify collaboration opportunities that could support sales.
  • Dealerships and dealership associations should commit to increasing ZEV sales by identifying and adopting best practices to overcome the challenges of selling ZEVs to new consumers.

The full Multi-State Zev Action Plan is provided here. K&L Gates lawyers will continue to monitor these developments as the United States rolls to a cleaner transportation future.

Loose Lips Sink Ships: Public Statements and the Contractual Rights to Renewable Energy Credits in Solar Power Purchase Agreements

By William H. Holmes and Kristen A. Berry

This post is one of a series of “practice tip” articles about renewable energy power purchase agreements.

There is a well-known Chinese proverb: “All problems derive from your big mouth.” These are words of wisdom for parties who are negotiating renewable energy PPAs.

In due diligence, we regularly come across on-site solar power purchase agreements (PPAs) that state that the seller is reserving all environmental attributes and selling only the project’s electricity to the buyer. This type of reservation is common in states like Maryland and Massachusetts, where environmental attributes may have a fairly high market value and may be monetized by the seller to make the project more marketable by effectively reducing the delivered price of electricity.  However, despite this environmental attribute reservation, these PPAs too often go on to say, quite expressly, that the buyer has the right to announce that it is using “solar energy” or “renewable energy” produced by the project.  This seemingly innocuous provision, intended to enable the buyer to brag about its renewable energy purchase, can create problems in PPAs where the seller also reserves environmental attributes.

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Balancing the Interconnect: FERC Reforms Large Generator Interconnection Process in a Manner That Could Benefit Energy Storage

By William M. Keyser, Buck B. Endemann, Benjamin L. Tejblum, Kristen A. Berry, and Toks A. Arowojolu

On April 19, 2018, the Federal Energy Regulatory Commission (“FERC”) issued its much anticipated Final Rule to amend the pro forma Large Generator Interconnection Procedures (“LGIP”) and Large Generator Interconnection Agreement (“LGIA”) (“Order No. 845” or the “Order”). Order No. 845 aims to eliminate inefficiencies and to provide a more streamlined and transparent interconnection process by adopting several reforms. The Order’s objectives are three-pronged: (1) to improve reliability, (2) to promote more informed interconnections, and (3) to enhance generators’ interconnection processes by eliminating inefficiencies and bottlenecks.

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K&L Gates Blockchain Energizer – Volume 29

By Buck Endemann, Ben Tejblum, and Daniel Cohen

There is a lot of buzz around blockchain technology and its potential to revolutionize a wide range of industries from finance and health care to real estate and supply chain management. Reports estimate that over $4.5 billion was invested in blockchain startups in 2017 alone, and many institutions and companies are forming partnerships to explore how blockchain ledgers and smart contracts can be deployed to manage and share data, create transactional efficiencies, and reduce costs.

While virtual currencies and blockchain technology in the financial services industry have been the subject of significant debate and discussion, blockchain applications that could transform the energy industry have received comparatively less attention. Every other week, the K&L Gates’ Blockchain Energizer will highlight emerging issues or stories relating to the use of blockchain technology in the energy space. To subscribe to the Blockchain Energizer newsletter, please click here.

On June 7, your Blockchain Energizer author Buck Endemann participated on a “Leveraging Blockchain for Sustainable Energy” panel hosted by Women in Cleantech & Sustainability at Palo Alto City Hall. Co-panelists Lydia Krefta (Pacific Gas & Electric), Cassie Bowie (Energy Impact Partners), Lena Perkins (CPAU), Yvette Solorzano (Omega Grid) and Sara Prochasson (Enedis) discussed how Blockchain technology, paired with the right regulatory environment, could unlock value for utilities and end users and advance renewable energy goals around the world.

IN THIS ISSUE

  • Chelan County Public Utility District Extends Moratorium on New Electricity Requests from Cryptocurrency Miners.
  • Narada Asia Pacific Pte Ltd. Partners with Electrify to Track Distributed Electricity Production through Blockchain.
  • Catalonia Experimenting with Blockchain to Incentivize Localized Smart Metering.

To view more information on theses topics in Volume 29 of the Blockchain Energizer, click here.

Join Us for LSI’s Energy Storage Conference on June 11 & 12 in Seattle, WA

K&L Gates is pleased to participate in Law Seminars International’s upcoming Energy Storage Conference.  The conference is scheduled to be held at our office in Seattle.  K&L Gates’ Portland partner William Holmes hosts this event as Co-Chair.  Washington DC partner William Keyser will present on “FEROrder 841: Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators” and Seattle partner David Hattery will join a panel on “Business and Transactional Issues.”

About the Conference

Many experts view 2017 as the year in which energy storage turned the corner from nascent technology to full-fledged energy market participant. Major milestones included the construction of a large-scale energy storage facility to replace a natural gas plant in California, completed in less than six months; a large-scale solar-plus-storage PPA in Arizona priced substantially below prior market floors; and Tesla’s announcement of the successful powering of a 100MW mega battery in South Australia.Evolving market rules are expanding revenue opportunities for energy storage, including from deferred transmission and distribution upgrades, reduced peak demand charges, integration of intermittent resources, and provision of ancillary services. With FERC’s Order 841 and state policy initiatives to facilitate energy storage and distributed energy resources, energy storage projects may soon receive additional regulatory support.LSI’s first Energy Storage conference will explore in detail all of the facets for energy storage project development with the goal of better positioning you to take advantage of the opportunities.
For more information and to register, click here.

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