Category: Solar

1
Treasury Guidance Buoys Solar and Wind in 2020 and Beyond
2
CLE Presentation: COVID-19: Perspectives for the “Next New Normal” for Renewable and Utility Companies
3
Join Us! Energy Storage Association Webinar: Energy Storage, Trade and China
4
Treasury to Extend Deadlines for Accessing Wind, Solar Tax Credits
5
From Fat Duck to Flat Duck to Firm Duck
6
RENEWS SOUTHEAST – VOLUME 4
7
ReNEWS Southeast – Volume 1
8
FERC Grants Waivers to Exempt Solar Aggregator from Certain QF Requirements
9
RENEWABLE ENERGY BUYERS’ SUMMIT
10
Join K&L Gates at NEBC’s Energy Workshop on Thursday, June 7

Treasury Guidance Buoys Solar and Wind in 2020 and Beyond

By: Elizabeth C. Crouse

This afternoon, the Department of Treasury issued eagerly anticipated guidance extending the continuous construction/efforts test safe harbor to five years for wind, solar, and other tax credit projects that began construction in 2016 and 2017.

The extension applies for purposes of the Code Section 48 investment tax credit and the Code Section 45 production tax credit, and to projects that began construction under either the significant physical work test or the 5% safe harbor. Projects that began construction in 2016 now have through December 31, 2021 to be placed in service without proving continuous construction or continuous efforts. Projects that began construction in 2017 now have through December 31, 2022 to be placed in service for the same purpose. This extension is a boon to the industry, particularly the many wind projects that have experienced disrupted schedules due to the COVID-19 crisis.

Treasury also granted a boon to the solar industry in the same guidance by providing a generally applicable safe harbor for purposes of the 3.5 month test frequently used to safe harbor supplies procured in the last quarter of a calendar year. Specifically, Notice 2020-41 provides that if a taxpayer paid for any services or property paid on or before September 16, 2019 and the services or property are “actually received” by the taxpayer by October 15, 2020, the “taxpayer will be deemed to have had a reasonable expectation” of timely delivery for purposes of the 3.5 month test. This guidance follows months of efforts by participants across the wind and solar industries to obtain assurance that project delays would not negatively impact tax credit availability. By extending these tests, Treasury has provided significant comfort to many investors and ensured the continued advancement of the power industry and the thousands of jobs it provides to Americans across the country.

CLE Presentation: COVID-19: Perspectives for the “Next New Normal” for Renewable and Utility Companies

Join us on Wednesday, June 10, 2020, for a CLE presentation on “COVID-19: Perspectives for the “Next New Normal” for Renewable and Utility Companies.”

Companies are seeing unprecedented legal and business impacts due to the COVID-19 pandemic.  These impacts are bringing about changes in strategy and how many companies approach their day-to-day business operations to adapt to this new business environment. This one-hour session will involve a presentation by the following K&L Gates attorneys sharing their perspectives on what to consider during the “next new normal.”

Moderator: 

Panelists:

This presentation will include the evolving legal and business impacts of COVID-19 in connection with:

  • Contract Issues
  • Insurance Issues
  • Potential Work Issues
  • Litigation Trends

This webinar will contain a chat feature in which you can submit questions so that we may tailor this presentation to address your concerns.

To register, please click here.

Join Us! Energy Storage Association Webinar: Energy Storage, Trade and China

Please join K&L Gates’ Elizabeth Crouse on the Energy Storage Association’s upcoming webinar, Energy Storage, Trade and China, on Thursday, May 21 from 12:00 PM – 1:00 CDT.

This webinar will explore the key trade and national security policies that currently impact the ESS market in the U.S. and assess their potential impacts on future deployments, including:

• How might regulatory developments under the Executive Order impact storage?
• What might the future hold for tariffs?
• How do these processes play out in an election year?

For more information and to register, please click here.

Treasury to Extend Deadlines for Accessing Wind, Solar Tax Credits

Author: Elizabeth Crouse

This afternoon, the Office of Legislative Affairs at the Department of Treasury, issued a letter to Charles Grassley, the Chairman of the Senate Committee on Finance, indicating that Treasury intends to issue administrative relief to the solar and wind industries regarding certain investment tax credit (“ITC”) and production tax credit (“PTC”) deadlines. Although the letter does not provide any details as to the nature of this relief, Chairman Grassley’s April 23, 2020 letter to Treasury requested that the four-year safe harbor for the continuous construction and continuous efforts test for the PTC and ITC be extended to a five-year safe harbor period.

Chairman Grassley did not request administrative relief concerning the impact of COVID-19 related measures taken by manufacturers and shipping companies on a customer’s “reasonable expectation” that materials purchased in 2019 would be delivered within 3.5 months after payment. This latter provision is important for purposes for establishing beginning of construction of solar projects in 2019.

From Fat Duck to Flat Duck to Firm Duck

By: Matt Baumgurtel and Rachel Lawlor

How Energy Storage is Creating New Opportunities

A major disruption to the global economy is coming in the form of a seismic shift in energy markets. Largely driven by energy storage, this disruption will create exciting opportunities for the renewable energy market and will, in our view, drastically change the time of day electricity price curve (that is, the ‘duck curve’).

Read More

RENEWS SOUTHEAST – VOLUME 4

K&L Gates reports on the latest renewable energy policies and activities in the southeastern United States

By Kenneth J. GishWilliam M. KeyserAbraham F. JohnsOlivia B. Mora, and Laura B. Truesdale

K&L Gates’ ReNEWS Southeast is a periodic bulletin that will track key developments in renewable energy policy, activities, and technologies that are driving the industry forward.

IN THIS ISSUE:

  • Dominion Energy Breaks Ground on Virginia’s First Offshore Wind Installation
  • Duke Energy Hits Milestone of 1GW of Owned Solar Energy
  • Offshore Wind Areas Examined Off East Coast from Virginia to South Carolina
  • North Carolina Legislature Drops Ban on Wind Projects

View more details of Volume 4 by clicking here.

ReNEWS Southeast – Volume 1

K&L Gates reports on the latest renewable energy policies and activities in the southeastern United States

By Kenneth J. Gish, William M. Keyser, Abraham F. Johns, Olivia B. Mora, and Laura B. Truesdale

Welcome to the inaugural edition of ReNEWS Southeast!

K&L Gates’ ReNEWS Southeast is a periodic bulletin that will track key developments in renewable energy policy, activities, and technologies that are driving the industry forward.

IN THIS ISSUE:

  • Southeastern States See Large Year-Over-Year Increase in Renewable Output
  • Florida PSC Approves TECO Solar Tariff
  • Installation Set to Begin on United States’ Second Offshore Wind Project
  • Large Solar Farm Set to Open in South Carolina
  • Offshore Wind Turbine Components Could Eventually Be Manufactured in North Carolina
  • North Carolina Allows Duke Energy to Implement Cutting-Edge Microgrid Project, and State Receives Large Commitment of Solar Farm From Novo Nordisk
  • South Carolina Solar Law Eliminates 2% Net Metering Cap Along With Other Solar Advancements
  • Power Is on at Tennessee’s Largest Solar Development

To view more information on these topics in Volume 1 of ReNEWS Southeast, click here.

FERC Grants Waivers to Exempt Solar Aggregator from Certain QF Requirements

By William M. Keyser and Toks A. Arowojolu

On April 18, 2019, the Federal Energy Regulatory Commission (“FERC”) issued an order granting a petition for declaratory order filed by Sunrun, Inc. (“Sunrun”) that exempted Sunrun, the nation’s largest residential solar company, from certain qualifying facility (“QF”) filing requirements under the Federal Power Act (“FPA”) and the Public Utilities Holding Company Act (“PUHCA”). The requested waiver would allow Sunrun to avoid significant administrative and regulatory burdens by avoiding potentially hundreds of QF filings as it increases the number of photovoltaic (“PV”) systems it owns on behalf of its customers.

QFs have the right to sell energy or capacity to a utility at an avoided cost rate and receive relief from certain regulatory burdens. To qualify as a QF, eligible facilities (including solar facilities) with power production capacity of greater than 1 MW (1000 kW) must certify their status with the Commission by either submitting a Form 556 self-certification or filing an application. Facilities with net power production of 1 MW or less are exempt from this filing requirement. When determining the size of a QF, FERC applies a “one-mile rule.” Under the “one-mile” rule, QFs located within a mile of another facility that use the same energy source and have the same owner are considered one QF for purposes of determining whether the QF surpasses the 80MW requirement for QF eligibility. FERC also applies the one-mile rule to determine whether a QF is 1 MW or less and therefore exempt from the QF certification filing requirement.

The one-mile rule carries potential consequences for developers of small and distributed rooftop solar systems like Sunrun, particularly when they retain ownership over the individual systems. According to the petition, Sunrun’s customers can choose to have Sunrun finance the PV system with Sunrun initially retaining ownership and continuing to monitor, maintain, and insure the system. Under Sunrun’s system, the homeowner is granted an option to buy the PV system later.

Sunrun filed its petition in September 2018 requesting waivers of two QF certification requirements to support its business model of selling, owning, and maintaining residential solar PV systems. First, Sunrun requested a waiver of the QF certification filing requirement for separately interconnected, individual residential rooftop solar PV systems with a maximum net power production of 20 kw or less that Sunrun provides financing for but which the homeowner has an option to purchase. Because Sunrun could conceivably finance or own many such 20 kW systems within one-mile radius, it would be possible for all such 20 kW systems to aggregate to over 1 MW and trigger QF certification filing requirement. Second, Sunrun also requested that, in a self-certification submitted for a cluster of rooftop PV systems that exceed 20 kW, FERC waive the requirement to include information for the facilities covered by the first waiver request (i.e., 20 kW or less).

Sunrun explained to FERC that its concerns were two fold: (1) while 99.5% of the residential PV systems that Sunrun owns have a nameplate capacity below 20kW, PV systems within close proximity to one another can collectively be deemed to be one QF under the one-mile rule, and (2) without the waivers, Sunrun would have to “monitor the geographic concentration of its PV systems” and file and continuously update a highly burdensome number of filings. With Sunrun’s 202,000 PV systems spread across 22 states, numerous applications would be expected.

FERC granted the requested waivers, finding that Sunrun’s request aligned with the purpose of the 1MW exemption which is “to ease the administrative burden for both the Commission and small scale QFs.” FERC also directed Sunrun to maintain sufficient records of the residential PV portfolio that it owns through “third-party financing arrangements” to ensure that its aggregated solar resources are in compliance with other federal regulations. FERC’s ruling could provide an opportunity for Sunrun and other rooftop solar aggregators to sell solar power into the wholesale markets. However, despite the easing of the administrative and regulatory burden at FERC, solar aggregators are still subject to a host of interconnection and state regulatory requirements that would also need to be addressed. We will continue to monitor the developments of this proceeding and its impacts on the solar PV and wholesale markets.

RENEWABLE ENERGY BUYERS’ SUMMIT

January 9-11, 2019

K&L Gates is proud to sponsor the 2019 Infocast Renewable Energy Buyers’ Summit (REBA). REBA is an invitation-only event where renewable energy buyers gather to discuss renewable energy procurement best practices with their fellow corporate buyers, as well as get valuable insights from leading renewable energy experts.

Teresa Hill will be moderating a panel on Latest Trends in PPA Terms and Structuring, and Bill Holmes will be moderating two panels, Assessing the Potential of Green Tariffs as a Renewable Sourcing Option, where attendees will assess the potential of green tariffs to provide a viable sourcing solution for renewable buyers, and Distributed Energy Solutions to Meet Corporate Goals, which will focus on on-site solar and energy storage.

Please let us know if you will be in attendance!

Join K&L Gates at NEBC’s Energy Workshop on Thursday, June 7

Please join us on Thursday, June 7, 2018 as we host the Northwest Environmental Business Council’s (NEBC) Energy Workshop “Powering Our Future: Insight into the Growth of Renewables.”

As host of the event in our Seattle office, our partners Ankur Tohan and Alyssa Moir and associate Endre Szalay will speak on a panel titled “Solar & Wind Project Development: Navigating Risk and Seizing Opportunity.”

PROGRAM OVERVIEW

Join us for an engaging afternoon of discussions on policy, technology, and legal hot topics in the renewable energy industry. Panelists representing perspectives from power producers, power purchasers, energy investors, utility, and the legal industry will discuss the role of competitive markets in the renewable energy sector, the impact and increasing presence of renewables and storage on the grid, and renewable project development issues and opportunities with a focus on the Northwest.

The workshop is presented free of charge to NEBC members and all interested parties.

DETAILS

Thursday, June 7
1:45 – 2:00 p.m.: Registration & Opening Remarks

2:00 – 5:00 p.m.: Technical Workshop

5:00 – 6:00 p.m.: Happy Hour

Location: K&L Gates LLP, 925 Fourth Avenue, Suite 2900, Seattle, WA

REGISTRATION

For more details and to register, click here.

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