Global Power Law & Policy

Legal and Policy Developments Affecting the Global Power Industry.

 

1
Tax Developments Provide Opportunities for Economic Growth in Indian Country
2
Join K&L Gates at Wind Power Finance & Investment Summit 2019
3
Screen Grabs: FERC’s NOPR Removes Screens in Organized Markets Where Market Mitigation Rules
4
RENEWABLE ENERGY BUYERS’ SUMMIT
5
What’s Next for California’s Low Carbon Fuel Standard?
6
Winds of Change
7
Energy and Infrastructure
8
K&L Gates’ Energy Storage Handbook
9
2nd Annual Energy Storage Conference
10
K&L Gates Blockchain Energizer – Volume 39

Tax Developments Provide Opportunities for Economic Growth in Indian Country

By Bart J. Freedman, Benjamin A. Mayer, Christina A. Elles, and Francesca M. Eick

Opportunities for economic growth in Indian country — including the development of retail space, hotels and resorts, energy projects, data farms, and more traditional farming activities, to name a few — are tied to several recent tax-related developments. These developments include federal regulations regarding the taxation of on-reservation real property and improvements leased and/or owned by non-Indians, whether tribes can collect sales taxes for on-reservation transactions with non-Indians, and how treaties can impact taxation of certain off-reservation activities. The developments are important for both tribes and nontribal parties interested in investing in on-reservation economic growth and development.

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Join K&L Gates at Wind Power Finance & Investment Summit 2019

February 5-7, 2019, Omni La Costa Resort & Spa, San Diego, CA

K&L Gates is proud to sponsor the 2019 Infocast Wind Power Finance & Investment Summit. The Summit is widely recognized as the leading gathering place for wind industry deal makers. Each year, the industry’s leading developers, investors, lenders, turbine suppliers, EPCs and other players gather to gain valuable insights into industry trends, get the latest market update on the finance and investment landscape, and efficiently schedule rounds of private meetings.

Bill Holmes will serve as the Master of Ceremonies for the conference.

We are pleased to offer clients and friends a 15% discount off of registration. Please contact Lauren Hagerich at lauren.hagerich@klgates.com for more information..

We hope to see you there!

 

Screen Grabs: FERC’s NOPR Removes Screens in Organized Markets Where Market Mitigation Rules

By William Keyser, Benjamin Tejblum, and Abraham F. Johns

On December 20, 2018, the Federal Energy Regulatory Commission (FERC) announced a Notice of Proposed Rule Making (NOPR) designed to simplify the horizontal market power analysis necessary for electric power sellers to secure market-based rate authority in some wholesale power markets.  Specifically, the NOPR eliminates the need to perform two indicative screens (the pivotal supplier screen and the wholesale market share screen) in capacity markets and wholesale power markets already subject to Commission-approved monitoring and mitigation rules.  Notably, the Southwest Power Pool and California Independent System Operator wholesale markets are not subject to these monitoring and mitigation rules, so parties seeking market-based rate authority to sell capacity in those markets must still perform the two indicative screens.  This simplification will relieve the added procedural burden of administering the indicative screens for parties seeking market-based rate authority in the other FERC-regulated markets. 

The NOPR also proposes to remove the presumption that market monitoring or mitigation measures will adequately address indicative screen failures in organized wholesale power markets where the grid operator does not administer a capacity market. Rather, the NOPR proposes that in the event of an indicative screen failure in those markets, applicants submit a delivered-price test or other evidence demonstrating a lack of horizontal market power or that the applicant propose other mitigation for capacity sales in those markets. 

K&L Gates attorneys will continue to monitor these developments and assist our clients navigating compliance with FERC rules and regulations.

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!

What’s Next for California’s Low Carbon Fuel Standard?

By Buck Endemann

In September 2018, the California Air Resources Board (CARB) approved several significant changes to California’s Low Carbon Fuel Standard (LCFS) that will take affect on January 1, 2019. [1] The LCFS is California’s “cap and trade” regime for transportation fuels, where fuels are assigned a Carbon Intensity (CI) that varies depending on their feedstock and how they are produced or manufactured.  Producers of fuels with a CI under the annual cap (for 2018, 93.55 grams of CO2 equivalent per Megajoule) earn credits while producers of higher-carbon fuels like gasoline and diesel incur deficits and are required to buy offsetting credits to meet the annual average CI value.  Credits are bought and sold in the secondary market, and the current LCFS credit price of nearly $200/Metric Ton is driving the development of many facilities that are able to produce transportation fuels with low CI scores. 

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Winds of Change

Federal Auction for Offshore Wind Leases in Northeast Set Record High

By David L. Wochner, Abraham F. Johns, and Michael L. O’Neill

On December 13 and 14, 2018, the U.S. Department of the Interior’s Bureau of Ocean Energy Management (BOEM) conducted an auction for three offshore wind power parcels in Massachusetts. The auction not only broke the record [1] for number of companies bidding, but also for being the highest grossing offshore wind lease sale. The promotion of federal offshore land auctions and positive statements [2] from both the Secretary of the Interior and the acting head of BOEM suggest that the Trump Administration remains committed to developing U.S. offshore wind resources.

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Energy and Infrastructure

Leveraging the Opportunity Zones Tax Incentive to Improve Returns on Development and Operations in The Oil and Gas and Power Industries

By Elizabeth C. Crouse, Mary Burke Baker, and Sandra E. Safro

A new federal tax incentive enacted in the 2017 tax reform package may provide a boost to many new facilities, repowering projects, and storage facilities. Qualified equipment could include a variety of energy and materials storage equipment, refining equipment, generating equipment, and extraction equipment.

The Qualified Opportunity Zones (“QOZ”) incentive provides attractive tax benefits for investors with capital gains to invest in property and businesses located in geographic areas that are designated as QOZ. Recently released regulations provide significant clarity and highlight how valuable the QOZ incentive can be for qualified investments. See our October 23 alert for a discussion of how the proposed regulations answer many important questions that provide the certainty investors, developers, and entrepreneurs in the energy and infrastructure industries need to proceed with QOZ investments and projects.

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K&L Gates’ Energy Storage Handbook

Version 3.0 Now Available!

As a courtesy to our clients and friends, the K&L Gates Power Practice has updated the popular resource for you – the Energy Storage Handbook.

Designed as a basic primer on what energy storage is, how it is regulated and what sorts of issues are encountered when such projects are financed and developed, the Handbook is intended to highlight the most common regulatory and developmental issues faced by our clients and the industries we serve.

New in Version 3.0

To view Version 3.0 of the Energy Storage Handbook, please click here.

2nd Annual Energy Storage Conference

Market Trends, Opportunities, and Developments for Global Storage Projects

Energy Storage Handbook Now Available Online!

We thank you for joining us at the 2nd Annual Energy Storage Conference. A special thank you to our co-sponsors, the Energy Storage Association and the Edison Electric Institute. We hope you enjoyed the day’s discussions.

If you were unable to join us this year, we encourage you to check out the newest edition (Version 3.0) of our K&L Gates Energy Storage Handbook, available here.

We look forward to having you join us again in the future.

K&L Gates Blockchain Energizer – Volume 39

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.

Across the energy industry, market participants have formed consortiums, and launched pilot programs testing blockchain-based use cases that could transform energy markets. State regulators, too, are engaging the industry on blockchain’s potential. 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.

IN THIS ISSUE

  • KEPCO Plans to Develop an “Open Energy Community” via a Blockchain-based “Future Micro Grid.”
  • Shell and Other Oil Companies Test Blockchain-based Crude Oil Trading on Vakt.
  • Energy Web Foundation Collaborates With Wirepas and Siemens.

To view more information on theses topics in Volume 39 of the Blockchain Energizer, click here.

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