Wednesday, February 3, 2010
Clean Renewable Energy Bonds
The Energy Policy Act of 2005 (P.L. 109-58) created Clean Renewable Energy Bonds (CREBs) as a new financing tool for electric cooperatives, public power systems and units of state and local government to build renewable electricity projects. CREBs are special-purpose tax credit bonds which provide the equivalent of an interest-free loan. Bondholders receive a tax credit on their federal income taxes instead of an interest payment from the bond issuer. This is a valuable incentive for entities that are otherwise ineligible for the federal Production Tax Credit (PTC) which is available only to for-profit entities. Consult the following documents to learn more about the CREBs program and application procedures:
IRS Guidelines on the CREB Program (issued 3/6/06)
Guide to CREBs written by the law firm of Hunton & Williams [pdf file]
Guide to CREBs written by National Rural Electric Cooperative Association [pdf file]
IRS Disclosure Report on 2007 CREB awardees [pdf file]
Internal Revenue Service Bulletin – March 2006
Interconnection Standards
ELPC is working on many fronts to increase the use of less-polluting, energy efficient, and renewable electricity generation. One goal is to reduce reliance on old, dirty, centralized power plants and advance “distributed generation” – literally shifting some generation of electricity to wind turbines, photovoltaic panels, combined heat & power (CHP) systems, and other clean and efficient resources that are distributed across the electric grid and are often sited at a customer’s home or small business.
In order to accomplish this structural shift, state policies must be reformed. Statewide interconnection standards make it easier to connect solar panels, wind turbines and other clean energy systems to the electric grid. These standards streamline the interconnection process by including uniform engineering requirements, reasonable fees and timelines, standard application forms and legal agreements, and “expedited review” for small projects.
Net Metering Standards
Net metering is a special metering and billing agreement between utilities and their customers that allows customers to sell excess electricity back to the grid and gives customers a financial incentive to invest in renewable sources of energy. When a net metering customer’s renewable generator is producing more power than the customer needs, the electric meter runs backward, generating credits. At the end of the billing period, the customer is only charged for the “net” power that they consume.
Model Standards
ELPC’s “Model Net Metering and Interconnection Standards for Renewable Energy Systems” were developed with the input of industry experts and reflect recent best practices at the state level. Although the model contains both net metering and interconnection standards, these two parts can be used separately. To make it easier, the Net Metering Standards [pdf file] and Interconnection Standards [pdf file] are also available as two separate documents.
Promoting State Policy Changes
ELPC leads broad coalitions of clean energy advocates and entrepreneurs to promote distributed generation and the necessary state policy changes across the Midwest and Great Plains. ELPC’s advocacy and technical expertise has helped Illinois, Michigan and South Dakota finalize their interconnection standards, and has moved Iowa’s rules toward completion.
In addition to our leadership in Iowa, Illinois, Michigan and South Dakota, ELPC is providing key regional perspective and expertise to support similar projects across the region. We expect our current and future work to significantly reduce existing barriers to distributed generation, which will help diversify electricity generation, provide economic benefits, and encourage the development of efficient and clean sources of power in the Midwest and Great Plains.
Repowering the Midwest
The boom in clean energy development, especially wind power, presents a tremendous opportunity for economic growth in the Midwest, and some of the best long-term opportunities will come directly from the manufacturing of wind turbine components. Visit RepoweringtheMidwest.org, ELPC’s website devoted to news, research reports and other resources aimed at advancing the region’s clean energy revolution.
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Thursday, January 28, 2010
The Environmental Law & Policy Center (ELPC) today commended the Obama Administration for the diverse selection of high speed-rail projects and national approach to awarding $8 billion in stimulus funding.
The 13 projects chosen represent critical first steps toward building a modern, national, passenger rail infrastructure and are the first significant passenger rail investments in nearly a century. These projects encompass 31 states. They enhance connectivity through a variety of technologies in the most environmentally responsible mode of regional transportation, noted Howard Learner, ELPC president.
“This is the beginning of transformative improvement to our nation’s transportation system, giving people a modern, fast, comfortable and convenient travel option,” stated Learner. This funding will put people to work while it improves our environment, strengthens key regions of our nation and enhances our ability to compete in the global economy.“
ELPC will host a National Press Club press briefing Monday, February 1, in Washington, D.C. to review the expected impact of the high speed rail investments. Panelists include Arthur Guzzetti, American Public Transportation Association, John Risch, United Transportation Union, and Thomas Simpson, Railway Supply Institute. The panel will be moderated by Howard Learner.
Currently, the Obama Administration’s total commitment to high-speed rail stands at $10.5 billion, with an additional $1 billion per year pledged to be included in the budget for the next five years. The House transportation committee has also recommended including $50 billion for high-speed rail development in the upcoming transportation reauthorization.
“Today’s awards are only the first step in a long-term process. Significant additional federal funding will be required if we are to truly realize the benefits of modern rail and compete in the global market,” Learner concluded.
To learn more about the Environmental Law & Policy Center’s high-speed rail advocacy, visit elpc.org/highspeedrail
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Monday, January 11, 2010
Crain’s Chicago Business examines the prospects for offshore wind power in Lake Michigan. ELPC Executive Director Howard Learner says that wind farms near Chicago would trigger public opposition. ”There’s a reason lakefront property is so valuable in Chicago,” said Learner.
Offshore wind farms in the Great Lakes are less likely to be built because the Midwest has excellent sites for wind power available on land, where wind power development is much cheaper than offshore. Read the article in Crain’s Chicago Business.
Wednesday, January 6, 2010
Chicago Tonight: The Opportunities for Solar Power in the Midwest
ELPC Executive Director Howard Learner joined Chicago Tonight at the nation’s largest urban solar plant, currently under construction on the south side of Chicago.
Wednesday, November 25, 2009
Chicago Public Radio ran a story on the new solar power plant on the south side of Chicago. When the project is completed, it will be the nation’s largest urban solar power plant. ELPC Executive Director Howard Learner talks about the opportunity now in solar power due to low solar panel prices and strong subsidies, “It’s a great time if you want to do a project to get the equipment at a very low price point. You know the plant in West Pullman is the first major solar facility in Chicago. And I think within a year or some we’re going to see four or five or six or even more of them in Illinois.” Read or listen to the story.
Tuesday, November 24, 2009
Watch E&E TV: Howard Learner Explains Midwest Role on Climate Change Solutions
ELPC Executive Director Howard Learner discussed the Midwest role in the climate debate on E&E TV’s On Point. The Midwest has the potential to be a big part of the solution and through its key swing votes, is playing a critical role in the Senate debate. Watch the interview here.
Wednesday, November 18, 2009
ELPC hosted a special webinar on November 18th highlighting the potentialfor a solar power boom in the Midwest. Featured speakers included ELPC Executive Director Howard Learner, Staff Attorney Brad Klein and Policy Advocate Madeleine Weil.
Click here to hear the podcast.
Click here to download PDF slides from the webinar.
Price shifts, market changes and supportive policies are coming together in ways that can help solar power accelerate fast around the region. The economics of solar power are becoming more favorable due to a confluence of factors:
- Solar photovoltaic (PV) module prices have fallen sharply due to excess supply in the global market.
- Federal and state policies are working to support solar power. The federal economic stimulus legislation and other initiatives are providing new incentives and support for solar energy development. In the states, for example, Illinois has created a “solar carve out” in the state’s strong renewable energy standard that will provide a procurement market for 700-750 megawatts of solar power by 2015.
- Large-scale solar developments are going forward on former industrial sites where there is unobstructed sunlight and low-cost access to the electrical grid. In some cases, brownfield redevelopment, recovery bonds and other tax credits and subsidies are available.
- In the current economic downturn, there are skilled workers looking for “green jobs” installing solar systems.
Thursday, November 12, 2009
Webinar: The Rise of Solar Power in the Midwest
ELPC hosted a special webinar on November 18th highlighting the potential for a solar power boom in the Midwest. Featured speakers included ELPC Executive Director Howard Learner, Staff Attorney Brad Klein and Policy Advocate Madeleine Weil. Listen to the webinar or download PDF slides.
Thursday, November 12, 2009
Students Take Action to Fight Climate Change!
ELPC is teaming up with the Illinois Student Environmental Coalition to help mobilize student environmental groups from college campuses across the state. Each group has committed to collecting signatures from 5% of their student body in support of strong federal climate legislation.
This will result in thousands of youth voices calling on U.S. leaders to pass comprehensive climate change legislation and commit our nation to a true position of leadership in the fight against global warming.
Add your voice – call for America to take action on climate change today!
Monday, November 2, 2009
ELPC’s newly updated Community Wind Financing Handbook is now available! This hot-off-the-press guide reflects new financing opportunities available from federal energy and economic stimulus legislation, the new Farm Bill, and state incentives.
Since ELPC published the first edition of the Community Wind Financing Guide in 2004, wind power has become the United States’ fastest-growing source of electricity. Community wind projects, which represent a small but growing share of the wind market, are largely owned by farmers and other local investors with a significant economic stake in the project. Such local ownership generates powerful economic and social benefits for rural areas.
The updated Handbook provides the latest information on financing community wind projects, including ownership structures, roles of financial intermediaries, sources of federal and state financial support and consultant/developer directories. Although building these projects has become somewhat easier over time, understanding and accessing financing opportunities remains perhaps the most important requirement for a successful project. Download the Community Wind Financing Handbook.[pdf file]
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