Renewable Energy Update - 6.23.23 #4

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Biden administration rule would cut fees for renewable development on public lands

Bullet The Hill – June 15

The Biden administration on June 15 announced a proposed new rule that would aim to speed the development of renewable energy on public lands. The rule would cut fees for solar and wind development on public lands by 80%, according to an announcement by the Bureau of Land Management. The Bureau also updated its environmental review for its plans for solar development in 11 Western states, planning to identify new areas for potential solar development, as well as lands excluded from development and those that may be suitable for development through a variance process. The proposal is open for public comment for 60 days.


News

How Irvine plans to work around a federal ruling to achieve carbon goals

Bullet The Orange County Register – June 19

In late March, the Irvine City Council unanimously voted to go all-electric in new construction in the city, with some exceptions. Then, the Ninth Circuit Court of Appeals in April ruled that the City of Berkeley cannot enforce a natural gas ban in new buildings, citing federal law that says only the U.S. government can set energy-efficiency standards for appliances such as stoves, furnaces, and water heaters. With Irvine’s ordinance similar to Berkeley’s, city staffers pulled the plug after the first reading of the ordinance. Instead, Irvine is exploring “regulating the emissions of a building” instead of “regulating the type of fuel coming into the building,” said City Manager Oliver Chi. We note that the City of Berkeley has petitioned the Ninth Circuit for en banc review, which could supersede the April decision if granted.


IRS guidance on renewable tax credit transferability, direct-pay provisions of IRA, garners mixed reviews

Bullet Utility Dive – June 15

The IRS issued new guidance, including proposed regulations, related to the tax credit transferability and direct pay provisions of the Inflation Reduction Act on June 14. The IRS also created a temporary but mandatory online pre-filing registration process for nonprofits seeking direct payment tax credits under the IRA or the CHIPS and Science Act, and for businesses looking to sell newly-transferable tax credits. While the American Council on Renewable Energy heralded the guidance with enthusiasm, the Large Public Power Council said the specific concerns of public power entities remain unaddressed.


Governor Hobbs vetoes energy bill on Arizona solar, wind-generating plants

Bullet Arizona Daily Star – June 20

Calling it a potential barrier to renewable energy, Arizona Governor Katie Hobbs vetoed legislation on June 19, which would have imposed new requirements on solar and wind generating plants. HB 2618 contained a list of what cities, towns, and counties could adopt in zoning standards, site-specific conditions, and permitting requirements on such facilities. It would have required owners to not only have a decommissioning plan in place but also to post a bond — essentially insurance — to cover the costs if the company goes bankrupt or otherwise tries to walk away, among other mandates.


Projects

RWE connects its 137 MW BESS project to California grid

Bullet Power Technology – June 15

German power generation company RWE has linked its 137 MW utility-scale battery energy storage system (BESS), called Fifth Standard, to the California Independent System Operator. Located in Fresno County, the BESS project is the company’s largest facility to date in the U.S. The BESS project also includes a 150 MW solar PV facility, which is slated for completion in August 2023.


Solar+storage microgrids replacing diesel at remote California water project

Bullet Renewable Energy World – June 14

Solar+storage microgrids will soon replace diesel generators used in Cadiz’s groundwater well and pipeline project in California’s Mojave Desert. Cadiz selected Scale Microgrids to outfit each well with a clean energy microgrid. Scale and Cadiz said the microgrids would lower the project’s energy costs by more than 30% and cut carbon emissions by 75%, while still ensuring 100% uptime reliability.


Canadian Solar to build its first solar PV manufacturing facility in the U.S.

Bullet PV-Tech – June 16

Ontario, Canada-based Canadian Solar will build its first production facility in the U.S., a PV module manufacturing plant with the capacity to produce 5 GW of solar modules a year. Canadian Solar will invest $250 million into the facility, which will be built in the town of Mesquite, to the east of Dallas, and will be the company’s first production facility in the U.S.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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