Green Energy & Development Law Blog : Green Building & Development Lawyer & Attorney : Brad N. Mondschein : Pullman & Comley Law Firm

If you have not heard the news yet, the House has passed the first-ever Climate Change bill.  While it is being hailed as a major victory by environmental groups, should the energy and development industry be worried?  be happy? or care at all?

The bill is now expected to be taken up in the Senate and a vote may occur as early as September 2009.  Given the fact that 44 democrats in the House voted against the bill and only 8 republicans voted for it, it is unlikely that the bill will survive the Senate intact.  In perhaps what may become a predictor of a prolonged filibuster in the Senate, John Boehner (R-OH) stalled the vote in the House by consuming over an hour of time to read a 300 page amendment into the record.

However, there are key provisions in the bill that may remain in both versions and therefore will certainly remain in any bill that is negotiated out of conference. What will the bill do for the energy and building sector:

1.  Implement a National Cap and Trade Policy.  Cap and Trade support is extremely regional which will cause more problems in the Senate.  The House was able to muster votes from the densely populated Northeast (which already has a regional Cap and Trade system) and from the West.  Few legislators from the South and Midwest voted for the bill (where coal is king).  The bill's goal is to reduce CO2 emission to 17% below 2005 levels by 2020 and 83% by 2050.

2.  National Renewable Portfolio Standard.  The legislation will require a 20% RPS by 2020.  One-third of the RPS could be met with energy efficiency measures.  The bill did not include a national net metering policy or feed-in tariff provision which will not only make the RPS achievable but also incentive property developers and owners to produce excess electricity with renewable resources.

3.  Imposition of a National Building Code for Energy Efficiency.  All new commercial construction and major renovations would have to exceed ASHRAE 90.1-2004 by 30% immediately and by 50% in 2015.  This is clearly a major problem for the building industry.

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Starbucks announced that it intends to make all new company-owned stores LEED certified beginning in 2010.   Also, Starbucks plans to make all new company-owned stores get 50 percent of their energy from renewable sources, and 25 percent more energy efficient.  On a longer term basis, the company plans to replace all incandescent bulbs with LED bulbs and make 100 percents of its cup supply reusable or recyclable by 2015.

Beyond energy and energy efficiency, all new and renovated stores beginning in 2010 will use local craftsmen and use materials (which will also help with LEED points).  Starbucks sites to its recently built store in Seattle. The bar’s leather facade is made of scrap leather from local shoe and automobile factories, the cabinets from fallen trees in the Seattle area, and the community table from a nearby restaurant.
 

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Connecticut is receiving $15.4 million from the DOE for Energy projects under the Stimulus Bill.  Connecticut will use its SEP funding to create or protect jobs and save energy with several projects, including in-home energy audits and the deployment of a variety of technologies, such as alternative-fuel vehicles. In one project, Recovery Act funds will enable more residents to take advantage of inexpensive in-home energy audits designed to reduce energy bills and encourage energy efficiency. For each home, a specialist will perform an energy assessment, find and professionally seal critical leaks and drafts, replace incandescent bulbs with compact fluorescent lamps, provide and install water conservation devices, and check insulation and appliances.

The state will also use funding to support four Clean Cities coalitions—Greater New Haven, Clean Cities of Southwestern Connecticut, Norwich Clean Cities and Capital Clean Cities—to support their efforts to facilitate the adoption of alternate fuels and petroleum-reducing technologies in Connecticut.

After demonstrating successful implementation of its plan, the state will receive an additional $19 million, for a total of $38 million.

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The Federal Energy Regulatory Commission has issued a very comprehensive report on Demand Response Potential for the United States.  While the study does not make any specific recommendations, it is clear that further incentives to residential electric users to limit daytime use of power is essential.  Further,  the study makes a specific example of Connecticut as to the impact that a regional demand response program (coordinated through the New England ISO) along with state incentives can have on demand response.

In the Connecticut case study, if the programs continue as-is without expansion (deemd "Business as Usual), Connecticut will experience nearly  a 13% reduction in peak demand by 2019.  This is compared to only 3.4% in Georgia.  The reason for this large reduction is the ISO demand response program and that fact that the New England ISO allows demand response to participate in the Forward Capacity Market.  Because of these programs, almost all reduction is seen in the Large commercial and industrial sectors.

The Expanded BAU category assumes that additional programs will be put in place to benefit other customer classes.  In such a scenario, a large impact is seen in the residential users  Peak reduction should reach 21% under EBAU.  EBAU includes advanced metering technologies and dynamic pricing.  In Connecticut, most residential users do not pay peak and off-peak prices, instead paying the same price all day.  By having residential users pay dynamic pricing, users would be encouraged to utilize high demand appliances during off-peak hours.

The last category, Achievable Participation, assumes universal advanced metering, dynamic pricing for all users and direct load control systems.  Under such a scenario, Connecticut would see a 29% reduction in peak demand.

This report is a great tool for all of us involved in the industry to encourage and craft programs that will achieve maximum results and participation.  With Climate Change, Carbon emissions and oil prices making front page news on a daily basis, the best way to combat these issues is by using less electricity.  The best way to reduce Carbon is not to emit the carbon in the first place.

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The Connecticut State Legislature passed Public Act No. 09-192.  The new Act resolves an ongoing dispute between the legislature, Attorney General and the State Building Official.

By way of history, last year, the State Legislature passed an Act which required the State Building Inspector to amend the State Building Code to include that any new building over $5 million and any renovations over $2 million must meet or exceed LEED standards.  The State Building Inspector sought a constitutional opinion from the Attorney General.  The Attorney General told the State Building Inspector that the law was most likely unconstitutional because it took powers away from the State and local Building Inspectors and placed them in the hands of an unregulated third party.  In addition, LEED standards can and do change without regular hearings.  Since the Act did not specify which LEED standard must be met, any change in LEED standards would change the Building Code without due process.

The new Act rectifies many of these issues and also puts off to another day the requirements of LEED.  The new Act deletes the requirement that the State Building Code meet ASHRAE 90.1 and instead requires that the State Building Code incorporate the 2012 International Energy Conservation Code no later than 18 months after the new code is published.

Further, the new Act requires that on or after July 1, 2010, the State Building Code must include provisions requiring new and major renovations of "certain buildings of over a specified minimum size" to meet or exceed "optimum cost-effective building construction standards" for thermal envelope, mechanical systems, indoor air quality, water conservation, lighting and electrical systems.  While the provisions of the Building Code must "reference" nationally accepted green building rating systems such as LEED and Green Globes and requires third party verification "with the relevant portions of such rating systems", it is clear that the legislation stops short of requiring LEED certification or Green Globes certification. 

This story will continue as regulations are promulgated.

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The DOE Technical Assistance Project (TAP) for state and local officials is offering a webcast on how to take advantage of low-cost financing using Clean Renewable Energy Bonds (CREBs). The presentation will take place Wednesday, June 24, from 3:00 to 4:15 p.m. Eastern Standard Time, and is titled "How to Use CREBs for Financing Renewable Energy Projects on Public Lands."

The presenters will be Claire Kreycik from the DOE National Renewable Energy Laboratory and Aneta Rettig from Denver Water. Kreycik will discuss the ins and outs of using CREBs, and Rettig will discuss her department's experience with using CREBs to finance construction of two small hydroelectric systems near Denver.

The webcast is free of charge, but you must register in advance to obtain a URL for the presentation and call-in phone number. You can register online, find more information about the presenters, and read background materials and reports on the TAP Webcast section of the DOE Weatherization and Intergovernmental Program Web site.

See below for more information

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The DOE will host a public meeting on June 18th to discuss the Proposed Rule on Rulemaking for the Weatherization Assistance Program.  During this meeting, the DOE will accept comments on the proposed rule available online at Federal Regulations. Type RIN‐1904‐AB97 in the search field. The rule is intended to reduce the review and verification burden related to income verification, rent increases, and property enhancement criteria under the Weatherization Assistance Program for certain properties identified by HUD.

This meeting is open to the public and comments will be considered by the DOE as part of the official rulemaking process.  The DOE is coordinating with the U.S. Department of Housing and Urban Development (HUD) on this public meeting.

Date: Thursday, June 18

Start Time: 11 a.m.

Where: U.S. Department of Energy, 1000 Independence Ave., SW, Washington D.C. 20585 Forrestal Building, Room 8E‐069

Details: DOE must receive requests to attend, present or speak at the public meeting/Webinar no later than 4 p.m., Wednesday, June 17. DOE must receive an electronic copy of statements to be given at the public meeting no later than 4 p.m. on June 16. Send all requests and materials to wxhudnopr@ee.doe.gov.

Important: If you plan to attend the meeting, please sign in at the registration desk in the DOE lobby no later than 11:15 a.m.

Alternatives to Attending in Person

Webinar: If you cannot attend the meeting, you may participate live via webinar. Registration instructions will be sent to you by return e-mail after you send notice of your desire to attend in this manner to wxhudnopr@ee.doe.gov.

Conference Call: If you cannot attend the meeting, you may also participate live via telephone. Instructions will be sent to you by return e-mail after you send notice of your desire to attend in this manner to wxhudnopr@ee.doe.gov.

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The DOE today announced more than $300 million worth of investments that is aimed at boosting a range of clean energy technologies—including carbon capture from coal, solar power, and high efficiency cars and trucks.

Today's actions include:

High Efficiency Vehicles

Up to $240 million will be invested for the development of high efficiency commercial and passenger vehicles. The funding includes approximately $110 million from the American Recovery and Reinvestment Act, combined with DOE annual appropriations. The funding solicitations are divided into two areas: system level technology development, integration, and demonstration for efficient Class 8 trucks; and advanced technology powertrains for light-duty vehicles. Class 8 trucks are defined as heavy-duty commercial trucks weighing over 33,000 pounds.

The goal of the first area is to increase vehicle freight efficiency by a total of 50% for heavy-duty Class 8 trucks. The projects receiving funding will focus on improving the efficiency of advanced engine technologies and vehicle system technologies, for instance by limiting aerodynamic drag, reducing vehicle weight, and drivetrain hybridization, which uses two types of energy converters rather than just one.

Under the second program area, projects will work to advance the research and development of efficient engine and powertrain systems for passenger vehicles. For gasoline-fueled vehicles, these cost-competitive components will achieve at least a 25% fuel economy improvement compared to 2009 reference vehicles, while diesel-fueled vehicles will be able to attain at least a 40% improvement.

FOA number DE-FOA-0000079).

Solar Energy

The DOE further announced the selection of 24 new solar projects to advance photovoltaic (PV) technology research, development, and design—helping to lower the cost of PV generation. The competitively-selected projects will be eligible for up to $22 million from the American Recovery and Reinvestment Act and will be matched by more than $50 million in cost shared funding from private partners.

The new projects range from development of automated assembly processes to semiconductor fabrication. They target manufacturing and product cost reduction with the potential to have a near-term impact on a substantial segment of the PV industry.

In addition, the DOE announced today plans to invest up to $27 million to develop the nation's solar installation training infrastructure. DOE will fund this effort using $5 million from the American Recovery and Reinvestment Act as well as $22 million in annual appropriations.

The funding opportunity includes two types of recipients:

• A single national organization that will facilitate the development and distribution of model training curricula, best practices in training, and information on solar career pathways.
• A select number of regional training providers that will offer solar instructors advanced courses on solar technologies, instructional design, and course development.

Carbon Capture and Storage

The DOE announced $11.3 million for nine projects (PDF 65 KB) that will develop pre-combustion carbon capture technologies that can reduce CO2 emissions in future coal-based integrated gasification combined cycle (IGCC) power plants.

The funding opportunity announcement, "Pre-Combustion Carbon Capture Technologies for Coal-Based Gasification Plants," is from the FY2009 Budget.

Pre-combustion processes convert fuel into a gaseous mixture of hydrogen and CO2. The CO2 is then separated and the hydrogen can be burned without producing any CO2 in the exhaust gas. Compared with post-combustion processes, the pressure and concentration of CO2 in precombustion processes is relatively high—offering the potential to apply novel CO2 capture technologies such as membranes, solvents and sorbents.

Today's announcement is a direct investment in CCS-related infrastructure among electric power and industrial facilities, academic institutions, and other organizations operating across the United States. The nine selected projects encompass three areas: high-temperature, high-pressure membranes; high-efficiency solvents; and solid sorbents.

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