1. Oregon State Bar Association Environmental & Natural Resources Annual Conference October 8, 2010 Athena M. Kennedy Renewable Energy Law Update 2010

2. Renewable Energy Law - Update 2010 2 Renewable Energy Laws Renewable Portfolio Standards (RPS) Tax Incentives Renewable Energy Grants DOE Loan Guarantees Renewable Fuel Standards Other State Legislation

3. Renewable Energy Law - Update 2010 3 What is RPS? Requires electricity generators to ensure that a certain amount or percentage of their power is derived from qualifying renewable energy sources Usually expressed as a percentage of retail sales or generation capacity by a certain compliance year (e.g. 15% by 2015).

4. Renewable Energy Law - Update 2010 4 State RPS Standards

5. Renewable Energy Law - Update 2010 5 What Is A Qualifying Renewable Resource?

6. Renewable Energy Law - Update 2010 6 What Is A Qualifying Renewable Resource? What is a qualifying renewable energy source?  Almost always: Solar Thermal; Photovoltaic; Wind; Geothermal; Tidal/Wave Energy  What about: Hydro? Certain Biomass? Landfill Gas? Municipal Solid Waste? Coal Methane Gas? Nuclear?  Where was it generated?

7. Renewable Energy Law - Update 2010 7 Federal RPS? Proposal in SB 3813 Not very robust  2012-2013 – 3%  2021-2039 – 15% What is a qualifying renewable energy resource?  What if there are conflicts? Not likely to pass this year

8. Renewable Energy Law - Update 2010 8 Federal Production Tax Credit A per-kilowatt-hour tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. For wind projects, facility must be “placed-in- service” by December 31 2012 (others by December 31, 2013) Credits can be claimed for 10 years of production. Wind Expiration

9. Renewable Energy Law - Update 2010 9 Federal Investment Tax Credit Must choose eithher PTC or ITC Reduces federal income taxes for qualified tax- paying owners based on capital investment in renewable energy projects. Generally credits are available for eligible systems “placed in service” on or before December 31, 2016 No recent changes made or proposed.

10. Renewable Energy Law - Update 2010 10 Federal Renewable Energy Grants Taken in lieu of the federal PTC or ITC Where construction began by December 31, 2010 or where the applicant has paid at least 5% of the total cost of the property. These continue to be awarded – Windy Point/Windy Flats in Goldendale received about $200 million this summer. Industry Pushing for Extension

11. Renewable Energy Law - Update 2010 11 DOE Loan Guarantees In July 2009, the U.S. DOE issued a solicitation for projects that employ innovative energy efficiency, renewable energy, and advanced transmission and distribution technologies The solicitation provides for a total of $8.5 billion in funding The due date for Part I applications was October 5, 2010. The Part II application deadline is December 31, 2010.

12. Renewable Energy Law - Update 2010 12 Renewable Fuel Federal Renewable Fuel Standards  36 billion gallons of biofuels are required to be consumed by 2022 Cellulosic Biofuel Producer Tax Credit  $1.01 tax credit per gallon of cellulosic biofuel that is sold for fuel expires and December 31, 2012 Volumetric Ethanol Excise Tax Credit  For ethanol blenders, $0.45 per gallon of pure ethanol blended with gasoline expires December 31, 2010

13. Renewable Energy Law - Update 2010 13 What’s Going on in California? RPS 33% requirement did not pass  Similar bill vetoed last year by the Governor CARB adopted 33% RPS Rule

14. Renewable Energy Law - Update 2010 14 California continued Schwarzenegger out  Unsure what policies new governor would implement Proposition 23  Suspend the California Global Warming Solutions Act of 2006 until unemployment reaches 5.5% for 4 consecutive quarters  Polling is even

15. Renewable Energy Law - Update 2010 15 Conclusion Stay Tuned:  California  Federal Government

16. Oregon State Bar Association Environmental & Natural Resources Annual Conference October 8, 2010 Athena M. Kennedy 206-829-1802 amk@vnf.com For more information