Wind Tax Credit Set to Expire

Joanna Schroeder December 30, 2013

The wind energy tax credit is set to expire tomorrow and unlike last year, there has been virtually no noise from the wind energy industry on the need to save the Production Tax Credit (PTC). In January 2013 Congress extended the tax credit for one year but structured the credit different in the past. Could this be the reason there has been all but silence from the industry on its expiration?

Heading in the the third and fourth quarters of 2012 wind supporters claimed that if the tax credit expired, the industry would all but halt. However this argument has not been heard this year.

While speculation, it could be because when the tax credit was restructured for 2013, it said that a project only has to be in construction by the end of 2013, not completed to qualify for the PTC. But it wasn’t until September of 2013 that the IRS (Internal Revenue Service) released rules that defined a project “in construction” if the project developer has incurred 5 percent of the total capital costs. In addition, the IRS guidelines also stipulate that all the wind turbines for a project must be delivered to the project site by April 15, 2014 and the wind farm must be in operation by December 31, 2015.

Under this structure, the wind industry should remain strong through 2015 and this past month, many companies have announced their wind farm projects have entered the “construction phase”.

According to the American Wind Energy Association (AWEA), during the forth quarter at least 27 requests for proposals were issued with an estimated 4,175 MW of new wind energy to be generation upon completed. Looking further ahead, reports AWEA, 5,600 MW of new wind projects have secured long-term contracts, and another 1,900 MW have received state regulatory approval.

So how is 2013 shaping up for the wind industry? AWEA reports that American wind energy will finish 2013 with strong momentum for installations in the new year according to the U.S. Wind Industry Third Quarter 2013 Market Report. The industry experienced a painful slowdown at the beginning of 2013 as result of the scheduled expiration of the federal wind energy PTC at the end of 2012, but has now rebounded. However, says AWEA, lack of certainty over federal tax policies continues to keep wind energy from reaching its full potential in the United States.Read More

Legislation, Opinion, Wind

IA Senate Candiate Mark Jacobs Fights for RFS

Joanna Schroeder December 30, 2013

Iowa U.S. Senate candidate Mark Jacobs has submitted comments to the Environmental Protection Agency (EPA) on the proposed changes to the Renewable Fuel Standard (RFS). The EPA has proposed to reduce the amount of renewable fuels used in the U.S. transportation fuel supply for 2014. Jacobs wrote:

Dear President Obama and EPA Administrator McCarthy:

I am deeply concerned that the proposal to reduce the amount of renewable fuel we use under the Renewable Fuel Standard (RFS) will negatively impact jobs and economic growth in my home state of Iowa as well as other states.

In addition, the proposed changes will result in reduced consumer choices and higher prices at the pump across the country. Ethanol has demonstrated that it can compete head-to-head with petroleum products on an economic basis. Today, however, the oil industry exerts significant influence and control over the distribution of transportation fuels, and the RFS is essential to help level the playing field for alternative sources of energy.

We need reliable, affordable energy that is developed in an environmentally responsible way. Increased energy production in America can add thousands of new jobs and help keep energy prices low for all Americans. Low energy prices, in turn, help drive growth in other sectors of the economy. Renewable energy sources can continue to play an important role in this regard. The development of the renewable fuels industry has been one of the great success stories in America, and it has helped us reduce our dependence on foreign oil.

In Iowa alone, the renewable fuel industry supports 60,000 direct and indirect jobs. Most of these jobs are located in our rural communities. Reducing the amount of renewable fuels means replacing it with more oil. Studies have shown that this proposal would result in several billion dollars of additional cost for consumers. Moreover, the U.S. has a stated policy of enhancing our national security by reducing our dependence on the Middle East. Over the last seven years, our dependence on foreign oil has dropped from over 60% to just over 40%. The development of the renewable fuel industry has played a significant role in this improvement.

The RFS has been under attack recently. I would encourage our policymakers to look beyond the rhetoric and carefully consider the facts. Without the RFS, our nation’s transportation fuels market will be left as a petroleum monopoly, with prices subject to the whims of geopolitical events. American families will be denied sensible fuel alternatives and our economy will be denied precious, good-paying jobs. We must protect the RFS. In the case of renewable fuel, what’s good for Iowa is also good for American consumers.

Mr. President and Administrator McCarthy, I respectfully ask that you do what’s right and stand up for everyday Americans and protect the current RFS.

Biodiesel, biofuels, EPA, Ethanol, RFS

World Energy Center Heeds Call for Renewable Energy

Joanna Schroeder December 30, 2013

The Southern California-based World Energy Center is reporting that it has heeded and exceeded President Obama and Vice President Joe Biden’s call for the use of renewable electricity. The administration has called, as part of its “new energy plan” for America, to develop and use 25 percent renewable electricity by 2025. This will spur clean energy jobs, says the Obama administration as well as reduce greenhouse gases and other sources that lead to climate change.

The World Energy Center is comprised of more than 30 companies, cities, colleges, participants’ partners and affiliates. Larry Hales with Hales Global Group has been providing consultant business development services and says the World Energy Center is the nation’s leading clean energy nerve center in North America. The Center collaborates with multiple companies to develop the most technological advanced renewable energy projects with the goal of spurring clean energy innovation and creating a commercialization Hub to reduce the cost of clean energy and accelerated its worldwide deployment.

World Energy Center aims to create more new jobs and further economic growth says President and COO, Michael Reich, “With billions being spent on new construction projects, long-term manufacturing, engineering, maintenance and management jobs, ancillary growth and service jobs, manpower will be needed for us to succeed. We need to create green job training facilities, educational programs and a number of diversified renewable energy projects will be brought online.”

The World Energy Center and its collaborative group of partners expect to build out more than 5,000 Megawatts of solar, geothermal, wind, natural gas and other clean energy projects over the next 15 years. Reich said the Center will position the United States as a leader in low cost renewable energy, create tens of thousands of green jobs and educate the next generation of young Americans keeping pace with President Obama’s goal and Energy Secretary Dr. Moniz’s mandate.

Ian Campbell, senior lobbyist with Manchester Associates noted that World Energy Center is extremely efficient at Photovoltaic, PV, converting sunlight into electricity. “We are building on the development of applicable PV affordable solar renewable clean energy which was born in 1979, and today with support from private and public partners, the price of PV systems has fallen in half; however, maintaining such a viable U.S. clean technology industry will require policy makers to advance energy subsidies that will lead to improvements in technology and lower prices.”

Alternative energy, Clean Energy, Geothermal, Natural Gas, Solar, Wind

BioEnergy Bytes

Joanna Schroeder December 30, 2013

China Sunergy Co., Ltd. has announced that it has completed the sale of a solar farm project to Lightsource Renewable Energy Ltd., which is a UK solar energy generator. The solar project, located in the southwest of Cornwall in the United Kingdom (UK) was connected to the grid at the end of March of this year and now generates enough local green electricity to power over 1500 households.
Dominion has announced it has begun commercial operations at its Dominion Bridgeport Fuel Cell facility located in Bridgeport, Conn., and the Dominion Somers Solar Center located in Somers, Conn. Together, the two facilities produce approximately 20 megawatts of clean energy for the people of Connecticut, enough power for approximately 20,000 homes.
The full agenda has been announced for the International Biomass Conference taking place in Orlando, Florida March 24-26, 2014. The General Session will be a “state of the industry” and include speakers from several national biomass associations.
RGS Energy has joined forces with Green Lantern Capital to co-develop seven solar projects totaling 4.5 megawatts (MW) in Vermont. RGS Energy will design, install, monitor and maintain the solar power systems. The company expects to begin construction in summer of 2014 and complete it by November. On an annual basis, the solar power systems will be designed to generate more than 5.3 million kilowatt hours of electricity.

Bioenergy Bytes

Soybean Growers Push for Biodiesel in Big Apple

John Davis December 30, 2013

The growers of the most popular feedstock for biodiesel made the case for the green fuel to the largest market in the U.S. This story from the Grand Island (NE) Independent tells how members of the Nebraska Soybean Board and more than 90 other representatives from the United Soybean Board (USB), American Soybean Association (ASA), and nine other state soybean boards went to New York City to see how the metropolis is using biodiesel and Bioheat, heating oil mixed with biodiesel.

By 2015, all buildings in New York City that use heating oil will be required to use a B5 blend of Bioheat, meaning that it contains 5 percent pure biodiesel.

According to the Nebraska Soybean Board, New York City has led the way in embracing alternative fuels such as biodiesel and Bioheat. In 2007, Mayor Michael Bloomberg announced his Plan NYC, which brought 25 city agencies together to help tackle some of the toughest issues facing the city in the years to come. As a part of this visionary plan, Bloomberg called for a 30 percent reduction of greenhouse gas emissions by 2017.

Keith Kerman, the chief fleet officer and deputy commissioner for NYC’s Department of Citywide Administrative Services, said biodiesel and Bioheat have played key roles in helping the city meet its GHG reduction goal.

“As of last year, we had reduced our emissions by 9.3 percent, and we fully expect that number to be over 20 percent after this year,” Kerman said.

State soybean boards, including the one in Nebraska, have been big funders of biodiesel and Bioheat education and outreach to areas outside of the Midwest, especially in the metropolitan areas, such as New York City. Makes sense as the East Coast markets are a great place to make use of the green fuel when it might not be moving as well in the wintertime back where most of it is produced, the agricultural areas of the Midwest.

Agribusiness, Biodiesel, USB

Iowa leads Ethanol Production in 2013

Joanna Schroeder December 27, 2013

During 2013, 42 ethanol plants in Iowa produced 3.7 billion gallons matching 2011 and 2012. This was reported by the Iowa Renewable Fuels Association (IRFA) who also notes that Iowa continues to be the number one ethanol producing state and is estimated to account for nearly 28 percent of national ethanol production for the year.

IRFA points out that the recent start-up of a new we mill and three cellulosic ethanol projects set to go into production in 2014 provide hope for growth next year.

“Iowa ethanol production was up in 2013, but not enough to round the decimal point,” said IRFA Executive Director Monte Shaw. “With the record U.S. corn harvest in the bin and new production facilities coming on line, there is hope that Iowa can once again expand ethanol production.”

“But hanging over that potential like a gray cloud is the EPA proposal to cut the RFS. Maintaining the RFS would launch new E15 and E85 markets and Iowa could easily grow to meet the demand. But without a strong RFS, we’ll be looking for export opportunities to drive production. That’s sad when you consider the U.S. still imports a sizeable chunk of its crude oil,” added Shaw.

IRFA is urging all Iowans to contact President Obama and the EPA to urge them to stand behind a strong renewable fuel standard (RFS). Those wishing to submit a comment can do so on the Fuels America website.

biofuels, Ethanol, Iowa RFA, Renewable Energy, RFS

BioEnergy Bytes

Joanna Schroeder December 27, 2013

Georgia Power is soliciting proposals through a combined Requests for Proposals (RFP) process to fulfill nearly 500 megawatts (MW) of utility-scale solar generation. The RFP includes 70 MW to complete the Georgia Power Advanced Solar Initiative (GPASI) portfolio and 425 MW approved as part of the company’s 2013 Integrated Resource Plan (IRP). The RFP will be conducted with oversight by the Accion Group, Inc., which is serving as the Independent Evaluator for the process. Details about the solicitation and the in-service dates for the programs are outlined on Accion’s website. The company will accept comments on the draft RFP documents through January 31, 2014 and will host a RFP bidders conference at the company’s Atlanta headquarters on January 13, 2014.
Higher Power Energy LLC, based in Flower Mound, Texas has broken ground on a 300 megawatt wind farm in Castro County, southwest of Amarillo. Lincoln Renewable Energy will build the wind farm, which will have more than 100 General Electric turbines spread out over 35,000 acres.
Basin Electric has signed a power purchase agreement associated with the development of a new wind project to be developed in South Dakota. The project is co-owned by Fagen Inc. of Granite Falls, and the principals of Dakota Plains Energy, a wind farm developer based in Aberdeen, S.D. The project is planned to be operational by the end of 2015.
Ferrellgas Partners, L.P. has announced the acquisition of Motor Propane Service, an independent propane company with locations in Manitowoc and Sheboygan, Wisconsin. It is Ferrellgas’ second acquisition in its fiscal year that began August 1, 2013, joining the company’s recent purchase of KanGas Corporation, which was completed on Nov. 25, 2013. Specific terms of the transaction, which the company indicates will be immediately accretive, were not disclosed.

Bioenergy Bytes

Hawaiian PUC Rejects Biodiesel Bid

John Davis December 27, 2013

Hawaii’s Public Utility Commission (PUC) has turned down a bid for a local biodiesel maker to produce the green fuel for a power plant. This story on BigIslandNow.com says the PUC rejected the bid of Honolulu-based Aina Koa Pono LLC, the second attempt by the biodiesel producer to sell its fuel to Hawaii Electric Light Co. (HELCO).

Aina Koa Pono wanted the PUC’s approval to sell 16 million gallons of biofuel annually to HELCO’s Keahole power plant on a 20-year contract. The fuel would be produced at a $450 million plant to be built in Ka`u.

The PUC however said in a ruling this week that the proposed deal’s cost was “excessive … not cost effective (and) not in the public interest,” similar to its response to an earlier proposal.

Aina Koa Pono founder Kenton Eldridge told PBN that the company is negotiating with a Georgia firm for purchase of 24 million gallons of bio-diesel and that plans for the Kau production plant would go forward despite the PUC’s ruling.

The Ka`u facility is expected to create 400 jobs during construction and 200 permanent jobs when completed.

Biodiesel

Gevo Applauds UL Biobutanol Decision

Joanna Schroeder December 26, 2013

Gevo, Inc. has applauded Underwriter Laboratories (UL) decision to approve the generic use of up to 16 percent isobutanol (biobutanol) in UL 871A pumps manufactured by any company that meets ASTM specifications. If a retail gasoline station currently has these pumps, then no changes need to be made to offer consumers isobutanol.

Gevo has been working with UL for several years to approve the use of isobutanol in UL 87A pumps. UL in working with various companies and independent laboratories compiled data for their scientific determination on isobutanol. Gevo sponsored a large study based on SAE J1681 and using a model created in a previous UL investigation with ethanol-surrogate gasoline fuel blends.

“I am very pleased with what we have accomplished with UL. They are great organization to work with in the commercialization of isobutanol,” said Glenn Johnston, Executive Vice President for Regulatory Affairs at Gevo. “This removes another hurdle in the commercialization of renewable isobutanol in on-road gasoline.”

Alternative energy, biobutanol, biofuels

Senator Max Baucus Unveils Tax Reform Proposal

Joanna Schroeder December 26, 2013

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Orrin Hatch (R-Utah) have launched a process for the committee to begin developing a proposal to reform America’s tax code. Over the next several months, the committee will convene weekly to discuss a series of topics and collect feedback from members on a wide range of options for taking on tax reform. The revised incentives are designed to be more technology neutral.

“It is time to bring our energy tax policy into the 21st century,” Baucus said. “Our current set of energy tax incentives is overly complex and picks winners and losers with no clear policy rationale. We need a system of energy incentives that is more predictable, rational, and technology-neutral to increase our energy security and ensure a clean and healthy environment for future generations.”

Ethanol Today reports that information released by Baucus finds that current law contains 42 different energy tax incentives, including more than a dozen for fossil fuels. An additional 10 tax incentives exist for renewable fuels and alternative vehicles, along with six credits for clean electricity. Of these, 25 are set to expire every year to two years and if they are extended, could cost taxpayers nearly $150 billion over the next decade.

The proposal aims to neutralize clean energy technologies, i.e. not play “favorites” as the federal government is often accused of doing. Based on several criteria, tax incentives for all forms of energy would be based on a “cleanliness credit” or determined by a ratio of the greenhouse gas emissions (GHGs) of a facility divided by its electricity production.

The incentive would be available as either a production tax credit of up to 2.3 cents per kilowatt hour or an investment tax credit of up to 20 percent. The production tax credit would be indexed for inflation and could be claimed on a single facility for a maximum of 10 years.

A second incentive outline by the proposal is the clean transportation incentive and would be available for fuels that are 25 percent cleaner than conventional gasoline. The percent of “cleanliness” would be determined by the production process’s lifecycle emissions basis as determined by the Environmental Protection Agency (EPA). The max credit would be $1 per gallon.

Senator Baucus has invited members of Congress, key stakeholders and the general public to provide feedback on the draft. Comments must be submitted by January 31, 2014 (the same time comments for the EPA’s proposed renewable fuel volumes for the 2014 Renewable Fuel Standard (RFS). Click here for information about the proposal as well as information on how to submit comments.

Clean Energy, energy efficiency, Environment, Legislation, Renewable Energy

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