Articles Posted in Renewables

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Recently, the Washington State Department of Labor & Industries (the “Department”) announced in its Electrical Currents newsletter (Vol. 19 No. 5 May 2015) that, “[a]fter extensive research into product availability, and feedback from stakeholders, in accordance with National Electrical Code® (NEC®) 90.4, I have made the decision to extend the delay in implementation of three requirements for Solar Photovoltaic (PV) systems until July 1, 2016,” which include (1) 690.11 Arc-Fault Circuit Protection (Direct Current), (2) 690.12 Rapid Shutdown of PV Systems on Buildings and (3) 705.12(D)(6) Wire Harness and Exposed Cable Arc-Fault Protection. (Emphasis added).
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Recently introduced Oregon House Bill 2187 would require the Department of State Lands to study issues relation to regulation and net metering of ocean renewable energy. H.B. 2187 declares that, “consistent with the transmission planning requirements provided for by the Federal Energy Regulatory Commission, it shall be the policy position of the State of Oregon that any regional transmission planning processes conducted for the transmission planning regions that wholly or partly encompass any areas of this state shall adequately consider the transmission of electricity from ocean renewable energy generated within Oregon’s territorial sea, as defined in ORS 196.405, or within adjacent federal waters.” If signed into law, the bill would take effect immediately.

Additional Source: National Conference of State Legislatures, Net Metering: Policy Overview and State Legislative Updates (updated Dec. 18, 2014).

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In late November of 2014, as part of President Obama’s comprehensive Climate Action Plan to create American jobs, develop domestic clean energy resources and cut carbon pollution, Secretary of the Interior Sally Jewell, then Massachusetts Governor Deval Patrick and Bureau of Ocean Energy Management (BOEM) Acting Director Walter Cruickshank announced that more than 742,000 acres offshore Massachusetts would be offered for commercial wind energy development in a January 29, 2015, competitive lease sale. On January 29, 2015, the BOEM held the competitive lease auction, which reportedly lasted two rounds, and RES America Developments, Inc. was the winner of Lease Area OCS-A 0500 (approximately 187,523 acres) and Offshore MW LLC was the winner of Lease Area OCS-A 0501 (approximately 166,886 acres). Lease OCS-A 0502 (248,015 acres) and Lease OCS-A 0503 (140,554 acres) did not receive bids. BOEM signed the commercial wind energy leases on March 23, 2015, and the Commercial Lease OCS-A 0500 and Commercial Lease OCS-A 0501 will go into effect on April 1, 2015.
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Today, the Nevada State Contractors Board (NSCB) issued an Industry Bulletin confirming that, in recent months, it “has been seeing an increase in the number of out-of-state solar manufacturers entering into contracts with licensed Nevada contractors to perform solar installation services for Nevada residents.” It noted that many of these out-of-state manufacturers do not possess a Nevada contractor’s license and the Nevada contractors performing installation services for such businesses are being disciplined by NSCB for aiding and abetting an unlicensed contractor.
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On June 23, 2014, Louisiana Governor Bobby Jindal signed into law Senate Bill 447. Louisiana Revised Statutes § 2156.3 governs the licensing of “entities engaging in the business of selling, leasing, installing, servicing, or monitoring solar energy equipment,” and “entities engaged in the business of arranging agreements for the lease or sale of solar energy systems or acquiring customers for financing entities.” Section 2156.3 prohibits licensed contractors installing solar energy equipment or solar energy systems on or after February 1, 2015 unless the licensees are in compliance with Section 2156.3 and any related rules adopted by the Louisiana State Licensing Board for Contractors (the “Board”). It provides certain exceptions, including that any contractor licensed in Louisiana as of August 1, 2014, holding the major classification of Building Construction, Electrical Work (Statewide), or Mechanical Work (Statewide), shall be deemed to have met the examination requirement.
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Yesterday, Pillsbury attorneys Michael Hindus, Eric Save and John McNeece published their advisory titled Mexico’s Guidelines for Clean Energy Certificates Will Support Renewable Energy Development. The Advisory discusses, as part of a historic restructuring of its electrical power sector, Mexico’s creation of a market for tradable Clean Energy Certificates, which many industry participants will be required to obtain. Draft guidelines proposed by the Mexican Ministry of Energy set forth the criteria for granting these clean energy certificates, a framework for buying and selling them, and a procedure for establishing the obligations of market participants to obtain the certificates. Final guidelines will be issued shortly.

If you have any questions about the content of this blog, please contact the Pillsbury attorney with whom you regularly work or Michael Hindus, Eric Save or John McNeece, the authors of this blog.

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Four energy companies – Pathfinder Renewable Wind Energy, Duke-American Transmission, Dresser-Rand, and Magnum Energy – have jointly proposed an $8 billion plan to supply Los Angeles with more than twice the amount of electricity generated by the Hoover Dam. According to Duke Energy, the proposal would require construction of “one of America’s largest wind farms in Wyoming, one of the world’s biggest energy storage facilities in Utah, and a 525-mile electric transmission line connecting the two sites.” The compressed air storage facility in Utah – consisting of four vertical chambers, each approaching the size of the Empire State Building, carved from an underground salt formation – would yield 1,200 megawatts of electricity, which is enough to serve 1.2 million homes in the Los Angeles area.

Renewable energy producers have long struggled with how to deliver electricity when times of high demand do not coincide with times of peak energy production. For example, solar power typically peaks during midday, when energy demand is lower. The wind power proposal for Los Angeles, however, boasts the desirable pairing of energy storage with renewable energy. Under the proposal, when power demand is low and wind is high, the storage facility would use the excess electricity from the wind farm to compress and inject high-pressure air into the chambers for storage. During times of high power demand, the facility would use the stored, compressed air, combined with a small amount of natural gas, to drive eight generators to produce electricity.

The proposal will be formally submitted to the Southern California Public Power Authority by early 2015 in response to the agency’s request for proposals to provide renewable energy and electricity storage for the Los Angeles area. With energy demand in the area predicted to rise by as much as 18 percent by 2024, this proposal, which has a target in-service date of 2023, could provide a desirable green solution to Los Angeles’s impending energy crisis. But this is hardly a done deal. The proposal must first be selected from the many expected to be submitted to the agency, and its sponsors must then be able to clear regulatory hurdles and secure financing by entering into agreements for the sale of power.

A video with more information about the proposal can be found here.

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Yesterday, Pillsbury attorneys John McNeece, Eric Save and Michael Hindus published their advisory titled Mexico’s Energy Reform Provides Significant Opportunities in Oil and Gas Exploration and Production. The Advisory discusses Mexico’s new energy legislation, which went into effect on August 12, 2014 and which will completely restructure the Mexican energy sector, including both hydrocarbons and electricity. This legislation opens up oil and gas exploration and production (“E&P”) to the private sector, through authorization of new contract arrangements with the Mexican State or with PEMEX, while reaffirming Mexico’s ownership of hydrocarbons in the ground. Mexico’s opening to the private sector will generate numerous opportunities for E&P operators, the E&P arms of international oil and gas companies, suppliers, and investors.

If you have any questions about the content of this blog, please contact the Pillsbury attorney with whom you regularly work or John McNeece, Eric Save or Michael Hindus, the authors of this blog.

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Today, Pillsbury attorneys Eric Save, Michael Hindus and John McNeece published their advisory Proposed Implementing Legislation for the Mexican Energy Reform Will Create an Open, Competitive Electrical Power Industry. The Advisory notes that the Mexican Congress is debating a historic package of legislation to restructure the nation’s electrical power sector. This legislation will create a more open and competitive power industry in Mexico, giving the private sector unprecedented opportunities to (i) generate power in Mexico for sale in a competitive wholesale electricity market, (ii) offer electricity service to large-scale consumers in Mexico, and (iii) enter into joint ventures, public-private partnerships and service contracts with the state or the state-owned utility for the financing, construction and operation of infrastructure needed for the transmission, distribution and generation of electrical power.

If you have any questions about the content of this blog, please contact the Pillsbury attorney with whom you regularly work or Eric Save, Michael Hindus or John McNeece, the authors of this blog.

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Revised Code of Washington §§ 19.28.041, 19.28.161, and 19.28.006 definitions of “Equipment” and “Electrical construction trade” require that all parts and components of solar photovoltaic (PV) systems be installed and maintained by properly licensed electrical contractors and certified electricians. Construction contractors who are not electrical contractors are not properly licensed to install solar PV panels except in very specific applications as described in Washington Administrative Code § 296-46B-690. The allowance in Washington Administrative Code § 296-46B-690(5) permits construction contractors and uncertified individuals to place only “building integrated” PV panels but all electrical work, including wiring installation, terminations, etc., necessary to complete the electrical installations must be completed by the entity that obtained the electrical work permit.

Section 296-46B-690(5) states:

The entity placing a building integrated cell, module, panel, or array is not subject to the requirements for electrical inspection, licensing, or certification so long as the work is limited to the placement and securing of the device and an electrical work permit has been previously obtained for the electrical work related to the equipment by an entity authorized to do that electrical work.

The Washington State Department of Labor & Industries concluded that this rule was necessary because of the proliferation of materials that serve a dual function as PV components and building exterior finish materials such as roofing, siding, and windows. It recently reiterated that Section 296-46B-690(5) does not allow non-electrical contractors and uncertified individuals to install PV system materials unless they meet the definition of building integrated and the requirements in Washington Administrative Code § 296-46B-690. The definition of “building integrated” PV panels is from the National Electrical Code, and is defined in Washington Administrative Code § 296-46B-690(1) as “photovoltaic cells, modules, panels, or arrays that are integrated into the outer surface or structure of a building and serve as the outer protective surface of that building, such as the roof, skylights, windows, or facades.”

Additional Sources: Revised Code of Washington § 19.28.271 Violations of RCW 19.28.161 through 19.28.271 — Schedule of penalties — Appeal