Alternative Fuel Credits and S.B. 1589 Producers of alternative fuels (non-biodiesel fuels that qualify for a $0.50 per gallon credit under Sections 6426(d) and 6427(e) of the Internal Revenue Code) should be aware of how the Biodiesel Tax Incentive Reform and Extension Act of 2009 will affect their access to tax credits. Importantly, that recently-introduced bill will have no affect on alternative fuel credits and will not extend the existing alternative fuel credit program that is set to expire at the end of this year. Treasury and Energy Issue Guidance on over $2 billion in Section 48C Tax Credits The Departmetnt of Energy announced recently more than $2 billion in tax credits for “qualified advanced energy projects.” “This program will help encourage innovation in design of clean energy technologies,” said Treasury Secretary Tim Geithner. “This partnership between Treasury and Energy adds an important new dimension to the incentives created in the Recovery Act to increase US manufacturing output, improve energy efficiency, and develop alternative sources of energy.” Renewable Energy Around the Web: August 17, 2009 Our weekly compilation of renewable energy news and information from around the Web. Guidance on Section 48C Credits The Departments of Treasury and Energy issued joint guidance on the process for seeking over $2 billion in qualified advanced energy project tax credits. The tax credits are aimed at manufacturers of renewable and clean energy equipment and projects. Unlike the other tax credits programs, the qualified advanced energy project tax credits are limited to approximately $2.3 billion, so potential recipients of the credits must apply for them in advance and submit several rounds of qualifying information (lasting into March of next year) before they find out whether or not they may receive the tax credits. Initial applications are due September 16, 2009. A Trillion Dollars for Renewable Energy Congressman Ed Markey, co-sponsor of the epinomous cap and trade bill, said that passage of the Waxman-Markey bill would bring “a trillion dollars” in private investment into renewable energy. Congressman Markey was touring the Alameda, California labs of Aurora Energy at the time. An Exclusive Interview with Eric Taub In the first interview of the series, we interview Eric Taub, the founder and Chief Executive Officer of Verus Carbon Neutral, the only aggregator of carbon credits in Atlanta, Georgia. White Paper on Qualified Advanced Energy Project Tax Credits As previously reported, the Department of Energy and the Treasury Department recently issued joint guidance on the application process for Qualified Advanced Energy Project (”QAEP”) tax credits. We have published a white paper on the application process that is available on the Research page. Initial applications are due by September 14, 2009. Renewable Energy Around the Web: August 24, 2009 Our weekly compilation of renewable energy news and information from around the Web. RenewableEnergyMemo.com The Gas Co. (of Honolulu, Hawaii) announced yesterday that it has entered into a memorandum of understanding with Primoris Renewables of Lake Forest, California, to increase the renewable components in its gas supply. RenewableEnergyMemo Our weekly compilation of renewable energy news and information from around the Web. Residential Solar Competes with Big Utilities From 2006 to 2008 residential homeowners added 522 MW in solar power to the grid while utility companies added only 96 MW. The residential solar market is booming, but that’s causing concern for traditional generation utilities, according to Newsweek. “The disparity has utilities worried about loosing their grip on the country’s energy industry, and the $130 billion residential electricity market. In some cases, utilities are actually taking direct steps to thwart rooftop solar. Two weeks ago in Colorado, the state’s biggest utility, Xcel, tried passing a surcharge on homes and businesses using rooftop solar power. The rate hike would’ve generated $180 million, $55 million of which was slated to help fund Xcel’s newest coal-fired power plant, the Comanche Unit 3, due to come online this fall. The public went ballistic, and with pressure from Democratic Gov. Bill Ritter, the proposal was eventually shelved. In early July, New Mexico’s biggest utility, PNM, filed an o Producers Applaud (Mostly) for S.B. 1589 After several weeks to review the bill, producers are responding with mixed, but mostly positive, praise for S.B. 1589, according to Biodiesel Magazine. As industry leaders responded to Biodiesel Magazine’s questions about the proposed changes, some strongly disagreed with NBB’s applause of the measure in Washington to convert from a blender excise tax credit to a producer excise tax credit. “I don’t understand their wanting to change that,” said one NBB member, who asked not to be named. “I don’t see the sense or the advantage in it.” The source indicated that producers who sell B100 are able to keep their books clean because they don’t file any claims with the Internal Revenue Service. This allows them to bill the $1 per gallon credit into their sale price and let distributors, who blend the fuel, deal with the paperwork. “It usually takes about 10 days for us to get paid by our customers,” said the source. “When you’re dealing with the federal govern Section 1603 Renewable Energy Grants Exceed $1 Billion The Department of the Treasury, along with the Department of Energy, yesterday announced that they had surpassed $1 billion in grants for renewable energy investments under Section 1603 of the Recovery Act. The Recovery Act of 2009 expanded the investment tax credit allowed for certain types of investment in renewable energy under Section 48 of the Internal Revenue Code. In general, that program gives entities that invest in qualified renewable energy projects a tax credit equal to 30% of the qualified investment. JP Morgan Leaps Into Carbon Trading In a development little-noticed in the U.S. media, JP Morgan Chase has placed a bet in the coming carbon trading market by making an offer for European carbon-trading firm EcoSecurities Group plc. The management of EcoSecurities Group yesterday announced that it was backing JP Morgan’s bid to be acquired. Renewable Energy Around the Web: September 28, 2009 Our weekly compilation of renewable energy news and information from around the Web. Senate Climate Bill Senators John Kerry and Barbara Boxer today filed an emissions cap-and-trade bill to serve as the Senate’s version of Waxman Markey. The advance copy available here has not yet been assigned a bill number and is not yet available through Thomas. The bill is more flexible on cap-and-trade than Waxman Markey and is thought to signal the administration’s willingness to deal of key terms in order to get some kind of emissions control bill passed. Gevo Offers Biobutanol Retrofits for Ethanol Producers Biofuels Digest reports that Gevo has launched a 1 MGY biobutanol plant in St. Joseph, Missouri. Butanol is formed through fermentation, like ethanol, but has a higher energy value and a lower vaporization profile. This makes butanol an ideal drop-in fuel for existing gasoline vehicles or as a supplement to biodiesel. Renewable Energy Around the Web: October 5, 2009 Our weekly compilation of renewable energy news and information from around the Web. Qteros Makes Breakthrough Announcement on Ethanol from MSW Biofuels innovator Qteros and Applied Clean Tech have announced a breakthrough in ethanol development from municipal solid waste, according to Biofuels Digest. Recyllose™, a recycled solids-based material produced from municipal wastewater, can now be turned into fuel for cars, announced Applied Cleantech and Qteros, the advanced biofuels company wh claims to be able to turn biomass into cellulosic ethanol through its proprietary Q Microbe™ technology. Southern Company Buys Biomass Facility Southern Company has reportedly agreed to buy the biomass facility of Nacodoches Power for an undisclosed amount. The biomass facility in Sacul, Texas, is set to open during the third quarter, with operations set to start in 2012. The 165-acre project will be one of the largest biomass-fueled electric generating facilities in America, capable of generating approximately 100 megawatts Renewable Energy Around the Web: October 12, 2009 Our weekly compilation of renewable energy news and information from around the Web. Wilson to Lead New ABA Renewable Energy Committee As reported in the Atlanta Business Chronicle, the American Bar Association has tapped Atlanta lawyer Jonathan B. Wilson to head its new Renewable Energy Committee, which addresses green energy. Wilson, a corporate attorney with the Atlanta firm of Taylor English Duma LLP, will lead the group, which seeks to improve research and scholarship in solar, wind and other natural resources and to make programs available to benefit the legal profession and U.S. public. Momentum for Biofuels The folks at Seeking Alpha (a blog for serious investors — not cheerleaders for sustainability or any particular point of view) make the argument that biofuels are beginning to gain momentum. While these are not the days of wine and roses, it is encouraging to see the investment community looking at the biofuels space Renewable Energy Around the Web: October 19, 2009 Our weekly compilation of renewable energy news and information from around the Web. IRS Memo Provides Guidance on Black Liquor Tax Credits / Producers May Continue to Obtain Credits through 2012 A recently-published memorandum from the Office of the Chief Counsel of the IRS may provide additional guidance to biofuels producers on their ability to obtain tax credits. (IRS Chief Counsel Advice 200941011). Renewable Energy Around the Web: October 26, 2009 Our weekly compilation of renewable energy news and information from around the Web. Renewable Energy Around the Web: November 9, 2009 Our weekly compilation of renewable energy news and information from around the Web. Health Care Bill Cuts Biofuel Tax Credits A provision in the health care bill passed by the House of Representatives over the past weekend (H.R. 3962) would cut the tax credits currently benefitting cellulosic ethanol and other biofuel tax producers. Renewable Energy Around the Web: November 16, 2009 Our weekly compendium of renewable energy news and information from around the Web. Biodiesel Tax Credit Extension Bill A California congressman has introduced a bill (H.R. 4070) that aims to extend the biodiesel tax credit program another five years. North Dakota Representative Early Pomeroy introduced the legislation on November 16, 2009 after which it was referred to the House Ways and Means Committee. The bill is a companion to S.B. 1589, introduced by Maria Cantwell and Charles Grassley two months ago. Renewable Energy Around the Web: November 23, 2009 Our weekly compendium of renewable energy news and information from around the Web. Last Day of Voting for 50 Hottest Companies in Bioenergy Today is the last day of voting for the "50 Hottest Companies in Bioenergy." Grassley Pushes for Extension of Biodiesel Tax Credit Iowa Senator Charles Grassley, one of the sponsor of the Biodiesel Tax Credit Reform and Extension Act, is continuing to push for the Senate to act on the bill before the end of the year. Existing tax credit programs for biofuels expire at the end of 2009 unless Congress acts. Renewable Energy Around the Web: December 7, 2009 Our weekly compilation of renewable energy news and information from around the web. Renewable Energy Around the Web: December 14, 2009 Our weekly compilation of renewable energy news and information from around the web. Taylor English Duma Assists Client with $17 Million Renewable Energy Grant Taylor English Duma LLP attorney Greg Sanderson recently advised a Washington state-based manufacturer in successfully obtaining a Treasury §1603 cash grant in excess of $17 million for a 55 megawatt biomass power plant. Sanderson is part of the Renewable Energy Finance team at the firm. Renewable Energy Around the Web: December 21, 2009 Our weekly compilation of renewable energy news and information from around the Web. Renewable Energy in Scotland A report from the Scottish National Heritage organization claims that Scotland is on target to exceeds its renewable energy goals and could achieve 300% of its goals by 2020 if pending programs are approved. The report claims that 2,834 MW of renewable power is operational and another 3,739 MW of power has been approved with another 19,500 MW in the planning stages. The combined output is more than three times the 8 GW need to meet Scotland’s 2020 target of 50% of electricity from renewables. Tax Extenders Act Omits Alternative Fuel Mixture Credit The House of Representatives on December 9th passed a bill (H.R. 4213) that extends many of the tax credits and incentive programs that expire at the end of this year. The bill was referred to the Senate Finance Committee. While the bill extends for one year the biodiesel tax credit and the biodiesel mixture credits under Section 40A of the Internal Revenue Code, the bill does not extend the alternative fuel mixture credit under IRC Section 6426(e). The alternative fuel mixture credit currently applies to alternative fuel producers who produce a liquid fuel from biomass that does not meet the requirements for biodiesel and that is mixed with diesel (or other taxable fuel) for use in a business. Codexis Files for IPO Bioproducts company Codexis yesterday filed papers with the SEC to proceed with an initial public offering of its shares. Credit Suisse Securities and Goldman Sachs will be acting as joint book-running managers, with RBC Capital Markets Corporation and Pacific Crest Securities LLC acting as co-managers for the offering. Fuel Cell Economics Improving, Offering Energy Storage Solutions The economics of fuel cells are improving each year, according to Pike Research, which forecasts that global revenues will more than double over the next few years, from $336m in 2009 to $716m in 2013, according to reports. Pike Research’s analysis indicates that stationary fuel cells offer enormous long-term potential, offering a clean, efficient source of electricity and range in size from 1 kW up to 10 MW or more. MiaSole to Build Solar Manufacturing Plant in Georgia MiaSole, a manufacturer of Copper Indium Gallium Selenide (CIGS) thin-film solar panels, is said to be planning to build a 500,000 square foot manufacturing facility in Griffin, Ga. U.S. Endowment for Forestry Seeks Proposals for Energy Demonstration Projects The U.S. Endowment for Forestry and Communities is seeking pre-proposals for grants of up to $250,000 to develop demonstration projects for the conversion of woody biomass to energy. Administration Announces New Program to Promote Biofuels and Renewable Energy (RFS2; Carbon Sequestration; Biomass Crop Assistance Program) President Obama today announced a series of steps as part of a comprehensive strategy to enhance American energy independence and build a foundation for a new clean energy economy. The administration believes that the strategy will create new industries and millions of jobs. Senate Jobs Bill Resuscitates Alternative Fuel Credit Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Chuck Grassley, R-Iowa, last week released a draft of their Hiring Incentives to Restore Employment (HIRE) Act. The bill contains a number of provisions intended to spark new hiring, including a social security tax holiday for workers hired during 2010.