On February 24, 2017, the Balancing Authority of Northern California (“BANC”) – acting on behalf of its member, Sacramento Municipal Utility District – entered into an Implementation Agreement with the California Independent System Operator Corporation (“CAISO”) to participate in CAISO’s western Energy Imbalance Market (“EIM”). BANC had announced in October of 2016 that it would begin negotiations on behalf of its members to develop the Implementation Agreement. Going forward, participation in the EIM will require participating transmission service providers in the BANC balancing authority area to revise their open access transmission tariffs to reflect CAISO’s rules and procedures governing the EIM and to execute service agreements associated with the EIM. Continue Reading BANC Enters California Energy Imbalance Market
On March 2, 2017, the U.S. Senate voted 62-37 to confirm Rick Perry as the Secretary of the Department of Energy (“DOE”). Secretary Perry will succeed Dr. Ernest Moniz. Prior to his confirmation as Secretary of the DOE, Secretary Perry was Governor of Texas from December 2000 to January 2015, qualifying as the longest-serving governor in Texas history.
After being sworn in, Secretary Perry stated, “It is an honor and privilege to serve as the Secretary of the [DOE]. As Secretary, I will advocate and promote American energy in all forms.”
The emerging trend of energy private equity (“EPE”) funds is revolutionizing the renewable energy field, as renewable energy joins leveraged buyouts, venture capital and hedge funds as asset classes that institutional investors and high net worth investors are using to deploy their capital in a diversified manner, with the added “social good” of investing in a sustainable energy future. Sophisticated energy sponsors are increasingly eschewing the traditional project finance structure, in which capital stacks are created for each deal, in favor of a private equity fund structure in which committed capital is deployed by the sponsor in accordance with a specified investment strategy. From the sponsors’ perspective, the goal is the “holy grail” of all private equity sponsors – permanent capital. This trend can be seen as further evidence of renewable energy maturing as an asset class within the larger investment world. Since this trend is so new, the terms of EPE funds vary tremendously. However, some common terms are summarized below. Continue Reading A Revolution Coming in Renewable Energy Finance: The Emergence of Energy Private Equity Funds
Originally posted in Troutman Sanders Washington Energy Report
On February 24, 2017, President Donald Trump issued a Presidential Executive Order on Enforcing the Regulatory Reform Agenda (“Executive Order”) which requires the heads of agencies to designate an agency official as the “Regulatory Reform Officer” within 60 days, and establish “Regulatory Reform Task Forces.” The objective of each Regulatory Reform Task Force will be to “evaluate existing regulations and make recommendations to the agency head regarding their repeal, replacement, or modification, consistent with applicable law.” Continue Reading President Trump Orders Agencies to Create “Regulatory Reform Task Forces”
On February 13, 2017, a bipartisan coalition of 20 US governors published a letter imploring President Donald Trump to support the renewables industry. The group highlighted the wide impact the industry has across the nation, employing hundreds of thousands of Americans and transforming low-income and rural communities. The Governors highlight four ways in which Congress and the Trump administration could help the renewables industry.
First, grid modernization and transmission development. The Governors argued that any national infrastructure package should provide significant funding for grid modernization to address the electrical transmission challenges created by large expansions of renewable generation across the country. To implement and streamline the grid modernization process, the governors suggested that the administration create a state-federal task force to work with FERC and the National Laboratories. Continue Reading Bipartisan Governors Push Trump to Support Renewables in Infrastructure Planning
Troutman Sanders Project Development, Acquisition and Finance Partner, Brian Harms will provide guidance to counsel involved in the development of renewable energy projects, with a particular focus on the operations and maintenance (O&M) agreements that underpin such developments on March 7, 2017. The panel will discuss factors to consider and will outline the important terms and conditions to be addressed in O&M agreements. CLE credit is available. For more information click here.
Troutman Sanders Project Finance Partners Justin Boose and John Leonti will moderate panels at Infocast’s Annual Projects & Money Conference in New Orleans on January 18 and 19 as well as its Wind Power Finance & Investment Summit in San Diego on February 8.
On Wednesday, January 18, Justin Boose will moderate a panel titled “Ancillary Markets – Compensation for Providing Stabilization Services to Renewable Generation.” Because renewables are an intermittent resource, the penetration of renewables requires firm generation sources to stabilize the grid. In certain markets, such as ERCOT, the ancillary markets are not providing the right signals needed to attract new thermal generation. The panel discussion will focus on this challenge and explore potential solutions.
On Thursday, January 19, John Leonti will moderate a panel titled “Renewables Outlook 2018, 2019 and Beyond.” The extension of the PTC and ITC has provided some much needed certainty for the renewables sector. However, there is still plenty of uncertainty around other drivers that will shape the project development landscape for solar and wind in 2018, 2019 and beyond. John and his panelists will explore the outlook for renewables development and examine the evolution of the tax equity market and financing structures to support growth.
We are pleased to offer clients and friends a 15% discount on registration. To receive this discount, please register directly with Infocast using discount code 170771.
On Wednesday, February 8, John Leonti will moderate a panel titled “Swaps and Other Risk Mitigation Products” at Infocast’s annual Wind Power Finance & Investment Summit in San Diego. The Summit offers unique networking opportunities to connect with the entire spectrum of the wind industry, at the highest levels—developers, yieldcos and yield-oriented vehicles, tax equity investors, lenders, private equity funds and other investors, turbine suppliers, PPA offtakers, customer and more.
We are pleased to offer clients and friends a 15% discount on registration. To receive this discount, please register directly with Infocast using discount code 1708107.
The Second Circuit Court of Appeals sent a clear message to secured creditors with its recent decision, Ring v. First Niagara Bank, N.A. (In re Sterling United, Inc.),1 that in the case of a collateral description in a financing statement for blanket liens covering all of a debtor’s assets — less is more. In the case, the secured party, First Niagara Bank, supplemented its “all assets” UCC-1 description with the phrase “including but not limited to, [all assets located at]”, followed by a specific address where the collateral was located.2 When the debtor later moved to a new location, this unnecessary additional phrase almost backfired on the secured party when a bankruptcy trustee moved to avoid the financing statement as a preference.3 The Court ultimately found after protracted litigation that the collateral description was sufficient, but First Niagara’s experience serves as a reminder to creditors (and their attorneys) that a simple “all assets” UCC-1 description limits the risk of future litigation.
1 Ring v. First Niagara Bank, N.A. (In re Sterling United, Inc.), No. 15–4131–bk (2d Cir. Dec. 22, 2016) (Summary Order).
2 Id., at * 4
3 See id.
With the Obama administration coming to an end, January 2017 marks the beginning of a dramatic wholesale conservative shift in federal public policymaking. Starting with the swearing-in of the 115th Congress on January 3rd, and followed by President Donald J. Trump’s inauguration on January 20th, the legislative and executive branches promise a robust schedule of activity heading into the Trump administration’s first 100 days.
Troutman Sanders Strategies team’s 2017 Federal Outlook provides an overview of the legislative and regulatory priorities for the 115th Congress and the incoming Trump administration. Click here to view a copy of the complete report.
Originally posted in Troutman Sanders Environmental Law and Policy Monitor
On December 14, 2016, the United States Fish and Wildlife Service (“FWS”) finalized revisions to its regulations for nonpurposeful (or incidental) take of eagles and eagles nests under the Bald and Golden Eagle Protection Act (“Eagle Act”). According to FWS, the rule is intended to balance clean energy development and eagle conservation goals. FWS acknowledges the Obama Administration’s efforts to expand wind energy development and how the accompanying growth has impacted eagles, but emphasizes its belief that wind energy development does not pose a disproportionate risk to eagles as compared to other activities that may incidentally take eagles. FWS’s revisions are clearly drafted with the wind industry in mind. Continue Reading Fish and Wildlife Finalizes Helpful Revisions to Eagle Take Permit Regulations