An ambitious bill introduced in the Massachusetts’ Senate proposes to accelerate expansion to the state’s renewable energy sector. Along with implementing a market-based system to reduce emissions, the bill also aims to increase the required growth rate of the state’s renewable portfolio from 1% to 3% per year. Specific goals and proposals for solar, wind and energy storage are included in the bill.
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Originally posted on Troutman Sanders’ Washington Energy Report

On February 15, 2018, FERC issued a notice that staff will hold a technical conference on April 10-11, 2018 to discuss the participation of distributed energy resources (“DER”) in markets operated by Regional Transmission Organizations and Independent System Operators.  As FERC stated in the notice, the two-day conference will host several panels on two broad DER-related agendas: first, to continue considering the DER-related reforms initially proposed in the rulemaking culminating in the concurrently-issued Order No. 841 on electric storage participation in organized markets; and second, to broadly explore issues related to the potential effects of DERs on the bulk power system.
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In response to concerns regarding the changing nature of the nation’s energy supply portfolio and the emergence of promising energy storage technologies, the Commission in recent years issued several notices of inquiry, notice of proposed rulemaking, and policy statements regarding various energy storage and ancillary service supply issues. Additionally, the Commission considered but ultimately declined to pursue the Department of Energy-initiated rulemaking on grid resiliency and reliability. On February 15, 2018, however, the Commission took concrete action by issuing a pair of Final Rules, addressing (i) storage participation in regional markets; and (ii) the provision of primary frequency response, a critical grid support service.
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In 2017, there were a record number of solar policies debated in state legislatures and commissions, with nearly every state considering some kind of solar policy or rate change. Recently, the North Carolina Clean Energy Technology Center (NCCETC) released its 50 States of Solar report which reviews solar policies and initiatives across the nation. In its report NCCETC found that there were 249 state actions on solar policies in 2017: 34% were related to residential fixed charges and minimum bill increases, 27% were distributed generation (DG) compensation policies, and 12% were community solar policies. The actions took place in 45 States plus the District of Columbia. That is up by 17% from 212 actions in 2016 and 42% from the 175 actions in 2015.  
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Originally Posted on Troutman Sanders’ Washington Energy Report 

On January 18, 2018, FERC approved California Independent System Operator Corporation’s (“CAISO”) changes to its resource adequacy program to, among other things, (1) allow capacity located in a local capacity area, but procured as system capacity, to provide system substitution capacity during forced outages and (2) cap a load serving entity’s (“LSE”) monthly local capacity requirement at its monthly system capacity requirement.

CAISO and the local regulatory authorities within its footprint administer the resource adequacy program to ensure that LSEs procure enough transmission system capacity to meet their forecasted load, plus a reserve margin set by their local regulatory authority.  Additionally, LSEs are required to procure local area capacity—capacity capable of meeting capacity requirements in a transmission-constrained area and that is also located within that area—and flexible resource adequacy capacity—resources that can ramp up and down quickly to manage variability.  Moreover, LSEs must submit annual and monthly resource adequacy plans to CAISO demonstrating that they have procured enough capacity to meet their forecasted load and reserve margin, while scheduling coordinators for resource adequacy resources submit annual and monthly supply plans that CAISO uses to verify that LSEs are meeting their resource adequacy requirements.
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The House and Senate Conference Committee reached agreement on the Tax Cuts and Jobs Act (TCJA) last Friday, December 15, 2017. The text of the bill (the Conference Agreement) is available here. Prior coverage of the House bill and a prior version of the Senate bill is available here and here, respectively.

PTC and ITC

The Conference Agreement, following the Senate bill, will not change the PTC or ITC from the current law phase-down.

Corporate Tax Rates

The Conference Agreement will lower the highest corporate tax rate to 21% beginning in 2018.


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On Monday, the California Public Utilities Commission (CPUC) released its Renewables Portfolio Standard Annual Report announcing that the State is on track to meet its renewables portfolio standard (RPS) requirement of 50% ten years ahead of schedule. The California RPS sets a requirement that 33% of electricity retail sales be served by renewable resources by 2020, and 50% by 2030. But with aggressive investment in renewables the State’s three large investor owned utilities (IOUs) may achieve the 50% goal by the 2020 deadline, ten years early.
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Originally Posted on Troutman Sanders’ Washington Energy Report

The California Independent System Operator Corp. (“CAISO”) is moving forward on a slate of proposals which are intended to enhance grid reliability.  These proposals include addressing issues related to generation retirement, entering into a specific reliability must-run contract, modifications to incentives related to the resource adequacy program, as well as adjusting the compensation given to its Board of Governors (the “Board”).  On November 2, 2017, the Board approved the four proposals, and CAISO will file any resulting tariff related changes with FERC at a later date.  
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Yesterday the Joint Committee on Taxation released a description and revenue estimate of the Senate Finance Committee Chairman’s mark up of the Tax Cuts and Jobs Act. The Senate Finance Committee has not released bill language yet but may do so as early as next week. The Senate bill differs in significant respects from the House bill, which we summarized here.

PTC and ITC

Unlike the House bill, the Senate bill would not change the PTC or ITC.

Corporate Tax Rates

Like the House bill, the Senate bill would lower the highest corporate tax rate from 35% to 20%. However, the Senate bill would not reduce the rate until tax years beginning after 2018, one year later than the House bill.
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Southern California Edison (SCE) released The Clean Power and Electrification Pathway, a blueprint for California to reduce greenhouse gas emissions and air pollutants. SCE explains that a clean power and electrification pathway is the best approach to meet California’s 2030 and 2050 climate goals, reducing 1990 levels of greenhouse gas emissions by 40 and 80