Friday, August 27, 2010

Help for Clean Energy Developers

Written by Eco Law Group
For Washington Clean Energy Developers looking to make money, have you heard of PACE? PACE (or, the Property Assessed Clean Energy) Program works by letting homeowners pay for rooftop solar arrays and energy-saving retrofits through a surcharge on their property tax bills. The cost is paid back over 10 to 20 years. In this way PACE removes high upfront costs and ensures that property owners don't lose out if it they sell -- the new buyer inherits both the home improvements and the tax assessment. PACE creates work for building contractors, cuts carbon pollution, and essentially runs on private capital, since cities and towns that offer PACE fund it through municipal bonds.



However, Fannie regulators object to the liens that PACE puts on properties, which get paid off ahead of mortgages if a borrower defaults. That adds a theoretical risk into an already jittery credit market.


This objection makes the future of PACE shaky at best.


However, the future does look bright for Clean Energy providers and developers


First, Washington incents clean energy through a variety of methods. One such incentive is ESSB 6170, which modifies business and operations (B&O) tax for wholesale manufacturers of solar energy systems, as well as solar component technicians doing business in the state of Washington. Other incentives for clean energy are business oriented and municipally-oriented to the city of Seattle.


Second, the new idea is tribal development – i.e., using tribal land to develop clean energy fields. Not only would this supply a city with cleaner and greener energy, but developers familiar with navigating tribal law would be flush with business. We will keep you posted on this as it develops.

Tuesday, August 24, 2010

Washington Clean Air Standards

Written by Eco Law Group
Many claim that the Russian heat wave is a sign of global warning. However, NASA has recently published a report indicating that the heat wave was a natural event.



“The natural process of atmospheric blocking, and the climate impacts induced by such blocking, are the principal cause for this heat wave.”


The human element viz. extreme weather events will continue to play an important role in the promulgation of stricter regulations. To the extent human generated green house gases have an effect on extreme events such as mega downpours, heatwaves, etc, such activities will be a target for the EPA.


With respect to the Russian heat wave it should be noted, however, warming surface temperatures – owed chiefly to human-generated green house gases and emissions – will magnify the effects of any future natural heat wave.


How does this play out for Washington and Seattle locally?


The federal Clean Air Act (CAA) directs the EPA to develop primary and secondary National Ambient Air Quality Standards (NAAQS) for six “criteria” pollutants: carbon monoxide (CO); ozone (O3); small particulate matter (PM10);3 oxides of nitrogen (NOx); sulfur dioxide (SO2); and lead (Pb).


Washington has tightened air quality standards by promulgating its own ambient air quality standards for radionuclides and for fluorides. The regulations provide that “[e]missions of radionuclides in the air shall not cause a maximum effective dose equivalent of more than 10 mrem/y to the whole body to any member of the public. This emission rate is relatively easy to meet for older technologies. However, for new construction or development, a higher burden is imposed through Best Alternative Radionuclide Control Technology (BARCT). A responsible person (i.e., a corporate officer) may be personally liable for compliance with these regulations.


Flouride regulation is also a sensitive compliance area for rural Washington businesses, as the regulations primarily apply to livestock grazing areas and pastures.


An area not in compliance with Air Quality Standards is classified as a Non-attainment Area. Seattle and Tacoma are currently classified as nonattainment areas. There are different standards for gases and liquids which include fluoride elements.


Accordingly, Washington has filed an EPA-required State Implementation Plan (SIP). The Washington SIP targets motor vehicle emissions. This SIP creates heavy fees for businesses operating fleets which are major sources of emissions pollution.


As a Washington company, it is patently important to understand what substances are being created and released as byproducts from business. Not only are significant benefits available for those in compliance, but significant penalties are available for those not in compliance.


Also, one should be mindful that Seattle/Tacoma is currently applying for reclassification as an attainment area, which will mean new and stricter regulations for local businesses.