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Bureau Of Ocean Energy Management Approves Offshore Wind Project in New Jersey

July 7, 2023

by Peter Maloney
APPA News
July 7, 2023

The Department of the Interior’s Bureau of Ocean Energy Management recently approved the 1,100-megawatt Ocean Wind 1 project off the New Jersey coast.

The announcement is the third commercial-scale, offshore wind energy project in the United States approved by the BOEM, joining the Vineyard Wind project offshore Massachusetts and the South Fork Wind project offshore of Rhode Island and New York, which are both under construction.

The Ocean Wind project, about 13 nautical miles southeast of Atlantic City, was originally developed by New Jersey’s Public Service Enterprise Group and Danish multinational company Orsted, which became the sole owner of the project in January 2023 when it bought out PSEG’s 25 percent stake.

The developers were selected for the project through a New Jersey Board of Public Utilities solicitation in June 2019.

The wind project calls for deployment of up to 98 wind turbines, up to three offshore substations, inter-array cables linking the individual wind turbines to the offshore substations, and substation interconnector cables linking the substations to each other.

The project also calls for development of up to three offshore export cables, installed in two export cable route corridors, to connect to onshore export cable systems and two onshore substations with connections to New Jersey’s electrical grid at BL England and Oyster Creek. The BL England export cable route corridor will make landfall in Ocean City, New Jersey. The Oyster Creek export cable route corridor will make landfall in Lacey Township, New Jersey.

Onshore construction work for the project is expected to begin by the end of 2023, with offshore construction beginning in 2024 and the project online by 2025.

Orsted plans to use GE Renewable Energy’s 12-MW Haliade-X offshore wind turbine, one of the largest in the world. General Electric says the Haliade-X stands 260 meters high with a rotor diameter of 220 meters and blade lengths of 107 meters, which enable the turbine to operate consistently through a range of wind speeds, giving the turbine a capacity factor rating of about 60 percent.

The New Jersey Department of Environmental Protection approved Ocean Wind I in April 2023. The project is expected to contribute to New Jersey’s goal of having 11 gigawatts of offshore wind energy by 2040 as called for in the Governor’s Executive Order No. 307, issued in September 2022.

New Jersey’s Energy Master Plan calls for the state to achieve 100 percent clean energy by 2050.

EPA Launches $7 Billion Grant Competition to Fund Residential Solar Programs

June 30, 2023

by Paul Ciampoli
APPA News Director
June 30, 2023

The U.S. Environmental Protection Agency on June 28 launched a $7 billion grant competition to increase access to solar energy for low-income households and disadvantaged communities.

The Solar for All competition, which was created by the Inflation Reduction Act’s Greenhouse Gas Reduction Fund, “will expand the number of low-income and disadvantaged communities primed for residential solar investment by awarding up to 60 grants to states, territories, Tribal governments, municipalities, and eligible nonprofits to create and expand low-income solar programs that provide financing and technical assistance, such as workforce development, to enable low-income and disadvantaged communities to deploy and benefit from residential solar,” EPA said.

The new grant competition will provide funds to expand existing low-income solar programs as well as develop and implement new Solar for All programs nationwide.

EPA said that Solar for All programs ensure low-income households have equitable access to residential rooftop and residential community solar power, “often by providing financial support and incentives to communities that were previously locked out of investments. In addition, these programs guarantee low-income households receive the benefits of distributed solar including household savings, community ownership, energy resiliency, and other benefits.”

The deadline to apply to the competitive grant competition is September 26, 2023. 

Eligible applicants to Solar for All include states, territories, Tribal governments, municipalities, and eligible nonprofit recipients. Coalitions, led by an eligible lead applicant, are also eligible to apply to the competition.

Additional detail on eligibility can be found in Section III of the Notice of Funding Opportunity (NOFO). 

EPA intends to make up to 60 awards under this competition with three award options for applicants.

These award options will include:

EPA anticipates issuing awards of varying amounts, calibrated to the number of households the applicant intends the program to serve.

Applicants for all three award options can apply for a small-sized program ($25 – $100 million), a medium-sized program ($100 – $250 million), or a large-sized program ($250 – $400 million).

Applicants to Solar for All can submit separate applications to one or multiple of the three options. The final quantity of awards will be determined by the number and quality of the applications as well as the optimal combination of awards across the three award options to achieve maximum geographic coverage and benefits of the Solar for All competition.

All applicants are required to submit a Notice of Intent to apply.

The deadline for the NOI differs by applicant type and are:

EPA’s Solar for All competition will host an informational webinar to provide information on the Solar for All grant competition and the application process on July 12, 2023, 1:00pm – 3:00pm ET (Register Here). The webinar will be recorded and posted on EPA’s GGRF webpage.

Tools and resources for prospective grantees, including webinar links and templates, can be found on EPA’s GGRF webpage.

Minnesota Agency, Public Power Utilities Get DOE Nod to Apply for Federal Energy Funds

June 1, 2023

by Paul Ciampoli
APPA News Director
June 1, 2023

A proposal by the Minnesota Department of Commerce, along with regional public power utility and electric cooperative partners, for over $240 million in federal energy funds has received the U.S. Department of Energy nod of approval to move forward with a full application. 

The funds would come from the Grid Resilience and Innovation Partnerships program if the DOE approves the final application, which was submitted May 19. The DOE is expected to announce awards later in 2023.  

The grid improvement proposal combines almost 300 projects involving small-scale utilities — rural cooperative, municipal owned, generation and transmission utilities — that would face significant challenges as individual projects to pursue federal funds, the Minnesota Commerce Department said on May 25.

The projects would serve communities with factors DOE defines as disadvantaged communities, such as being low income, rural, tribal, and geographically remote.

The Minnesota Department of Commerce Energy Resource Division staff has provided staff resources and time, as well as expertise in grant writing and technical assistance needed by the small utilities, to develop the consolidated proposal. 

Costs per project range between $360,000 to $54 million, with each project expected to ask for DOE federal funding to cover half the project costs. Combined, the projects would total more than $480 million. State funding may also be available to help some of the small utility projects through the State Competitiveness Fund, which passed the Minnesota Legislature in April 2023. 

The DOE joint proposal is a consortium, with the Minnesota Department of Commerce as lead state agency, along with multiple regional cooperatives (co-ops) and municipal utilities, and utility industry associations:

Projects proposed range from transmission system upgrades, infrastructure and tools to increase electricity generated by renewable energy, and innovative battery storage systems.

“The money allocated by GRIP would help consumer-owned electric utilities to implement innovative technologies to improve the grid in Minnesota and the region,” said Darrick Moe, CEO of MREA. Karleen Kos, CEO of MMUA, added, “We appreciate the collaboration of everyone on this proposal and the work of the Department of Commerce to get this done.” 

A key component of the joint proposal is to ensure disadvantaged communities in the region would benefit from the energy infrastructure investments.

The Justice40 Initiative, a stated federal government goal that at least 40% of the project benefits accrue to disadvantaged communities, is a component of GRIP funding. Justice40, and its foundation of equity in energy resources, is supported by the Minnesota Department of Commerce.

Bureau of Ocean Energy Management Completes Environmental Analysis for N.J. Offshore Wind Project

May 22, 2023

by Paul Ciampoli
APPA News Director
May 22, 2023

The Bureau of Ocean Energy Management has completed its environmental analysis of the proposed Ocean Wind 1 wind project offshore New Jersey, it said on May 22.

Ocean Wind LLC proposes to construct up to 98 wind turbine generators and up to three offshore substations within its lease area.

At its closest point, the Ocean Wind 1 project will be at least 13 nautical miles southeast of Atlantic City, New Jersey. Export cables are anticipated to make landfall in Ocean County and Cape May County, New Jersey.

If all 98 wind turbine generators are approved for installation, the estimated capacity range will be from 1,215 to 1,440 megawatts.

If approved, Ocean Wind 1 will be the third commercial-scale offshore wind project located on the U.S. Outer Continental Shelf approved by the Biden-Harris administration. 

A notice of availability for the final environmental impact statement for Ocean Wind LLC’s proposed wind energy facility will be published in the Federal Register on May 26, 2023.

The final EIS analyzes the potential environmental impacts of the activities laid out in Ocean Wind LLC’s Construction and Operations Plan. The final EIS is available on BOEM’s website.  

BOEM plans to issue a Record of Decision on whether to approve the proposed project this summer. The Record of Decision is the conclusion of the National Environmental Policy Act EIS process.

President Biden Vetoes Proposal that Called for Repeal of Solar Tariffs Moratorium

May 16, 2023

by Paul Ciampoli
APPA News Director
May 16, 2023

President Biden on May 16 vetoed a Resolution, passed by Congress, that called for ending a moratorium on new tariffs imposed on solar equipment imports from Malaysia, Thailand, Vietnam, and Cambodia.

The U.S. Senate in early May voted 56 – 41 to pass H.J. Res. 39, a Joint Resolution Disapproving the Rule Submitted by the Department of Commerce Relating to “Procedures Covering Suspension of Liquidation, Duties and Estimated Duties in Accord With Presidential Proclamation 10414.” The House passed the Resolution in April by a vote of 221 – 202.

The Congressional Review Act resolution called for ending the two-year suspension, until June 2024, of new tariffs imposed on solar equipment imports from Malaysia, Thailand, Vietnam, and Cambodia, that were enacted based on preliminary findings from the Department of Commerce that Chinese solar companies are circumventing tariffs by routing their products through these countries.

“America is now on track to increase domestic solar panel manufacturing capacity eight-fold by the end of my first term,” Biden said in vetoing the measure. “But that production will not come online overnight.”

He said that the Department of Commerce’s rule “supports American businesses and workers in the solar industry and helps provide sufficient, clean, and reliable electricity to American families, while continuing to hold our trading partners accountable.”

He noted that 51 new and expanded solar equipment manufacturing plants have been announced since he took office.  

“The rule implements a temporary, 24-month bridge to make sure that when these new factories are operational, we have a thriving solar installation industry ready to deploy American-made solar products to homes, businesses, and communities across the Nation. Given the progress we are making on American solar, I do not intend to extend the tariff suspension at the conclusion of the 2-year period in June 2024,” Biden said.

Silicon Valley Bank Closes First Syndicate Loan for Solar Deal Since Being Acquired

May 15, 2023

by Paul Ciampoli
APPA News Director
May 15, 2023

Solar energy company Pivot Energy recently announced the closing of a $203 million financing facility to support a multi-state portfolio of distributed generation solar projects. California’s Silicon Valley Bank will lead the debt facilities, while Foss & Company will make the initial tax equity investment.

The 100-megawatt portfolio comprises 35 community solar and C&I projects planned to reach commercial operation between the second quarter of 2023 and the second quarter of 2024.

This transaction is the first syndicated loan closing that SVB has led since the recent acquisition by First Citizens Bank.  “SVB pioneered community solar financing solutions and has remained a preeminent leader in the market,” a news release from Pivot Energy said. “This transaction shows First Citizens Bank’s commitment to continue lending to this vital space.”

The community solar subscribers in the portfolio include commercial clients including municipalities, healthcare facilities, food service, and retail, residential customers and approximately 8,000 low-to-moderate income households. 

According to Pivot, the portfolio comprises the most extensive low-to-moderate income community solar portfolio developed to date. “It exhibits strategic diversity across project types, client offtake arrangements, and geographic reach with projects in Colorado, Minnesota, Illinois, New York, Hawaii, Maryland, and California.”

SunCentral, Pivot’s proprietary community solar subscriber management and acquisition platform, will manage the portfolio through operations.

Construction Starts on Community Solar Project for Frankfort Plant Board

May 12, 2023

by Paul Ciampoli
APPA News Director
May 12, 2023

Solar Energy Solutions on May 1 started construction on the first installation phase of a multi-phase Community Solar project installation for Kentucky public power utility Frankfort Plant Board.

In this project phase, Solar Energy Solutions will install a grid-tied 187 kW ground-mounted solar array that will generate more than 235,000 kWh in the first year. This means that in that time, the system will generate nearly 6,500,000 kWh of electricity.

SES provided additional design work and will complete site work for future phases, including vegetation clearing and fencing. 

Frankfort Plant Board is pursuing this multiphase solar PV project to offer its customers an alternative to rooftop solar installation and reduce costs and barriers to entry for solar ownership.

The system will also provide low- and moderate-income customers with renewable energy options and savings.

The project will also help to make progress toward the community and Board’s renewable energy goals and will support local solar businesses, jobs, and workforce development. 

“The Frankfort Plant Board is working to make renewable energy options more accessible to all of our customers through numerous efforts,” said FPB General Manager Gary Zheng, “from our net metering policy and value of solar tariff to offering renewable energy credits and investing in a large-scale solar facility in Lyon County. This local community solar project with Solar Energy Solutions is special because it is tangible to our customers. They can see it right here in our community and can choose to be a part of it.”

California Community Choice Aggregator MCE Enters Contracts for Geothermal Energy

May 10, 2023

by Paul Ciampoli
APPA News Director
May 10, 2023

California community choice aggregator MCE has entered into new contracts for 134 megawatts of geothermal energy.

“Due to the 24/7 nature of geothermal energy, these contracts fill critical evening hours when power costs are high and emissions are the highest, helping reduce long-term costs for customers and reducing system emissions,” MCE noted.

The geothermal projects include:

MCE is a not-for-profit public agency and the preferred electricity provider for more than 580,000 customer accounts and 1.5 million residents and businesses across Contra Costa, Marin, Napa, and Solano counties.

Consumer Financial Protection Bureau Proposes Consumer Protection Rule for PACE Loans

May 9, 2023

by Paul Ciampoli
APPA News Director
May 9, 2023

The Consumer Financial Protection Bureau has proposed a rule to establish consumer protections for residential Property Assessed Clean Energy loans.

PACE loans, secured by a property tax lien on a borrower’s home, are often promoted as a way to finance clean energy improvements such as solar panels.

The proposed rule would require lenders to assess a borrower’s ability to repay a PACE loan and would provide a framework for how these loans will be treated under the Truth in Lending Act.

The CFPB also published a report on residential PACE loans, which found that the loans cause an increase in borrowers falling behind on their mortgage payments, along with other negative credit outcomes.

Residential PACE loans finance home improvements for borrowers, who pay back the loans through increased property tax payments over time. Eligible upgrades can include energy and water efficiency projects, or projects to prepare homes for natural disasters. From 2014-2020, a majority of PACE loans were for home improvements for natural disaster preparedness. The obligation of paying the loan back through higher property tax payments remains with the property even if the borrower sells the property.

Although PACE lending is authorized by local governments, private companies typically administer the programs, which can include marketing of the loans, managing originations, and making the lending decisions.

In October 2022, the FTC and State of California sued one of these private PACE administrators , Ygrene Energy Fund Inc., to force it to stop deceptive, coercive, and fraudulent sales practices.

If finalized, the proposed rule would require PACE creditors and PACE companies to consider a consumer’s ability to repay when issuing a new PACE loan, and it would amend a regulation to address how the Truth in Lending Act applies to PACE transactions.

Among other amendments, the proposed rule would adjust disclosure requirements to better fit PACE loans and to help consumers understand the loans’ impact on their property tax payments.

Public comments on the proposal are due by July 26, 2023, or 30 days after publication in the Federal Register, whichever is later.

California Coalition Seeks Action to Address Interconnection Delays

May 9, 2023

by Paul Ciampoli
APPA News Director
May 9, 2023

A coalition that includes cities, towns, and counties in California, community choice aggregators and state energy industry groups recently urged California officials to take action to address interconnection delays that the coalition says are impeding a wide range of projects.

“We the undersigned parties — representing cities, towns, and counties; Community Choice Aggregators; and energy, rural, business, and environmental and climate groups — urge California policy makers to take urgent action to address unacceptable delays in connecting new construction, critical services, renewable energy, building decarbonization, and other projects to the state’s distribution and transmission grids,” the April 26 letter states.

The letter was sent to California Assembly and Senate leadership, the California Public Utilities Commission and the Governor’s office.

“California is facing an unprecedented climate crisis and is pursuing bold efforts to transition to zero-carbon energy. At the same time, California has a housing availability and affordability crisis which demands the rapid construction of new housing,” the letter said.

“These goals cannot be realized because many projects cannot connect to the power grid. Interconnection delays, ranging from months to years, harm residents, businesses, local job creation and economic development efforts, and state and local economies.”

Severely delayed and abandoned electrical projects “are a growing problem in communities throughout California. Hundreds of local projects spanning rural to urban have been delayed or cancelled, including service extensions to new affordable housing units and critical service sites ranging from hospitals to police/fire stations,” the coalition said.

Hookups for new electric vehicle charging stations and utility-scale and customer-sited renewable energy projects are also in peril, the letter said.

Interconnection delays and resulting project cancellations “threaten California’s ability to respond to the climate and housing crises; prevent Californians from accessing important critical services; and harm communities by increasing project costs and reducing job opportunities.”

The coalition urged California policy makers “to take immediate and decisive action to ensure interconnection and service extensions to new construction, renewable energy, building decarbonization, and other electrical projects are completed in a timely manner.”