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8/9/2019 Klavens SSC Energy Workshop 4-29-2010
1/19
Community RenewableEnergy Projects: Financingand Public Procurement
Jonathan Klavens
Klavens Law Group, P.C.
April 29, 2010
KLAVENS LAW GROUP, P.C. 2010 Klavens Law Group, P.C.
8/9/2019 Klavens SSC Energy Workshop 4-29-2010
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Klavens Law Group, P.C.
Small law firm focused on clean energy ventures andprojects
Help companies, investors, public entities and nonprofits
Provide start-up, outside general counsel, transactional,
project development and regulatory servicesBring the interdisciplinary approach this field needs bydrawing on experience in corporate, energy, land use,environmental, municipal and nonprofit law
8/9/2019 Klavens SSC Energy Workshop 4-29-2010
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Financing
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
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Overview of Development Phase Incentives
Federal & Massachusetts Incentives:
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
SiteAssessment
FeasibilityStudy
Design Basics
MassCECCommunity-ScaleWind
100kW+Block 3 - $2M applications due 5/4/10
MassCECCommercial Wind
Over 2 MW and not net meteredRound 3 Expected soon
MA DOER GreenCommunities Grants
Apply for GC status by 5/14/10 and for GCgrant by 5/28/10 to be eligible for FY2010
grant programDOER to award up to $1M in FY2010
USDOE grants Watch funding opportunities
USDA grants/loans Watch funding opportunities
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Overview of Construction & OperationPhase Incentives (1)
Massachusetts Incentives:
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
Construction Operation Basics
MRET Community-ScaleWind
See above(Past round up to $570K for public projects 600 kW+with no required cost share)
MRET Commercial Wind See aboveLoan at Prime + 2% up to $250K with 25% cost share
MA Green CommunitiesGrants
See above
MA Net Metering
Details below
Comparable to selling excess power back to utility atnear retail rate (for any facility with public hostcustomer)
Long-term Utility PPA
Sale of power and/or RECs to utility at wholesale rate
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Financing: Resources
MA Clean Energy Center
MA DOER Green Communities Program
MassDevelopmentDatabase of Federal and State Incentivesfor Renewables and Efficiency
Windustry Website
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
http://www.masscec.com/http://www.massdevelopment.com/about/industry/renewable-energy/http://www.massdevelopment.com/about/industry/renewable-energy/http://www.dsireusa.org/http://www.dsireusa.org/http://www.windustry.org/http://www.windustry.org/http://www.dsireusa.org/http://www.dsireusa.org/http://www.mass.gov/?pageID=eoeeasubtopic&L=3&L0=Home&L1=Energy%2C+Utilities+%26+Clean+Technologies&L2=Green+Communities&sid=Eoeeahttp://www.massdevelopment.com/about/industry/renewable-energy/http://www.massdevelopment.com/about/industry/renewable-energy/http://www.massdevelopment.com/about/industry/renewable-energy/http://www.masscec.com/8/9/2019 Klavens SSC Energy Workshop 4-29-2010
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MA RE Policy Update
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
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Net Metering: Basic Benefits
Earn $-denominated net metering credits for eachmonths net electricity generatedCredit approaches retail rate for 60 kW to 1 MW facilitiesand for 1 MW 2 MW facilities where facility is behind apublic entitys meter
Facility limit is per unit for facilities that are owned oroperated by a public entity and effectively per utilitymeter in other casesCredit never expires and may be transferred to otheraccounts (virtual net metering)
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
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Net Metering: Advanced Benefits
For 1 MW 2 MW facilities, utility may (and likely will)exercise right to pay cash instead of allocatingeliminates hassle of having to sell credits you cant useCompatible with private third party ownership structuresLikely compatible with federal tax incentives (esp. ITC &cash grant)If better off-take arrangement comes along, can opt outof net metering
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
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Net Metering: Key Drawbacks
May need to sell credits you cant use Not a problem for towns with multiple utility accounts
and high load1% system cap on net metering facility capacity
No queue!Net metering credit value can fluctuate with rates andrate classification
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
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Net Metering: Resources
Massachusetts DG and Interconnectionwebsite
MA DPU net metering FAQs
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
http://sites.google.com/site/massdgic/http://sites.google.com/site/massdgic/http://www.mass.gov/?pageID=eoeeamodulechunk&L=5&L0=Home&L1=Grants+%26+Technical+Assistance&L2=Guidance+%26+Technical+Assistance&L3=Agencies+and+Divisions&L4=Department+of+Public+Utilities+%28DPU%29&sid=Eoeea&b=terminalcontent&f=dpu_electric_faq_net_meterihttp://www.mass.gov/?pageID=eoeeamodulechunk&L=5&L0=Home&L1=Grants+%26+Technical+Assistance&L2=Guidance+%26+Technical+Assistance&L3=Agencies+and+Divisions&L4=Department+of+Public+Utilities+%28DPU%29&sid=Eoeea&b=terminalcontent&f=dpu_electric_faq_net_meterihttp://sites.google.com/site/massdgic/http://sites.google.com/site/massdgic/8/9/2019 Klavens SSC Energy Workshop 4-29-2010
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Other Notable Developments
S-REC program (Solar RPS Carve-out & Solar CreditClearinghouse) emergency regs in place More info on DOER website - link
MA wind energy siting reform legislation passed by
Senate; pending in House More info on EOEEA website - link
MA PACE enabling legislation pending as part ofmunicipal relief bill
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
http://www.mass.gov/?pageID=eoeeasubtopic&L=5&L0=Home&L1=Energy%2c+Utilities+%26+Clean+Technologies&L2=Renewable+Energy&L3=Solar&L4=RPS+Solar+Carve-Out&sid=Eoeeahttp://www.mass.gov/?pageID=eoeeaterminal&L=4&L0=Home&L1=Energy%2C+Utilities+%26+Clean+Technologies&L2=Renewable+Energy&L3=Wind&sid=Eoeea&b=terminalcontent&f=doer_renewables_wind_siting-reform&csid=Eoeeahttp://www.mass.gov/?pageID=eoeeaterminal&L=4&L0=Home&L1=Energy%2C+Utilities+%26+Clean+Technologies&L2=Renewable+Energy&L3=Wind&sid=Eoeea&b=terminalcontent&f=doer_renewables_wind_siting-reform&csid=Eoeeahttp://www.mass.gov/?pageID=eoeeasubtopic&L=5&L0=Home&L1=Energy%2c+Utilities+%26+Clean+Technologies&L2=Renewable+Energy&L3=Solar&L4=RPS+Solar+Carve-Out&sid=Eoeea8/9/2019 Klavens SSC Energy Workshop 4-29-2010
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Public Procurement
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
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Public Procurement: Basics
Why comply?
Minimize risk of bid protests
Minimize risk of contract nullification & re-do
Minimize risk of penalties & other sanctions
Get good value
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
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Public Procurement: Advanced
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
Statute Basics
Energy procurementexemption MGL c. 30B,
1(B)(33)
Exemption from competitive procurement for procurement of energy andancillary services; not for services aloneOpen issue: Available for purchase of net metering credits?
General goods and servicesMGL c. 30B, 5 (ITB) or 6(RFP)
For procurement of any goods or services $25K and over (no requirements under$5K; 3 quotes needed for $5K to below $25K; cannot split bids to meet limits)
Lease of land MGL c. 30B,16
For lease (not mere license) of municipal land where value of lease is > $25KDetermination of value requires appraisal or other method
Public Buildings Statute MGLc. 149, 44A 44M
Governs contracts for construction, reconstruction, installation, demolition,maintenance, or repair of any building by a public agency
Public Works Statute MGL c.39M, 30
Governs $10K+ contracts for construction, reconstruction, alteration, remodeling,or repair of public improvements not involving work on a building
Energy management servicesRFP MGL c. 25A, 11C For energy efficiency services/projects and on-site renewable energyservices/projects; allows design/build integration; exemption from 30B andPublic Buildings Statute (but inadvertently? not the Public WorksStatute)
Energy management servicesRFQ MGL c. 25A, 11I
Similar to 11C but allows for initial selection of most qualified respondentbased on non-price qualifications followed by bilateral negotiations withthat party
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Public Procurement: Resources
OIG public procurement information - link
Helpful quick resource: OIG charts on localpublic procurement procedures
DOER energy management servicestechnical assistance - link
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
http://www.mass.gov/ig/publ/30bmanl.pdfhttp://www.mass.gov/ig/mcppo/charts_proc.pdfhttp://www.mass.gov/ig/mcppo/charts_proc.pdfhttp://www.mass.gov/?pageID=eoeeaterminal&L=3&L0=Home&L1=Energy%2c+Utilities+%26+Clean+Technologies&L2=Green+Communities&sid=Eoeea&b=terminalcontent&f=doer_green_communities_gc-ems&csid=Eoeeahttp://www.mass.gov/?pageID=eoeeaterminal&L=3&L0=Home&L1=Energy%2c+Utilities+%26+Clean+Technologies&L2=Green+Communities&sid=Eoeea&b=terminalcontent&f=doer_green_communities_gc-ems&csid=Eoeeahttp://www.mass.gov/ig/mcppo/charts_proc.pdfhttp://www.mass.gov/ig/mcppo/charts_proc.pdfhttp://www.mass.gov/ig/publ/30bmanl.pdf8/9/2019 Klavens SSC Energy Workshop 4-29-2010
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Contact
Jonathan Klavens
Klavens Law Group, P.C.
420 Boylston Street, 5th Floor
Boston, MA 02116
(617) 266-2879
http://www.klavenslawgroup.com
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.
mailto:[email protected]://www.klavenslawgroup.com/http://www.klavenslawgroup.com/mailto:[email protected]8/9/2019 Klavens SSC Energy Workshop 4-29-2010
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Disclaimer
This document, which may be consideredadvertising under the ethical rules of certain
jurisdictions, is provided with the understandingthat it does not constitute the rendering of legaladvice or other professional advice by KlavensLaw Group, P.C. or its attorneys. Please seekthe services of a competent professional if youneed legal or other professional assistance.
KLAVENS LAW GROUP, P.C. 2009 Klavens Law Group, P.C.