In the final installment of its three-part series on Ohio's attempts to grow its clean energy economy, The (Toledo) Blade details how the University of Toledo's solar energy programs have to compete with larger, higher-profile institutions--such as the Massachusetts Institute of Technology and the University of Michigan--for federal grants and other investments. Part one of the series is here. Part two is here.

There's been a raft of articles about advanced and renewable energy issues in recent days. Here are some highlights:

Columbus Business First detailed, in this article, the efforts of State Sen. Chris Widener (R-Springfield) to enact a bill that would allow renewable energy developers to pay an annual fee on their power-generating capacity rather than the state's more onerous tangible personal property tax on machinery and equipment owned by public utilities.

The Columbus Dispatch had a brief piece on U.S. Senator Sherrod Brown's efforts to strike a balance between business and environmental concerns as the state tries to refashion itself as a leader in clean energy.

The (Toledo) Blade is running a three-part series about what it is characterizing as the state's failure to capitalize on Northwest Ohio's strengths in the solar industry. Part one is here. Part two is here.

The Akron Beacon Journal, via this editorial, has thrown its support behind the efforts of Sen. Chris Widener (R-Springfield) to ease the tax burden on renewable energy developers by charging them an annual fee based on generating capacity.

Ohio Senator Sherrod Brown and three of his Democratic colleagues are trying to prevent the federal government from paying clean energy stimulus funds to foreign companies that build wind turbines and other components overseas, according to a story in The Columbus Dispatch today. The move drew a sharp rebuke from the Obama Administration, which warned that any delay in funding for clean energy projects would give other countries an advantage over the United States in developing their renewable and advanced energy industries. Additional details on the controversy can be found here and here.

Environmental advocacy group Environment Ohio has released a new study finding that Ohio has more than 1,100 companies in the energy efficiency industry. Of that total, according to the report:

• At least 52 businesses perform energy audits;
• At least 78 businesses and community organizations weatherize buildings;
• At least 109 businesses manufacture energy efficiency products, such as insulation, high quality doors and windows, and Energy Star appliances;
• At least 215 homebuilders and architecture firms design and construct Energy Star-certified homes;
• At least 680 stores sell energy efficiency products and appliances.

The executive summary of the report can be found here. And the full report can be found here.

For more information on Bricker & Eckler's Energy Efficiency Team, go to: http://www.bricker.com/legalservices/practice/green/efficiency/

We hope you will join us on Thursday, March 18th at The University of Toledo's Clean and Alternative Energy Incubator to explore what's on the horizon for advanced energy this year including Northwest Ohio case studies, project and finance development models and energy efficiency updates.

Featured speakers will include representatives from the Ohio Department of Development, Health Care REIT, Inc., NexGen Energy Partners LLC, Plug Smart, Toledo-Lucas County Port Authority, USA Energy Advisors and Xunlight Corporation.

More information can be found at http://www.bricker.com/seminars

Columbus Mayor Michael Coleman last week unveiled his Green Memo II, a continuation of the mayor’s original Green Memo released in 2005. Green Memo II sets out the mayor's green development goals for the next five years. Its highlights include:

• Creation of a Green Business Incubator in partnership with Sci-Tech, Tech Columbus, The Ohio State University and Battelle to encourage entrepreneurship in the green job industry.

• Establishment of the Green Switch program, a $1 million low-interest revolving loan fund to assist businesses in energy efficiency building renovations.

• Launch of the Green Columbus Fund, a grant program to incentivize the development of green buildings and redevelopment of small brownfield sites such as abandoned gas stations.

What are the chances that Congress will pass a comprehensive climate change bill this year? Well, this article from Reuters makes it sound highly unlikely, with key senators expressing their doubts on the record. But then again, another article from Reuters--published a day later--makes it sound as if Sen. John Kerry (D-Mass.) is committed to getting something done this year.

With a climate change bill stalled in Congress, the Environmental Protection Agency has been moving forward with plans to regulate greenhouse gas emissions itself. But there are plans afoot in the Senate to bring those efforts to a halt, according to an article in The Washington Post.

Meanwhile, the private sector appears increasingly willing to move on its own. None other than retailing behemoth Wal-Mart announced last week, according to an article in The New York Times, that it intends to cut about 20 million metric tons of greenhouse gas emissions from its supply chain by the end of 2015, the equivalent of removing more than 3.8 million cars from the road for a year.

State Sen. Chris Widener (R-Springfield) has introduced a bill that would scrap the tangible personal property tax currently levied on wind- and solar-power generating facilities. Under Widener's bill, in lieu of the tax, companies that build such facilities would pay an annual fee based on how much power they generate. The bill is a response to Governor Ted Strickland's proposal earlier this year to suspend Ohio’s tangible personal property tax on generation for wind and solar companies that break ground on projects in 2010, produce energy by 2012, and create Ohio jobs in the process. Rep. Roland Windburn (D-Dayton) also has a bill in the works, but has yet to introduce it in the Ohio House.

A report from Policy Matters Ohio provides more context to Senator Sherrod Brown's push for increasing the amount of federal loans available to clean energy equipment-makers (see the previous post). A report released by Policy Matters Ohio predicts that under the bill proposed by Brown, Ohio could gain up to 52,000 new jobs over the next decade. The executive summary of the report is here. And the full report is here.

Today's Dayton Daily News has a story on Ohio Senator Sherrod Brown pushing for a vote on a bill that would funnel federal loans to clean energy equipment-makers. Brown's comments came a day after the Federal Deposit Insurance Corp. reported that lending by private banks in 2009 dropped at the fastest clip since 1942.

Congratulations to the City of Athens and SolarVision on what looks to be a win-win solar deal!  Read full story in the Athens Messenger.

The U.S. Department of Energy has a nifty map that tracks the development of wind-power facilities from 1999 to 2009. Ohio has seven installed megawatts of wind-power capacity. To put that into perspective, Texas has 9,403; California has 2,798; Indiana has 1,036; and Michigan has 138. Not surprisingly, Ohio ranks 34th in a ranking of states by current wind-power capacity.

The University of Dayton Research Institute has received $1.3 million from state and federal sources to conduct research on wind turbine design and development, according to this story in the Dayton Daily News. UDRI received $270,000 from the state's Third Frontier program to design and test fiberglass and resin materials for potential use in wind turbine construction. The Institute is also set to begin the $1 million second phase of a contract with the U.S. Air Force--in conjunction with Fairborn, OH-based Twenty First Century Energy LLC--to develop composite materials for wind turbines that could be used to produce energy at remote military locations. UDRI also received a $41,500 grant from the National Science Foundation in January to design and test sensors for wind turbines that would monitor the structural health of wind turbine blades.

Governor Ted Strickland assumed the chairmanship of the Midwestern Governors Association at the group's winter meeting in Washington, D.C., over the weekend. Strickland's agenda will focus on fostering economic growth by increasing the investment capital available to small- and mid-sized advanced energy companies, and to ensure that the region's workers have the training they need for advanced energy jobs.

TechGROWTH Ohio, a program funded by the Ohio Department of Development's Third Frontier initiative, is sponsoring two free seminars on growth opportunities in advanced energy in southeast Ohio. The seminars, titled, "Advanced Energy -- A New Opportunity for Appalachian Business Growth," will be held at Ohio University's Eastern Campus in St. Clairsville on this Friday, February 26, and at Marietta College on March 5. More information is available at: https://www.techgrowthohio.com/events/Business_Growth_Seminars_Energy.aspx.

The Ohio House of Representatives voted 92-1 to approve Senate Bill 131, which requires the Director of Administrative Services to establish a program that gives purchasing preference to bio-based products as long as the costs are comparable to non-bio-based products. The program would apply to supplies purchased by DAS, state agencies, and state colleges and universities. The bill--cosponsored by Senators Capri Cafaro (D-Hubbard) and Karen Gillmor (R-Tiffin)--was already approved by the Ohio Senate and awaits the signature of Governor Ted Strickland. A detailed summary of the bill can be found here.

A new coalition has formed to encourage the General Assembly to carry out Governor Ted Strickland's proposal to abate the tangible personal property tax on wind and solar generation facilities that break ground in 2010, begin operating by the end of 2012, and create jobs in the process. Led by the American Wind Energy Association, the group--Wind and Solar Jobs for Ohio--is made up of advanced energy manufacturers, developers, public officials, community leaders, policy advocates, researchers, and other Ohioans that support the adoption of a competitive tax structure for wind and solar projects in Ohio. The Coalition believes an adjustment to Ohio's personal property tax would encourage billions of dollars worth of investments in renewable energy. These investments, the Coalition believes, will create thousands of jobs, stimulate local economic activity, and create new manufacturing opportunities throughout Ohio.

For more information, or to add your name to the coalition roster and be kept informed on the issue, visit: http://www.windandsolarjobsforohio.com.

A group backed by a collection of high-profile companies has launched a clean energy jobs campaign that will make Columbus one of only five of its stops nationwide. The group --  We Can Lead -- is sponsored, in part, by such well-known companies as Starbucks, eBay, and Nike. The point of the campaign, according to this story in The Oregonian, is to lobby Congress to pass comprehensive climate change legislation, which the group says could help spark the next economic boom by potentially creating millions of clean energy jobs across the country. The campaign started Tuesday in Portland, Ore., and will continue on to Denver, Colo., Columbus, Manchester, N.H., and Washington, D.C. The event in Columbus is slated for March 4.

The Northeast Ohio Public Energy Council (NOPEC), a consortium that negotiates for electricity and natural gas deals on behalf of 129 communities, said that it will give each community $50,000 for energy efficiency, conservation, and other clean energy projects, according to this story in The Plain Dealer. NOPEC will begin accepting grant applications for the first round of funding on March 1.

Ever wonder how much it would cost to install solar panels at your home or business? The folks at Find Solar have an impressive collection of online tools to help you find out. The tools at Find Solar include a solar calculator and a map that breaks down solar power incentives by state. The site also contains a ranking of states based on their Solar Power Rating, calculated by determining the state incentives available for a sample project. Ohio is 26th on the list. Find Solar is a partnership between the American Solar Energy Society and Cooler Planet, a Seattle-based company that acts as a matchmaker between people who want to install solar projects and companies that can assist them.

The environmental group Sierra Club has launched a clean energy campaign in Canton, according to this story in The Canton Repository. The Canton Clean Energy Jobs campaign is part of the group's efforts to increase support for a comprehensive clean energy bill by tying it to job creation and economic security. Sierra Club has launched similar campaigns elsewhere, including Virginia.

Nice editorial in the Akron Beacon Journal supporting the effort to reform Ohio's tax code for wind and solar energy!

Read the full editorial

The Section 1603 grant program which was created under the American Recovery and Reinvestment Act of 2009, whereby eligible applicants and renewable energy projects may receive a 30% cash grant in lieu of an investment tax credit (“ITC”), is set to expire at the end of 2010.

In an effort to prevent this program from expiring, Senators Dianne Feinstein, (D-Calif.), and Jeff Merkley, (D-Ore.) introduced the Renewable Energy Incentive Act (S. 2899) to extend the program until 2012 and to expand the Section 1603 program to continue to spur the development of renewable energy employment, construction, and development. 

The Section 1603 grant program has already distributed over two billion dollars to eligible projects and is a key component in financing renewable energy projects given the decline in the tax equity market. 

The Section 1603 grant program helps renewable energy developers secure affordable financing to move forward with capital-intensive projects. As noted above, it is currently slated to expire in 2010, but this deadline is well before most large scale renewable energy projects will be ready to begin construction or the tax equity market will be primed to rebound. The legislation will also expand this program to allow public power utilities to participate and will create a new tax credit for solar manufacturing facilities and the construction of large solar projects on disturbed private lands.

The key provisions of the Feinstein-Merkley bill are:

• Extend the Treasury Grants Program until 2012: The program allows renewable energy developers to take grants, or payments, from the Treasury department instead of claiming tax credits in order to help build projects that require a great deal of capital upfront.
• Permits Public Power Utilities to receive Treasury Grants for Renewable Energy: The bill will also allow public power utilities to receive Treasury Grants for renewable energy projects. 
• Expands the solar investment tax credit to include manufacturing equipment and solar water heaters for commercial and community pools. The bill would allow equipment that makes solar panels to qualify for the 30 percent solar investment tax credit.
• Establishes a new solar tax credit for consolidation of disturbed private land with high solar value. The bill would create a 30 percent investment tax credit for the purchase, consolidation, and use of multiple, 100 acre or less blocks of high solarity, disturbed private lands for solar development. 

If you have any questions related to this legislation or the Section 1603 program generally, please contact Kevin M. Kinross (614-227-8824 or kkinross@bricker.com)

Ohio Senate Bill 221, enacted in 2008, and aimed at encouraging Ohio businesses and utilities to adopt renewable and advanced energy technologies, also includes new energy reduction and peak demand standards that utilities must meet through energy efficiency programs.  Read more information on Bricker & Eckler's website.

FirstEnergy Corp. will now be able to recover administrative fees incurred when the utility finds energy efficiency savings at existing customer-sited projects, following the Public Utilities Commission of Ohio's reversal of one of its own decisions. After denying FirstEnergy's attempt to collect those fees in a December 2, 2009, order, the PUCO reversed itself in an order filed last Thursday. FirstEnergy and other utilities would like to be able to recover such fees as they attempt to satisfy the energy efficiency benchmarks required by Ohio Senate Bill 221.

Two stories out of Cleveland demonstrate how the city is trying to position itself as a hub of clean energy technology development and manufacturing. The first, courtesy of The Plain Dealer, details the efforts of The Great Lakes Energy Development Task Force to develop the first offshore wind farm in the Great Lakes. The task force is moving ahead with plans to study the potential effects of the project on wildlife and to pick a turbine manufacturer. The project is expected to cost up to $100 million build.

The second, also from The Plain Dealer, details how the city signed a $1.5 million contract with a New Jersey company to design a small power plant fueled by municipal waste. The 20-megawatt plant, which would be the first of its kind in the country, would cost about $200 million and supply about 6 percent of Cleveland Public Power's peak load. Princeton Environmental Group is designing the plant. According to the article, the company holds the exclusive U.S. license to a Japanese technology that turns organic waste in rubbish into combustible gas. If the plant is built, the company plans to build a small manufacturing facility in the city to build gasifiers.

The folks at RenewableEnergyWorld.com have published a nice breakout of the clean energy funding proposals in President Obama's $28.4 billion budget request for fiscal year 2011. The budget request includes $2.36 billion for the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE), a 5 percent increase over fiscal year 2010. The increase in funding for a number of EERE programs would be substantial, including a 53 percent increase for wind energy, a 43 percent increase for the Weatherization and Intergovernmental Program, a 32 percent increase for the Federal Energy Management Program, a 25 percent increase for geothermal energy, and a 22 percent increase for solar energy.

Interesting piece today on The New York Times' Green Inc. blog about Oregon's efforts to cut back on a business energy tax credit designed to strengthen the state's renewable energy industry. The reason? It has been so popular that it has imperiled funding for other state programs. Under a bill passed by Oregon's House of Representatives on Wednesday, the state will be limited in how much it can spend on renewable energy projects, and incentives for wind farms will be phased out completely. The bill is expected to pass the State Senate and be signed into law by Gov. Ted Kulongoski.

Ohio Governor Ted Strickland released an RFP on February 10, 2010 for selection of an Investment Manager for the Ohio Energy Gateway Fund.  Unveiled in the State of the State address this past January, the Ohio Energy Gateway Fund was created by the State of Ohio as an investment vehicle in advanced energy industries.  Based on a private-equity fund model, the Gateway Fund will consist of State and Federal funds totaling $40 Million. 

One or more Investment Managers will be selected through a competitive RFP process to manage the fund and make strategic investments.  All investments are expected to include a minimum 1-to-1 match of private investment dollars.  The State envisions this program to be a "fund-of-funds" that uses returns on the state's investment to fund new and more advanced energy projects.

Fund managers wishing to apply need to submit questions by February 17, a one-page summary of proposed services by February 19, and final proposals by February 24, 2010.  Experience, innovation, and advanced energy knowledge will be highly regarded during the RFP scoring process.  The selected Investment Manager(s) will be expected to create a small rate of return in addition to payback of the state's original investment.  Managers should look to invest in projects and industries that:

• Increase energy efficiencies;
• Focus on distributed generation;
• Encourage and develop advanced nuclear technologies;
• Create and expand the fuel cell industry;
• Use solid waste conversion to reduce greenhouse gases;
• Increase the use and accessibility of renewable energy resources; or,
• Innovate in the green technologies space with new and different products.

The Investment Manager(s) will invest funds with the help of an Investment Committee chosen by the Manager(s) with an agent of the State of Ohio sitting in a non-voting, advisory capacity.

The RFP can be downloaded on the Ohio Department of Development's website at www.development.ohio.gov/ohioenergygatewayfund.

For more information, contact Greg Lestini at glestini@bricker.com or 614-227-4893.

Remember the post from yesterday about an Ohio House member's proposal to create an energy efficiency advisory group that would review the energy efficiency programs of electric and natural gas utilities? Turns out the Ohio Consumers' Counsel helped craft the bill and supports its passage. There's also a story today in The Alliance Review detailing the bill's background, which was born of Rep. Ronald Gerberry's (D) frustration with one utility's scuttled energy efficiency program.

In today's Dayton Daily News there's more evidence of government money flowing to renewable energy projects. The story details how the company, Assembly & Test Worldwide, will add 82 jobs to its Dayton plant to produce glass-coating machines for solar panel manufacturers. The $1.4 million expansion was made possible by city and state government grants.

State Rep. Ronald Gerberry (D) has introduced a bill in the Ohio House of Representatives that would create a so-called Energy Efficiency Stakeholder Advisory Group. The group would consist of all electric distribution utilities and natural gas companies operating in the state, and other stakeholders interested in advising utilities about energy efficiency and peak-demand reduction programs required by Ohio Senate Bill 221. The advisory group would allow utilities to work with interested stakeholders in comparing and reviewing existing programs. Under the bill, the advisory group would vote on any energy efficiency or peak-demand reduction program proposed by a utility before submitting it to the PUCO, although a majority vote of approval would not be necessary. The record of the vote would then be submitted to the PUCO along with the proposal.

There's a nice overview in The Dispatch today of spending on green technologies in Ohio. The article details a roundtable that U.S. Sen. Sherrod Brown hosted in Columbus on Monday with executives from seven companies that have received $125 million in federal stimulus funding from the Advanced Energy Manufacturing Tax Credit program. The program is aimed at encouraging companies to increase production of components for wind, solar, and other "clean energy" industries. One company attending the roundtable was DuPont, which is using $50.7 million in tax credits to help fund a $175 million expansion of its Circleville, Ohio, facility that will add 80 jobs. The Circleville plant makes a film called Tedlar that is used in solar panels. Sen. Brown is trying to increase the approved funding for the tax-credit program to $5 billion from its current $2.3 billion.  

The Dispatch article also mentions that, in a separate development, Gov. Ted Strickland on Monday announced that 18 Ohio projects will receive more than $11.8 million in energy efficiency grants that are funded by federal stimulus spending funneled through Ohio's $96 million State Energy Program.

Congrats to Mr. lesser on his appointment to the Public Utilities Commission of Ohio!

Read the full press release here.

State Reps. Debbie Phillips (D) and Dan Stewart (D) have introduced a bill in the Ohio House of Representatives that would exempt from property taxation the cost of energy-conservation and renewable energy projects installed on business property in Ohio. The bill would also create a capital gains income tax deduction on the sale of business property with such improvements. Covered projects include solar, wind, geothermal, and energy efficiency improvements.

Under the terms of the bill, starting in 2010, business property owners would be able to claim a property tax exemption equaling the lesser of 35 percent of the cost of the qualifying improvement to the property or the increase, if any, in the assessed value of the property caused by the improvement. Under the income tax provisions, if a business property owner would recognize a capital gain on the sale of property containing an improvement made by that same owner, the owner could claim a deduction calculated based on the length of time since the improvement was installed. The deduction schedule would be:

• 100 percent: For improvements put into service within the five years before the end of the taxable year
• 75 percent: For improvements put into service more than five years but less than ten years before the end of the taxable year
• 50 percent: For improvements put into service more than ten years before the end of the taxable year

Even as he considers whether to kill the country's first offshore wind farm, U.S. Interior Secretary Ken Salazar says he's "bullish" on the future of wind energy. As the Associated Press reported, Salazar made the remarks while touring the project's proposed site in Nantucket Sound off the Massachusetts coast. Two local Native American tribes are opposed to the project because they say their ancient rituals require an unblocked view of the sunrise.

Jeff Bell with Business First continues his comprehensive coverage of advanced energy issues in Ohio. Today he looks at the proposed expansion of Ohio's law allowing muncipal bonds to finance solar systems. The bill, Senate Bill 223, would allow energy efficiency and a few other renewable technologies to qualify for this financing. The article is a good primer on the new bill. More information on the topic can be found at our HB 1 Resource Center.

Read the article on Business First's website
(subscription required for full article).

American Electric Power is searching for suppliers of sustainable biomass fuel to provide fuel for use at its Picway, Muskingum River and Conesville plants in Ohio. AEP is seeking proposals for spot deliveries of biomass by truck or rail beginning as early as April 2010 and extending through December 2010, and term deliveries of biomass for terms of three, five, 10 and 15 years beginning in 2011. The solicitation is part of AEP's attempt to comply with the requirements mandated in Ohio Senate Bill 221.

U.S. Energy Secretary Steven Chu announced more than $37 million in awards for solid-state lighting projects under the American Recovery and Reinvestment Act of 2009. The projects selected include funding for solid-state lighting core research, product development, and domestic manufacturing. Among these projects, GE Lumination located in Valley View, Ohio, was awarded nearly $800,000 in Recovery Act funding to develop advanced manufacturing methods for warm-white light-emitting diodes (LEDs).

The legal meaning of the term "inhabited structure" could have a big impact on the future of wind development in Ohio. As the Sandusky Register reports, the growth plans of a popular creamery in Erie County are forcing local officials to determine the precise definition of a regulation governing the construction of wind turbines. Those regulations were patterned after similar laws in other states, including Wisconsin, Pennsylvania and California. It's the first time a municipality in Ohio has had to grapple with the meaning of its wind-power regulations in response to private development plans.

A new report by the Climate Group in partnership with the University of Michigan finds significant potential for job creation and revenue growth in the Midwest over the next five years from the manufacture of three low-carbon technologies.

The report, "American Innovation: Manufacturing Low Carbon Technologies in the Midwest," which uses economic research from Deloitte, estimates that climate and energy policies could create up to 100,000 new jobs in the Midwest, and generate additional market revenues of up to $12 billion, boosting state and local tax revenues by over $800 million by 2015. These gains were estimated from policy-assisted growth in the wind turbine component, hybrid powertrain, and advanced battery manufacturing sectors in the Midwest.

In Ohio, climate and energy policies could create over 22,000 new jobs, $3.2 billion in additional market revenues and more than $148 million in state and local tax revenue from the three low-carbon sectors by 2015, according to the report.

Bricker and Eckler LLP has added a resource center with information on Solar SIDs and PACE financing opportunities for your local government, your industry, your business or your home.

Energy SIDs Resource Center

PUCO sets procedural schedule for consideration of AEP Ohio’s Energy Efficiency and Peak Demand Reduction Program Portfolio Plan, Case No. 09-1089-EL-POR, et al. A hearing on AEP Ohio’s three year portfolio plan will take place at the offices of the PUCO on February 25, 2010 at 10:00a. AEP Ohio is asking for approval of its portfolio plan which is the subject of a stipulation filed with the Commission on November 12, 2009. The plan requests approval of program costs projected to total approximately $162 million over the three year period, 2009 through 2011.

Applications pending as of February 2, 2010 with the Ohio Power Siting Board.
 

Governor Strickland focused on advanced energy in his State of the State address on January 26, 2010. Without providing extensive details, the Governor called for the suspension of Ohio’s tangible personal property tax on generation for wind and solar companies that break ground on projects in 2010, produce energy by 2012, and create Ohio jobs in the process. It is not clear if other forms of alternative energy will qualify for the personal property tax exemption.

The Governor also announced the creation of a $40 million "Energy Gateway Fund." The combination of state and federal funds will be used to help companies start or expand clean and advanced energy projects in Ohio. The fund will offer capital to companies with products ready for the commercial market, and will require a 1-to-1 match from private dollars.

Changes in the tangible personal property tax will require action by the Ohio General Assembly. Details on both programs will be forthcoming. The text of the speech can be found here, and Strickland Administration highlights here.

The American wind power industry grew at a blistering pace in 2009, adding 39 percent more capacity, according to an article in The New York Times today. The country is close to the point where 2 percent of its electricity will come from wind turbines, the article said. The Times pulled the data from the annual report of The American Wind Energy Association. That report said the amount of capacity added last year, 9,900 megawatts, was the largest on record, and was 18 percent above the capacity added in 2008, also a banner year.

Established as part of the American Recovery and Reinvestment Act of 2009 (ARRA), the Section 48C Advanced Energy Manufacturing Tax Credit Program is a competitive program aimed at revitalizing manufacturing through the production and manufacturing of certain eligible advanced energy equipment and products.  The Manufacturing Tax Credit will provide manufacturers with an investment tax credit of 30 percent.  For more information on the Manufacturing Tax Credit, see Bricker & Eckler's August 2009 bulletin entitled "Stimulus to Provide Tax Breaks for Manufacturers of Advanced Energy Products and Equipment."

On January 8, 2010, President Obama announced the selection of 183 projects in 43 states, including Ohio, that will receive approximately $2.3 billion in such tax credits.  Among the selected projects in Ohio are the: (1) expansion of the solar PV manufacturing facility of FirstSolar, Inc. in Perrysburg, Ohio; (2) expansion of E.I. du Pont de Nemours and Co.'s production of certain films used in solar PV in Circleville, Ohio; and (3) production of a flexible, lightweight solar cell for easy application on rooftops by Xunlight Corporation in Toledo, Ohio.  A complete listing of all 183 projects can be found here.

On December 15, 2009, the FirstEnergy electric distribution utilities (Ohio Edison, The Cleveland Electric Illuminating Company, and Toledo Edison) filed for approval of their first portfolio plan implementing the energy efficiency and peak demand requirements set forth in Ohio’s landmark energy legislation, more commonly known as Senate Bill 221.  The nearly 700 page filing is available on the Public Utilities Commission of Ohio’s website in Case No. 09-1947-EL-POR, et al -- http://dis.puc.state.oh.us/CaseRecord.aspx?CaseNo=09-1947.  Numerous interested stakeholders have intervened in the case to protect their interests in participating in the dozen or more different energy efficiency and peak demand reduction programs available to both residential and non-residential customers in FirstEnergy's filing.  The total estimated cost of FirstEnergy’s comprehensive portfolio plan over its three-year planning (2010-2012) is more than $210 million. 

From a procedural standpoint, a technical conference has been scheduled for January 21, 2010 at the offices of the PUCO to assist interested persons in understanding FirstEnergy's filing.  Motions to intervene, intervenor testimony, and objections to FirstEnergy's plan must be filed by February 16th, while PUCO Staff has until February 23rd to file its testimony.  The evidentiary hearing is scheduled to begin on March 2, 2010 at 10am at the PUCO offices.  For more information about First Energy’s filing or the impact of these programs on your monthly electric bill, please contact Tom O’Brien at 614.227.2335 or tobrien@bricker.com / Matt Warnock at 614.227.2388 or mwarnock@bricker.com. 

Nice editorial in the Akron Beacon Journal today about wind power and its potential to help transform Ohio's econonomy.

In a press release from the Corporation today, Melink Corp. announced that it's headquarters, located in Milford, Ohio, is the State's first LEED Platinum Certified building. The complex included solar panels on the roof and a wind turbine on premises. According to Melink, their building is 75% more efficient than a conventional building. Read more below or click here for a photo of Melink's headquarters.

[January 14, 2010. MILFORD, OH] Melink Corporation just received notification from the United States Green Building Council that its super energy-efficient headquarters has earned the LEED Platinum Certification for Existing Buildings.

LEED stands for Leadership in Energy and Environmental Design and is a rating system for green buildings. Platinum is the highest rating that can be achieved and Melink is the first in Ohio to achieve this distinction for an existing building. There are only 24 LEED Platinum Existing Buildings in the world. 

The Melink headquarters was the first LEED Gold Certified building in Ohio in 2006. Since then the company has even further improved its energy efficiency and installed additional renewable energy, ie. solar and wind power systems. 

At present the 30,000 square foot office and manufacturing facility is 75% more energy efficient than a conventional building. As a result the company is saving more than a $100 per day and $35,000 per year in energy costs.

Steve Melink, President of Melink Corporation, states that the next goal is to make the facility a net zero energy building within another year. This means that the building will export as much energy to the grid as it imports and uses from the grid.

"The building industry is rapidly embracing sustainability and we want to help lead the way," says Steve. "Though the Midwest is typically conservative, Ohio is becoming both a market and supply chain for green technologies and best practices." 

Melink is a provider of building commissioning services, ventilation controls, and renewable energy products for commercial building owners. They work with national retail, restaurant, supermarket, and hotel chains, as well as hospitals, schools, and other institutions across the country. 

Contact Info:

Jennifer Sivak
Melink Corporation
5140 River Valley Road
Milford, OH 45150
513-965-7318
jsivak@melinkcorp.com

The Treasury Department released additional guidance today on payments for specified energy property in lieu of tax credits under Section 1603 of the American Reinvestment and Recovery Act of 2009.

The guidance is in the form of questions and answers and provides additional guidance on:

• Application Procedures (Questions 1-16)
• Applicant Eligibility (Questions 17-26)
• Property Eligibility (Questions 27-31)
• Use of Awarded Funds (Questions 32-33); and 
• Eligible Basis (Questions 34-35).

A PDF of the FAQs can be accessed here.

The Department of Treasury’s website can be viewed here.

For additional information contact: 

• Kevin M. Kinross (kkinross@bricker.com) 614-227-8824
• Gordon Litt (glitt@bricker.com) 614-227-2305
• Terrence O’Donnell (todonnell@bricker.com) 614-227-2345

The Northeast Ohio Public Energy Counsel (NOPEC) recently closed a complex three-way transaction with Gexa Energy Ohio LLC, an affiliate of FPL Group Inc, Juno Beach, Florida, and First Energy Solutions Corp., Akron, Ohio (an affiliate of First Energy Corp.). The deal is expected to result in significant savings on NOPEC customers’ electricity costs. Bricker & Eckler LLP was pleased to represent NOPEC in the transaction. NOPEC'S 425,000 consumers are expected to save approximately $200 million on their electric bills over the next 10 years because of this deal. NOPEC is the largest governmental retail energy aggregator in the nation, serving 128 communities in nine counties in Northeast Ohio. Read more about NOPEC in this recent New York Times article.

The Akron Beacon Journal today reported on Ohio's current and potential positioning as a wind turbine manufacturing leader.  The front-page article said, "Ohio trails only California in potential for developing wind turbines and components, according to the Renewable Energy Policy Project in a 2004 report for the U.S. Department of Energy."  The USDE said that more than 11,000 new jobs and almost $4 billion in capital could be injected into Ohio through the wind supply chain.

See today's article http://www.ohio.com/news/top_stories/81117212.html  for more details.