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.

Interesting item in the Dayton Daily News on the potential extension of the Third Frontier program.

Before wrapping up for the year, the Ohio House of Representatives passed an amended House Bill 113 which promotes advanced energy projects at Ohio's Primary and Secondary schools. The bill was amended heavily in Committee, making it a pilot project instead of a full-blown initiative. 

The provisions in the bill set different renewable energy generation standards based on school enrollment and shorten the allowable pay-back period from the originally proposed 30-year timeline to the new 15-year timeline. In addition, a floor amendment to the bill makes it easier for school boards to terminate a contract with a provider "if the board determines that the cost the district pays for the electricity generated by the renewable energy system is substantially greater than the retail rate of electricity that would have been payable by the district if the system had not been installed."

Read the full text of the bill

A US Department of Energy study predicts that advanced energy production growth will double compared to the rate of traditional energy sources.  This could have a major impact on renewable energy manufacturers in Ohio including many in the Northwest region of the state.  The study can be found here.