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Master Limited Partnership Parity Act – What It’s All About

In the race to capture the economic benefits of the growing clean energy sector, the Master Limited Partnership Parity Act would provide an opportunity for U.S. businesses to mobilize private capital and better compete. It would provide the same tax treatment for investments in clean energy and fossil fuels . Sen. Chris Coons (D-DE) introduced the bipartisan bill today with original co-sponsors Jerry Moran (R-KS), Lisa Murkowski (R-AK), and Debbie Stabenow (D-MI). Congressmen Ted Poe (R-TX), Mike Thompson (D-CA), Peter Welch (D-VT), Chris Gibson (R-NY), and Cory Gardner (R-CO) co-sponsored companion legislation in the House.

“We applaud this bipartisan group of co-sponsors on the introduction of the Master Limited Partnership Parity Act,” says Phyllis Cuttino, director of Pew’s clean energy program. “Our research indicates that nations with consistent, transparent clean energy policies do better in attracting private investment.”

If approved by Congress, this tool could lower financing costs for clean energy projects, some by as much as 50 percent, according to Recycled Energy Development, a waste energy power producer. The market value of the master limited partnerships has grown to about $370 billion The bill is supported by clean energy businesses (PDF), labor and environmental groups, and policy organizations.
A master limited partnership is a business structure that has the tax advantages of a partnership but whose ownership equity can be traded as easily as public stock. Energy projects qualifying as a master limited partnership have access to low-cost capital and liquid investment opportunities as well as a relatively high rate of return for investors. Master limited partnerships have existed since 1981 and are available to investors in fossil-fuel extraction and pipeline projects.

By expanding the list of qualifying projects to include solar, wind, geothermal, and other clean energy and transmission technologies, renewable-power projects could access new financing markets, thereby increasing investment and deployment of these clean technologies.

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Returns on investing in solar has banks and investors funding distributed solar

SLevy: Distributed solar is disruptive to electric distributors, especially in regions with high power rates. Solar will accelerate installations, a fact that must be factored into the future business plans of our distributors here in the valley. To support this statement Edison Electric Institute recently published a report entitled “Disruptive Challenges: Financial Implications and Strategic Responses to a Changing Retail Electric Business.” TSEA offers distributors its services in understanding the impact and has suggestions towards solutions to avoid faced with unpleasant alternatives.

There were a record number of solar panels installed in the U.S. on rooftops and on ground-mounted systems in 2012. Now both traditional financing companies and new types of investors are starting to get in on the trend of providing the funds for the high upfront costs of installing solar panels, in exchange for making some money back several years down the road. But the potential to make money in this way has only just started.

Solar leases are a contract between the building owner and SolarCity, whereby SolarCity pays the upfront cost of installing the system, owns and maintains the panels, and the building owner pays for the monthly electricity for the power from the panels over around 20 years. As Ucilia noted on GigaOM Pro today, the residential solar leasing market alone is expected to grow from $1.3 billion in 2012 to $5.7 billion in 2016, according to GTM Research.

SunPower said earlier this month that demand for its residential solar leases is far greater than the money available to finance them.

It’s not just banks and corporate do-gooders that want the opportunity to make a decent return — some 10 to 12 percent in some cases. Crowd-funding is starting to appear as an interesting blip on the radar. Startup Solar Mosaic says that it’s now raised $1 million from its crowd-funders for its solar panel systems, which offer around a 4.5 percent annual yield.

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A Second California City Establishes a Solar Mandate

SLevy: The price of electric power in parts of California is as high as 35 cents per kilowatt-hour. A strong motivation for solar whereas Tennessee has a lower price of electricity at the present. The motivation here in Tennessee is improved air quality and a buffer against future costs with other forms of electric power generation.

The town of Sebastopol, in the apple- and grape-growing rolling hills of western Sonoma County, is following suit with a much more aggressive ordinance, suggesting that solar-by-fiat might be more viable as policy. In Sebastopol, a system would also qualify if its output meets three-quarters of the building’s electrical load on an annual basis. The ordinance also includes a provision that allows officials to exempt buildings from the requirement if a site isn’t conducive to solar, but a fee or other energy-saving measures could be required.

Mayor Michael Kyes told the Press-Democrat in nearby Santa Rosa that Sebastopol, with a population of around 7,500, already had some 1.2 megawatts of installed solar capacity. “This ordinance will add to it,” the mayor said. According to the Press-Democrat, there was a citizen objection to the solar requirement registered at the Sebastopol Council meeting; someone said “mandatory sort of implies coercion” (a sentiment it’s hard to argue with). But of course all manner of building requirements are essentially coercive, and Councilman Robert Jacob seemed to capture the sentiment of the town leaders when he said that “this ordinance is not only cost-saving…it’s the responsible thing to do.”

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The level of carbon dioxide reached a concentration not seen on the earth for millions of years.

Scientific instruments showed that the gas had reached an average daily level above 400 parts per million — just an odometer moment in one sense, but also a sobering reminder that decades of efforts to bring human-produced emissions under control are faltering.

The best available evidence suggests the amount of the gas in the air has not been this high for at least three million years, before humans evolved, and scientists believe the rise portends large changes in the climate and the level of the sea.

Carbon dioxide rises and falls on a seasonal cycle, and the level will dip below 400 this summer as leaf growth in the Northern Hemisphere pulls about 10 billion tons of carbon out of the air. But experts say that will be a brief reprieve — the moment is approaching when no measurement of the ambient air anywhere on earth, in any season, will produce a reading below 400.

“It feels like the inevitable march toward disaster,” said Maureen E. Raymo, a scientist at the Lamont-Doherty Earth Observatory, a unit of Columbia University.

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REAP funding of $70 million annually through fiscal-year 2018

Solar PV for farming

note from SLevy: At this moment TVA is no longer accepting applications for its Green Partners program for this year. The alternative for installers is to:
1. look for work out of state
2. look for niche applications which could include: agriculture, highway signs, corrosion protection, outdoor displays, medical equipment support, mobile emergency power support, military installations and developers who want to sell solar assisted homes without TVA support.

U.S. Sens. Al Franken, D-Minn., and Tom Harkin, D-Iowa, introduced energy legislation on Monday to be included in the 2013 Farm Bill.

According to Franken, the Rural Energy Investment Act will help farmers, ranchers and rural communities by encouraging the growth of agricultural energy technologies, including biofuels and renewable energies.

The proposal includes the Rural Energy for America Program (REAP), which Franken included in the 2012 Farm Bill that passed the Senate. Franken says the program helps agriculture producers and businesses in rural areas invest in energy efficiency and renewable energy projects so they can cut electricity bills and earn additional income by selling the energy they produce.

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FREE WEBINAR: Best Practices for Effective Energy Efficiency Program Design: From Strategy to Savings

DATE: Wednesday, May 15, 2013
TIME: 1:00 PM ET/10:00 AM PT  

Please join Nexant, Greentech Media, PacifiCorp, and Santee Cooper as we discuss best practices for effective energy efficiency program design, including utility program case studies.  The changing landscape of demand side management (DSM) energy efficiency programs requires utilities to leverage a combination of industry best practices and innovation in technologies to successfully plan, design and deploy DSM programs.  Join us for this one hour webinar to learn about: 
· Effective DSM program design and why it is important
· Defining a program’s success while identifying barriers and challenges in the marketplace
· Meeting compliance requirements and energy savings goals
· Managing increasingly complex programs in a cost-effective manner
· Improving customer and trade ally engagement, satisfaction and participation

Registration Fee: Free

Many types of professions install solar systems

There is the belief that solar installations are limited to a few companies that only deal in solar. That is not the case as illustrated by the following article that describes the various occupations involved in solar construction.

The primary industry begins with solar contractors, and then branches out to electrical contractors and plumbing contractors. General contractors and roofing contractors are also involved in solar installations. Because solar PV is electrical and solar hot water is plumbing-related, the industry sees a lot of participation from plumbing and electrical contractors.
Solar contractors operate independently or in conjunction with other contractors, such as roofers. Every project is different, so who is involved depends on the size and scope of a project. A typical solar contractor can handle a small residential system from start to finish. A large utility-scale project may involve coordinating with a roofing manufacturer or general contractor.
Companies in this sector employ many electricians, but also plumbers, roofers and general construction labor. Given that every project has unique characteristics, every project requires a slightly different skill set. For photovoltaic, the main skill set is electrical. For larger scale projects, a need for steel or concrete professionals or roofers may present itself.The first step to any installation project is engineering, followed by permitting and procurement and installation.

the original article

With so many occupations associated with solar installations the job market is wider in scope than most people realize. Tennessee has enough sunlight to warrant adopting solar both for large farms and distributed solar within our communities. With the price for large installations at prices competing with fossil-fueled power generation, with the advantages of no fuel cost and the environmental benefits – what is stopping our national leaders from promoting this technology? That is a question that only they can answer.

Prices for Natural Gas are Going Up and New Drilling Goes Down

Electric Utilities May Be Disappointed with Gas Prices

More on Adding Renewables to the Master Limited Partnership Legislation: Will our Two Senators Support This Legislation?

Will Senators Alexander and Corker support adding renewables to federal legislation that will give solar the same tax benefits as oil, natural gas, pipelines? I ask all our readers to contact these two senators and advocate for the passage of this key piece of legislation.

The measure would let renewable-energy companies form master-limited partnerships (MLPs), giving them the ability to raise funds like a corporation and pay taxes as a partnership, according to a statement today from Senator Chris Coons, a Delaware Democrat. He introduced the bill with Michigan Senator Debbie Stabenow, a Democrat, and Republican Senators Lisa Murkowski of Alaska and Jerry Moran of Kansas.
MLPs have “helped the oil and natural gas industry deliver the abundant and affordable energy that powers our economy today,” Murkowski, the top Republican on the Senate Energy and Natural Resources Committee, said in the statement. “Through a small change in the tax code, this legislation will provide renewables with the same opportunity.”

The bill is similar to a prior version focused on renewable power generation and biofuels projects that was introduced last year and failed to pass. The re-introduced bill widens the scope of projects that would qualify to include energy-efficient buildings, waste heat-to-power systems, carbon capture and storage and biochemicals. The new bill was hailed by Rhone Resch, President and CEO of the Solar Energy Industries Association as “an important step toward leveling the playing field between clean, renewable energy and long-entrenched energy sources in America.”

The proposal is supported by at least one oil and gas group. Jack Gerard, president of the American Petroleum Institute, the industry’s main lobbying group, said MLPs would provide an incentive for private investors and help wean renewable energy producers from federal subsidies.

more
See Forbes article on this subject

Free Small Business Innovative Research Funding Workshop May 22, 2013

“Introduction to SBIR/STTR Funding” Workshop

Please see information below on SBIR workshops across Tennessee – May 20, 22, 23 2013. Registration links are provided. The workshops will be in Jackson, Knoxville and Johnson City.

Jackson Chamber May 20th from 8:30 am until 3:00 pm
197 Auditorium St
Jackson, TN 38301

Knoxville Entrepreneur Center May 22nd from 8:30 am til 3:30 pm
17 Market Square, Suite 101
Knoxville, TN 37902

ETSU Innovation Lab, Training Center May 23, 2013 from 8:30 am til 3:30 pm
2109 West Market Street
Johnson City, TN 37604

This workshop provides a thorough introduction to the SBIR/STTR programs and will highlight funding opportunities.

Mark Henry, founder of Grow Emerging Companies, LLC, will present this free workshop for local researchers & business partners interested in learning about SBIR/STTR funding opportunities. Registration is free & Lunch will be provided.

Seats Are Limited – Click Here To Register Today!

For more information, contact:
Michael Carroll, michael.carroll@knoxec.net | Katie Connell, katie.connell@knoxec.net
Jim Stefansic, jim@launchtn.org

For questions regarding registration, please contact Patty Wells at patricia.wells@tennessee.edu or (615) 253-6371