SEC Clarifies Crowdsourcing Rules, What's the Impact on Renewables?

New Hampshire, USA -- The SEC has finally proposed its rules to allow crowd-funding under the Jumpstart Our Business Startups (JOBS) Act. What do they mean for small-scale investments in renewable energy companies and projects?

Title III of the JOBS Act created an exemption under securities laws for crowdfunding, which set the table for its regulation by the SEC -- that was supposed to happen by the end of last year. Two weeks ago the SEC finally issued its proposed rules on crowdfunding (summary here, full 500+-page PDF here). Here are the highlights:

Companies are capped at raising $1 million cap per year through crowdfunding. Investors with less than $100,000 annual income and net worth, could invest up to $2,000/year or 5 percent of annual income or net worth (whichever is greater).Investors with at least $100,000 annual income and net worth, investment amount levels rise to 10 percent of annual income or net worth (whichever is greater), and purchase no more than $100,000 of securities through crowdfunding.Non-U.S. companies are ineligible for the crowdfunding exemption, as are companies that already report to the SEC, some investment companies, those who aren't compliant with certain reporting rules, and others with no business plan or pending M&A deals.Securities purchased via crowdfunding can't be resold for a year.Under the proposed rules, issuers publishing notices advertising an offering can include terms: the nature and amount of securities offered, their pricing, and the closing date of the offering period.

So how do these proposed rules affect companies seeking to get funded by the masses? "Renewable energy companies seeking to enter the new territory of offering a security legally may find it easier to raise start up capital or additional capital because they can offer investors a return on investment" such as stock or debt with interest payable, explained Debbie A. Klis, attorney with Ballard Spahr. "It would not be difficult to create a compelling campaign to raise funds for renewable energy products especially if it brings revenue and jobs to areas of the U.S. (and abroad) that it need it the most."

For small businesses and entrepreneurs seeking to raise capital, the rules "may be a God Send" to help solve delays common in formal full-blown SEC registration and disclosure, observed Lee Peterson, senior tax manager with CohnReznick. Some entrepreneurs dream of building the next Apple or HP on the renewable energy side; others might see crowdfunding as a way to bridge the "valley of death" in startup-up financing to bring their company to market. "So as long as folks act smart and understand the investment risks," he added, "it may be a good thing."

Of course there's a difference between crowdfunding as a donation, and microfinance as a path toward ROI. SEC's proposed rules address the latter, as a way to opening doors to much more private capital. Selling securities to the public generally requires SEC compliance, and has been allowed until now only if it involves donations with no return on investment (ROI). Sites like Kickstarter and Indiegogo might choose not to help companies issue securities and just continue to facilitate donations, with investors assuming that the company raising money is playing by the rules. Indiegogo, EquityNet, and RocketHub reportedly are interested in pursuing equity crowdfunding, while Kickstarter is not.

One of the early renewables crowdfunding success stories has been Mosaic, which has amassed investments for projects totaling $5.6 million in value and "tens of millions of more dollars in the pipeline," according to a company spokesperson. It has pitched 25 offerings in over 19 projects, with 2,500 investors spanning nearly every U.S. state, and roughly half its projects sell out within a week. Its newest offering is a 12.3-MW installation across more than 500 homes at Joint Base McGuire-Dix-Lakehurst in New Jersey. The company has been working with the SEC as the agency wrestles with understanding how crowdfunding meshes with traditional finance, though it claims it doesn't and won't rely on the JOBS Act for its business. "There are different provisions of the securities laws that we have relied on in the past, and I would expect that this would continue to be the case in the future," noted Nick Olmsted, Mosaic's general counsel and corporate secretary.

The Natural Resources Defense Council (NRDC) recently announced its own crowdfunding plan, to build an online platform to help organize and direct groups how to put solar on schools: site assessment, approvals, funding, the RFP process, etc. "Like most NGOs, we go out to big donors and foundations," explained Jay Orfield, environmental innovation fellow in NRDC’s Center for Market Innovation. This effort, though, means going to "people who are going to use and benefit" from such solar installations, getting them to fund this $5, $10, $50 at a time, he said. "That market validation is specifically what we find really exciting about crowdfunding."

Needs Some Tweaking

Not that the SEC's proposed crowdfunding rules are without criticism. Capping fundraising at $1 million over a 12-month period might be too low of a threshold for many companies. "I think the gist will be that crowdfunding has some very low limits on how much you can raise," said John Marciano, partner at Chadbourne & Parke LLP. "[It] raises the question of whether it is really a viable financing option for building and owning projects, except maybe very small projects." Some companies could be motivated "to create many subsidiaries so each entity can raise money independent of the other," though "we have not heard about rules on aggregation yet," added Debbie A. Klis, attorney with Ballard Spahr.

Another potential sticking point in the rules: Anyone investing more than $500,000 has to provide audited financial statements. Small investors might balk at that, since in some cases that could be part of why they went the crowdfunding route in the first place vs. a more formal investment plan.

These proposed rules now move into a 90-day comment period, which will almost certainly be voluminous, and likely will be extended by the SEC, with final rules coming after that -- likely late 2014 or even 2015, points Adam Wade, associate at Foley Hoag. With that much time, there could be significant difference between these preliminary rules and what gets finalized.

Marciano likens the crowdfunding discussions as similar to those around real estate investment trusts (REIT) and master limited partnerships (MLP), two other potential avenues for funding renewable energy ventures, particularly at smaller scales. "It has the promise of raising cash equity, but not tax-equity. Time will tell whether it is a viable option, but I'm guessing it may be difficult to implement."

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US EPA adopts revised rules for new power plants

Tulsa, OK-Gina McCarthy, administrator who took the stage at the national environmental protection agency, the Press Club in Washington, D.C. September 20, their agency newly revised pollution to adopt standards for new power plants.

McCarthy said that the proposed rules is a flexible, accessible way in the future from morning fleet of power plants. According to the rules, the large natural gas-fired turbines would emit less than 1,000 kilograms of carbon dioxide per MWh, while new small natural gas-fired turbines would have to spend less than 1,100 kilograms of carbon dioxide per MWh.

New coal-fired power plants would need units less than 1,100 kilograms of carbon dioxide per MWh or spend, optimize more than 84 months operating plants offer the flexibility and time to technologies, between 1,000 and 1,050 kilograms of carbon dioxide per MWh in the average.

The average US coal plant emits 1,768 kilograms of carbon dioxide per MWh-hour. Natural gas plants emit 800 to 850 pounds.

Administration was coal-fired electricity site according to the US energy information responsible for 37 percent of all power generation in 2012.

President Barack Obama directed the EPA to develop and release pollution standards for new and old power plants in June 2013 as part of a larger plan to tackle climate change.

"Climate change is one of the greatest challenges of our time. More than 97 percent of the climate researchers are convinced that human induced climate change is taking place on the basis of scientific data. If our climate change goes unchecked, this devastating effects on the United States and the planet needs. Reduction of CO2 pollution is of vital importance for the protection of Americans, health and the environment which our economy depends, "she said.

This latest version of the EPA standards for new power plants that is result of some 2 million public comments, said McCarthy.

"We have done what requires democracy. We paid attention. We heard these comments, and that's what today's proposal reflects, "she said.

One way the is can meet standards the use of CO2 sequestration - a technology that she said "proved"

"CO2 capture and sequestration technologies will eventually tire and be so today are commonly used in power plants, such as scrubber", she said.

Cleanup of conventional thermal power plants to be a boost for the economy and not a burden for them, she said.

"The argument that we must choose between economic growth and environmental protection is wrong," she said.

The EPA fully expected many comments on these proposals, like it after the first version of the new source performance standards in March 2012, she said.

"We will do what we have done. We give every comment we receive detailed attention, "she said.

During the writing proposed rules, she said, committed revised and finally applied the EPA to regulate CO2 and greenhouse gas emissions power generation fleet, existing not only new power plants, but of the country.

Coming up, however, is "on a longer time scale," she said with rules for the regulation of the older power plants.

EPA comment period for 60 days after publication in the Federal Register open being.

President Obama has the EPA come instructed until June 2014 a proposal to clean up the older plants.

In 2009, EPA determines that greenhouse threatened with pollution Americans health and welfare by leading long-lasting changes in our climate, can have a number of negative effects on human health and the environment.

This article originally appeared on electric light & makes, and was published with permission.

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Stricter emission limits rules spur clean energy innovation

"Set by these standards, will be business opportunities that will be created, it" Browner said yesterday in an interview with Bloomberg television's Peter Cook for "Capitol gains" Feb. air 10.

"There are companies that can develop new technologies," she said. "Maybe we will investigate more about renewable energy. We seek to improve energy efficiency."

President Barack Obama said in his second term inaugural address, that he responds, referring to droughts and stronger hurricanes, set up a possible conflict on threats posed by climate change, with owners of coal-fired plants including Southern Co. of Atlanta and American Electric Power Co. of Columbus, Ohio.

Browner, a former adviser to Obama, said that the Administration in addition proposes that the EPA for new installations will propose rules to emissions from existing plants to the rules.

The Supreme Court ruled that the Agency had to act, if the emissions were found to "endanger public health and welfare", said Browner. "EPA this scientific statement made, so now they have to do this."

Existing installations

When the EPA imposed the same requirements for existing plants for new plants, "about 25 percent of the gas plants, carried out in the country, that standard would meet not" drawn Institute, an industry-based Washington Group for publicly traded utilities are, Thomas Kuhn, President of Edison Electric, said during a Feb. 6 interview at Bloomberg headquarters in New York.

In response to a question, Browner said, it remains to be seen whether the rules, companies will force to develop gas-trapping technology in response.

The Obama administration is considering action on an array of other energy issues, including the control of hydraulic fracturing, or fracking extracts gas from shale and possible export of liquefied natural gas over objections from manufacturers such as Dow Chemical Co.

"The games-changer is natural gas," said Browner, is a member of the Advisory Board of the Bloomberg administration. "The question is, what natural gas for coal, and ultimately on renewable energy and efficiency as we will go forward."

Gas-glut

Advances in drilling in shale formations have produced a glut of natural gas. Futures prices for the fuel on the New York Mercantile Exchange since July 2008's leading investment in natural gas at the expense of other forms of generation including coal and nuclear energy 75 percent declined.

Hydraulic split, led to regulate the EPA, though the "probably not likely", said Browner the Agency from 1993 to 2001 under President Bill Clinton. If you leave the task to the States, as proposed by Republicans such as representative of John diplomat from Illinois, "We go to a variety of needs, to see which will quite frankly be hard on industry," said she.

In the first four years, loan guarantees for wind and solar-energy projects exhibited the Obama administration and increased standards for cars in addition to write rules for power plants.

"We have a real opportunity to position the United States in the global demand for clean energy technology," said Browner.

Copyright 2013 Bloomberg

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California OKs Energy Efficiency Rules for Battery-Charged Devices

The California Energy Commission on January 12 approved a first-in-the-nation energy efficiency standard that will reduce wasted energy by battery chargers used with cell phones, laptop computers, power tools, and other devices. The proposed standards can save nearly 2,200 gigawatt hours (GWh) each year, enough energy to power nearly 350,000 homes.

Because nearly two-thirds of the 8,000 GWh of electricity consumed in California by battery charger systems (or battery chargers) is wasted by inefficiency, the Energy Commission proposed appliance efficiency standards requiring battery chargers to consume less energy while providing the same performance. Consumer chargers used in cell phones, personal care devices, and power tools will be required to comply with the new standards by February 1, 2013. Industrial charger compliance (e.g. forklifts) is required by January 1, 2014. Compliance for small commercial chargers (such as walkie-talkies and portable barcode scanners) is required by January 1, 2017. See the California Energy Commission press release.

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3 Mass. churches should reopen, Vatican rules

CHICOPEE, Massachusetts (AP) - the Vatican has ruled that three Western Massachusetts churches that should be closed by the Diocese of Springfield reopen including one that is occupied in protest for two years, community members learned Tuesday.The Vatican Congregation for the clergy decided that Bishop Timothy McDonnell justify not close churches, St. Patrick and St. George St. Stanislaus Kostka Church in Adams or two Chicopee. That is again open the churches for worship, although to what extent you used can be unclear.Laurie Haas, one of the leaders of the vigil on the St. Stanislaus Kostka, the decision called "monumental." "Everyone here said in Adams joy and full of joy!"Haas, whose Church by community members around the clock since December 2008.With similar decisions on churches in the Diocese of Allentown Pennsylvania, who is a Massachusetts decisions new policy which signal Vatican, it harder is settled for local bishops could close and sell Church, said Peter Borre Council of communities, a group formed to battle the Church closings."Keeping open churches is also to a limited extent, important because you important evangelical mission of the Church remains where it said Borre otherwise, may be lost.""The most important element in the job description of the Bishop is the salvation of souls," said Borre. "And you can reach by the presence of the Catholic Church in a diocese to destroy.""The Diocese of Springfield, the Vatican's High Court appeal can, and there is much to say about how the three churches to - imaginable use for opportunities as frequently as regular mass a more sporadic opened place to pray."This is not mission met, "said Borre.Ein Diocesan spokesman said he would not comment until closely inspected the Vatican judgments."In recent years the Catholic dioceses around the country have dozens of parishes, citing falling presence, a lack of priests and financial burden closed. In Boston, for example, five churches was occupied since 2004 began and today reduced the number of parishes of 357 on 291 wide reconfiguration.Congregation for the clergy decisions dated January, distinguishes between Roman Catholic parishes - the territorial units belonging to all Catholic building in you as parish offices, schools and Konferenzraume-and the main church building within those communities.In their appeal argued parishioners of Bishop standards under Canon law for those churches shut down and did not conform to the conversion of the Saints in secular use. The Vatican has agreed, McDonnell not provided, the "necessary grave motivations" for the closing of churches to say.Borre said similar complaints are outstanding in the Vatican from other regions, for example in Cleveland and seven Boston-area Kirchen.In of the Church St. Patrick on Tuesday before the door was locked, but a door opened the brick church's cool, well-maintained interiors. Scattered characters, including one that to read "Save save St of Patrick's - souls," made pleas for money and support in the fight to keep open the parish.The decision was not a complete victory in all three cases - the Vatican confirmed McDonnell's decision to close the larger communities. St. Patrick parishioner Margaret page is hope the St. Patrick parish, which said 2009 closed is open one day again. But added she, "I am very happy, we have a positive decision."Rachel Bradford was a lifelong parishioner at St. George before it closed in 2009, and went to the Church for weekly services to the entire College law school, and even, after moved to Northern Connecticut. "Bradford, 28, said although the future of the St. George was unclear, she was happy, there was one.""Partial victory is it", she said", and we take it for now."--Lindsay reported from Boston.

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