Wednesday, January 08, 2014
The farm bill and its impact on financing renewable energy
на 3:05 AM Wednesday, January 08, 2014Every Farm Bill is comprised of different titles, each of which covers a different set of programs (e.g., Energy, Bioenergy programs, renewable energy systems). The Energy title was added in the 2002 incarnation of the Farm Bill. Since then, USDA renewable energy programs have been used to incentivize research, development, and adoption of renewable energy projects, including solar, wind, and anaerobic digesters. However, the most recent primary focus of USDA renewable energy programs has been to promote U.S. biofuels production and use.
The $288 billion 2008 Farm Bill (aka the Food, Conservation, and Energy Act of 2008) was a continuation of the 2002 Farm Bill and provided funding for the following renewable energy programs:
Biobased Markets Program: Continues the federal preference for procurement of biobased products and the biobased products labeling program
Biorefinery Assistance: Loan guarantees to produce advanced biofuels
Repowering Assistance: Encourage existing biorefineries to install new energy systems to use biomass for heat and power
Bioenergy Program for Advanced Biofuels: Incentives for next generation biofuel production
Biodiesel Fuel Education Program: Education and outreach on biodiesel use
Rural Energy for America Program (REAP): Grants and loan guarantees for energy efficiency and renewable energy
Biomass Research and Development: Supports advanced research to improve bioenergy
Rural Self-Sufficiency Initiative: Cost-share grants for rural communities to develop and implement energy self-sufficiency initiatives
Feedstock Flexibility Program: Sugar import management program
Biomass Crop Assistance Program (BCAP): Assistance to stimulate energy crop plantings
Forest Biomass for Energy: Research on use of low-value forest biomass
Community Wood Energy Program: Grants for rural communities to install wood energy systems in community facilities
Biofuels Infrastructure Study: Study of the infrastructure needs associated with the production and use of biofuels
Renewable Fertilizer Study: Study potential to produce fertilizer from renewable energy
Parts of the 2008 Farm Bill expired September 30, 2012 but the American Taxpayer Relief Act of 2012 (January 2, 2013) extended most aspects of the 2008 farm bill for one additional year until September 30, 2013. This date has of course since passed and expiration has become an issue again since Congress has not yet agreed to a new farm bill or extended the current one beyond 2013. All of the major farm bill energy programs lack baseline funding going forward.
A bicameral team of 41 lawmakers is charged with merging farm bills passed this summer by the House and Senate into one piece of legislation to create the Agriculture Reform, Food and Jobs Act of 2013. However, negotiations are currently hung up on a number of points, including a $35 billion gap between the two sides on food stamp spending and the apparent reluctance of each side to budge from its position.
For those involved in renewable energy, the Farm Bill Energy Title programs are of particular interest. The Farm Bill Energy Title programs help rural communities access investment capital to build new markets and create new jobs and other economic opportunities. For example, the Bioenergy Program for Advanced Biofuels program provides funding to support research, investment and infrastructure necessary to build a biofuels industry that creates jobs and produces renewable fuel. Since 2009, more than 275 eligible producers in 44 states have received payments. Similarly, the Biomass Crop Assistance Program (BCAP) enables farmers to develop next-generation energy crops from non-food sources, thus creating new farm income sources. According to the most recent USDA figures, BCAP supports more than 860 growers in 188 counties across 12 states, enabling them to convert approximately 59,000 underutilized acres to energy crops.
As another example, the Rural Energy for America Program (REAP) is a widely utilized program under the Energy Title. REAP provides financial assistance to agricultural producers and small businesses in rural communities to purchase, install, and construct renewable energy systems; make energy efficiency improvements to non-residential buildings and facilities; use renewable technologies that reduce energy consumption; and participate in energy audits, renewable energy development assistance, and feasibility studies. USDA says that the 7,600 projects REAP supports employ nearly 18,000 people and generate or save more than 7.3 billion kilowatt hours of electricity.
The lack of a deal on the 2013 Farm Bill — combined with the spending cuts mandated by the sequester earlier this year — has cut into funding for renewable energy programs and created a state of uncertainty about the future. For instance, as a result of the sequester funding for the REAP program was reduced by about $1.4 million and the Advanced Biofuel Payment Program was reduced by about $3.3 million. These cuts represent a 5.1 percent reduction in funding over previous year figures. The impact of these reductions are fewer projects will be able to be funded under REAP and all 260 producers who have applied under the Advanced Biofuel Payment Program will see a proportional reduction in the amount of funding they receive. As of right now, most of the renewable energy programs that were authorized in the 2008 Farm Bill are currently unfunded as the funding provided in that Act has been exhausted.
The USDA says that a new Food, Farms and Jobs Bill is necessary in order to provide additional mandatory funding for these important programs. Secretary Vilsack has repeatedly expressed the need for a comprehensive Food, Farm and Jobs Bill to support renewable energy projects in rural communities, keep up momentum in American agriculture, grow the rural economy and create jobs. Without a new five-year bill, producers, rural America will suffer.
There are two different versions of the Farm Bill under consideration — the Senate-assed version (S.954) and the House-passed version (H.R. 2462). Both the Senate-passed and House-passed bills extend most of the renewable energy provisions of the farm bill, with the exception of the Rural Energy Self-Sufficiency Initiative, the Forest Biomass for Energy Program, the Biofuels Infrastructure Study, and the Renewable Fertilizer Study which are either omitted or explicitly repealed by both bills.
In addition, S. 954 omits the Repowering Assistance Program, while H.R. 2642 adds a new reporting requirement on energy use and efficiency at USDA facilities. Otherwise, the primary difference between the House and Senate bills is in the source of funding. Over the five-year reauthorization period (FY2014-2018), the Senate bill contains a total of $880 million in new mandatory funding and authorizes $1.140 billion to be appropriated for the various farm bill renewable energy programs. In contrast, H.R. 2642 contains no mandatory funding for these programs, while authorizing $1.405 billion over the five years, subject to annual appropriations. In addition, the House bill eliminates all support for the collection, harvest, storage, and transportation (CHST) component of Biomass Crop Assistance Program (BCAP), severely limiting its potential effectiveness as an incentive to produce cellulosic feedstocks.
The House and Senate recently came together in a rare show of bipartisanship and approved a new overall spending budget. For those of us keeping on eye on renewable energy funding, this is a small sign of hope that a new Farm Bill is on the horizon.
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Ярлыки: Energy, financing, impact, renewable 0 коммент.
Friday, November 08, 2013
SEC Clarifies Crowdsourcing Rules, What's the Impact on Renewables?
на 8:33 AM Friday, November 08, 2013Title 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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Ярлыки: Clarifies, Crowdsourcing, impact, renewables, rules, Whats 0 коммент.
Monday, March 18, 2013
Renewable energy might not practice-oriented learning impact.
на 10:00 AM Monday, March 18, 2013Then again, if you, now work as I have time, make your feet and a 94-page report to read? While I really wish I have is the fact that in the fast paced expenditure-driven environment, most of us in we work often don't have time to sit and read. And exactly that is why sometimes you can really pack a whole lot to learn in a short time at a Conference.
In the months of February and March visited I three conferences (PV America, solar power-Gen and the Iceland-geothermal energy Conference) and I must say, that my understanding of the issues and barriers for the solar and geothermal energy industries at this time at an all time high. You can not only beat practice-oriented learning. And at the present time, if the time we compress for the work so could travel only, the only time we get our heads and go to the bottom of the problems.
That is, why do you have some experience in an area of renewable energy, definitely an abstract as a speaker at Renewable energy World North America, to see November 12-14 in Orlando scheduled should enter. There is no other place where power users, power generators and power sellers about all the technologies of renewable energies in a place can find out. The show takes place in addition to power-Gen International, the largest show for the traditional power generation industry of the world. Last year, we had more than 22,000 visitors from nearly 100 countries.
We now accept abstracts, but only for one more week (we only extended the deadline) so don't hesitate. As a speaker, not only get their expertise on renewable energy to share, but you also get free access to the floor, networking events, lunch, technical tours and the ability to the Conference on all four channels shows invited: world of renewable energy, Power-Gen, nuclear power international and our financial forum.
This is it but as soon as we the abstract submission deadline to close, it is difficult to get into the show. Please send your ideas today. We are looking for professionals who would like to present research or reports on hydropower, tidal energy, tidal energy, geothermal energy, biomass, biofuels, waste heat, solar and wind power and other related technologies such as energy storage, smart grid and utility integration of renewable energies. We are also interested in discussions around these topics - if you would like to get a group of experts who can speak on a specific topic together, we're all ears.
I hope that you'll check, submit an abstract, because we can bring together the more industry experts, learn the more we all.
-Jenn Runyon
P.S. If you are really planning conference love and interested Conference content in meetings Volutneering form useful, let me know. I have about five Opennings have on my renewable energy World Conference Program Committee. You may be just the expertise we need.
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Ярлыки: Energy, impact, learning, might, practiceoriented, renewable 0 коммент.
Thursday, February 17, 2011
Hawaii business impact low markets.
на 4:44 AM Thursday, February 17, 2011Territorial Bancorp, Inc., Barnwell Industries Inc. and Hawaiian Electric Industries Inc. was the only Hawaii businesses find your stocks add value during the trade Tuesday and all less than 1 Perent obtained from them.
Larger markets ended Tuesday with losses: the Dow Jones industrial average was to close down 41.55 points on 12,226.64 and close the NASDAQ down 12.83 points to 2,804.35.
Gainers:
Hawaiian Electric Industries Inc. (NYSE: it) Castle at $24.80 to 3 cents.
Barnwell Industries Inc. (AMEX: BRN) Castle at $6.26, up 2 cents.
Territorial Bancorp, Inc. (NASDAQ: TBNK) Castle at $19.74 to 7 cents.
Loser:
Alexander and Baldwin Inc. (NYSE: ALEX) Castle at $42.01, from 50 cent.
Hawaiian holdings, Inc. (NASDAQ: HA) Castle at $7.07, down 8 cents.
Bank of Hawaii Corp (NYSE: BOH) Castle at $47.48, down 58 cents.
Maui land and pineapple co. (NYSE: MLP) Castle at $6.81, down 19 cents.
Cyanotech Corp. (NASDAQ: CYAN) Castle at $2.62, down 2 cents.
Hoku Corp. (NASDAQ: HOKU) Castle at $2.30, down 8 cents.
Unchanged:
Central Pacific Financial Corp. (NYSE: CPF) Castle at $30.62.
ML macadamia orchards (other OTC: SPELLS) closed at $2.90.
Territorial Bancorp, Inc., Barnwell Industries Inc. and Hawaiian Electric Industries Inc. was the only Hawaii businesses find your stocks add value during the trade Tuesday and all less than 1 Perent obtained from them.
Larger markets ended Tuesday with losses: the Dow Jones industrial average was to close down 41.55 points on 12,226.64 and close the NASDAQ down 12.83 points to 2,804.35.
Gainers:
Hawaiian Electric Industries Inc. (NYSE: it) Castle at $24.80 to 3 cents.
Barnwell Industries Inc. (AMEX: BRN) Castle at $6.26, up 2 cents.
Territorial Bancorp, Inc. (NASDAQ: TBNK) Castle at $19.74 to 7 cents.
Loser:
Alexander and Baldwin Inc. (NYSE: ALEX) Castle at $42.01, from 50 cent.
Hawaiian holdings, Inc. (NASDAQ: HA) Castle at $7.07, down 8 cents.
Bank of Hawaii Corp (NYSE: BOH) Castle at $47.48, down 58 cents.
Maui land and pineapple co. (NYSE: MLP) Castle at $6.81, down 19 cents.
Cyanotech Corp. (NASDAQ: CYAN) Castle at $2.62, down 2 cents.
Hoku Corp. (NASDAQ: HOKU) Castle at $2.30, down 8 cents.
Unchanged:
Central Pacific Financial Corp. (NYSE: CPF) Castle at $30.62.
ML macadamia orchards (other OTC: SPELLS) closed at $2.90.
Ярлыки: business, Hawaii, impact, markets 0 коммент.