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This information was published in the Novogradac Journal of Tax Credits. The complete version is available by paid subscription only. Click here for more information on subscribing.

Also in this Issue

  • Impact of New Consolidation Standards on Tax Credit Communities

  • Industry Profile: Annette Billingsley

  • Solar Energy Adds Equity to LIHTC Properties

  • New Data Provides Insight into Rental Housing Market

  • Focus On: The Bronx, New York

  • Fannie Mae, Freddie Mac Report 2009 Investment Activity

  • First Year Credit Issues for Acquisition Rehabilitation Projects

  • Q&A: When Tenants Misrepresent Income

  • Outstanding Affordable Housing Properties Recognized by NAHMA

  • Preservation Advocates Seek Mills Tax Credit Extension

  • How Reasonable are Reasonable Expectations Opinions?

  • NMTCs Used to Create Haven for Homeless

  • NMTC Working Group Update: March 2010

  • Q&A: How to Apply the Integrated Unit Provision

  • Historic Tax Credits Provide Boost for Disaster Area Rehabilitations

  • History and the Hill

  • The Current

  • Q&A: Opportunities for Renewable Energy Projects to Pair 1603 Grants with NMTCs


March 2010, Volume I, Issue III Published By Novogradac & Company LLP


The U.S. wind energy industry broke all previous records by installing nearly 10,000 megawatts (MW) of new generating capacity last year—but lags in manufacturing—according to a report released in January by the American Wind Energy Association (AWEA). The report says that the new projects place wind power neck and neck with natural gas as the leading source of the country’s new electricity generation. AWEA says that when combined, wind and natural gas account for approximately 80 percent of the new generating capacity added in the country last year. The report says the 9,922 MW of capacity installed in 2009 expands the nation’s wind plant fleet by 39 percent, bringing total wind power generating capacity in the United States to more than 35,000 MW. In addition, U.S. wind projects generate enough energy to power the equivalent of 9.7 million homes. AWEA also announced that Texas ranked first in the top five states by wind power installed, followed by Iowa, California, Washington and Minnesota. The full report is available on AWEA’s web site at www.awea.org/publications/reports/4Q09.pdf. AWEA is slated to release a full report of the wind industry market in April.

Pacific Venture Capital LLC, a subsidiary of PG&E Corporation, and SolarCity Corp. provided $60 million in tax equity financing in January for solar installations. Funded by PG&E Corporation shareholders, the investment is expected to allow SolarCity to install more than 1,000 solar systems in homes and businesses. In return for providing the upfront investment needed for the new systems, Pacific Venture Capital will receive lease revenues from SolarCity customers, along with the benefits of federal investment tax credits and local rebates for the solar energy projects. Pacific Venture Capital and SolarCity say the transaction represents the first tax equity financing investment by a utility holding company and the first collaboration of this kind between a utility holding company and a solar power provider. The solar systems are expected to be installed in 2010, predominantly in California, with some in Arizona and Colorado.

The Federal Energy Regulatory Commission (FERC) issued a notice in the January 27 Federal Register seeking public comment on the possible reform of any of its rules or procedures regarding the integration of variable energy resources into the nation’s power grid. In the notice, FERC says that the growing use of wind, solar and non-storage hydro generating plants presents challenges such as location constraints and limited ability to dispatch, but also offers low marginal energy costs and reduced greenhouse gas emissions. Commenters are asked to take a broad look at the issues concerning the integration of variable generation resources and address any effects of variable energy resources on the following: data and reporting requirements, including accurate forecasting tools; scheduling flexibility and incentives for accurate scheduling of variable energy resources; forward market structure and reliability commitments; balancing authority area size and coordination; suitability of reserve products; capacity market reforms; and redispatch and curtailment practices. Comments will be accepted through March 29.

SEKO Worldwide announced in January that it will use tax credits to convert its Portland, Ore. facility to solar power. The company installed 143 solar panels that generate 31 kilowatts of electricity — approximately 80 percent to 90 percent of the electricity needed to power the 33,000-square-foot facility. SEKO expects to save roughly $600 per month on energy costs by using the solar panels. Installed by Eugene, Ore.-based Grape Solar, the system was funded in part with $50,000 in federal investment tax credits, $54,740 from the Energy Trust of Oregon and Oregon’s state business energy tax credit (BETC). Unused power generated by the facility will be sold to Portland General Electric through a metering system that will monitor any energy shortages or surpluses.

Sen. Barbara Boxer, D-Calif., chairman of the Senate Committee on Environment and Public Works, and Sen. Bernie Sanders, I-Vt., chairman of the Subcommittee on Green Jobs and the New Economy, convened a joint hearing on January 28 to examine the efforts to reduce greenhouse gas emissions and create jobs by expanding the use of solar energy. Witnesses included Robert Rogan, senior vice president-Americas for eSolar; Rob Gillette, chief executive officer of First Solar; Andrew P. Morriss, H. Ross & Helen Workman professor of land business at the University of Illinois College of Law; and Jeff Wolfe, chief executive officer of groSolar. Copies of witnesses’ prepared testimony and an archived webcast of the hearing are available online at http://epw.senate.gov.