Energy & Clean Tech Connections (February 2011)
2/25/2011
In the February edition of Energy & Clean Tech Connections, we’ve gathered recent information from a wide variety of sources in an effort to keep you abreast of what’s new in the world of clean energy. We draw your attention to the latest industry developments, news from local governments to Capitol Hill, grant opportunities, and upcoming events.
This month, the Energy & Clean Technology Practice Group would like to congratulate Mintz Levin clients INEOS Bio and Enerkem, both of whom were chosen to receive loan guarantees as part of the United States Department of Agriculture’s (USDA) Biorefinery Assistance Program. The USDA selected INEOS Bio to receive a $75 million loan guarantee to construct a biorefinery capable of producing eight million gallons per year of cellulosic ethanol and having a gross electricity production capacity of six megawatts. The USDA also selected Enerkem to receive an $80 million loan guarantee to build and operate a biorefinery capable of producing 10 million gallons of advanced biofuel per year.
In U.S. news, President Barack Obama unveiled his fiscal year (FY) 2012 $29.5 billion budget request for the Department of Energy this month. Highlights of the budget include the following: $3.2 billion for energy efficiency and renewable energy programs; $300 million in credit subsidies to support $3 to $4 billion in renewable energy and energy efficiency projects; $550 million for Advanced Research Projects Agency-Energy (ARPA-E) to continue supporting early-stage research projects; $36 billion in loan guarantee authority to help jump-start the domestic nuclear industry; and $146 million to support three existing Energy Innovation Hubs and to establish three new hubs in the areas of batteries and energy storage, smart grid technologies and systems, and critical materials. The budget also includes proposed repeals and reductions to several programs—most notably repealing a number of subsidies and tax preferences available for fossil fuels.
On Capitol Hill, government funding has been the central focus this month with the House voting (235–189) to cut $61 billion from FY 2010 spending levels (approximately $100 billion below what the President requested for FY 2011). No Democrats voted for the continuing resolution (H.R. 1), which will now go to the Senate for consideration.
The resolution would eliminate any unobligated economic stimulus funds approved in the Recovery Act, saving an estimated $2 billion. The energy and water budget would be reduced by 11% from the 2010 enacted level to $29.2 billion. The interior and environment budgets would be reduced 14% from the 2010 enacted level to $27.8 billion. The Environmental Protection Agency’s budget would be cut by $3 billion to 29% below the FY2010 enacted level. Additionally, the measure, as passed by the House, includes an amendment from Representatives John Carter (R-TX), Ted Poe (R-TX), and Joe Barton (R-TX) that prevents the Environmental Protection Agency from implementing regulations that limit greenhouse gas emissions. Congressional Republicans will face an uphill battle on the continuing resolution as it must go through the Democratic-controlled Senate and a potential presidential veto.
We hope that you enjoy this month’s edition of the newsletter. For the most up-to-date information on federal legislation and programs, read the most recent ML Strategies Energy and Environment Update. In addition, read our weekly California Energy and Environment Update, which provides reporting on energy- and environment-related legislative, regulatory, and legal issues in California.
