Biofuels and the Smart Grid in the ARRA

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1 Biofuels and the Smart Grid in the ARRA Presented by: Graham Noyes Stoel Rives LLP Webinar Hosted by Biofuels Journal and Wind Today 14 April 2009

2 The Energy Law Firm of Stoel Rives 100-Year tradition of excellence Involved in 40% of Wind Projects in US The Primary Legal Provider for Biofuels Projects in US Actively Pursuing Stimulus Funds for Clients Substantial Free Legal Resources:

3 Biofuels in the Stimulus Bill American Recovery and Reinvestment Act of 2009 (ARRA)= Stimulus Bill Expansion of Loan Guarantee Program Renewable Energy Grants- Relevant? Ethanol and Biodiesel VEETC Credit Issues- Not in ARRA Other Pending Legislative Activities

4 Renewable Energy Loan Guarantees Existing $10 Billion Program Expanded by $6 Billion- $500M Cap for Leading Edge Biofuels Projects that Substantially Reduce GHG s Leverage Funds: 10X Old Program Suffered from Excessive Application Costs, Credit Subsidy Costs Four Year Program Just Awarded First Loan Guarantee to Solyndra, Inc. (Solar) Secretary Chu Promises Streamlining, Rolling Admissions, Reduced Costs Specific Solicitations and New Rules Forthcoming- Need to Prepare

5 Biomass Projects on Short List Alico, Inc. (Florida) This project plans a first-of-a-kind commercial-scale cellulosic ethanol plant that would use multiple feedstocks and produce multiple products. Blue Fire Ethanol, Inc. (California) This project builds a commercial-scale cellulosic ethanol plant using an array of low-cost feedstocks. Choren USA Southeastern, U.S. is the proposed location for this project, which plans to construct an industrial-scale biomass gasification facility for clean synthetic diesel fuels in the United States. Endicott Biofuels, LLC Virginia is the proposed location for this project, which plans to construct a second generation biodiesel and bio-derived products plant that would feature a high level of feedstock flexibility allowing for the production of a broad range of biodiesel fuels.

6 Biomass Projects on Short List Iogen Biorefinery Partners, LLC Idaho is the proposed location for this project, which plans to build a biorefinery to produce ethanol from a wide range of cellulosic feedstocks and to produce other byproducts of value to several industries. Voyager Ethanol, LLC Iowa is the proposed location for this project, which plans to build a cellulosic ethanol plant that can accommodate multiple feedstocks in the production of ethanol and higher value byproducts.

7 ARRA Grants $2.5 Billion in Grants for Renewable Energy Systems Includes Thermal Energy Power Rather than Fuel Focused Other Grant Programs Provide Higher Likelihood for Biofuels

8 Other Biofuel Proceedings of Import RFS II: Regulations Pending Advanced Biofuels Definition- GHG Reduction Indirect Land Use Change New RIN Categories Carbon Cap and Trade vs. Carbon Tax EU Preliminary Tariff on US Biodiesel Based on Countervailing Duty and Dumping Allegations

9 What is a Smart Grid? Imprecise Term Following Components Are Important: Expansion of Transmission Capability Improve Demand Control- Smart Devices Improve Management Control- Smart and Quicker Oversight Improve Supply Control- Reduce Spinning Reserves Bridge Gaps- 30% Coal Generation; 70% Old 30+ Year Old Plants Renewable Orientation to Achieve 25% by 2025

10 Smart Grid in the ARRA Key Energy Focus of ARRA $4.5 Billion to Modernize Grid $2 Billion for Advanced Batteries Study of Electric Transmission Congestion Increase Federal Matching Grants from 20% to 50% $6.5 Million for Capital Investments by Federal Power Marketing Administrations

11 Related Legislative Activities Other Legislative Activity: Reid and Bingaman Transmission Bills Senator Reid s Bill- Most Comprehensive T. Boone Pickens- announced supporter Federal Government Control Over Planning, Process and Power of Eminent Domain Renewable Energy Zones with 1 GW Potential Renewables Are Advantaged in Planning

12 Stoel Rives: The Leading U.S. Firm in Renewable Energy Thanks for Your Attention Graham Noyes