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Businesses and Policymakers Confirm Mexican Energy Reforms Are Gaining Momentum
Earlier this year, a group of Stoel Rives attorneys traveled to Mexico to assess existing opportunities and pending developments in the Mexican power markets. Some of the reforms and key trends identified during that trip are now taking shape. See also my blog post "Let the Market Decide: The Third Wave of Energy Investment in Latin America and Caribbean."
Our work in Mexico included meetings with existing clients, senior partners of a major Mexican law firm, a briefing with a senior Mexican policymaker regarding implementation of the reforms and attendance at the Mexican International Renewable Energy Conference. Here are some key "take-aways" from these meetings:
- A Mexican renewable energy market has been successfully launched, with more wind than solar developed to date.
- A package of "secondary" laws implementing Mexico's energy reform legislation are pending in the Mexican Congress.
- The secondary laws will include some form of renewable portfolio standard (e.g., 30% by 2024) that relies on (among other elements) renewable energy certificates.
- The secondary laws are also expected to launch a wholesale electricity market, a demand response market and other provisions designed to encourage distributed generation.
- Solar module manufacturers and other stakeholders are concerned about the government's decision to apply a 15% import tax on electrical "generators" to non-NAFTA solar modules.
Last week, the Mexican Senate's Joint Energy and Legislative Studies Commission approved 15 secondary laws, including one allowing private generators with a capacity equal to or greater than 0.5 megawatts to sell electricity in the wholesale markets beginning next year, and the Mexican Senate approved key aspects of the law yesterday (July 20, 2014). This marks an important step towards the creation of a market for independent power producers in Mexico.
Earlier this year Cemex announced the $650 million Ventika project, which contemplates construction of two wind farms of 126 MW each for a total rated capacity of 252 MW. Operation of the wind farms, which will supply renewable energy to facilities owned by Femsa, Deacero, Tecnológico de Monterrey and Cemex, is expected to commence by the second quarter of 2016.
Bimbo launched the Piedra Larga wind farm in Oaxaca in 2012, which now supplies clean energy to all of Bimbo, Barcel and El Globo's factories. Other companies have shown interest in renewables. For example, Marnhos construction company is looking at building two wind farms in Campeche and Yucatan.
Cemex and Walmart were among the first to announce their interest in entering the wholesale markets, in effect seeking to compete with the Comisión Federal de Electricidad (the incumbent monopoly provider). They have been joined by other large consumers of electricity interested in developing generation plants for "self-supply," including Grupo Alfa, Grupo Salinas, Bimbo, Telmex, Condumex, Peñoles, Minera Autlán and Sabritas.
The government intends to mobilize more private capital for new power plant construction in order to meet the growing demand for electricity, particularly in remote regions currently lacking reliable electric service. To this effect, the Executive Branch will create a national energy control center responsible for operating the wholesale market and assuring open access to the grid, within 120 calendar days after the Law Regulating the Electricity Industry becomes effective.
In short, Mexico's electric sector reforms are targeting:
- Increased private investment in power generation through a competitive wholesale market.
- Sustained development of clean energy projects through portfolio standards and renewable energy credits, with a target to generate 35 percent of electrical energy from non-fossil sources.
- More flexibility in developing bilateral power purchase contracts that extend beyond the current "self-supply" model and with a particular focus on attracting new commercial and industrial end-users.
If you would like to learn more about new business opportunities made possible by Mexico's ongoing energy reforms, please contact me at firstname.lastname@example.com or (202) 398-1796.
California Public Utilities Commission Sets Agenda to Consider RPS Expansion
Assembly Bill (AB) 327 took effect in California at the first of the year, giving the California Public Utilities Commission (CPUC) authority to expand the State's 33% Renewable Portfolio Standard (RPS). This week, the CPUC extended its RPS proceeding to determine, before February 2015, how to implement the new law. AB 327 provides that the CPUC may require the State's investor-owned utilities to procure renewable energy in excess of 33%, but the law does not mandate an expansion of the RPS. As the utilities have almost filled their procurement needs to meet the 33% requirement, the market for utility-scale renewable projects in California will likely continue to shrink without an expanded RPS. The CPUC's ruling left the scheduling of the work to implement AB 327 to the assigned ALJs and Commissioner. We will be alert for opportunities to participate in the CPUC's further proceedings to implement AB 327. In the short term, there is an opportunity to comment on the CPUC's consideration of the Renewable Auction Mechanism (RAM) program. Any comments are due January 30th. The fifth, and presently last-scheduled, RAM auction is to occur no later than June 2014. Expect a Proposed Decision from the CPUC on the fate of the RAM in 2Q 2014.
7th Circuit Affirms FERC's Decision on Multi-Value Projects, Relying Heavily on Policy of Promoting Wind Development
From my colleague, Andrew Moratzka:
On June 7th, 2013, the United States Court of Appeals for the Seventh Circuit issued an opinion in Illinois Commerce Commission, et al., v. Federal Energy Regulatory Commission, affirming the Federal Energy Regulatory Commission's approval of the Midcontinent Independent System Operator, Inc. (MISO) Multi-Value Project (MVP) tariff for financing new high-voltage power lines that largely serve remote wind farms.
Six issues were before the court: (i) the proportionality of benefits to costs for MVPs; (ii) the procedural adequacy of the previous proceedings; (iii) the propriety of an energy-cost allocator for MVPs; (iv) whether MISO should be allowed to add an MVP fee to utilities belonging to the PJM Interconnection, LLC ("PJM"); (v) whether MISO should be permitted to assess some costs associated with MVPs; and (vi) whether the Commission's approval of the MVP tariff violates the Tenth Amendment to the Constitution by invading state rights. The fourth and fifth issues were remanded. And the court quickly dismissed the sixth issue at the outset of the opinion, stating that the arguments amounted to an assertion that the MVP tariff "provides a carrot that states won't be able to resist eating." This entry therefore focuses on issues (i) – (iii).
The court addressed issues (i) and (ii) together. There are two important takeaways in this section of the opinion. First, MISO's burden of establishing rough proportionality of costs to benefits under the Federal Power Act arguably changed in the name of policy. The court stated that "The promotion of wind power by the MVP program deserves emphasis" and that wind power will probably "grow fast and confer substantial benefits on the region." The court determined there was "no reason to think these benefits will be denied to particular subregions of MISO" and found that other benefits (e.g., reliability) were real, even though they couldn't be calculated in advance. The court then went on to find that MISO's and FERC's efforts to match cost and benefits, even if crude, were sufficient. It is not entirely clear how this aspect of the opinion can be reconciled with the court's previous opinion in Illinois Commerce Commission v. FERC. But it appears the policy of promoting wind power influenced the decision in this case. Moreover, the court rejected requests for an evidentiary hearing on this issue, on the basis that requiring such proceedings after two years of appeal "would create unconscionable regulatory delay."
The second takeaway is a comment made by the court in response to a criticism raised by the State of Michigan, which claimed it would not benefit from out-of-state MVPs because a provision in Michigan law forbids Michigan utilities from counting renewable energy generated out of the state to satisfy requirements under the state's Clean, Renewable, and Efficiency Act of 2008. The court stated that Michigan cannot discriminate against out-of-state renewable energy without violating the commerce clause of Article I of the Constitution. This statement could have significant ripple effects on similar laws around the country that give preference to in-state renewable resources or impose limits on imported generation.
The policy of promoting wind development also seemed to influence issue (iii). The court found that the objection to an energy allocator was refuted by the fact that a primary goal of the MVPs is to increase the supply of renewable energy. It acknowledged that wind production is intermittent and not a reliable source of energy to meet peak demand. But the court concluded that MVP lines will enable plants to serve off-peak demand and stated that "MISO and FERC were entitled to conclude that the benefits of more and cheaper wind power predominate over the benefits of greater reliability brought about by improvement in meeting peak demand."
California Court Sides with Solar Project in Williamson Act Challenge
My California colleague Kristen Castaños has written an alert about a recent Fresno County Superior Court decision that denied a challenge to Fresno County's cancellation of a Williamson Act contract to accommodate a solar generating project.
The decision is the first time a court has considered the interplay between the Williamson Act, a California statute that seeks to protect agricultural land, and California's directive to increase reliance on renewable energy in the state. In rejecting the challenge, the court gave the County substantial deference to determine whether the public interest in developing solar projects outweighs the public interest in protecting agriculture.
You can read Kristen's complete alert at our firm's website. *UPDATE: Kristen was interviewed by the Fresno Bee about this case. Read a summary here.
Southwestern Public Service Company Seeks Renewable Energy
Southwestern Public Service Company ("SPS"), a subsidiary of Xcel, has issued a request for proposals to diversify its existing renewable energy portfolio in New Mexico. SPS is seeking, on an annual basis, approximately 88,705 MWh of "Other" renewable energy generation as defined by the New Mexico Public Regulation Commission Rule 572 NMAC (i.e., other than solar and wind) or an equivalent amount of biogas of approximately 665,300 MMBtu to be in commercial operation no later than January 1st, 2015.
Bidders that intend to submit a proposal are REQUIRED to submit a Notice of Intent to Bid no later than Friday August 31st, 2012. The submission deadline is 5:00 P.M. Mountain Time on Monday, October 1st, 2012. More information can be found here on Xcel Energy's web site.
CPUC Adopts Decision Implementing RPS Portfolio Content Categories
A legal update from our colleagues Seth Hilton and Allison Smith:
On December 15, 2011, the California Public Utilities Commission adopted Decision 11-12-052, implementing Portfolio Content Categories for the 33% Renewables Portfolio Standard (RPS) Program in California. The Decision implements portions of Senate Bill (S.B.) x1-2, which created the 33% RPS Program. S.B. x1-2 established three categories of RPS-eligible electricity, applicable to RPS contracts executed after June 1, 2010:
- Category One includes electricity from RPS-eligible resources that have their first point of interconnection with a California balancing authority, RPS-eligible resources with a dynamic transfer arrangement with a California balancing authority, and RPS-eligible resources scheduling their electricity directly into a California balancing authority without substituting electricity from another source.
- Category Two includes firmed and shaped RPS-eligible electricity.
- Category Three includes transactions that do not meet the criteria of Category One or Two, including unbundled renewable energy credit (REC) transactions.
Click here to read the entire update on the Portfolio Content Categories and this decision.
Governor Brown Signs Bill Increasing California's Renewable Portfolio Standard to 33%
A Legal News Alert from Seth Hilton and the Stoel Rives Renewable Energy Law Group:
California's Governor Jerry Brown signed Senate Bill ("SB") X1-2 on Tuesday requiring California's electric utilities to procure 33% of their energy from renewable resources by 2020. Upon signing the bill, Governor Brown stated the "bill will bring many important benefits to California, including stimulating investment in green technologies in the state, creating tens of thousands of new jobs, improving air quality, promoting energy independence and reducing greenhouse gas emissions."
Details concerning the implementation of the new legislation will have to be worked out at various California regulatory agencies, including the California Public Utilities Commission and the California Energy Commission. The legislation will likely spawn numerous regulatory proceedings as the various regulatory agencies struggle to come to grips with the new RPS mandate.
For more information about SBX1-2, please see our earlier blog post and detailed Renewable Energy Law Alert, dated March 29, 2011.
Non-Profit Groups Challenge Colorado's RES and Question Public Policy Favoring Wind Energy
Stoel Rives partner Bev Pearman reviewed the complaint filed Monday in American Tradition Institute, et al., v. Colorado and prepared this analysis:
On April 4, 2011, the American Tradition Institute ("ATI"), the American Tradition Partnership ("ATP"), and Rod Lueck filed suit in the U.S. District Court for the District of Colorado arguing that Colorado is unconstitutionally discriminating against out-of-state renewable energy producers. ATI is a nonprofit organization "dedicated to the advancement of rational, free-market solutions to America's land, energy, and environmental challenges," and ATP is a lobbying organization "dedicated to fighting environmental extremism and promoting responsible development and management of land, water, and natural resources in the Rocky Mountain West and across the United States." Rod Lueck is a member of ATI and ATP.
Colorado's renewable energy standard ("RES") states that by 2020 the state's two major investor-owned utilities must get 30 percent of electricity sold from recycled or renewable resources. Renewable energy resources are "solar, wind, geothermal, biomass, new hydroelectricity with a nameplate rating of ten megawatts or less, and hydroelectricity in existence on January 1, 2005, with a nameplate rating of thirty megawatts or less." "Fossil and nuclear fuels and their derivatives" are not "eligible energy resources" for complying with the RES. Additionally, each kilowatt of electricity generated in Colorado from certain recycled or renewable sources is given an enhanced value of one and one-quarter kilowatt-hours for purposes of meeting the mandated standards.
Plaintiffs raise both a sweeping Commerce Clause claim and a more focused Commerce Clause claim. The sweeping claim is that the statutory scheme is unconstitutional because it discriminates against non-renewable generation resources, both in-state and out-of-state, with plaintiffs alleging that such non-renewable generation is "legal, safer, less costly, less polluting and more reliable than renewable generation. A more focused claim is that the statutory preference given to in-state renewable electricity establishes a "market-bias against otherwise qualifying renewable sources located outside of Colorado and an inflated cost of complying with the RES requirements."
Plaintiffs' Commerce Clause claim is grounded in a U.S. Court of Appeals for the Tenth Circuit's decision in KT&G Corp. v. Attorney General of the State of Oklahoma, 535 F.3d 1114, 1143 (10th Cir. 2008), which says a state may violate the dormant Commerce Clause by:
· Discriminating against interstate commerce in favor of intrastate commerce, unless "the discrimination is demonstrably justified by a valid factor unrelated to economic protectionism;" or
· Imposing "a burden on interstate commerce incommensurate with the local benefits secured;" or
· Creating mandates with the "practical effect of extraterritorial control of commerce occurring entirely outside the boundaries of the state in question."
We expect that Colorado will vigorously defend the RES as being constitutional because its interest in promoting renewable energy generation is an important policy choice. Plaintiffs are attacking that position head-on, however, by challenging the policy of favoring renewable resources, particularly wind energy. They allege that wind energy is not reliable, causes more pollution due to the cycling of coal and natural gas plants during times when wind generation is not possible, and drives up utility costs for consumers. They do not attack other forms of renewable energy as vociferously, but still argue that any scheme favoring renewable resources over other energy sources burdens interstate commerce and violates the Commerce Clause.
The more focused claim (based on the preference given in-state renewable resources) is similar to a Commerce Clause challenge was brought nearly a year ago in Massachusetts by TransCanada Power Marketing, Ltd. ("TransCanada"). The Massachusetts suit did not challenge the policy of promoting renewable energy over non-renewable energy sources. It instead focused on renewable energy mandates and incentives favoring in-state generation. We do not know what arguments Massachusetts would have raised in defense of its program because the case was stayed after the state suspended the regulation underlying the statute in question. It issued emergency regulations, which were later adopted as final regulations, but the statute that establishes the challenged policy has not been amended. On April 1, 2011, the Alliance to Protect Nantucket Sound, an advocacy group that is leading the opposition to the Cape Wind project, filed a motion to intervene in that proceeding. It argued that TransCanada does not represent the interests of Massachusetts ratepayers. Their economic interests are allegedly harmed because the program at issue discourages utilities from entering long-term contracts with out-of-state generators, which has the effect of reducing out-of-state competition and increasing the cost of renewable energy for ratepayers.
The outcome of both of these cases could have far-reaching effects on other state's RESs and renewable portfolio goals (RPGs). If the plaintiffs are successful with their claims, then the states with RESs and RPGs may have to modify their standards so they are not discriminating against out-of-state renewable energy generators. As we have noted before, the RESs with regional preferences may not be as much at risk. A key question that the courts have yet to answer are whether the RESs and RPGs create protectionist barriers to interstate trade. Check here for regular updates as these groundbreaking cases moves forward.
Legislature Passes SBX1-2 to Increase California RPS to 33%
Legal News Alert from Stoel Rives Renewable Energy Law Group
The California Legislature has passed Senate Bill ("SB") X1-2, which requires California's electric utilities to increase their renewable generation to 33% by 2020. Passage of the legislation is the culmination of years of effort to increase California's Renewable Portfolio Standard ("RPS") from its current 20%. In 2009, the Legislature passed SB 14, which also would have increased California's RPS to 33%, but the bill was vetoed by Governor Schwarzenegger on the ground that it imposed too many restrictions on the use of out-of-state generation to meet California's RPS requirement. Governor Schwarzenegger then issued an executive order directing the California Air Resources Board to develop its own 33% Renewable Energy Standard under the Board's authority pursuant to Assembly Bill 32, the Global Warming Solutions Act of 2006. Last year, the Legislature again tried to pass another 33% RPS bill, SB 722, but the session expired before the legislation could reach a final vote. Two bills were introduced in this session: SB 23 and SBX1-2. SBX1-2 was identical to SB 23, but it was introduced in special session in an attempt to speed passage of the legislation. SBX1-2 now goes to Governor Brown for signature, and he is expected to sign the legislation into law.
For more background and information on the decision and its implications, click here.
All Party Meeting Concerning California's 2011 RPS Procurement
My partner Seth Hilton attended last Friday's all-party meeting on California's 2011 RPS procurement and prepared the following update:
On February 11, 2011, California Public Utilities Commission (CPUC) Administrative Law Judge Burton Mattson issued a Proposed Decision (PD) conditionally accepting the 2011 Renewables Portfolio Standard (RPS) Procurement Plans for Southern California Edison (SCE), Pacific Gas and Electric Company (PG&E), and San Diego Gas and Electric Company (SDG&E). If adopted, the Decision would set a schedule for the utilities' 2011 RPS solicitation. The PD was on the agenda for the CPUC's March 24, 2011 business meeting, but was held at Commissioner Florio's request until the April 14 meeting.
On March 25, Commissioner Florio held a well-attended all-party meeting on the PD. Among the issues raised by Commissioner Florio was where California's investor-owned utilities stood relative to the current RPS procurement targets and the targets contained in pending legislation (SBX1-2), and whether a 2011 RPS solicitation was necessary.
All three investor-owned utilities—PG&E, SCE and SDG&E—stated that holding a 2011 RPS solicitation would be prudent. PG&E stated that it was on track to meet the current 20% RPS this year and through 2013. However, future compliance, especially with the higher procurement targets under SBX1-2, is dependent on several large projects that are scheduled to come online in the next few years. Any delay or failure of those projects would require PG&E to procure additional resources to get to the 2016 target under SBX1-2, and therefore holding a solicitation this year made sense.
According to SCE, a 2011 solicitation would be prudent for a number of reasons, not only to assist SCE to reach the goals in SBX1-2. SCE noted that a solicitation would be beneficial for current contract administration by setting the price for any replacement power and that annual RPS solicitations were important for maintaining a vigorous RPS market.
SDG&E stated that it too was not done with procurement and would need further procurement to comply with the 2016 goal under SBX1-2.
Other parties also advocated in favor of a 2011 solicitation, with TURN noting that there may be some bargains available to the utilities due to the fact that no RPS solicitation was held last year and that competition would be fairly robust for RPS contracts.
The Division of Ratepayer Advocates was one of the few dissenters (along with CARE), arguing that because a new cost containment mechanism would apply under SBX1-2, the CPUC should consider waiting until it had addressed cost containment before commencing a new RPS solicitation.
The parties also discussed various issues to be resolved by the PD, including how economic curtailment should be handled in the pro forma RPS contract, congestion adders and integration cost adders. As currently drafted, the PD would require all three utilities to amend their pro forma agreements to use the economic curtailment provisions proposed by PG&E, which would allow utilities to economically curtail projects up to five percent of the project's expected annual generation, for which PG&E would pay the project the full contract price but would not reimburse the project for any lost production tax credits. The California Wind Energy Association noted that although it supported PG&E's proposal, the proposal should be amended to make it clear that the cap applies to any economic curtailment caused by the utility, even if the curtailment was in fact ordered by the California Independent System Operator, and to provide for the payment of any lost production tax credits as well.
As for congestion adders, the PD would require the utilities to consider congestion costs when evaluating projects and order the utilities to release congestion cost information in their 2012 and future plans, so that project developers will be fully informed when making siting decisions.
Finally, the PD declined to allow the use of integration cost adders when evaluating bids, despite both SCE's and SDG&E's requests that they be permitted to do so.
If you have any further questions on this all-party meeting or any other California energy regulatory issue, please contact:
Seth Hilton at (916) 319-4749 or email@example.com
Bill Holmes at (503) 294-9207 or firstname.lastname@example.com
Jennifer Martin at (503) 294-9852 or firstname.lastname@example.com
On February 11, 2011, California Public Utilities Commission (CPUC) Administrative Law Judge Burton Mattson issued a Proposed Decision conditionally accepting the 2011 Renewables Portfolio Standard (RPS) Procurement Plans for Southern California Edison, Pacific Gas and Electric Company, and San Diego Gas and Electric Company. If adopted, the Decision would set a schedule for the utilities' 2011 RPS solicitation. The Decision was on the agenda for the CPUC's March 24, 2011 business meeting, but was held at Commissioner Florio's request until the April 14 meeting.
On March 17, 2011, Commissioner Florio noticed an all-party meeting on the Proposed Decision for March 25, 2011. Yesterday, Commission Florio circulated an agenda for the meeting. Among the issues raised by the agenda is whether an RPS solicitation in 2011 is necessary and prudent.
Stoel Rives' Partner Seth Hilton will be present at the all-party meeting, and will provide an update afterwards.
Washington State Legislature introduces another bill putting pressure on State RPS
The second of two bills that would drastically impact the Washington State Renewable Portfolio Standard (RPS) was recently introduced in the Washington State Legislature. HB 1890 would cut in half the amount of energy utilities are required to obtain from new renewable resources, and also allow them to offset renewable energy requirements with energy from fresh water sources and sources that predate March 31, 1999.
Currently, electric utilities in Washington that serve more than 25,000 customers are required to obtain the following percentages of their electricity from new renewable resources:
- At least 3% by January 1, 2012
- At least 9% by January 1, 2015
- At least 15% by January 1, 2020
This has been the case since the passage of the Washington Energy Independence Act (EIA) in 2006. HB 1890 would cut these percentages in half -- requiring eligible utilities to acquire only 1.5% of their energy from renewable sources by 2012, only 4.5% by 2015, and only 7.5% by 2020.
In addition, the EIA treats as eligible only incremental electricity produced as a result of efficiency improvements completed after March 31, 1999 and excludes energy from fresh water resources. HB 1890, however, would count as eligible all electricity from an existing generation facility powered by a fresh water renewable resource that commenced operation before March 31, 1999. In other words, fresh water energy resources that have been operating since before March 31, 1999 -- and are unchanged and unimproved since that time -- would count toward the RPS.
For more information on this bill including its full text, see the Washington State Legislature website.
Washington HB 1890 is sponsored by Rep. Brad Klippert (R-8th Dist.), Rep. Jan Angel (R-26th Dist.), Rep. Dan Kristiansen (R-39th Dist.), Rep. Shelley Short (R-7th Dist.), Rep. Larry Haler (R-8th Dist.), Rep. Barbara Bailey (R-10th Dist.), and Rep. Jim McCune (R-2nd Dist.). It was introduced and referred to the Environment Committee on February 8, 2011.
Another bill that would essentially wipe out the Washington State RPS altogether was introduced earlier this session. The blog post on that bill, SB 5563, is available here.
Washington Senate Bill has potential for eliminating state renewable energy requirements
Currently, electric utilities in Washington that serve more than 25,000 customers are required to obtain the following percentages of their electricity from new renewable resources:
- At least 3% by January 1, 2012
- At least 9% by January 1, 2015
- At least 15% by January 1, 2020
This has been the case since the passage of the Washington Energy Independence Act in 2006. The current Legislature has introduced a bill which, if passed, would essentially wipe out these RPS requirements. SB 5563 -- which was introduced in the Washington State Legislature on January 31, 2011 -- plainly states its intention of "temporarily suspending provisions of the energy independence act during periods of economic downturn." If SB 5563 passes, qualifying utilities would be deemed to have met the 2012 target and, from 2015, the target for any year in which the the Washington unemployment rate goes above six percent. Furthermore, utilities would be deemed to have met their renewable target not only for that year but for four subsequent years, regardless of the unemployment rate during the look back period.
A historical look at Washington's unemployment rate shows that a look back period for four years would be able to eliminate the RPS standards in even the most prosperous economic times. For example, Washington state's unemployment rate[1] for the past 20 years was below 6% during only five calendar years (1998, 1999, 2000, 2006, 2007) and never for more than three consecutive years. That means if SB 5563 had been in effect for the past two decades -- decades that included some of the most robust economic times this generation has known -- at no time would utilities have been required to meet the renewable energy requirements of the EIA. Given where the U.S. economy currently stands, it's highly unlikely SB 5563 would play out any differently for the next 20 years, much less between now and 2020.
For more information on this bill including its full text, see the Washington State Legislature website.
Washington SB 5563 is sponsored by Sen. Jerome Delvin (R-8th Dist.), Sen. Mark Schoesler (R-9th Dist.), Sen. Mike Hewitt (R-16th Dist.), Sen. Jim Honeyford (R-15th Dist.), and Sen. Tim Sheldon (D-35th Dist.) and was referred to the Environment, Water & Energy Committee on January 31, 2011.
[1] Not seasonally adjusted.
The California Public Utilities Commission Lifts Moratorium on Approval of Tradable Renewable Energy Credit Transactions; Limits Use of Out-of-State Generation for California RPS Compliance
A legal update from our colleague Seth Hilton:
Ten months after initially authorizing the use of tradable renewable energy credits (TRECs), the California Public Utilities Commission (CPUC) today lifted its moratorium on approval of TREC transactions. CPUC Dec. 11-01-025. Today's decision, however, retains restrictions on TREC transactions that could limit the amount of out-of-state generation that the three major investor-owned utilities can use to meet their California Renewable Portfolio Standard (RPS) obligations.
At its March 11, 2010 meeting, the CPUC authorized the use of TRECs for compliance with the RPS, subject to certain limitations. CPUC Dec. 10-03-021 (March Decision). Among the limitations that the March Decision imposed was a cap limiting the use of TRECs for RPS compliance for the largest investor-owned utilities (Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric) to 25% of their annual RPS compliance obligations. That cap was to remain in place until December 31, 2011, when the CPUC would consider modifying or removing that limitation. The March Decision also imposed a price cap of $50 per TREC. The price cap was also set to expire on December 31, 2011.
California Legislature Fails to Pass 33% Renewable Portfolio Standard
An alert written by Stoel Rives partner Seth Hilton:
Last night, the California legislature failed to pass Senate Bill 722—the 33% Renewable Portfolio Standard (RPS) legislation—by the close of the legislative session. The bill would have increased California's RPS to 33% for both investor-owned and publicly owned utilities. It would also have placed limits on the use of renewable resources located out-of-state to meet California's RPS—utilities would have been required to meet a certain percentage of their RPS obligations through resources whose first point of interconnection was a California balancing authority, or whose power is transmitted to California through a dynamic transfer arrangement or scheduled hourly or inter-hourly into California. The proposed legislation also would have authorized the use of renewable energy credits (RECs)—the environmental attributes of renewable power separated from the power itself—for RPS compliance, but would have imposed limits on the amount of RECs that could be used to meet the utilities' RPS obligation.
Last year, California also failed to enact a 33% RPS bill, similar to SB 722, although the process proceeded farther than this year. Last year, the legislature passed the bill, but it was vetoed by Governor Schwarzenegger due to concerns about the limits placed on the use of out-of-state generation. Like SB 722, last year's bill would have limited the extent to which California could rely on out-of-state renewable resources to meet California's RPS. Part of the failure of SB 722 to pass this year can be attributed to disagreements between the legislature and the Governor regarding what limits would be appropriate for out-of-state generation.
Despite his concern about limits on out-of-state generation, Governor Schwarzenegger supports increasing California's RPS to 33%. Following his veto of the legislation last year, he issued an executive order directing the California Air Resources Board (ARB) to develop regulations to implement a 33% RPS under authority the ARB had under AB 32, California's Global Warming Solutions Act. Pursuant to the executive order, the ARB was to enact those regulations by July 2010. Shortly before the ARB considered those regulations, the Governor requested via letter to the ARB that it postpone consideration of those regulations while the legislature attempted to pass a 33% RPS bill. ARB therefore moved the hearing on those regulations to September 22, 2010. With the failure of SB 722, ARB may now move forward with those regulations, although there are questions regarding the extent to which those regulations would be implemented by the new Governor.
In March, the California Public Utilities Commission (CPUC), which is responsible for administering portions of California's current 20% RPS for investor-owned utilities, adopted a decision that would have authorized the use of RECs to meet the 20% RPS, subject to certain caps. In May, the CPUC stayed that decision. If SB 722 were enacted, it would have preempted the CPUC's efforts to set standards for the use of RECs. Just last week, the CPUC issued a proposed decision that, if adopted, will lift the stay. The proposed decision was seen by many as an effort to encourage the legislature to act on SB 722 and adopt standards for the use of RECs. Now that the legislation has failed, the CPUC is free to move forward with its proposed decision allowing the use of RECs, and to lift the stay of the March decision.
If you have any questions about the issues of this update, please contact:
Steven Hall at (503) 294-9434 or firstname.lastname@example.com
Seth Hilton at (916) 319-4749 or firstname.lastname@example.com
Jennifer Martin at (503) 294-9852 or firstname.lastname@example.com
Marcus Wood at (503) 294-9434 or email@example.com
Tradable RECs Now Count Toward California's RPS
On Thursday March 11, 2010, the California Public Utility Commission (the "CPUC") created a market for tradable renewable energy credits ("TRECs") in the state. That's big news. In its 149-page decision, the CPUC stated that investor-owned utilities ("IOUs"), energy service providers, and community choice aggregators may now use TRECs to comply with California's ambitious renewable portfolio standard ("RPS"). These entities are now permitted to purchase a portion of their RPS compliance from generation sources other than those they own (e.g., distributed solar generation facilities within the state and certain out-of-state facilities).
Think of a renewable energy credit as the "green" portion of a unit of electricity generated from an RPS-eligible facility (e.g., wind, solar, geothermal). Together, the "green" renewable energy credit and the unit of electricity that it came with are bundled; separate them, and they become unbundled. The CPUC's decision allows an RPS-eligible generator to unbundle the renewable energy credits and sell them separately from the electricity they were generated with. Thus, the renewable energy credits become tradable (i.e., TRECs).
The CPUC made its decision to allow the unbundling of renewable energy credits for two main reasons, both of which seem perfectly reasonable in light of California's push toward distributed solar generation and the conflict that is created when utilities need to meet ever-increasing RPS requirements in an atmosphere of stringent siting regulations for new projects under the California Environmental Quality Act.
- First, the CPUC created a market for TRECs to aid utilities with RPS compliance.
- Second, the TREC market is intended to incentivize development of more RPS-eligible generation, like rooftop solar modules.
A few highlights of the CPUC decision deserve particular attention:
25% Cap on TRECs: IOUs may only meet 25% of their RPS requirement with TRECs under the program. However, that 25% cap will be lifted in 2011 (unless the CPUC changes its mind).
Interim Price Cap: The CPUC set a price cap of $50 per TREC that is used for compliance by an IOU. However, that price cap will also be lifted in 2011 (unless the CPUC changes its mind).
3-Year Tradable Life: To count TRECs toward its RPS requirement, a participating utility must meet CPUC requirements for TREC-trading and Western Renewable Energy Generation Information System ("WREGIS") requirements for TREC-tracking. During the first 2-3 years of the program, the CPUC does not expect much activity in the market; so to ensure liquidity, new TRECs must be retired with WREGIS within 3 years from the date the TREC was created. "Retiring" a TREC means that the ultimate owner has applied the TREC's compliance value to the owner's California RPS requirement with WREGIS and the TREC is taken out of the market. However, once retired, a TREC's compliance value may be banked indefinitely.
TRECs Under Existing Contracts: TRECs generated in future years under existing RPS contracts (i.e., TRECs generated from this day forward) may be unbundled and sold separately under certain conditions set out in the CPUC's ruling.
Out-of-State Suppliers & Bundled Transactions: Bundled transactions must benefit California-customer load. Therefore, only electricity that comes from (1) California-connected generators and (2) out-of-state suppliers that can demonstrate that the bundled product that they deliver to California is not "shaped" using non-RPS-eligible resources, may qualify.
No Bundled Transactions for In-State Generators Selling Out-of-State: When an IOU purchases renewable energy credits (whether bundled or unbundled) from a generator located in California that sells its electricity outside of the state, the CPUC will consider that an unbundled purchase for purposes of reporting and retiring the credits. Therefore, renewable energy credits bought from an RPS-eligible generator serving out-of-state loads will count toward the IOU's 25% cap.
From an economic standpoint, the CPUC hopes that creating a market for TRECs will increase the overall efficiency of the RPS program. By allowing the market to set separate prices for TRECs and for the electricity associated with generating them, the CPUC believes that the public will benefit because the price of each will reflect its actual value.
Upcoming Webinar: Impact of State RPS's and the Prospect of a Federal RPS on What Utilities are Doing in Terms of Purchasing the Output of Wind Farms - January 27, 2010
With 3/5 of the States having Renewable Portfolio Standard in place and the prospect of a Federal RPS, many utilities are seeking to become first time purchasers of the output from wind projects. And utilities with a history of purchasing wind are seeking additional resources. In 2009, the presenters collectively worked on over 40 wind power purchase agreements for projects located throughout the United States, enabling them to present a comprehensive overview of the impact of these developments. A number of first time purchasers have been using the RFP process as a vehicle for educating themselves about wind, and often experience difficulty in translating PPA terms that are appropriate for base load resources into PPA terms that work for intermittent resources like wind. Through various PPA terms, utilities are increasingly seeking to place the risk of non-compliance with the RPS on the wind project developer. These developments can result in PPA terms that are very problematic for the financing of the project. This webinar will explore these recent developments, including issues related to output and availability guarantees, allocation of curtailment risk for long-distance transmission to load, wind integration charges, delay damages, conditions precedent, termination rights and the measure of damages.
Edward D. Einowski, Partner, STOEL RIVES LLP
Teresa Hill, Partner, STOEL RIVES LLP
William H. Holmes, Partner, STOEL RIVES LLP
Jennifer H. Martin, Partner, STOEL RIVES LLP
Marcus Wood, Partner, STOEL RIVES LLP
To register: http://infocastinc.com/index.php/conference/255
CPUC Proposed Decision on TRECs--Comments Due January 19
The California Public Utilities Commission ("CPUC") issued a proposed decision on December 23, 2009 that would, if adopted, allow California investor-owned utilities, energy service providers, and community choice aggregators to purchase renewable energy credits alone, without the associated energy (sometimes referred to as "unbundled renewable energy credits ("RECs)" or "tradable RECs"), to satisfy their obligations under California's RPS. California's largest investor-owned utilities—Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric—would be limited to meeting no more than 40% of their annual procurement targets under the RPS with tradable RECs, and a price cap of $50 would be imposed. The CPUC will revisit both the percentage cap and the cost cap and whether those caps should be revised within 24 months of the decision.
Out-of-state renewable energy projects could be adversely impacted if the proposed order were adopted. The proposed decision would define all renewable generation purchased from out-of-state facilities1 as the purchase of unbundled or tradable RECs, making any out-of-state renewable energy sale subject to the cap that bars the large investor-owned utilities from using such sales to meet more than 40% of their overall RPS obligation. Although the proposed decision states that this classification would apply only to contracts signed on or after the effective date of the decision, contracts signed prior to the effective date would be considered REC-only contracts from the effective date forward, and would be "subject to the limits and rules applying to REC-only contracts" according to the proposed decision. Furthermore, although the purchase of tradable RECs from out-of-state facilities would be permitted, the delivery requirement in the RPS legislation would still have to be met, so a comparable amount of power would have to be imported into the state, along with the RECs. The jurisdiction to determine whether and how this delivery requirement is met, however, still remains with the California Energy Commission.
Comments on the proposed decision are due on January 19, 2010, and reply comments are due January 25, 2010.
For additional information about the history and effect of the proposed decision, see our Stoel Rives alert on the topic.
Detroit Edison Issues RFP for Renewable Energy
Activity is underway in Michigan to implement the state's recently-enacted renewable portfolio standard, which requires the state's electric utilities to serve 10 percent of their retail sales from renewable energy resources by 2015. In late December, Detroit Edison issued a Request for Proposals to purchase Michigan-based renewable energy credits that will help the utility meet the RPS requirements.
The RFP specifies that the renewable energy certificates must come from resources located in Michigan. Under the state's RPS, qualifying renewable technologies include energy produced from wind, solar, landfill gas, biomass, anaerobic digesters, geothermal, hydroelectric dams, industrial cogeneration and gasification facilities. Detroit Edison states that it is seeking long-term agreements with providers.
Bidder questions, which must be posted to the Power Advocate website, are due by Jan. 13, 2009. Responses to the RFP are due by Jan. 23, 2009.
Ohio Power Siting Board Adopts Wind Facility Rules
On October 28, 2008, the Ohio Power Siting Board adopted rules implementing certification requirements for wind generating facilities in the state. The full text of the opinion and order approving the rules identifies the procedural background followed by the PSB and highlights comments received from all interested parties (including utilities, citizen groups, and AWEA). The The rules follow Ohio's passage in May 2008 of an RPS which requires that utilities provide 25% of their retail electricity supply from alternative energy resources by 2025, at least half of which must be generated by renewable resources such as wind.
California PUC Moves to Allow Unbundled RECs
The California Public Utility Commission issued a draft decision on October 29th authorizing the use of unbundled and tradable renewable energy certificates ("RECs" or "TRECs") for compliance with California's RPS.
The draft decision also outlines the structure and rules for a tradable REC market and for integrating these RECs into the RPS "flexible compliance system." Comments are due on Nov. 18, 2008. The draft decision can be found here: http://docs.cpuc.ca.gov/efile/PD/92913.htm.


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You must earn 10,000 points to post other members' whiteboard
Thanks for the birthday wishes.
"Hey, this guy would make a good Democrat in Washington DC!!" That's about right or a good politician period, though not necessarily GOOD! I hope that you had a great Independence Day, sorry I couldn't get to you and others. Enjoy the weekend and week ahead as well.
Happy Independence Day !!!
Thanks dallfo!
This url, http://www-odi.nhtsa.dot.gov/owners/SearchSafetyIssues will let you know if there's ever been a recall for any vehicle you own.
Great post on the EPA! keep up the good work!
Thanks for the Birthday Wishes!! I am getting older every day. Sure beats the alternative!!!
It's our buddy's Ronald777's birthday today. Please stop by his wb to congratulate him if you have a chance.
Thanks akbear90!
Happy Memorial Day to you and your family!
Have a safe & Happy Memorial Day.....remember all those who have passed before us & all those who had served......to help make us what we are today.....

subset: commoncrawl


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Carly Rae Jepsen releases "Tonight I'm Getting Over You" video
Juno-nominated Carly Rae Jepsen this week released the video for "Tonight I'm Getting Over You."
Juno-nominated Carly Rae Jepsen this week released the video for "Tonight I'm Getting Over You."
The year 2012 was a great year in pop music. Although dance (and dance-like songs) still ruled the charts, this year also saw the re-emergence of other genres — RnB saw a boost with Frank Ocean, The Weeknd and Miguel, while the success of Carly Rae Jepsen and Ellie Goulding allowed more traditional pop music to be in the forefront once again.
Before we welcome 2013, here's my list of the top 21 singles of 2012. Last year, I listed my top 11, but there were lots of great songs this year that I had to expand my list to 21.
21 – "Your Body" – Christina Aguilera
Aguilera's 'comeback' didn't exactly happen, but I still loved this flop. Reminiscent of Aguilera's Dirty era, "Your Body" is a filthy, fun pop song.
20 – "Where Have You Been" – Rihanna
Although it sounds like "We Found Love" part 2, Rihanna's "Where Have You Been" is an instant classic. With Ester Dean, Dr. Luke, and Calvin Harris all having a hand at this song, it's no wonder radio ate this up. The lyrics and the infectious instrumental breaks are irresistible.
19 – "Never Close Our Eyes" – Adam Lambert
I'm still confused why Lambert's sophomore album flopped, but that doesn't change the fact that he had some awesome tunes. "Never Close Our Eyes" has a concept most of us are familiar with — it's about dancing the night away because life is short — but Lambert's unique vocals and confident delivery really did it for me.
Nominations for the 55th annual GRAMMY awards were announced tonight, and indie acts dominated the lists.
Critical fave Mumford & Sons and breakout artists Frank Ocean and Fun. lead the pack together with Kanye West, Jay-Z, and The Black Keys' Dan Auerbach with six nominations.
Carly Rae Jepsen's new album Kiss has to be the most feel-good pop album of 2012 so far.
The 17-track LP is full of light pop songs — think "Call Me Maybe" done 17 different ways — all equally as sweet and adorable.
For her next single, Carly Rae Jepsen has chosen an 80s-inspired ear candy. "This Kiss" isn't quite as catchy as "Call Me Maybe", but the pop track is charming, light and singable.
Carly Rae Jepsen's sophomore album Kiss his stores September 18th.
Drop me a line if you have a scoop!


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BUTNER — A Florida-based company that lent its CEO more than $5 million for an Angus cattle ranch and a biography and screenplay about himself has gone into receivership, leaving Duke University Health System and area doctors offices owed more than $8 million for treating patients from Butner federal prison, according to court records and officials of the state medical society.
MDI Holdings Inc., of Ponte Vedra Beach, Fla., had a contract to administer some of the health care for the 5,000 inmates at the prison, subcontracting the work to Duke and local physicians.
The federal government let the Butner contract expire earlier this year after problems surfaced with MDIs finances. Last month, Wells Fargo won a $30 million lawsuit that forced the company into receivership.
This means that apparently Wells Fargo, which had lent MDI $37.5 million over several years, will get any money left at MDI, said Conor Brockett, associate general counsel with the N.C. Medical Society.
The society isnt sure how many of its members are owed money, Brockett said. It has fielded calls from about 10 so far and has begun spreading the word that none are likely to recover a cent from MDI. It has begun investigating, though, whether the Federal Bureau of Prisons has any obligation to pay the outstanding bills for treating its prisoners.
At this point, our take is that they have no chance of getting anything out of MDI because Wells Fargo, as a secured creditor, was first in line, and they are squeezing as much as possible out of the remaining assets to satisfy that debt, Brockett said.
Duke is unsecured creditor
Duke and the various doctors offices who are owed money are unsecured creditors, which puts them further down the list of creditors to be paid from the remains of a collapsing company. A new company is administering the Butner health care contract.
Among the doctors who werent paid is Douglas Holmes, who owns ENT & Audiology Associates in Raleigh. His small office is owed $27,000 to $30,000 for work it did with prisoners.
The problems started last winter, Holmes said, when MDI began sending payments for just a fraction of some bills. It took awhile for the company that handles his billing to notice, because there were payments in each case, just the wrong amount. Then the money stopped coming in altogether.
Holmes said he probably should have caught on more quickly, but a contract being paid by the federal government, albeit through a contractor, didnt seem like something that required close monitoring.
Who provides services to the U.S. government and worries that theyre not going to get paid? he said.
Holmes said he thinks the government is responsible to some degree for the unpaid bills because it should have kept a closer watch on MDI.
Someone in the Bureau of Prisons surely knew they werent doing things properly, but they didnt tell us, and continued to send MDI payments, he said.
One factor in Wells Fargos decision to sue to wrest control of the company from CEO Richard Willich who owned more than half of MDI and other owners was the risk that its contract at Butner would not be renewed. Much of that risk was driven by MDIs debt to Duke, about $8.3 million in outstanding charges.
Duke was a subcontractor to MDI, providing care at Durham Regional Hospital and the Duke Ambulatory Surgical Center. A Duke spokeswoman said that its billing with MDI had been the subject of arbitration but that the results were confidential.
Duke continues to provide medical services to prisoners of Butner Federal Correctional Complex, primarily at Durham Regional Hospital, under an arrangement with a different company that contracts with the Federal Bureau of Prisons, Duke spokeswoman Sarah Avery wrote in an emailed statement.
The medical society said that, after talking with the receiver, Duke got nothing, because Wells Fargo was first in line and there wasnt enough money to cover even the banks losses.
Doctors left with unpaid bills
Local doctors who have contacted the society about the situation were owed a total amount in the low six figures, Brockett said.
In the past week, the society filed a Freedom of Information Act request seeking details about the contract between the government and MDI. It also is seeking information on prison officials oversight of MDI.
What we would like is to understand a little more about what that oversight was like, meaning the Bureau of Prisons responsibilities and authority over MDI while the contract was in effect, Brockett said.
Basically, MDI was a middleman operation that contracted with the Bureau of Prisons to assemble a network of medical services in the community that would provide care for prisoners when there wasnt the capacity or expertise at medical facilities on the federal campus.
Documents filed in the Wells Fargo suit include a letter from U.S. Reps. David Price, Howard Coble and Melvin Watt of North Carolina seeking more information on the money owed the Duke medical system and the bureaus oversight of the Butner contract.
A spokesman for the Bureau of Prisons was not able to answer questions Tuesday about how the contract with MDI was overseen, how it was structured, or which other prisons MDI worked with. Butner, though, provided 35 percent of its income, according to Wells Fargos complaint.
Answers about MDIs remaining assets are scarce. No one answered the phones at the company this week, and the court-appointed receiver, Ronald Winters of Alvarez & Marsal Healthcare Industry Group LLC, didnt return telephone calls.
One practice in Raleigh, Carolina Vascular Surgery and Diagnostics, has tried to get answers from the receiver about the chances of even some money from the remnants of MDI, but cant get its calls returned, said Deb Sanford, an insurance billing specialist.
The practice, which still performs vascular surgery for prisoners under the new company that administers the contract, is owed nearly $50,000 by MDI for work it performed from April through June, Sanford said. The problems didnt really become clear until midsummer because MDI had 60 days to pay.
She, too, said that the government bears some responsibility for the bills.
The government paid MDI to process claims, and thats really all they did, process and pay, so they should be government-backed, Sanford said.
The 71-year-old Willich, MDIs CEO, is a Vietnam veteran, former U.S. Marine Corps Reserve officer and law school graduate, according to the company website.
In addition to MDI, Willich has also established two successful farms in North Florida: Grace Farms, a 30-acre company retreat with thoroughbred horses, and Picalata, a 110-acre farm thats home to the top one percent of Registered Aberdeen Black Angus cattle in the state of Florida, the biography says.
In its lawsuit, Wells Fargo said that it took legal action to protect itself when it become alarmed at the way MDI was handling its finances.
It pointed to the loans to Willich for the farm and for a company that held rights to biography and a screenplay about his life. It questioned lease payments for a $110,000 electric sports car and an unexplained $1.1 million wire transfer by the company to an attorney days after MDI fired a restructuring officer, who had been hired to try to reverse its financial problems.
Attorney defends MDI spending
MDI attorney T. Geoffrey Heekin of Jacksonville, Fla., did not return calls this week, but he told the St. Augustine Record last month that the car wasnt for Willich. Use of it was awarded to the IT department employee of the month, Heekin said. The loans, he said, had mainly been used to outfit the interior of the company headquarters, which Willich designed himself and the newspaper valued at $8 million.
Willich designed and built it with marble and granite. Inside he (displayed) historical artifacts from the area, Heekin said.
Its unclear how large the IT department was, but the company had about 200 employees in 2010, according to the St. Augustine newspaper.
According to a judges order, Willich was granted a temporary consultants fee of $33,000 for September and $15,000 per month through December.
Now that a new administrative company is in place, many of the doctors who are owed money, including Holmes, have begun treating prisoners at Butner again.
Holmes said that the new company seems to be handling the bills properly and that he hopes the work will lead to a perk.
From what Ive heard MDI did with the money, Im wondering why the Department of Justice isnt getting involved and trying to put some of the executives in Butner themselves, Holmes said. Id kind of like to get a chance to treat them.
Price: 919-829-4526


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Air Purifying Gadgets Photos
Gone are the days when fresh air surrounded us. The air we breathe today is full of pollutants and dust particles which are harmful to our health, especially to our lungs. If this concerns you, you'll…[More]
104 Gifts for Writers
38 Innovative Purifiers & Filters
Fresh Air Jars
65 Pristine Purifiers, Humidifiers and Filters
20 Air-Conditioning Alternatives
Air-Purifying Pavement
Music-Playing Fresheners
Illuminating Air Purifiers
Pollution-Protective Frocks
Organically Designed Humidifiers
Sleek House Fans
Baseball Bat-Like Aromatherapy


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A Los Angeles City Council committee recommended last Wednesday that single-use plastic bags be banned from food store checkout lines across the city and that paper bags be phased out.
The council's five-member Energy and Environment Committee unanimously passed a recommendation for a three-phase ban that would, if enacted, become "one of the most-far reaching measures in the nation," according to Heal the Bay, a non-profit organization that advocates this ban.
The three phases of the ban are:
Phase 1: For the first six months a ban would be enacted for plastic bags only. These six months would be used to educate the public about the ban.
Phase 2: For the following six months a 10 cent charge would be placed on paper bags.
Finally, Phase 3: After 12 months, there would be an outright ban in all of Los Angeles on both single-use plastic and paper bags.
The recommendation was favored by the committee and supported by environmental groups, although some believe such a ban would be more destructive than helpful, citing a loss of jobs.
According to Councilman Dennis Zine, "The City would provide time to work with retail businesses to help them adjust, and consumers would need to adapt. People will adjust. They'll adapt … and learn to take [reusable bags] with them."
A vote on the recommended ban is expected in the full City Council in the coming weeks. We hope this decision will embolden other cities, counties and states nationwide to take action. The time has come to eliminate plastic pollution at its source in order to protect our environment and economy.
Here are some great totes that can replace those plastic bags!
OBEY Full Speed Bag
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Price: $20.00
BILLABONG Oshun Lover Bag
Sku No: JAHBTOSHCET
Price: $24.50
QUIKSILVER WOMENS Gusty Tote Bag
Sku No: A03018SND
Price: $32.50
ROXY Big Buddy 2 Bag
Sku No: 452N90NAT
Price: $42.00
Image Source: theintelhub.com


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Catch Mike solo
Over the next couple of months mike will play a couple solo shows through out the country. Check the tour section for details. Email email@example.com to book a show with mike.
Holiday Sale! 20% off all product. Enjoy and Happy Holidays!
Need a gift idea? How about Mike Mangione music at 20% off?! Only a few days left of the holiday sale!
Click on the link and use the promo code HOLIDAY
Fall Tour Begins
The new album, Red-winged Blackbird Man, has been released. The fall tour has begun!!
Sept 27-Livonia MI
Sept 28-Pittsburgh PA
Sept 29-Washington D.C
Sept 30-Baltimore MD
Oct 1-Shippensburg PA
Oct 2-Philly PA
Oct 3-NYC
Oct 4-Madison New Jersey
Oct 10-Fairfield IA
Oct 11-Excelsior MN
Oct 18- Cedar Rapids IA
Oct 19-Iowa City IA
Oct 24-Saint Louis MO
Oct 25-Louisville KY
Oct 26-Cincy OH
Oct 27-Cleveland OH
Nov 1-Milwaukee WI
Nov 2-Chicago IL
Order the new record "Red-winged Blackbird Man" now!
The album is here and ready for you….enjoy!
Follow this link to order the record!
Daytrotter Released
We were fortunate to spend the last day of our fall/winter tour for 2012 with Daytrotter. It was new to us but all too familiar at the same time. Load in, set up, press record and play….just with different carpet. It is neat to have had that opportunity at the end of a tour and a year. It is a snapshot of who and where we were at that moment in our lives and career (duh..). We tend to lose track of what we are doing through the constant motion and white noise. So much static can become silence if you let it. This was/is an opportunity for us to breath and reflect, refine and set the next course. It is all too easy to hit the grind and forget the soil your standing on, and in a certain way loose your sense of self. This was special for us and we really want to thank daytrotter for the opportunity, their hospitality and work ethic. "But hey…enough of my yakkin, what do ya say…lets boggie"
Folk Alliance International: Mike Mangione & The Union in Toronto
The band will be heading to Toronto for the Folk Alliance International conference this week. If you are as well, stop by one of the many showcases we will be performing at. A list of where and when is below as well as on our tour page. Say hello and hang with us!!
Fall Tour Has Begun!
We are on the road starting……NOW!
A couple of radio appearances that everyone can enjoy.
WGN radio Thurs Oct 4th at 9pm with Brian Noonan.
Video/audio recap available here: Mike Mangione & The Union on WGN Radio – Brian Noonan show.
Then, listen to Mike talk about the up-coming album and play new tracks with Milwaukee Public Radio's Bruce Winter Friday night, Oct 5th, at 7pm online.
Listen to a recap of the radio interview here" Mike Mangione Interview – Bruce Winter chats with Mike Mangione.
The band kicks off its Midwestern and Eastern tour in Chicago Friday Oct 5th at Fitzgeralds Night Club, then Saturday in Milwaukee at Linnemans Riverwest Inn. Check the tour section for more info.
PLEASE SEND YOUR SET LIST REQUESTS TO firstname.lastname@example.com
Sept Sleep…Oct Birth
Well, all our summer touring is finished and now it's time to really get to work. I'm talking about getting' hitched and having babies of course! The Union is taking this month off due to Kristina getting married and Patrick and his wife having another baby. But once all the hard work is over we return full force in October to having fun and playing music, and we hope to see you all on the road. Check out our massive fall tour schedule!!! Yikes!
The Weight
Often times before a performance the band meets and has a "moment." The idea is to ground ourselves in the task at hand so that we can attempt to enter fully into it. One of the most impactful and effective points of reflection for us is the reality that our shows are numbered. We often lose ourselves in the thought that there will always be another gig around the corner and, although this establishes a healthy connection to the performance, it is not totally true. Each performance has a number and that number is waning.
Each performance is also the direct result of the show before it. We carry with us the weight of the last show, the last year, the last five years, the last 10 to 25 and so on. So much time and expense has gotten us to that moment. Seen in light of this reality we understand that each show is "expensive" and not to be wasted! Every show carries with it the many years that each member painfully learned their instrument, sacrificed other wants in pursuit of their musical identity. Many hours, nights, days, weeks away from family, loved ones, special events and celebrations. As if that is not sobering enough, there is the reality that each yell or scream from my vocal chords depletes the voice changing the tonal quality never to be the same again! There is a weight in every performance that cannot be ignored and must be respected.
On March 13, 2012, I had the privilege of seeing one of my musical heroes in concert: Mr. Levon Helm. I was in musical bliss as I watched him play, pushing out each snare drum whack with a thrust of his shoulder, a concerned, furrowed brow followed by a small wicked grin. His body made visible the invisible ingredients of every musical master: joy and suffering. Joy and suffering are two sides of the same coin. The inescapable cross of every artist that burns, yet refines, the artist to a greater quality. Levon possessed these two ingredients and they were beautifully visible that night.
As I stood watching the last song I questioned how I became so lucky, so fortunate to be in the presence of such net worth. For 54 years Levon stepped on stage using his body to reveal his soul. He missed time with his family, broke relationships, lost friends, band members died, battled his dreams through reality, battled cancer and even lost his voice never to be the same again. His life was expensive. Not many can handle that weight, most would crumble under its pressure and most do. That night in March, for an hour and a half, I reaped the benefits of his investment.
As I watched the last song, my eyes welling with tears, I noticed one more thing. Standing next to Levon was his daughter and band mate, Amy. He wasn't playing for me, he was playing with his daughter. As father and daughter they were having a moment. Creating a memory together in the twilight years of his amazing life. Because I have a two year-old girl at home this hit me the heaviest. How unworthy am I to be in this audience, to be sharing this moment? The weight kicked the air out of my lungs and left me with nothing but a muttering "thank you." Thank you for your gift, your example, your time. Thank you for your investment, your commitment, your suffering and allowing me to experience a glimmer of the fruits. Thank you.
Levon died 37 days and 7 shows later surrounded by his family.
(an editorial from our newsletter, to subscribe join email list to the right)
Do you want to help raise money for pediatric cancer?
Join Mike Mangione & the Union at Chicago For the Kids 2012
Every year, Penn State hosts a Dance Marathon (aka THON), where students dance for 48 hours straight to raise money for the Four Diamonds Fund, which provides the financial support for children with cancer at the Hershey Medical Center. The Penn State Chicago Chapter Alum are hosting a fundraiser called Chicago For the Kids where Mike Mangione & the Union will play live music. Anthony Adams, the defensive tackle for the Chicago Bears and Penn State grad, will also make an appearance!
When: Saturday, February 11th 8:00 p.m.-11:00 p.m.
Where: Cubby Bear 1059 W. Addison
Cost: $40 per person, buy your tickets at www.psuchicago.org
Details: Enjoy a variety of call brands, beer, house wine, soda, and appetizers. 60 parking spaces are available on a first come & first serve basis.
In addition, there will be a silent auction and a raffle where all proceeds will be donated to THON. Featured prizes are Penn State Football tickets and memorabilia, tickets to Chicago pro sporting events, restaurant gift certificates, local entertainment packages, and more!
Contact Kathleen Weber, Penn State Chicago Service Chair, firstname.lastname@example.com
Theres a New Newsletter in Town…
thats right…
As I sit in my new place of residence, i won't say where it is but I will say it rhymes with the state of Risconsin.. I think of all that's going on and all that we have done. We have done a lot, I feel it, my family feels it..and my bandmates and band mates families feel it too…. But with what we have going on…oh man….look out……the next album is sounding great, I am really excited about the new Newsletters we just sent and our live shows are becoming more of a family affair than concert… what else would we want. Besides the obvious hundred thousand more albums sold, new amp, chickles, and cozy corner BBQ..i dont know! Please stay with us and we wont let you down..let us know what you need and we will do our best. until then, its just a pleasure.
Mike Mangione & The Union officially announces Hannah DeVoe probably one of their new favorite fans.
This is true..!


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Stage-specific mortality of Colorado potato beetle (Coleoptera: Chrysomelidae) feeding on transgenic potatoes
Authors: Wierenga, J.M., Norris, D.L., Whalon, M.E.
Journal, Volume, Year: Journal of Economic Entomology, volume 89(5):1047-1052, 1996
Resistant (to insecticide) and susceptible strains of CPB were fed Cry3A transgenic foliage and artificial diet with purified toxin added. For all strains, the 1st instar were sensitive, but the 2nd instar resistant strains had significantly higher survival. Susceptible larvae typically lost weight. Adult mortality was 25% in resistant strains and 100% in susceptible strains.
Potential for resistance development in strains that are already resistant to insecticides.