Best Best & Krieger News Feed

Right of Way Control & Compensation

17 Oct 2016 00:00:00 -0800

Best Best & Krieger LLP Partner Gerry Lederer will speak at an eNATOA Webinar. With a growing percentage of cable subscribers dropping traditional video services, but keeping Internet services, it is predicted that franchise fees will be on the decline all the while carriers are generating more revenue from their facilities located in the public rights of way. This session will examine what options are available to local communities to receive fair compensation for the use of public land in the face of changing definitions and uses of communications services.

When
Monday, Oct. 17
11 a.m. - Noon (PDT) / 2 - 3 p.m. (EDT)

For more information or to register, click here.

LCC Annual Conference

05 Oct 2016 00:00:00 -0800

Join Best Best & Krieger LLP at the 2016 League of California Cities’ Annual Conference in Long Beach, Calif.

BB&K Speakers

Ruben Duran: “Understanding Public Service Ethics Laws and Principles (AB 1234 Training)”
Wednesday, Oct. 5
9 - 11 a.m.

Alisha Winterswyk: “Complying with CEQA, Brown Act, and Other Public Noticing Requirements”
Thursday, Oct. 6
8 - 9:30 a.m.

Ryan Baron: “Energy Reliability: Understanding the Natural Gas and Electricity Nexus”
Thursday, Oct. 6
Noon

Gail Karish and Christy Marie Lopez: “The Advance of Wireless Infrastructure”
Thursday, Oct. 6
4:15 - 5:30 p.m.

Isabel Safie and Katrina Veldkamp: “Reducing Pension and OPEB Costs”
Thursday, Oct. 6
4:15 - 5:30 p.m.

Jordan Ferguson: “What Municipalities Can Do About the Coming Drone-pocalypse”
Friday, Oct. 7
10:30 - 11:45 a.m.

When
Wednesday, Oct. 5 - Friday, Oct. 7

Where
Long Beach Convention Center
300 E Ocean Blvd
Long Beach, CA 90802

For more information or to register, click here.

Uber, Lyft to Get New Regulator in Calif.

28 Jun 2016 00:00:00 -0800

Under a package of California Public Utilities Commission reforms in the works, ridesharing services regulation will shift to the Department of Motor of Vehicles. In an interview with The Recorder, Best Best & Krieger LLP attorney Jordan Ferguson said the DMV makes sense as the regulatory agency of transportation network companies like Uber and Lyft. This is because the DMV is already focusing on future technologies and innovations, like driverless cars, Jordan said.

“The DMV is going to be better equipped at handling TNCs going down the line,” Jordan told The Recorder. “They’re thinking about these issues at a much more nuanced level than the PUC has.”

The article, which was posted June 28, 2016 on therecorder.com, is available by clicking here (subscription required).

2016 Will Be a Happy New Year for Renewable Energy Tax Credits

06 Jan 2016 00:00:00 -0800

Congress and President Obama delivered an early holiday gift for the renewable energy industry with the passage of legislation that extends a number of tax benefits and credits that had expired, or were set to expire, in 2015. Together with the favorable proposed ruling of the California Public Utilities Commission in December on net metering, the stage is set for continued development of renewable energy projects in 2016 and beyond.

In a break from the year-to-year renewal of tax credits and other benefits, which has led to substantial uncertainty for project planning and financing, Congress opted for a multi-year approach, with some tax benefits being gradually phased out over time. Although this approach provides greater certainly over the next few years, it also signals that Congress is looking for the renewable energy industry to stand on its own in the coming decade as tax benefits expire.

The Investment Tax Credit, under section 48 of the Internal Revenue Code, was extended for commercial solar energy projects that commence construction prior to Jan. 1, 2022. The amount of the ITC will remain at 30 percent of the value of the qualifying energy property included in such projects for projects that commence construction prior to Jan. 1, 2019. The percentage will go down to 26 percent for projects that commence construction prior to Jan. 1, 2020 and 22 percent for projects that begin construction prior to Jan. 1, 2022. If a project commences construction prior to Jan. 1, 2022, but is not placed in service by Jan. 1, 2024, then the ITC goes down to 10 percent.

The ITC for wind projects was extended for projects that commence construction prior to Jan. 1, 2020. The phase out for the ITC on wind energy projects is also less favorable, with the amount of the ITC for the project being reduced by 20 percent for wind projects that commence construction in 2017, 40 percent for those that begin construction in 2018 and 60 percent in 2019. A similar extension and phase out schedule was adopted for the Production Tax Credit available for wind power under section 45 of the Internal Revenue Code, with the PTC being reduced from 100 percent for projects that commence construction by Dec. 31, 2016, to 40 percent prior to Jan. 1, 2020.

The Residential Solar Tax Credit, under section 25(D) of the Internal Revenue Code, was extended for residential solar equipment placed in service as of Dec. 31, 2021. The amount of the residential credit will remain at 30 percent of the qualified solar property expenditure for equipment placed in service by Dec. 31, 2019. The amount will be reduced to 26 percent for equipment placed in service in 2020 and 22 percent in 2021.

Other tax benefits were extended as well, including bonus depreciation on energy property, the 179D deduction for energy efficient commercial buildings and various subsidies for alternative fuels.

For more information about the proposed decision and how it may impact your agency, contact the authors of this Legal Alert listed at right in the firm’s Business Services and Environmental Law and Natural Resources practice groups, or your BB&K attorney.

Disclaimer: BB&K legal alerts are not intended as legal advice. Additional facts or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information in this communiqué.

California’s Solar Energy-Friendly Policy Survives... For Now

22 Dec 2015 00:00:00 -0800

The California Public Utilities Commission has issued a proposed decision adopting the successor to the existing Net Energy Metering tariff. The decision, issued last week, is largely good news for public agency clients, continuing the existing net energy metering structure until 2019, with minor changes. It also allows systems larger than one megawatt to participate in the program, and entitles customers to remain on this tariff for 20 years.

California’s current Net Energy Metering tariff incentivizes renewable energy by granting users financial credits for power generated by onsite systems, like solar panels. The credits are used to offset users’ energy bills, but the program is set to end for new installations in July 2017 or when utilities hit capacity-based caps — whichever comes first.

Utility companies pushed for a dramatic restructuring of the program, arguing that solar energy users do not pay their fair share of costs. The Commission’s proposed decision rejects their arguments, for now. The Commission will reconsider the program in 2019, after studies quantifying the costs and benefits of solar energy on the electric grid are completed and large-scale changes in rate design are in place.

The proposed decision adopts a few changes to the current Net Energy Metering tariff. First, all new customers with systems that generate less than one megawatt will pay a standardized interconnection fee based upon the reasonable, actual costs of interconnection. Customers with systems larger than one megawatt must pay their Rule 21 interconnection costs, meaning direct interconnection costs and required local distribution upgrades.

Second, all program participants will be required to pay “nonbypassable charges” on each kilowatt-hour of electricity they consume from the grid. Nonbypassable charges are required by law and paid by all utility users to support programs such as low-income ratepayer assistance. The current scheme only charges participants these fees based upon the net amount of energy taken from the grid after subtracting the amount of energy fed into the grid by the solar system. The new scheme will impose charges on all electricity taken from the grid and could result in an increase in cost of a few cents per kilowatt hour.

Finally, residential customers entering the program on or after Jan. 1, 2018 will pay Time of Use energy rates. Time of Use rates vary depending on demand, with higher rates during the periods of peak demand. All residential users will be switched to Time of Use rates in 2019.

Other important aspects of the decision for public agencies include the continuance of the Net Energy Metering Aggregation tariff, and the rejection of a monthly true-up. A monthly true-up would have eliminated the ability to apply surplus credits generated during the peak seasons (such as the summer) to the winter months when less power is generated. It should be noted, however, that investor-owned utilities will most likely continue to propose changes in general rate cases to their individual rate tariffs, which is not precluded by the decision and could still affect the economics of net energy metering projects going forward.

Comments on the proposed decision are due Jan. 7, and the Commission will hear oral arguments on Jan. 12. Reply comments are due Jan. 15 and the Commission will likely vote on the proposed decision on Jan. 28. Best Best & Krieger LLP attorneys, who have participated throughout the proceedings to represent the interests of many public agency clients, will be filing comments and attending the oral arguments.

For more information about the proposed decision and how it may impact your agency, contact the authors of this Legal Alert listed at right in the firm’s Environmental Law & Natural Resources and Municipal Law practice groups, or your BB&K attorney.

Disclaimer: BB&K legal alerts are not intended as legal advice. Additional facts or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information in this communiqué.

BB&K Successfully Defends CEQA Challenge to City of Riverside Power Project

13 Nov 2015 00:00:00 -0800

Best Best & Krieger LLP attorneys Michelle Ouellette, Charity Schiller and Alisha Winterswyk successfully defended the City of Riverside against claims its environmental review of a power transmission project were inadequate. Power to the City of Riverside, the largest city in the Inland Empire with a population of 313,670, is currently delivered by a single transmission line.

To address potential power shortages, the City designed the Riverside Transmission and Reliability Project. The RTRP would provide a second connection to the transmission grid and protect Riverside against the blackouts that occur whenever service through the existing line is interrupted. The Project includes two new substations, several 69 kV subtransmission lines to deliver power to areas throughout Riverside, and a 230 kV transmission line — a portion of which would be within the city limits of the City of Jurupa Valley. The City of Jurupa Valley filed a California Environmental Quality Act lawsuit challenging the Project approvals and Riverside’s Environmental Impact Report under CEQA.

All of Jurupa Valley's claims were rejected via a judgment entered on May 1, 2014 in the Los Angeles Superior Court. On Nov. 6, 2015, the Second District Court of Appeal affirmed the judgment in full and ruled that Riverside’s EIR fully complied with CEQA.

Power Costs for San Diego Public Schools Under Investigation

16 Jul 2015 00:00:00 -0800

As electricity costs rise for public schools in San Diego County, a coalition of districts are fighting an application by San Diego Gas & Electric to the California Public Utilities Commission to hike the rates even more. Best Best & Krieger attorney Josh Nelson, representing the districts, was interviewed recently by The San Diego Union-Tribune:

“The school districts have hired Best Best & Krieger, a high-powered law firm specializing in energy issues, to help make their case to the CPUC.

“They are urging the commission to reject or modify SDG&E’s application to further raise rates by a combined 25.93 percent over a three-year period from 2016 to 2018, according to Josh Nelson, an attorney with the firm.

“’That’s a significant rate increase,’ Nelson said. ‘We want to make sure that schools are protected from rate increases and that they don’t share a disproportionate share.’”

To read the entire article, originally published July 11, 2015 in the Union-Tribune, click here.

California Public Utilities Commission to Approve Grant Program to Promote Broadband Internet for Public Housing

05 Dec 2014 00:00:00 -0800

The California Public Utilities Commission is scheduled to approve the California Advanced Services Fund Public Housing Broadband Grant Guidelines on December 18, which will create a new state grant opportunity to facilitate the installation of on-site broadband internet for public housing units. Up to $20 million will be available for grants and loans to finance projects to connect broadband networks to public housing, and an additional $5 million will be available to support adoption programs, which will provide devices and training to residents of public housing. Eligible applicants include public housing authorities and non-profit public housing owners.

The window to apply for the first round of grants is fast approaching: December 18 through mid-January. After that, applications will be accepted on a quarterly basis until they run out of funding or reach December 31, 2016, the deadline for awarding grants.

The CPUC will offer an approval process for grant requests up to $75,000 for broadband infrastructure/hardware applications and up to $50,000 for adoption program applications. The grants are intended to provide individual housing units with broadband service for free or a nominal fee of no more than $20 a month.

For more information on this CPUC grant opportunity, please contact the attorney authors of this legal alert listed at right, an attorney in the firm’s Telecommunications practice or your BB&K attorney.

Rideshares get insurance 'do over’

23 Jun 2014 00:00:00 -0800

The California Public Utilities Commission issued draft regulations earlier this month for rideshare companies that connect drivers and passengers via their mobile devices. This will be the CPUC's second try at regulating an industry that includes successful start-ups Uber and Lyft: In September 2013, the CPUC established rules that have since been criticized for being either too lenient or too unclear in terms of how, and when, liability insurance is required.

Rideshare companies that connect parties and process payments through smartphone apps, referred to as "transportation network companies" by the CPUC, have exploded in popularity in recent years - in particular in California's urban areas where residents and visitors alike frequently rely on public transportation and traditional taxicabs to get around. TNCs allow prospective passengers to request rides through their mobile device and select from nearby, available drivers. Once a passenger selects its desired ride, GPS location information is then sent to the driver who picks up the passenger in a personal, noncommercial vehicle. Payment is managed through the app when the ride is complete. Traditional taxicab services critirire TNCs for stealing customers and skirting the insurance and pricing regulations that control cab drivers. TNC customers claim that the new, technology-driven alternatives are easier to use, more reliable, cheaper and provide faster service than traditional cabs.

Click here to read the entire article published on June 23, 2014 in the Dail Journal (subscription required).

Taxis Battle Ride-Sharing Services Over Regulation

28 Apr 2014 00:00:00 -0800

By Doug Sherwin

The emergence of ride-sharing services such as Uber, Lyft and Sidecar has raised questions about how the newcomers to the transportation business should be regulated and if they have an unfair advantage over traditional taxis.

The California Public Utilities Commission (CPUC) recently began developing some requirements for the ride-sharing services – referred to as Transportation Network Companies – but some taxi owners don't feel it's enough.

…

California lawmakers, meanwhile, are moving on a bill that would require all ride-sharing drivers to get primary commercial insurance policies similar to those required of taxi drivers.

"There are some assertions that there may be gaps in insurance involving who is required to pay for claims made against the drivers or the company," said Riverside attorney Jason Ackerman, a partner with Best Best & Krieger. "There have been disputes over who's responsible for paying those claims.

"This is an instance where technology is ahead of the law, but the law is going catch up as CPUC implements its regulations."

Click here to read the entire article published on April 28, 2014 in the Daily Transcript. (Subscription may be required.)