Best Best & Krieger News Feed

Intro Property Assessed Clean Energy (PACE) Finance Course

02 Nov 2016 00:00:00 -0800

Best Best & Krieger LLP Of Counsel Mrunal Shah will speak on "PACE Financing Options" at the Council of Development Finance Agencies' Intro Property Assessed Clean Energy (PACE) Finance Course.

There are a number of capitalization options for the initial investments into a PACE district, including bonds, grants, loans, and more. This session will explore the many starting funds that can be used, as well as focusing on the process of issuing PACE bonds.

When
Wednesday, Nov. 2
11 a.m. - Noon

Where
Astor Crowne Plaza - New Orleans French Quarter
739 Canal St.
New Orleans, LA 70130

For more information or to register, click here.

Tracking State and Federal Grant Money - Cap and Trade & AB 1613

13 Oct 2016 00:00:00 -0800

Best Best & Krieger LLP Of Counsel Ryan Baron will serve as a panelist on "Tracking State and Federal Grant Money - Cap and Trade & AB 1613" at 2016 Sustain OC Annual Conference & Expo.

Ryan will be discussing the recent enactment of AB 1613 and SB 859. The bills direct $900 million in California cap and trade revenue to the Air Resources Board and CalRecycle for clean vehicles, transit oriented development, waste diversion, solar programs and disadvantaged community programs. Ryan will be discussing opportunities to obtain state grants.

When
Thursday, Oct. 13
9:20 - 9:50 a.m.

Where
UCI Applied Innovation
5141 California Ave., Suite 250
Irvine, CA 92617

For more information or to register, click here.

Two BB&K Partners Named Among 100 Influential Leaders in San Diego

05 Oct 2016 00:00:00 -0800

For Immediate Release: Oct. 5, 2016
Media Contact: Denise Nix • 213-787-2552 • denise.nix@bbklaw.com

SAN DIEGO, Calif. – Best Best & Krieger LLP partners Warren Diven and Shawn D. Hagerty were named to The San Diego Daily Transcript’s annual 100 Influential Leaders in San Diego list. The list recognizes the region’s best in the areas of real estate, construction, finance, law, nonprofit and public sector work.

Diven was recognized for his work as the lead attorney behind the development of the Home Energy Renovation Opportunity program. Thousands of San Diego-area residents, and many more in California, have used the financing program to make renewable energy, energy efficient or water conservation improvements to their homes. He is helping cities, counties and unincorporated areas throughout California battle the ongoing energy crisis with the HERO program.

The HERO program began its partnerships in San Diego less than two years ago, and it quickly became an extremely popular and effective way for property owners to make energy efficient improvements to their homes. Warren helped craft the program to ensure its public finance legal framework and compliance, and he continues to oversee of all the program’s bond financings. “This program will continue to grow for the next decade, because there’s so much demand,” Diven told the Daily Transcript. “I’ve heard of people who just want to fix their old air conditioner who end up finding out that they can get a brand new, energy-efficient air conditioner through low fixed-rate loans they can pay off in 15 to 20 years.”

Hagerty’s work as both a municipal and water quality law attorney earned him accolades. Hagerty represents cities, counties and special districts in San Diego County in both advisory and litigation roles. In addition to being the city attorney of the City of Santee for the past 13 years, Hagerty is the corporate counsel for Civic San Diego and is a national leader in the area of water quality regulation.

Hagerty is leading the way both in San Diego and throughout California in ensuring that water quality standards are crafted and implemented in a fair, yet effective manner, by way of his work with multiple agencies. He discussed with the Daily Transcript tough new guidelines for local water and storm water agencies under the federal Clean Water Act. Hagerty knows that local agencies are committed to improving water quality, and, to help achieve this goal, federal, state and local entities must work together with local communities to change longstanding behaviors. Everyone must recognize that we are all part of the problem and can be part of the solution, Hagerty advises.

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Best Best & Krieger LLP is a national law firm that focuses on environmental, business, education, municipal and telecommunications law for public agency and private clients. With 200 attorneys, the law firm has nine offices nationwide, including Indian Wells, Los Angeles, Sacramento, San Diego and Washington, D.C. For more information, visit www.bbklaw.com or follow @BBKlaw on Twitter.

Four New California Cap and Trade Bills Fund Programs

05 Oct 2016 00:00:00 -0800

With California’s cap and trade program suffering from legal challenges, decreasing auction revenue and general criticism of the program’s effectiveness, Gov. Brown signed several bills in Sept. that will help fund state and local programs and projects that reduce greenhouse gas emissions. Budget Committee bills Senate Bill 859 and Assembly Bill 1613, and AB 2722 (Burke, D-Inglewood) directed $900 million in cap and trade revenues to various California agencies and programs. AB 1550 (Gomez, D-Los Angeles) increases the amount of cap and trade auction proceeds that must go to projects benefitting disadvantaged communities. These appropriations should provide significant financial opportunities for local agencies and businesses with environmental projects and programs in need of funding.

AB 1613 and SB 859 appropriate $900 million for fiscal year 2016-17 and reserve $462 million for appropriation in future years. The bills would direct cap and trade revenues to a variety of state agencies, including the Air Resources Board, Strategic Growth Council, Transportation Agency, Natural Resources Agency, Department of Food and Agriculture, Department of Forestry and Fire, and CalRecycle. Cap and trade revenues will fund programs such as clean vehicle rebates, enhanced fleet modernization, heavy-duty and off-road vehicle investments, transit-oriented development and intercity rail, urban greening, methane emission reduction from dairy and livestock operations, urban forestry and assistance to disadvantaged communities.

AB 2722 creates the Transformative Climate Communities Program, administered by the Strategic Growth Council, for broad-based GHG emission reduction projects in disadvantaged communities. As part of the implementation for AB 2722, the Council has already released a notice of proposed rulemaking soliciting comments on the development of grant guidelines.

AB 1550 modifies cap and trade laws to require that at least 25 percent of auction proceeds go to projects benefitting disadvantaged communities and at least an additional 10 percent for low-income households and communities.

If you have any questions about these new laws or how they may impact your organization, please contact the attorney author of this Legal Alert listed to the right in the firm’s Environmental Law & Natural Resources practice group, or your BB&K attorney.

Please feel free to share this Legal Alert or subscribe by clicking here. Follow us on Twitter @BBKlaw.

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.

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.

California Governor Signs Legislation Establishing Significant New Energy Goals

07 Oct 2015 00:00:00 -0800

Today, Gov. Jerry Brown signed SB 350 into law, setting two ambitious climate change-related goals: a 50 percent increase in building energy efficiency, and a target of 50 percent of the state utilities’ power coming from renewable energy sources. Both goals are to be met by the year 2030.

SB 350’s Renewable Portfolio Standard ratchets up California’s commitment to renewable energy. Prior legislation set a 33 percent RPS, requiring utilities to source at least 33 percent their electricity from renewable sources like wind, solar, geothermal and biogas by the year 2020. The 33 percent RPS goal has been credited with spurring substantial development in solar infrastructure within California.

SB 350 also provides incentives for different forms of clean tech, demand response and automation technology (for example, building systems that automatically shift energy use to off-peak hours), better integration of solar power and electric vehicles, and energy storage.

In terms of building energy efficiency, SB 350 not only addresses efficiency in new buildings, but existing buildings as well, in part through the use of expanded existing building retrofit funding.

SB 350 also defines “energy efficiency,” which could have implications in the CEQA context. SB 350 provides that energy efficiency, at least for the purposes of achieving the goals set in SB 350, “shall be measured taking into consideration the overall reduction in normalized metered electricity and natural gas consumption.” This suggests that consideration of more subjective, qualitative and immeasurable energy use reductions (for example, programs encouraging employees to rideshare to work) may no longer be able to serve as the foundation for determination of a project’s of energy efficiency.

If you have any questions about this legislation or how it might impact your agency, please contact one of the attorney authors of this legal alert listed at right in the firm's Environmental Law & Natural Resources practice group, 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.

The Great Energy Debate

09 Oct 2014 00:00:00 -0800

Join BB&K Partners Robert Hargreaves and Sophie Akins at the Southern California Energy Summit’s “The Great Energy Debate,” Oct. 9 – 10, in Palm Springs, Calif. They were joined by regional leaders from the counties of Riverside, San Bernardino, Imperial, Inyo, Mono, Kern and Los Angeles to discuss the opportunities, challenges and solutions facing the various energy industries of Southern California. The audience learned from private and public sector leaders about how new programs, policy and trends that will affect your business and community. Explore interactive exhibits and discover new energy efficient and sustainable technologies.

BB&K Speakers

“Renewable Energy Opportunities at the Salton Sea”
What current efforts are underway to facilitate renewable energy opportunities and restoration? What renewable energy opportunities are on horizon?
Moderator: Robert Hargreaves, Partner, Best Best & Krieger

“Advancing Local Rooftop Solar & Energy Storage”
How can the region support the advancement of local rooftop solar and energy storage? How do we engage property owners to participate? How do we make it happen with utilities (municipal vs. investor) considering interconnection costs, upgrades, etc.? These and other questions were addressed.
Moderator: Sophie Akins, Partner, Best Best & Krieger

When
Oct. 9-10, 2014

Where:
Palm Springs Convention Center
277 N. Avenida Caballeros
Palm Springs, CA 92262

For more information, visit the Southern California Energy Summit page by clicking here.

New Law Requires Cities and Counties to Expedite Their Permitting Processes for Small Residential Rooftop Solar Systems

22 Sep 2014 00:00:00 -0800

A new law imposes requirements on cities and counties regarding permitting for small residential rooftop solar energy systems. Under AB 2188, signed Sunday by Gov. Jerry Brown, cities and counties must adopt ordinances, or amend their current ordinances, to create expedited, streamlined permitting processes for small rooftop solar energy systems by Sept. 30, 2015.

To comply with the new law, cities and counties must adopt permitting procedures that conform to the expedited permitting recommendations in the current version of the “California Solar Permitting Guidebook.” In addition, cities and counties must adopt a requirements checklist that small rooftop solar energy systems must comply with to be eligible for expedited review. Cities and counties must publish their checklists and other required permitting documentation on their websites.

According to the new law, an application that meets the checklist’s information requirements is deemed complete; and if an application is incomplete, the city or county must issue a written correction notice. AB 2188 also requires that cities and counties accept electronic submissions of applications and electronic signatures. After an application is complete, and if it is consistent with the city’s or county’s solar permitting ordinance, the city or county may approve the application. However, cities and counties cannot condition their approval on the approval of an association that manages a common interest development. Only one inspection, which is done in a timely manner, is required for a small rooftop solar energy system that is eligible for expedited review.

The requirements outlined in AB 2188 apply only to residential rooftop solar energy systems that are no larger than 10 kilowatts or 30 kilowatts thermal. The systems must be installed on a single or duplex family dwelling, comply with local codes and the California Electrical Code, and not exceed the maximum legal building height. In addition, solar energy systems for heating water in single family residences and solar collectors that heat water in commercial or swimming pool applications must be certified by an accredited listing agency.

For more details or questions about this new law, please contact one of the attorney authors of this legal alert listed at the right in the Renewable Energy group, 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 Powerhouse: Best Best & Krieger

07 Jul 2014 00:00:00 -0800

By: David McAfee

Law360, Los Angeles (July 07, 2014, 4:29 PM ET) -- With California facing one of the most severe water shortfalls in the state’s history, Gov. Jerry Brown declared a drought state of emergency earlier this year, calling on Californians to conserve water in every way possible. Amid this resource crisis,Best Best & Krieger LLP, a firm that has been at the forefront of the state’s most important water rights cases, has risen to the challenge.

With 174 attorneys across eight offices in California, BB&K has become a go-to firm for public agencies on a variety of the state’s most important issues, including those related to medical marijuana and the use, rights and quality of water, earning it a place on Law360’s list of California Powerhouses.

BB&K managing partner Eric Garner says the firm, which was founded in the 1890s and has worked on a number of the Golden State’s highest-profile water rights cases since then, is busier as a result of the state’s new drought restrictions. The firm says it has continued to build upon its longstanding water law practice in California, which has expanded to include other practice areas and opened an office in Washington, D.C.

BB&K, which almost exclusively represents public agencies and municipalities, has an intimate familiarity with the state’s water history and is actively engaged in the future of water management in the state. Garner says the firm is involved with legislation that would authorize the issuance of more than $11 billion in bonds to overhaul California’s water system and that it may be the most significant water legislation in the state in a century.

“We have clients who are very interested in the water bond, which will likely be on the November ballot and contain billions of dollars. It would pay for projects to help California be more water sustainable,” Garner told Law360 in an interview. “We have clients who are very concerned about making sure that their future water supplies are sustainable, and, of course, there is a legal component to that.”

In one recent water rights victory for a BB&K client, the city of Santa Maria prevailed after a 16-year dispute when the U.S. Supreme Court said last year that it wouldn’t review a challenge to a groundwater basin plan for the city. A group of farmers sued Santa Maria in 1997, saying they had a prior right to the groundwater in the basin and that the city’s ability to pump water should be cut off during shortages.

“Not surprisingly, this was not acceptable to the city. The only way to resolve the dispute was to bring everyone who pumps from the basin into a lawsuit — several thousand users,” Garner said, noting that there is currently no statewide groundwater regulation but that such legislation is under consideration.

“Under California law, it’s basically pump until a judge orders you not to,” Garner said. “In its published opinion, the appellate court found that people have at least an equal right to crops in a water shortage, and the court importantly recognized that Santa Maria’s historical pumping can continue into the future and be protected during a shortage. Both the California Supreme Court and the U.S. Supreme Court declined to review.”

Garner said that was the first case in which all elements of “prescriptive” water rights were fully tried in California.

Even more recently, the firm and its municipal clients prevailed when the Orange County Superior Court in April rejected all six challenges to an environmental impact report certified by the Santa Margarita Water District in connection with Cadiz Inc.’s public-private partnership. The project allows Cadiz to pull an average of 50,000 acre-feet of water per year from Mojave Desert aquifers and pump it through a 43-mile pipeline to different parts of Southern California.

The Center for Biological Diversity and Delaware Tetra Technologies Inc. sought to overturn decisions by the SMWD and the county of San Bernardino approving a water purchase and sale agreement for the project, according to Michelle Ouellette, a partner in BB&K’s Riverside office.

“The court considered a variety of California Environmental Quality Act claims by the Center for Biological Diversity and Delaware Tetra Technologies, including arguments that the county should have served as lead agency for the project and that the [environmental impact report] did not fully consider and mitigate for the hydrological impacts of the project,” Ouellette said of the case, which is being appealed. “Ultimately, the court found that the petitioners were not entitled to any relief and, specifically, that the lead agency concerns ‘did not rise to the level of a CEQA violation.’”

BB&K says its environmental law and natural resources group also represents public agencies in handling tough legal issues beyond water rights and conservation. BB&K attorneys provide public, charter and special school districts and offices of education with guidance and oversight in implementing energy efficiency and renewable energy projects, the firm said.

The firm says it has also achieved success for clients in cases involving municipal law, labor and employment and telecommunications. BB&K has even helped cities in California navigate the legalities of medical marijuana shops, according to the firm.

After California voters passed the 1996 Compassionate Use Act, there was uncertainty as to whether the states, cities and counties could regulate medical marijuana dispensaries, according to Jeffrey V. Dunn, a partner in BB&K’s Irvine office. Dunn successfully argued to the California Supreme Court that cities could ban the dispensaries through zoning ordinances.

In a highly anticipated and politically charged decision last year, the state high court found that the city of Riverside had the right to enact a ban despite two California laws legalizing the use of medical marijuana within the state.

“On behalf of the city of Riverside, I argued that there is no state law preemption or limitation on municipal authority to regulate marijuana dispensaries,” Dunn said, noting that the California Supreme Court agreed and opened the doors for cities and counties to regulate dispensaries and collectives.

“What was at stake was the ability of local municipalities to act in the best interest of their communities to limit or ban businesses that may cause public safety issues,” Dunn added. “The ruling is likely to have far-reaching benefits for California cities and counties, leaving significant leeway to enact local safety and zoning ordinances in a broad range of areas.”

BB&K was founded in 1891 by Raymond Best in Riverside, an area then known for its citrus groves, according to Garner. Raymond Best’s son Eugene Best joined the firm in 1918 and was made partner in 1925.

In 1938, John G. Gabbert joined the firm, which became Best Best & Gabbert a few years later. James Krieger joined the group in 1946, and when a third judgeship was created in the Riverside County Superior Court and was offered to Gabbert, the firm became Best Best & Krieger.

“Krieger continued to build the water law practice started by Gabbert, and the firm earned statewide accolades for its work, which was carried on in later years by Arthur Littleworth and now myself, among others,” Garner said. “The firm has expanded to include a variety of practice areas that benefit public agency clients, as well as those in the private sector.”

Garner said BB&K’s telecommunications practice and water quality work have already expanded nationwide, and its environmental practice and aspects of its governmental practice are likely to follow suit. But the firm will continue to maintain a focus on California’s laws, which Garner called “among the most complex in the U.S.”

“Whether that’s because the state government has a predilection toward regulation or because of its large population is anyone’s guess, but there is no question that the legal issues are very challenging and interesting to work on,” Garner said.

While many of the matters the firm handles are governed by California law, especially in the areas of energy and natural resources and telecommunications, BBK also works on a number of cases governed by federal law, according to Garner.

“Even on matters involving California law, because California is frequently at the forefront of legal issues, many of the matters we work on will likely soon be coming to other states,” Garner said.

Along with BB&K’s growth nationwide comes new private clients, but the firm has continued to primarily represent government entities, according to Garner.

“The majority of BB&K’s clients are public agencies, but we also handle a substantial number of matters on behalf of private clients, which includes medium-sized businesses and specialty services for large, private clients,” Garner said. “The primary difference is that, when you represent a public agency, you are serving the public interest; whereas, often with private clients, the primary goal is monetary. Also, because the work is on behalf of the public, the legal work we do is more open and transparent than work for private clients.”

Garner added that the great thing about heading BB&K is that its mix of municipal representations and minor private matters makes the firm “unique.”

“The large public agency practice means that many of our attorneys get to work in the public interest and on many of the most challenging issues that our society faces today,” Garner said. “At the same time, because of the resources we have, we are able to affordably give small and medium-sized businesses a range of services that very few law firms can.”

To download a PDF of this article, please click here.

This article first appeared on www.law360.com on July 7, 2014. Reprinted with permission.

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