Cleantech product development: Are strings attached to Recovery Act Funds?

The American Recovery and Reinvestment Act of 2009 appropriated nearly $800 billion to stimulate the U.S. economy out of recession. Included in the Recovery Act is billions of dollars for cleantech, including $16.8 billion for the Department of Energy's Office of Energy Efficiency and Renewable Energy. Approximately $2.5 billion was allocated to support research, development and deployment activities. These are significant opportunities for companies involved with developing new clean technologies. However, companies should be aware of strings attached to these new funding opportunities.

The following article by Daniel Yanuzzi and Christopher Noon was originally published in the San Diego Daily Transcript. To read the article please click here.

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California Governor Signs S.B. 827 into Law; South Coast Air Quality Management District Now Permitted to Continue Emissions Trading Program

By Misti M. Schmidt

In 2008, a superior court judge placed a moratorium on certain aspects of the emissions trading program administered by the South Coast Air Quality Management District ("District"), instructing the District to complete an environmental impact report regarding its 2007 amendments to District Rule 1315 and District Rule 1309.1. See Natural Resources Defense Council v. South Coast Air Quality Management District, Case No. BS110792 (C.D. Cal., Nov. 3, 2008). Rule 1315 sets forth procedures for tracking emissions credits, while Rule 1309.1 establishes a priority reserve to more easily provide credits to certain preferred sources. Perhaps unexpectedly, the decision with respect to Rule 1309.1 had a large impact on small businesses and public services which have not been permitted to expand because the District has been unable to issue any emissions credits to these entities.
 

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The EPA Uses the Clean Air Act to Propose New Rules Intended to Reduce GHG Emissions from Large Emitters

By Kyndra Joy Casper

In a move certain to fuel the debate over climate change legislation in Congress, the U.S. Environmental Protection Agency (the "EPA") recently revealed a new proposal to regulate greenhouse gas ("GHG") emissions from power plants, factories and refineries, which are considered large GHG emitters.  The regulations being developed would, for the first time, require the use of best available control technology (“BACT”) to compel large emitting sources to curb GHG emissions whenever a new facility is constructed or a major modification takes place. The proposal would require large industrial facilities that emit at least 25,000 tons of GHGs a year to obtain construction and operating permits. Small businesses such as farms, restaurants, and many other types of small facilities would not be included in these requirements. The EPA’s proposal signals that it will act under the existing authority provided by the Clean Air Act, meaning that if Congress does not pass a climate change bill, the EPA will act on its own to curb emissions.
 

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