U.S. Department of Energy Energy Efficiency and Renewable Energy

Draft Transcript on Municipal PV Systems

Webinar on navigating the legal, tax, and finance issues associated with the installation of Municipal PV Systems. The following agenda was developed based on Pat Boylston's experience assisting municipalities with their PV projects and the requests for information that the Solar America City technical team leads have received from many of the 25 Solar America Cities since the April 2008 meeting in Tucson.

1. Critical Potential Deal Constraints Embedded in Municipal Law.

A. Debt Limitations in City Codes, State Statutes and Constitutions

B. Restrictions on Contracting Power in City Codes and State Statutes

C. Budgeting, Public Purpose and Lending of Credit Issues

D. Difficulties in Granting Indemnifications E. Authority to Grant Site Interests and Purchase Electricity

2. Crafting a City-Friendly PPA that is Financeable

A. Identify your critical "Must Haves" before issuing the RFP

B. Understand what the developers and investors "Must Haves" are likely to be (in order): Shared Risk Allocation; Certainty; Exit-Mitigation Options; Financial Return

C. Identify where no compromise is possible between your "Must Haves" and the developer and investors "Must Haves". In other words, "What Are You Willing to Give Up" to make a deal

D. Electricity Price Calculations and Purchase Option Pricing Formulas

3. Potential for Combining Incentives and Structuring Options to Increase Overall Attractiveness

A. General Ability to Combine Different Types of Tax Incentives New Market Tax Credits and Solar Deals; Other Potential Combinations

B. "Tax Exempt Use Property" Issues With True Leases and Lease- Purchases

C. "Tax Exempt Use Property" Issues With LLC and Partnership Flip Structures/ Solutions

4. Most Common Reasons Municipal Transactions Fail - Working Around the Problems

June, 2008
Resource Type
Resource Source
Patrick Boylston (Stoel Rives LLP)