Embracing New Fire Safety Standards for BESS

Governor Kathy Hochul announced $11.6 million in funding to support clean energy industry workforce development initiatives in New York State. The funding, which was approved by the New York Power Authority Board of Trustees, stems from a NYPA commitment in the 2023-24 Enacted State Budget and will largely support the efforts of the state Office of Just Energy Transition (OJET), which was established within the New York State Department of Labor last year to connect workers to opportunities for jobs in the clean energy economy through up-skilling and training with a focus on serving those who are traditionally underrepresented, especially within disadvantaged communities.

“As we develop a clean energy economy in New York State, we're ensuring that we have a workforce ready and able to fill the needed jobs of tomorrow,” Governor Hochul said. “This funding will support critical programs for New Yorkers looking to develop skills in the emerging energy sector so that everyone can participate in our green energy future.”

Four new workforce training programs will be launched with this initial funding: two administered through NYSDOL and two administered by NYPA. The programs will incorporate wraparound services that include assistance with transportation, childcare, stable housing, food and other support. Wraparound services are essential to overcome obstacles that make it difficult for participants to attend and successfully complete such programs.

NYPA and NYSDOL will collaborate on programs related to workforce training, retraining and apprenticeships related to preparing workers for employment and work in the renewable energy field, as well as programs to train or retrain utility workers.

In this first tranche of spending, NYPA will provide NYSDOL with $5 million to expand or create clean energy training programs and pre-apprenticeship opportunities and provide wraparound services for individuals participating in them. Projects supported must provide training or pre-apprenticeship programs in building electrification, renewable energy, electric vehicle charging, or energy intensive industries. To learn more, visit the OJET webpage.

NYSDOL also will receive $4 million to create opportunities for local workforce development boards to support transitioning and residential workers. The funds will support transitioning workers in either up-skilling or re-skilling for the renewable energy field from fossil fuel jobs, as well as provide residential worker support in the areas of weatherization and building performance. The funds will include wrap around services that will aid with childcare, transportation, housing stability, food, mental health services, substance use treatment and life-skills training.

In addition, the Power Authority, as part of its workforce development priorities, has plans to invest $2.6 million to launch two workforce development initiatives.

With the first initiative, NYPA will collaborate with training providers to develop technical training opportunities, hands-on experience, paid internships and full-time jobs for people entering the workforce and advance training opportunities for those traditional utility workers to ensure that both new and current employees have the requisite skills and qualifications to participate in New York’s clean energy field. The first phase of the initiative, which will cost $2 million, will be regionally focused, providing employment training and employment opportunities for residents in disadvantaged communities located in the vicinity of NYPA power projects. NYPA will issue an RFP to seek potential partnership opportunities with interested parties.

The second NYPA workforce development initiative will be in collaboration with the Say Yes Buffalo. NYPA will be providing $600,000 to the firm’s Youth Apprenticeship Program, which will place recent public high school graduates in one-to-three-year structured work-based learning apprenticeships at committed industry partners in high demand sectors. It combines paid on-the-job learning, professional mentorship and aligned educational training and credentialing to ensure historically underserved youth have equitable access to and retention in secure, mid-wage, mid-skill jobs with room to grow. The expectation is that this program will grow to serve as many as 200 high school students as it matures.

Each of the initiatives advance the Power Authority’s and New York State’s goals of supporting workforce training and retraining to prepare workers for employment in renewable energy fields, and provide benefits to residents of disadvantaged communities, including communities in the vicinity of the Power Authority’s power projects. NYPA has extensive experience providing training to workers in energy-related fields and working with organized labor to help implement training programs for current and future employees.

NYSDOL oversees hundreds of millions of dollars annually and has extensive experience connecting hundreds of thousands of people annually to job training, supportive services, job search and career development services and ultimately to employment.

In addition to its new workforce training commitments, the 2023-24 Enacted State Budget provided NYPA with enhanced authority to plan, design, develop, finance, construct, own, operate, maintain and improve renewable energy generation and storage projects—either alone or in collaboration with other entities—to help support the state's renewable energy goals in the Climate Leadership and Community Protection Act, maintain an adequate and reliable supply of electric power and energy in the state, and support the new REACH program, which will enable low-income and moderate-income electricity customers to receive bill credits through the production of renewable energy by NYPA. NYPA will publish its first biennial strategic plan for renewable energy development in January 2025.

New York Power Authority | www.nypa.gov

The Department of the Treasury has released final guidance implementing the 30D New Clean Vehicle Tax Credit. Concurrently, the Department of Energy released its final interpretation of the term “Foreign Entity of Concern,” or FEOC, which establishes the framework for automakers to reorient their supply chains away from adversarial nations—one of the key eligibility requirements tied to the 30D credit. Taken together, these actions seek to balance the U.S. goals of deploying electric vehicles (EVs) while developing a robust, domestic supply chain disentangled from FEOCs.

Fast Facts on the 30D Tax Credit

• Established in 2008 and amended by the Inflation Reduction Act of 2022, the 30D credit is available through 2032.
• Provides up to $7,500 for the purchase of qualifying new clean vehicles, including battery electric and plug-in hybrid vehicles. The credit is composed of two halves and qualifying vehicles receive $3,750 for meeting each of the increasingly-stringent critical mineral and battery component sourcing requirements.
• Can be claimed at the point of sale through a dealer credit transfer, enabling buyers the option to take advantage of the credit value upfront rather than waiting until they file their taxes.
• 30D-eligible vehicles must:
  • Have a battery capacity greater than 7 kilowatt hours,
  • Weigh less than 14,000 pounds,
  • Undergo final assembly in North America,
  • Cost less than $55,000 for cars, or $80,000 for SUVs, pickups, and vans,
  • Meet FEOC requirements.
• Buyer eligibility is subject to income thresholds:
  • $300,000 for joint filers,
  • $215,000 for heads of household,
  • $150,000 for single filers

Critical Minerals Requirement

A new clean vehicle is eligible for a $3,750 credit if a certain percentage, by value, of the critical minerals in its battery has been a) extracted or processed in the United States or a country with which the U.S. has a Free Trade Agreement (FTA), or b) recycled in North America. The percentage requirement began in 2023 and has become increasingly stringent over time. Automaker compliance with the critical minerals requirement can be determined in one of two ways:

1. The 50% Value Added Test states that if more than 50% of the value added to a relevant critical mineral through extraction, processing, or recycling occurred in the relevant area (U.S. and FTA countries), then the mineral counts towards the overall critical mineral value of the requirement. The rule is a transition rule, and its use is optional until its expiration in 2027.
2. The Traced Qualifying Value Test, a more stringent permanent test, calculates qualifying content as the sum of the value added to each critical mineral in the relevant area from extraction, processing, or recycling. Manufacturers can average qualifying critical mineral content over a period of time for all vehicles of the same model line, plant, or class, rather than individually tracking the minerals to each vehicle.

Battery Component Requirement

A new clean vehicle is eligible for a $3,750 credit if a certain percentage, by value, of the battery components are manufactured or assembled in North America, with increased stringency over time. The percentage is calculated as the proportion of incremental value of battery components that were either manufactured or assembled in North America. Incremental value refers to the value of a component subtracted by the value of any of its subcomponents, if any, and is roughly equivalent to a measure of value added by each component.

“Foreign Entity of Concern” Requirement

New clean vehicles are disqualified from any portion of the 30D credit if they contain a) battery components manufactured by a FEOC, beginning in 2024, or b) critical minerals extracted, processed, or recycled by a FEOC, starting in 2025. These requirements apply to all battery components and critical minerals contained in the battery except those identified as “impracticable-to-trace ” due to their origination from multiple sources and commingling during the refining process. Identified materials include critical minerals contained in electrolyte salts, electrode binders, and electrolyte additives, as well as synthetic and natural graphite used in anode materials. The impracticable-to-trace exemption expires in 2027; in order to qualify for 30D in the interim, vehicle manufacturers must submit reports identifying steps taken to reach FEOC compliance after the exemption period ends.

“Foreign Entity of Concern” Definition

An entity is determined to be a FEOC if it meets the definition of a foreign entity and is either subject to the jurisdiction of the government of a covered nation (China, Iran, North Korea, and Russia) or is owned by, controlled by, or subject to the direction of a covered nation’s government.

A foreign entity is defined as either:

• A government of a foreign country, including:
  • National or subnational governments,
  • Agencies or instrumentalities of such governments,
  • Dominant or ruling political parties, or
  • Current or former senior political figures and their immediate family members.
• A natural person who is not a lawful permanent resident of the United States, citizen of the United States, or any other protected individual,
• A partnership, association, corporation, or organization, organized under the laws of or having its principal place of business in a foreign country, or
• An entity organized under the laws of the United States that is owned by, controlled by, or subject to the direction of a foreign entity.

An entity is subject to the jurisdiction of a covered nation government if:

• It is incorporated or domiciled in, or has its principal place of business in a covered nation, or
• It extracts, processes, or recycles critical minerals or manufactures, assembles, or processes battery components in a covered nation.

An entity is owned by, controlled by, or subject to the direction of a covered nation government if:

• 25% or more of the entity's board seats, voting rights, or equity interest–evaluated independently–are cumulatively held (directly or indirectly) by the other entity, or
• It has entered into a licensing arrangement or contract with another entity that enables that entity to exercise effective control over the extraction, processing, recycling, manufacturing, or assembly (collectively referred to as production) of the critical minerals, battery components, or battery materials.
  • Effective control includes the ability to determine the quantity or timing of production; to determine which entities may purchase or use the output of production; to restrict access to the site of production to the contractor's own personnel; or the exclusive right to maintain, repair, or operate equipment that is critical to production.

Conclusion

The 30D New Clean Vehicle Tax Credit is a key component of the U.S. industrial and decarbonization strategies. Together with the other pro-manufacturing tax credits in the Inflation Reduction Act, incentives are in place to deploy clean energy technologies while weakening foreign influence over their supply chains. While both goals are central to U.S. federal policy, incentives must be balanced to achieve both goals. Final rules like the ones covered in this post provide the regulatory certainty needed throughout the supply chain to help derisk private investment in domestic production.

Zero Emission Transportation Association | https://www.zeta2030.org/

In a landmark collaboration aimed at revolutionizing the construction industry's approach to off-grid electric equipment charging, Volvo Construction Equipment (Volvo CE) and Portable Electric are proud to introduce the PU130. This groundbreaking mobile charging unit, designed, engineered, and built by Portable Electric, enables rapid recharging of electrified construction equipment, which significantly reduces downtime and increases job site productivity.

With Portable Electric’s proprietary 48-Volt Direct Current Fast Charging (DCFC) technology integrated, the PU130 offers unparalleled advantages for construction sites by providing the ability to rapidly recharge equipment over a lunch break, which enables users to service a full workday and beyond. In addition to recharging electrified construction equipment at a 20 kW charge rate, the PU130 can simultaneously provide 40 kW of job site power to support tools, lighting, office trailers, and more. Moreover, the PU130 seamlessly hybridizes with other power generation systems for extended power, ensuring continuous operation with minimal environmental impact. As with all power and charging solutions from Portable Electric, the PU130 offers seamless connectivity with Neuron OS for remote monitoring. With real-time data, analytics, and GPS tracking, users can remotely monitor the PU130's performance, optimize charging schedules, and ensure maximum efficiency. This connectivity feature further enhances job site productivity and allows for proactive maintenance, maximizing uptime.

Volvo PU130 Quick Specs:

• AC Output: 40 kW
• Low Voltage DC Fast Charging: 20 kW
• Storage Capacity: 130 kWh
• Neuron OS-enabled wireless monitoring platform for real-time data, analytics, and GPS

Ray Gallant, Vice President of Volvo Construction Equipment, expressed his enthusiasm for adding the PU130 to Volvo's product offerings, stating, "The PU130 represents a significant milestone in our journey towards sustainable construction practices. By partnering with Portable Electric, we are delivering cutting-edge solutions that exceed our customers' expectations."

Keith Marett, CEO of Portable Electric, echoed Gallant's sentiments, remarking, "We are incredibly proud to partner with Volvo Construction Equipment in bringing the PU130 to market. This first-of-its-kind unit is a testament to our team's dedication in helping reduce the use of carbon-intensive fuels at construction sites worldwide. By removing a key barrier of adoption, electrified equipment users can now reduce their downtime and increase their productivity through our rapid recharging technology.” 

Experience the future of off-grid power solutions firsthand at the Volvo booth at ACT Expo 2929. Learn how the PU130 is reshaping the construction industry and discover the possibilities of sustainable, efficient charging solutions.

Volvo Construction Equipment | volvoce.com 

Portable Electric | portable-electric.com

The Bechtel-built Cutlass Solar 2 project in Fort Bend, Texas, is complete and generating electricity at full capacity for the first time, sending enough clean, renewable energy to the grid to power 40,000 homes—a milestone that comes ahead of the 13-month delivery schedule.

The 218 Megawatt (MW) solar facility delivered for Sabanci Climate Technologies comprises almost half a million solar panels spanning 1,100 acres.

• The project will save an estimated 600,000 metric tons of CO2 emissions per year.
• Cutlass Solar 2 is the second solar facility in Texas built by Bechtel, which completed the neighboring Cutlass Solar 1 plant in January 2023.
• In total, Cutlass Solar 1 and Cutlass Solar 2 will power more than 60,000 homes across Texas.

“We’re delighted to get Cutlass Solar 2 to maximum capacity to provide more renewable power for Texans, support America’s energy transition, and help achieve the Lone Star State's goal to become the nation’s largest producer of solar power,” said Scott Austin, Bechtel General Manager of Renewables & Clean Power. “Bechtel is proud to partner with Sabanci Climate Technologies in their pursuit to make clean, renewable energy more accessible to the people of Texas.”

“We partnered with Bechtel for our first solar venture because they are experts in delivering projects better and faster,” said Ismail Bilgin, President, Sabanci Climate Technologies. “Sending maximum power to Texas’ grid is a fantastic milestone in this successful project and reconfirms that we were right to choose Bechtel. We’re looking forward to continuing this success on our next project, Oriana, together.”

To meet the project’s ambitious schedule, Bechtel employed data-driven automation, survey robots, machine-controlled equipment, drones, and a mindset that ‘every minute matters.’ Bechtel’s first-of-a-kind digital execution hub used at Cutlass Solar 2 enabled 100% digital delivery through software integration. The hub gathers data directly from equipment in the field and feeds the data into an interactive map-based visualization. You can watch a video about Bechtel’s smart digital delivery at Cutlass projects here.

At peak construction, more than 300 people were employed on the site. Approximately 30% of our professional staff and 15% of the project’s craft professionals were women, representing two and a half times the industry average.

Bechtel leads renewables projects from the development stage through commissioning and handover. The company will soon begin constructing the Oriana Solar facility for Sabanci Climate Technologies in Victoria County, Texas. Oriana Solar is expected to produce enough clean energy to power more than 34,000 homes.

Bechtel | www.bechtel.com

Sabanci Climate Technologies | www.sabanci.com

Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, announced it acquired a state-of-the-art mobile transformer that can be quickly deployed and enables the company to resolve outages in the event of a damaged transformer in a couple months compared to the two year lead time for a replacement transformer.

“We are thrilled to have this first mobile transformer, which is an exciting new addition to Avangrid’s toolkit and will improve the resiliency and reliability of our wind and solar operations across the United States,” said Pedro Azagra, Avangrid CEO. “When we reduce downtime at our renewable energy assets, we ensure that clean energy keeps flowing to our customers. New, innovative pieces of equipment like this are key to delivering on Avangrid’s mission to accelerate the clean energy transition.”

Utility-scale transformers are an essential piece of the electric grid and manage the flow of energy from generating facilities to the consumer. When these machines fail, power generation must stop and replacing them can take 18 months or longer.

The new 168 megavolt-ampere (MVA) mobile transformer, custom-made for Avangrid and purchased from Hitachi Energy, can be deployed and installed within a couple months to any of Avangrid’s onshore wind and solar facilities due to the transformer’s multi-voltage capabilities. The transformer’s unique technology also allows for a low profile and the ability to withstand higher-than-normal transport accelerations - perfect for quick transport to its needed location. This will bring energy production back online while replacement equipment is procured.

“The clean energy transition relies heavily on partnerships and collaboration. Working with Avangrid to design this innovative and versatile transformer solution ensures clean, reliable energy when and where it’s needed most, even if a transformer is damaged after a major storm,” said Steve McKinney, Senior VP and Head of Hitachi Energy’s Transformer Business, North America. “As part of this collaboration with Avangrid, this unique engineering solution also incorporates the skills of our expert services team to support installation and commissioning for fast relief and restoration, which is especially critical in an industry facing longer than usual lead times for new equipment.”

Consisting of three modules, the transformer will be hauled on trailers with semi-trucks to the site. One of the most versatile transformers of its kind, it shows Avangrid’s dedication to reliability by covering the needs of any of their onshore renewable energy facilities throughout the U.S.

Avangrid | www.avangrid.com

Qcells, a pioneer in complete clean energy solutions and a leader in the U.S. solar market, announced EnFin by Qcells (EnFin), its residential solar financing platform, completed its first asset-backed securities (ABS) transaction totaling $252.86 million. The transaction comprises bonds backed by thousands of consumer loans used to finance residential solar installations. RBC Capital Markets acted as the sole structuring advisor and bookrunner, and Santander served as co-manager in the transaction.

“This deal signals confidence in the Qcells brand within the solar financing sector and in the broader capital markets,” said Alex Kaplan, EnFin’s President and CEO. “EnFin is the only financing platform in the market backed by a major manufacturer, and we benefit from Qcells’ trusted reputation for high-quality equipment and its significant investment to build a sustainable solar supply chain in the U.S. With our seamless point-of-sale technology, extensive installer relationships and scalable services, EnFin is ready to support homeowners across the country who want to go solar with reliable and attainable financing.”

In addition to the recent ABS transaction, EnFin has closed two revolving warehouse transactions totaling $500 million of committed capacity. The first warehouse was closed with RBC in April 2023 and the second with Santander in January 2024, each for $250 million.

EnFin, a wholly owned subsidiary of Qcells, began pilot lending operations in the latter half of 2022 and officially launched in January of 2023. Since launch, EnFin has accumulated approximately 18,000 consumer loan contracts with an aggregate principal balance of more than $800 million. Loans under the EnFin program are made through a partnership with Hatch Bank, whose national lending charter has enabled EnFin to be active in 46 states and the District of Columbia.

The platform offers a number of unique value propositions to its customers that leverage its connection with Qcells. For instance, qualified homeowners can benefit from a 30-year performance warranty option on select Qcells modules when financed with EnFin.  Additionally, EnFin enables residential customers to create further value from their solar and battery storage installations by connecting them with other Qcells incentive programs through which they can participate in grid services offerings and monetize solar renewable energy credits (SRECs) produced by their systems.  

Providing competitive financing for solar and battery storage systems is part of Qcells’ long-term strategy to become a one-stop shop and offer a full suite of clean energy solutions to the market. In pursuit of this goal, in January 2024 EnFin launched a third-party-ownership (TPO) financing offering which provides power purchase agreement (PPA) and lease options to homeowners who want to use solar energy without purchasing a solar or solar + battery storage system. 

With the announcement of this transaction, EnFin is proving the sustainability of its business model through its diversified sources of financing and stable, high-quality loan originations.

“It’s exciting to see Qcells grow in the residential solar financing space,” said Justin Lee, CEO of Qcells. “This first ABS transaction truly reflects investor confidence and showcases EnFin as a unique value proposition. Ultimately, our success in this area will help to accelerate the clean energy transition by making rooftop solar and battery systems more accessible.” 

EnFin | https://www.enfin.com/

Qcells | https://qcells.com/us/

With 5.7 million electric vehicles (EVs) anticipated to be used in fleet applications by 2025, EV Connect, a leading EV charging business platform and bp pulse, a global leader in charging infrastructure for fleets and public charging, announced a collaboration to bring key capabilities of Omega, bp pulse's EV charge management software to the EV Connect platform. Tailored to the diverse charging requirements and duty cycles of EV fleets, Omega delivers a comprehensive managed charging solution that integrates state-of-the-art charging management technology from EV Connect and bp pulse into a new, comprehensive fleet offering. 

With bp pulse and EV Connect’s Omega integration, fleet operators can focus on their core business while Omega orchestrates charging schedules, prioritizes charging based on fleet needs, and enables real-time insights for informed decision-making, whether charging at depots, on the go, or at driver homes. The collaboration between bp pulse and EV Connect gives fleet operators greater control over charging infrastructure while reducing costs associated with energy consumption and providing detailed historical data for further optimization.

"At bp pulse, we remain steadfast in our mission to simplify electrification for diverse fleets, and collaborating with EV Connect on this endeavor marks an exciting milestone, expanding our scope to deliver turnkey solutions for fleet operators industry-wide," said Sujay Sharma, CEO of bp pulse Americas. “Our shared goal is to provide fleet customers with a comprehensive solution that addresses all aspects of their charging needs—no matter the location. This collaboration allows us to combine our unique offerings into one cohesive platform."

Omega orchestrates EV charging to optimize cost-effective charging for fleets, while the EV Connect platform focuses on managing financial transactions, particularly in commercial fleet settings. This includes fleet operations in which drivers bring vehicles home, requiring private chargers with simple reimbursement options. By combining the capabilities of Omega and the EV Connect platform, fleet operators, including those in government, municipal, logistics, services, and sales sectors, can expect improved efficiency and optimization of their charging stations while empowering fleet managers with precise control over when and how their vehicles are charged, optimizing for factors like energy cost, power constraints, vehicle readiness, and operational efficiency. 

"This collaboration between EV Connect and bp pulse brings unparalleled expertise in the electric vehicle charging industry, opening doors to elevate our fleet management capabilities and deliver cutting-edge solutions that set new standards for both of our customers," said Jon Leicester, Vice President and Head of Commercial at EV Connect. "By integrating our platforms, we can offer a comprehensive management solution that caters to fleet operators looking to optimize electric fleet efficiency like never before."

EV Connect | www.evconnect.com 

bp pulse | bppulsefleet.com