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									    Your Career as a
Renewable Energy Lawyer
                      Presented by
                   Edward W. Zaelke
   Managing Partner, Los Angeles Office Chadbourne &
                       Parke LLP

            University of California, Berkeley
                Boalt Hall School of Law
                      April 15, 2009
                  Berkeley, California

                                                 LA1 127727 v3
Table of Contents
1. Why Renewable Energy?

2. Industry Overview- Renewable Energy has Entered
   the Mainstream

3. What do Renewable Energy Lawyers do at
   Chadbourne & Parke?

Why Renewable Energy?
What is renewable energy?

• Non-polluting, never-ending source
   of energy to meet our electric needs

• Includes:
   –   wind
   –   solar
   –   geothermal
   –   landfill gas
   –   biomass
   –   biofuels
   –   hydropower
   –   tidal and wave power
Why Renewable Energy?
Dependence on Fossil Fuels is Bad Policy

•   Rising Costs of fossil fuels

•   Scarcity of Supply: at current global rate of
    consumption, less than 50 years of oil remain

    –   The U.S. has 3% of the world’s population but
        consumes 25% of its fossil fuels

•   National Security Concerns: the U.S. imports 60% of
    its fossil fuel needs, sending +$250 billion/year to
    foreign countries, many of which are not stable nor
    friendly to the U.S.

•   Climate Change Concerns: fossil fuel-based electricity
    production is a major contributor to global warming

Why Renewable Energy?
 In the U.S., over 40% of the Greenhouse-causing CO2 emissions
 come from the production of electricity:

                                             4.03%      Residential

           Transportation                                             Production
              33.10%                                                    40.86%

                                   U.S. CO2 Emissions

Source: U.S. Environmental Protection Agency

  Why Renewable Energy?
   And we produce electricity primarily from burning fossil fuels:

                                                                              Natural Gas


               Coal                                                                Nuclear
              49.70%                                                               19.30%

                                       Other Gases

Source: Energy Information Administration, Form EIA-860, "Annual Electric Generator Report."

“ A series of great opportunities
      disguised as insoluble
                 - John Gardner

Renewable Energy Industry Overview

      Renewable Energy
   Has Entered the Mainstream

The U.S. Wind Power Market

The U.S. Wind Power Market
        The U.S. is the world leader in wind generation.

•   In the past two years (2007-2008), the U.S. has installed over
    13,000 MW of new wind power capacity with a corresponding
    investment of over $27 billion.

•   42% of all new electricity capacity installed in 2008 was from wind.

•   2008 installations bring total installed capacity to over 25,000 MW,
    enough to power over 7 million homes.

•   The wind power market has grown more than 30% a year over the
    past 5 years.

•   The U.S. has almost unlimited wind resources - North Dakota alone
    has sufficient wind resource to provide 1/3 of our nation’s electricity.

U.S. has Ample Wind Resource
to Meet Demand
   United States Wind Power Capacity (MW)

          An All American                   Rank   State

             Resource                         1
                                                   North Dakota
                                              3    Kansas
                                              4    South Dakota
                                              5    Montana
                                              6    Nebraska
                                              7    Wyoming
                                              8    Oklahoma
                                              9    Minnesota
                                             10    Iowa
                                             11    Colorado
                                             12    New Mexico
                                             13    Idaho
                                             14    Michigan
                                             15    New York
 Germany’ s On-Land Potential ˜ 100 GW
                                ~            16    Illinois
 North Dakota’ s Potential > 400 GW          17    California

The U.S. Solar Power Market

The U.S. Solar Market
          The U.S. Solar Market Ranks 4th Globally for Solar Installations.
•   Solar includes photovoltaic (PV), which converts light directly to electricity, and various
    types of solar thermal technologies which use solar insolation to create steam and power
    a steam turbine.

•   Solar projects include both smaller, distributed generation and large “utility-scale”

•   The U.S. solar market grew over 350 MW in 2008, bringing total U.S. installed solar
    capacity to over 750 MW.

•   Top states for solar energy generation are NV, CA, TX, AZ, UT and NM.

•   Solar energy expansion garnered $2 billion of investment in the U.S. economy by Wall
    Street firms such as JP Morgan Chase, Morgan Stanley and Goldman Sachs.

•   Solar is poised for explosive growth in the U.S.

The U.S. Geothermal Market
       The U.S. is the world leader in
       geothermal power production.

•   Geothermal power generates electricity from
    heat stored in the earth.

•   The U.S. has a total installed capacity of
    almost 3,000 MW.

•   A total of 126 new projects are under
    development with the potential to add
    5,500 MW of new geothermal power.

•   Nevada is the leader in geothermal with 58
    projects; California follows with 27 projects.

The U.S. Landfill Gas Market
                   •   Landfill gas energy facilities capture the
                       methane produced in land fills (the
                       principal component of natural gas) and
                       burn it to produce electricity.

                   •   Out of total 2,300 U.S. landfills,
                       currently about 420 have landfill gas
                       utilization projects.

                   •   LFG projects generate electricity to
                       power more than 870,000 homes and
                       heat 534,000 homes annually.

The U.S. Biomass Market
•   Biomass is fuel from the decay of
    recently living organisms that is
    converted into energy.

    –   For example: wood, manure, or other
        organic fuels

•   Biomass power plants provide
    2,410 MW of power to the national power
    grid, and an additional
    5,035 MW of power directly to industrial
    energy users, particularly in the wood
    products industry.

•   There are more than 100 operating
    biomass generation facilities in 23 states.

The U.S. Biofuels Market
•   Biofuel is solid, liquid or gaseous fuel derived from biological matter.

•   Corn-based ethanol has dominated ethanol production in the U.S.,
    however, cellulosic ethanol is expected to drive future growth.

•   Federal Fuel Mandate for Ethanol: 5 billion gallons of annual use by

•   Biodiesel prices in the U.S. are expected to decline.

The U.S. Hydro Power Market
•   Hydro power is power that is
    derived from the force of energy
    of moving water.

•   75% of U.S. renewable energy
    generation is hydro power.

•   The U.S. hydro power capacity is
    about 95,000 MW.

•   Projects generate 270,000

•   An additional 23,000 MW of hydro
    power capacity is feasible by

The U.S. Hydro Power Market
                           New forms of hydro power

                       •    Hydro Kinetic: captures moving
                            energy from across or through
                            blades to a power generator

                       •    Wave Energy: conversion
                            devices capture mechanical
                            power from the waves and use
                            it directly or indirectly to power
                            a turbine

                       •    Tidal Energy: captures flow
                            from the tides of an ocean or
                            stream to make power

What is Driving All of This?

What is Driving the Growth?
• The demand for electricity continues to increase

   – Global energy demand projected to grow at
      2.7% per annum

What is Driving the Growth?
The cost of electricity from renewable energy resources has
decreased dramatically.
                  Technology              Total Cost (cents/kWh)*
                  Natural Gas                        5.5
                      Coal                        2.5 – 4.5
                     Hydro                          2–4
                    Nuclear                         2–4
                       Oil                         10 – 12
                      Wind                          4–7
                    Biomass                         4–8
                   Geothermal                       5–8

                      Solar                        14 – 25

               Hydrogen Fuel Cells                 10 – 25

               Ocean Wave/Tidal                     50+

                 *fully subsidized values without externalities

What is Driving the Growth?
Environment concerns are driving public policy

•   Government support is active due to public concern over climate

•   Renewable power is a viable part of national energy policy as a
    hedge against fossil fuel price volatility and contribution to energy

•   The U.S. has adopted renewable portfolio standards, subsidies and
    tax benefits to incent the development of renewable energy

  State RPS Programs
 As of December 31, 2008, 27 states and the District of Columbia had adopted
 mandatory state RPS requirements, while 3 others have adopted state goals
 • RPS measures continue to advance in other states as well
        – IN: 10% by 2018                           MI: 10% by 2015

Source: www.dsireusa.org

What is Driving This Growth?
The Obama administration views investment in
renewable energy as not just good energy and climate
change policy, but as a cornerstone of economic
recovery policy.

What is Driving the Growth?
The American Recovery and Reinvestment Act of 2009 (February 2009)
creates unprecedented incentives for renewable energy projects including:

•   Tax Benefits

    –   Extension of tax credits for renewable energy projects

•   Cash Grants

    –   New cash grant program enabling developers to receive cash grants equal to 30%
        of project costs (in lieu of tax credits)

•   DOE Loan Guaranty

    –   New federal loan guaranty program for up to 80% of project costs

•   Direct Spending

    –   $20 billion for renewable energy projects; $11 billion for transmission investment

What is Driving the Growth?
• The Obama Administration also has proposed a Federal
   Renewable Portfolio Standard – requiring that 20% of our
   nation’s electricity be provided by renewable resources
   by 2020

• Expect comprehensive energy legislation by summer 2009

   – Will also address transmission issues

What do Chadbourne lawyers do
   in the Renewable Energy

Chadbourne Lawyers are Involved in:
• Real Estate
   –   site assessment, acquisition and leasing transactions over private and
       public lands

• Land Use and Permitting
   –   obtaining permission to develop and use land for renewable projects

• Development Agreements
   –   Joint venture and other sorts of development agreements

• Project Power Sales, Interconnect and Transmission
   –   Securing rights to sell power produced by renewable projects
   –   Securing rights to interconnect with grid and transmit power to purchaser

Chadbourne Lawyers are Involved in:
• Equipment Supply and Construction
   –   Contracts to supply capital equipment and build renewable projects

• Operation and Maintenance
   –   Contracts to operate and maintain renewable projects

• Development, Construction and Term Financing
   –   Negotiate various types of debt and equity finance for renewable projects

• Mergers and Acquisitions
   –   Purchase and sale of renewable energy projects and companies

• Intellectual Property Transactions
   –   IP licensing, patent prosecution and counseling

Chadbourne Lawyers are Involved in:
• Equipment Manufacturing
   –   Advice on component supply and manufacturing issues

• Energy Regulatory Matters
   –   Advice on federal and state energy regulatory matters

• Tax
   –   Advice on structuring tax equity investments

• Disputes
   –   All manner of dispute resolution

• Lobbying
   –   State and Federal lobbying efforts with respect to renewable energy policy

Projects Currently Being Handled
By Chadbourne Lawyers
•   Development of 5,000 MW of a multi-phase wind project in North
    Dakota – sponsor counsel

•   Development and financing of a multi-phase 2,500 MW solar thermal
    project in southwest U.S. – sponsor counsel

•   Development of 1,500 MW of a multi-phase wind project in California –
    sponsor counsel

•   Development of 1,000 MW of a multi-phase wind project in Oregon
    – sponsor counsel

•   Financing of a portfolio of U.S. wind projects – lender counsel

•   Acquisition and investment in broad portfolios of PV solar projects with
    over 10 different solar developers (aggregate capital commitment of
    approximately $600 million) – investor counsel

Chadbourne’s Representative
Renewable Energy Clients

Chadbourne Project Finance Practice
Our Team
• Chadbourne’s renewable energy team includes the former
  Governor of New York, a past president of the American Wind
  Energy Association, the former CEO of one of the world’s
  leading renewable energy companies, the former Commissioner
  of New York State’s Department of Environmental Conservation,
  and the industry’s top tax equity advisor.

Awards & Accolades
• Chambers USA 2009- America’s Leading Lawyers for Business
  recognized 26 Chadbourne lawyers and the Firm for its
  outstanding work in project finance and renewable energy.

• Chambers USA 2008- America’s Leading Lawyers for Business
  honored Chadbourne as the winning law firm in the category of
  Energy Projects: Power Including Renewables.

• Infrastructure Journal- Chadbourne ranked second in Global
  Power in Infrastructure Journal's mid-year 2008 survey of
  project finance practices.

Chadbourne Recruitment Contacts
Adam Umanoff                         Scott Berson
Los Angeles Office Hiring Partner    New York Office Hiring Partner
350 South Grand Avenue, 32nd Floor   30 Rockefeller Plaza
Los Angeles, CA 90071
                                     New York, NY 10112
(213) 892-2055
                                     (212) 408-5103

Mary Lopatto                         Lisa Featherson
D.C. Office Hiring Partner           Legal Recruitment Manager
1200 New Hampshire Avenue N.W.       30 Rockefeller Plaza
Washington, D.C. 20036               New York, NY 10112
(202) 974-5639                       (212) 408-5103
mlopatto@chadbourne.com              lfeatherson@chadbourne.com


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