Municipal Bond Financing of Solar Energy Facilities

Abstract

This Legal Reconnaissance Paper on Municipal Bond F'inancing of Solar Energy Facilities was prepared by the Solar Energy Research Institute (SERI) to fulfill, in part, SERrs solar information dissemination function. This paper is part of the Market Development Branch Law Program, which in turn is a part of the overall program of the Commercialization Division. This is the fourth of five Legal Reconnaissance Papers sponsored by the SERI Law Program. The other four address (1) legal issues surrounding the commercialization of OTEC, (2) legal issues pertaining to the commercialization of WECS, (3) regulated utilities and solar energy, and (4) legal issues raised by the commercialization of solar heating and cooling (SHAC) devices. These five st4dies are meant to broadly survey the legal •questions that are raised by either a specific solar technology (i.e., OTEC, SHAC, and WECS) or a potential barrier or incentive to the general commercialization of solar technologies (i.e., utilities and municipai bonds). It is hoped that these reconnaissance papers will be springboards for further, more detailed studies of some aspect of the general topic• covered. • Sharon Stanton White is a partner in the San Francisco law firm of Jones, Hall, Hill, and White, where she practices in the area of municipal bonds.

Organizational Precedents for Ownership and Management of Decentralized Renewable Energy Systems

“…State statutes vary widely on the availability of bond issues for renewable energy facilities. A recent survey of five states (California, Florida, Illinois, New Mexico, and New York) explored some of these .differences [75]. General obligation bonds are applicable to most types of renewable energy facilities, and could be perceived by les...:; risky by investors for projects involving unproven technologies.…”