CHP Finance Sub-committee Meeting No. 5
Wednesday September 10th, 2014
9am to 10:30am
Attendees: John Boyd, Jason Volz, Lissa McCracken, Cheryl Eakle, Lee Colten, Ryan Barrows, Harry Carver, Mary Breeding, Art Franklin, Holly Spade, Robert Chatham
Agenda:
Ø Welcome, Introductions, Set-up
Ø Industrial Revenue Bonds:
Mark Franklin, Stoll Keenon Ogden, presented the chart handout that he prepared summarizing the use of Tax-exempt Bond Financing of CHP Facilities. See attachment. Mr. Franklin iterated that specific questions should always be addressed by the IRS. There were questions as to process, but not much detail. The response was that some details are yet to be defined in regulations, which are still in development. White Oak Case Study
John mentioned that the representative from Honeywell was not able to make the presentation at the last minute. It can be rescheduled.
Ø Presentation Discussion – All
v John stated that the next step is to develop a financing reference guide that will identify the roadblocks to CHP implementation and options for financing. The Action Plan will reference this guide and drafting of this will begin immediately. Information from these meetings will contribute to defining what should be considered before the upcoming Legislative Session. Questions for the Public Service Commission should be addressed soon.
Further discussion about the comment period for 111(d) pursued. Lee suggested that the Cabinet would be finalizing its issues before the end of the month. Robert Chatham asked if John Lyons could share with the committee the input that the Cabinet has received from its multiple regional fact-finding conversations. Lee suggested that he would extend that invitation.
Robert asked if there was a financial model that could be used universally in pre-screening. John suggested that he had such a model and asked Cheryl to take a look at it. It was agreed that the model should be used by KPPC; caution was advised in using these tools, and it was suggested not to post this on the website where it could easily result in erroneous results.
While other financing options are available, and will be included in the finance guide, John suggested that perhaps the Finance Committee had run its course. It was agreed that unless something else came up there probably was no need for further presentations. John proposed that there be no meeting in October, but to tentatively agree to meet again in November for updates.
Ø Next steps and Action item recap
v There will be no Finance Subcommittee meeting in October – Tentatively, we may have one in November, provided progress is made on the Action Plan.
v DEDI will resend information on Industrial Revenue Bonds presentation and the White Oak case study
v DEDI to begin work on summarizing information for financing reference guide.
v DEDI will invite John Lyons to provide an update to the CHP Workgroup on the status of EEC comments and rule development process for EPA’s Clean Power Plan, aka 111(d)
v Interim communications: E-mail John Boyd and Greg Guess (may also copy team)
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DEDI – KY DEPARMENT FOR ENERGY DEVELOPMENT AND INDEPENDENCE * KAM – KENTUCKY ASSOCIATION OF MANUFACTURERS
KPPC – KENTUCKY POLLUTION PREVENTION CENTER * U.S. DOE – CHP TECHNICAL ASSISTANCE PARTNERSHIP - SOUTHEAST