Sharing Risks for New Energy /Efficiency Projects

Authors

  • Christopher Kane Associate Genera l Counsel Raytheoll Engineer s and Constructors, file.
  • G eorge W. Stiffler Bastinnelli. Breton, T al/h ey and Kelley (Washillgton Office

DOI:

https://doi.org/10.13052/dgaej2156-3306.1444

Abstract

Editor 's Note: New Energy /E fficiency Projects (EEP) have all the nor-
m al risk s associated w ith power and ene rgy pro ject s- and m or e. In
addi tion, the risks in volved with devel oping en er gy te chn ologies mu st
be assessed and alloca ted .
The increased risks associated with deli ver y of these te chn ologies,
however, are offset by significan t ben efits which includ e re du ced envi -
ron men tal im pa cts, combined with impro ved gene ra tion a nd uti lizat ion
efficiencies. In or der to achieve these ben efits, project risks need to be
a lloca ted appropriat el y and mana g ed in order for pr ojects to be fi-
nan ced , bu ilt and o pera ted successfully.
Th e tw o-p art se ries- by au tho rs Kane and Stiffle r wi ll ad d ress
so me pr actical risk alloca tion guide lines and mit igation stra teg ies for
overco m ing financial chall en ges and ins uring energ y pr oject success.

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Author Biographies

Christopher Kane, Associate Genera l Counsel Raytheoll Engineer s and Constructors, file.

Christopher Kane, P.E., Esq. , was a princi pa l in the law firm of
Bastiane lli, Brown and Kelley spec ializing in con tract p rep ar ati on , risk
man agem ent , in nova tive fina nce and di s put e res olut ion on co mp lex en-
ergy a nd e nviro n me n tal projects. He recentl y becam e as soc iate ge nera l
co unse l of Ra yth eon Engi ne ers and Co ns tr uctors, Inc., res po nsi ble for
th e Infr ast ru ctur e Gro up.
Mr. Kan e has r epr esent ed inv e stor -own ed ut ilities, m un icip al utili-
ti e s, in d e pe n de n t powe r pr odu ce rs, gas pi pe li ne co m p a n i es ,
reme d ia tion con trac tors , institution s, electrica l con trac tors and hosp itals.
Serv ices to these client s in clu de p repar at ion and negotiati on of ag ree -
m ent s for e ng in ee r in g, co ns tr uctio n m an a g em ent , d e si gn- buil d,
pr o cur em en t, oper ating and m aint en an ce as we ll as th e d esign an d
im pleme n ta tion of di sput e reso lu tion sys tems dur ing p roject d eli ver y.
He also perfor ms wor k as a n eut ral in eva lua tion of con trac t di sput es
an d in arbitra tion and med iation of di s put es. His recent p roject in volve-
m ent includ es res olut i on of co m p lica te d co n t rac t i ssue s o n Coa l
Gasi fica tio n-Co m bi ne d Cycl e Proj ect s and a 345 k V Tr an sm issi on
Projec t; con trac t pr eparat ion for a Reverse Os mos is Wa ste Wa ter Trea t-
m ent Project an d a Cogenera tion Ice Mak ing fac ility; consulta tion w ith
DOE laborat or ies on alt erna tive di sput e resolu tion for ene rgy sav ing s .
perform an ce con trac ting; and cons ulta tion to sta te age ncies on in nova -
tive fina nc ing for in fras truct ure p rojects.
He has spoken an d pr es ent ed pap er s at man y nat ion al conference and for local bu siness org aniza tions on im prove d construc tion con tract-
ing me tho ds , e nviro n me n tal reg ulatory issu es an d in nova tive m eth od s
for resolvi ng d isp utes, Mr. Kan e's w riting s have been publ ish ed in
Poteet Engineering, Stmtt!gic PlallIlill g fo r EIlt!/'gy awl tilt! Enuironmeni , Pub-
lic Util ities Fort night ly, lndcpcu dent Ellergy, Electrical World and Ellergy
Engineering [ournal. He ha s also particip ated on the Engin eers Joint Co n-
tract Doc umen ts Co m mi ttee whic h d evel op s and up d at es s tan da rd
for m s of agreeme n ts for use on e ngi nee red p rojects. Mr. Kan e is a m em -
ber of the Na tiona l Socie ty of Professional Eng inee rs; Assoc. of En erg y
Enginee rs; The Section on Ene rgy , Enviro nme n t an d Na tu ral Res our ces
of the Ame rica n Bar Assoc. ; The Florida Business Roundt abl e; an d The
America n Ar bitra tion Assoc. Pan el of Med iat or s an d Arbitra tors.
Mr. Kan e is a licen sed p ro fessi ona l eng inee r and at t orn ey and is
q ualified as a di sput e resol ut ion n eut ral. Prior to receiving hi s law de-
g ree , Mr. Kan e was a ca p ta in in th e US Army Co rps of Engi nee rs
inv olved w ith p rojects in the Pacific Nor th wes t on wat erw ays and p ub-
lic lan d s. La ter he w o rked as a p ro fessi on al e ng i nee r f or Geo rge
\Vash in gt on Uni ver sit y, Ph ysica l Plant Dep artm ent. As a lawye r, Mr.
Kan e spe n t s everal years as corporate legal counse l and m an ager of
contracts for the power div ision of a cons truction compan y a nd has been
in p rivate pra ctice sinc e 1987.
C lzri ~ to p lz e r Kalil' , P.E., E ~q . , l<ayt lz eOl l En gineers & Constructors , II/c.,
510 Ca mcgic Center, Princeton, N] 08543; PIIOIl t! 609-720 -3U 47; [ ax 3571;
Christophvr kill ll' @;ccgate.l fec i.coIII

G eorge W. Stiffler, Bastinnelli. Breton, T al/h ey and Kelley (Washillgton Office

G eorge W. Stiffler is a mem ber of the Wa shingto n, DC, law firm
of Bast ianel li. Brow n & Kelley, Cha rtered , w he re he conce n tra tes hi s
pra ctice in go vern men t con trac t litigati on , inform at ion te chn ology. and
c oun seling. His experience incl u des claims , bid p rot ests, de fective pric-
ing, and procu reme n t fra ud .
Mr . Stiffler has repr esen ted clien ts in a numb er of lar ge fed er al and
state con tract clai m s, includi ng cases in volvin g d efen se inf orma tion sys -
tem s, secu re com m unication sys tems, aircra ft d esign , cons truc tio n, and
sh ip repair. He has p ractic ed before the var iou s fed eral boar ds of con-
tract ap pea ls, the Un ited States d ist rict co urts, and state ad m inis tra tive
b oard s. In addi tio n, he has litigated bid p rot ests before the Ge nera l Ac-
coun ting Off ice and Genera l Ser vices Ad ministra tion Bo ard of Co n trac t
A p pe a ls concern ing a var iety of pro cur em en ts, incl uding in form at ion
te chn ology and co mm unication con tracts. Mr. Stiffler has also bee n in-volved in issues concerning federal supply schedule contracts , false
claim s liability, and defective pricing.
Following graduation from the College of William and Mar y (B.A.
1978) and th e George Washington University National law Center (J.D.
1981), Mr. Stiffler served as a staff attorney at the United States Claims
Court and then as a law clerk to the chief judge of that court.
Mr . Stiffler is a member of the District of Columbia Bar. He is also
a memb er of the American Bar Association litigation and Public Con-
tract Sections an d the Federal Bar Association. Mr. Stiffler ha s authored
articles addr essing the recovery of attorney fees under the Equal Acce ss
to Ju stice Act and contract terminations.
George W. Stiffler, Es q., Ba stianelli, Broum, Touhey and Kell ey, Two
Lafayette Center, 1133 n » Street, NW , Suite 500, Washillgtoll, DC, 20039;
202-293-881 5

References

Keating and Youn g, Privatization of Publi c Infrastructu re Projects, Con-

struc tio n Briefings No . 93-8, Jul y 1993.

Asia Law & Pr actice Publishing Ltd .. Pro ject & Ill frastrllctllre Fill allce

Handbook, Asia 1997, Pub . No . ISBN 962-7708-98-04

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Wo rld Bank and Int ernation al Finan ce Corp. 1996.

Ncrit: and Fab ozzi, Project Finan cing, 6th Ed.. Eurom on ey Publication s

"Avo id ing And Resolving Disputes During Constru cti on ," The Am eri-

can Society of Civ il Eng ineers, 1991.

"Pr ev enting And Resolvin g Construction Disputes," Cent er For Public

Resources, Inc., CPR Legal Program , 1991.

" Mitigating C onstru ction Contract Di spute s," Public Utilities Fortllig/ttly,

by Chr isto pher Kan e, Jul y, 1992.

"Tea m Building," independ ent Ellergy, by Christ opher Kane, Ap ril, 1993.

Section 4: Chapt er 23, Malla gillg Pro ject Risks Th roll gh A Tea lll Bllildillg

Approach , app ea rin g in the book Utility and independent Power: COllcept

for A Ne:o Millellllilllll , The Fairmont Press 1997.

" De velop ing and Fin ancing M erch ant P ower Plant s in the Un ited

States, " Matthew J. Ryan, Manag er-P roject Finance, Black & Veatch,

pr es ent ed at Po wer Gen. 97 conference, Dallas, Texas.

Project Finance, "Adaptillg to the New Enuironmcnt." Electr ical World ,

Janu ar y 1998.

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Published

1999-10-12

How to Cite

Kane, C. ., & Stiffler, G. eorge W. . (1999). Sharing Risks for New Energy /Efficiency Projects. Distributed Generation &Amp; Alternative Energy Journal, 14(4), 33–47. https://doi.org/10.13052/dgaej2156-3306.1444

Issue

1999: Vol 14 Iss 4

Section

Articles