Project Development

Wind turbine energy generaters on wind farm

Texas has been the top oil and gas producing state in the country since at least the 1970s, today contributing 42% of the nation’s crude oil and 27% of its natural gas.[1] Now, the Lone Star State is also experiencing a boom in renewable energy and data center development thanks to its abundant land, economic incentives, light regulations, and favorable energy prices. However, developers should exercise caution when purchasing or leasing property in Texas for these types of projects, as it is not uncommon to discover that this land may also be home to abandoned or even active oil or gas wells.

The dramatic increase in the use cases for data storage, artificial intelligence and cloud computing have resulted in an atmospheric level rise in the demand for data centers, and the question of providing sufficient power to support those data centers has become paramount. Simultaneously, there has been an increasing emphasis on utilizing green energy as…

On April 30, 2024, the Department of the Treasury issued final regulations on tax credit transfers that allow hydrogen producers to sell tax credits earned under § 45V of the Inflation Reduction Act (IRA). Section 6418 of the Internal Revenue Code and the final regulation issued thereunder allow credit purchasers to use purchased credits to offset their tax liability. Credit sellers will be able to sell credits that they would not otherwise be able to use due to insufficient tax liability. Given such powerful incentives, many energy producers are wondering how to add “green” hydrogen (discussed below) to their portfolios by powering hydrogen facilities with wind turbines and solar panels. Here, we discuss what wind and solar producers should keep in mind as they plan, negotiate, and begin developing hydrogen plants powered by renewable energy, with a particular focus on site control.

Allocating subsurface risk is always a key point of negotiation between owners and contractors in engineering, procurement, and construction (“EPC”) contracts, given its potential price and schedule impacts. Parties can utilize contractual, practical, and creative approaches to address subsurface risk, both before and after EPC contract execution.

Wind turbine energy generaters on wind farm

As the shift from fossil-based energy production to renewable energy sources continues, growth in renewable energy projects under development has been staggering. But moving projects from early-stage development to commercial operations requires navigating complicated methods of financing their development, construction, and operation via structures that vary depending on project ownership, size, technology, and the regulatory environment. 

Developers of renewable energy projects, many of which are built on agricultural land, should understand local laws and restrictions on foreign ownership and investment in these parcels.  Roughly half of US States have express limits on foreign investment in or purchase of privately held agricultural land. A large swath of the Midwest, plus states in the mid-Atlantic and Florida, among others, have some restrictions. Between January and June of 2023, fifteen states enacted restrictions on foreign ownership of land.

Among the benefits afforded the renewable energy sector by the Inflation Reduction Act of 2022, the ability to monetize 11 new or expanded clean energy tax credits via direct transfer was especially interesting to developers because of its potential to eliminate costly, drawn-out tax equity transactions.

Investors were also eager to participate in the newly…

This blog post is the second part of a series on incentives available to Missouri solar developers in the wake of Johnson v. Springfield Solar 1, LLC, 648 S.W.3d 101 (Mo. 2022). For part one on Missouri Chapter 100 bond abatements and the Springfield Solar 1, LLC decision, click here.

Enhanced Enterprise Zones …

Water pipe in water field, discharge. Clear Water flowing from a pipe, closeup.

Virginia developers take note: changes to the Virginia stormwater construction permitting program have been made over the last few years, and more changes are expected in upcoming months. While navigating those changes, Virginia developers will also want to be aware of all the requirements when applying for stormwater construction permits in Virginia to expedite the process and ensure a timely-issued permit.

Last month, we reported how a key component of project finance—syndicated term loans—was the subject of a crucial case being heard in the U.S. Court of Appeals for the Second Circuit. In Kirschner v. JP Morgan Chase, the plaintiff contended that the term loans at issue were in fact securities that should be regulated…