The Inflation Reduction Act’s broad tax incentives for certain investments in renewable energy sparked a flood of capital investment, hastening the development of clean energy infrastructure nationwide.  According to an August 16, 2023 White House Press Release, private companies have announced over $110 billion in clean energy manufacturing investment since the enactment of the

On November 17, 2023, the U.S. Department of the Treasury issued a Notice of Proposed Rulemaking (the “NPRM”) with respect to Proposed Regulations under section 48 of the Internal Revenue Code of 1986 (the “Code”).  The NPRM addresses the Investment Tax Credit (“ITC”) framework, as amended under the Inflation Reduction Act (the “IRA”).  This blog

2022 saw a flurry of renewable natural gas (RNG)-related deals, including in anticipation of (and then in response to) the historic Inflation Reduction Act (IRA). Sustainability mandates and the growing maturity of RNG-related credit markets, as well as the IRA’s expansion of investment and production tax credits, drove increased transactions and historic valuations.

On December 7, 2021, the U.S. Environmental Protection Agency (“EPA”) released its proposed 2020, 2021, and 2022 Renewable Volume Obligations (“RVOs”). RVOs determine the amount of renewable fuel (typically, ethanol) certain fuel refiners and others involved in the transportation fuel supply chain (“Obligated Parties”) are required to blend into their own fuel production during a given year. Obligated Parties failing to meet their RVOs for any year must buy Renewable Identification Numbers (“RINs”) or other credits, or risk default under the Renewable Fuel Standard (“RFS”).

Pursuant to the Renewable Fuel Standard (“RFS”), the U.S. Environmental Protection Agency (“U.S. EPA”) issues annual renewable volume obligations (“RVOs”), which set the minimum aggregate volume of renewable fuel that refiners must blend with transportation fuel for the following calendar year.

Refineries producing transportation fuel meet their RVOs by blending the required volume of renewable fuel into gasoline or diesel fuel or by acquiring credits (called renewable identification numbers, or “RINs”). The RFS permits “small” refineries – those producing fewer than 75,000 barrels of fuel per day – to claim an exemption by showing that meeting their RVOs would cause them “disproportionate economic hardship.”