Renewable Energy & Clean Fuels

The Clean Fuels Credit, codified under 26 U.S. Code Section 45Z, has quickly become a central focus for businesses pursuing opportunities in the evolving energy sector. Designed to incentivize the production of cleaner transportation fuels, this credit not only benefits fuel producers but has also started attracting interest from companies seeking to purchase credits under the transferability provisions of 26 U.S. Code Section 6418. Initially introduced as part of the Inflation Reduction Act (IRA), the Clean Fuels Credit stands out as one of the few tax incentives that received an extension through 2029 under the One Big Beautiful Bill Act (OBBBA). As the regulatory landscape continues to shift, it is essential for companies to understand both the strategic advantages and the legal requirements associated with this incentive.

Chimneys of natural gas power plants

With the use of artificial intelligence (AI) in computing applications booming, the need for computing power capable of supporting those applications has exploded, fueling an unprecedented surge in data center development. Those data centers require enormous amounts of power, primarily because of the many graphics processing units (GPUs) they use and the cooling systems those GPUs require. Berkeley Labs estimates that by 2029, data center power demands will account for up to 12 percent of all domestic power consumption.

Meeting the energy demands created by the supercharged pace of data center expansion will require the coordination and utilization of multiple energy types; no single energy type is expected to meet forecasted data center energy needs alone. As data center development skyrockets to meet AI power needs, the expansion of reliable, dispatchable power options will become increasingly important.

energy storage system or battery container unit

As the energy landscape continues to evolve, so too does the regulatory framework governing it. Texas House Bills 3809 and 3228 introduce significant changes to the decommissioning and recycling requirements for Battery Energy Storage Facilities (“BESFs”), Solar Power Facilities, and Wind Power Facilities in Texas. This legislation, effective for agreements entered into on or after September 1, 2025, mandates specific obligations for the removal and recycling of facility components. Here’s what you need to know to ensure compliance in your lease agreements.

As renewable energy development sweeps across rural and agricultural landscapes, developers are encountering a growing legal and logistical challenge: severed estates. These occur when surface rights and mineral rights are owned by different parties—a common situation in many energy-rich regions.

While renewable energy projects are designed to provide clean power and long-term value, severed estates can introduce uncertainty and risk. This article provides a structured approach to understanding and managing severed estates, so your projects stay on track and in legal compliance.

Wind turbine of wind power generation

Domestic energy production was a subject of much attention in the recently passed federal legislation. That legislation eliminated significant future tax incentives for new construction of large-scale wind and solar projects. Other energy generation sources are expected to be used more intensively and for a longer period of time than previously assumed in order to meet significant anticipated growth in domestic energy demand.

Employee of a solar panel installation company on the roof

As we have discussed in recent articles and as has been well publicized, two recent actions out of Washington are significantly impacting the renewable energy industry. The recently enacted One, Big, Beautiful Bill Act (OBBBA) imposes new deadlines on renewable energy facilities to begin construction and/or be placed into service in order to qualify for tax credits. This is discussed in detail in our recent articles here.

In addition to the OBBBA, on July 7, 2025, President Trump issued an Executive Order (EO), directing the Secretary of Treasury to—within 45 days following enactment of the OBBBA (which is August 18, 2025)—strictly enforce the termination of renewable energy tax credits. This includes issuing new guidance “to ensure that policies concerning the ‘beginning of construction’ are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built.”

Photovoltaic solar panels on sunset sky background,green clean e

The One Big Beautiful Bill Act (OBBBA), signed into law by President Donald Trump on July 4, 2025, provides for enhanced restrictions on entities claiming many of the renewable energy credits established under the Inflation Reduction Act of 2022 (IRA). Namely, the bill prohibits foreign entities of concern (FEOCs), as well as domestic entities that are related to or otherwise engage in significant transactions with FEOCs, from claiming such credits. The credits that are subject to the new FEOC limitations under the bill include:

  • the Clean Energy Production Credit (Section 45Y);
  • the Clean Electricity Investment Credit (Section 48E);
  • the Zero-Emission Nuclear Power Production Credit (Section 45U);
  • the Advanced Manufacturing Production Credit (Section 45X);
  • the Credit for Carbon Oxide Sequestration (Section 45Q); and
  • the Clean Fuel Production Credit (Section 45Z).