Renewable Energy & Clean Fuels

Employee of a solar panel installation company on the roof

Under the Senate Finance Committee’s June 28th version of the One, Big, Beautiful Bill (the “Bill”), there are several limitations and requirements that would take effect based on the date a project begins construction. For solar and wind projects, unless construction begins prior to enactment of the Bill, the production tax credit and investment tax credit under section 45Y and 48E will terminate for projects that are placed in service after 2027. Additionally, certain restrictions on material assistance from prohibited foreign entities would apply to solar and wind projects which begin construction after June 16th and most other projects that begin construction after 2025. The provisions of the Bill are still being negotiated in the Senate. However, establishing the beginning of construction will almost certainly remain important for developers of renewable energy projects.

Wind turbine of wind power generation

The Senate Finance Committee recently released its own draft of the “One Big Beautiful Bill Act” (the Bill) previously passed by the House as H.R. 1. Both the House and Senate versions of the Bill impose restrictions on Inflation Reduction Act (IRA) tax credits based on “material assistance” from “Foreign Entities of Concern” (FEOCs). The House version lacked significant details on what “material assistance” was. The Senate Bill provides significant details on the structure and operation of the restrictions.

On June 4, 2025, the American Biogas Council, a national trade association representing the U.S. biogas industry, released new data analyzing each state’s untapped potential to generate renewable energy by diverting organic waste (e.g., manure, food waste, and wastewater sludge) to anaerobic digesters, which trap the gas generated by the decomposition of that waste (i.e., biogas) for conversion into energy. The process also generates nutrient-rich organic fertilizer which can be used at commercial scale in lieu of synthetic products.

Law, Legislation, Document.

On June 16, 2025, the Senate Finance Committee released its version of the “One, Big Beautiful Bill” (OBBB) that would create a steep phase-out of renewable energy tax credits—notably, renewable energy companies would have to start construction on wind and solar projects before December 31, 2025, to receive 100% of the available tax credits. The reconciliation process is far from over, and there are further revisions expected to the text, but the Senate Finance Committee is the final committee in the Senate expected to release legislative text related to energy tax credits.

Its version of the bill includes the following provisions.

solar panels photovoltaics in solar farm

One of the most celebrated features of the Inflation Reduction Act (“IRA”) is the ability to sell tax credits, including the Production Tax Credit (“PTC”) under Internal Revenue Code (“IRC”) § 45 and the Investment Tax Credit (“ITC”) under IRC § 48. Under federal statute and IRS regulations issued last year, the sale of these tax credits does not result in taxable income to the seller and a buyer does not have to recognize gain on the difference between the value of the tax credit and the buyer’s purchase price. But the answer isn’t so simple under state law, which does not always track the federal rule; in some cases, whether the sale proceeds are taxable is unclear, and buyers and sellers of tax credits need to ensure that they are accurately assessing risk and expense.

Proposed changes to Inflation Reduction Act tax credits, solar tariffs, restrictions on wind energy, orders promoting fossil fuels, and a push for energy-related deregulation are just a few of the executive and legislative actions impacting renewable energy that have arisen at the federal, state, and local levels since President Donald Trump took office. We have…

Photovoltaic solar panels on sunset sky background,green clean e

Performance guarantees and performance liquidated damages (PLDs) are an essential element of most engineering, procurement, and construction (EPC) contracts, especially those related to solar and biogas projects; they make guaranteed levels of project performance, quality, and output enforceable. Specifically, PLDs compensate project owners for financial losses (or a reasonable approximation of them) incurred when projects fail to meet performance guarantees. Appropriately structuring PLDs in EPC contracts requires protecting project owners while balancing the risks for contractors, whose costs will often increase commensurate with increased contract risk. Ultimately, well-structured PLDs protect project owners, allocate appropriate risk to EPC contractors, and reassure financing parties that projects will perform as anticipated.

Upon becoming law in 2022, the Inflation Reduction Act (“IRA”) extended the opportunity to generate investment tax credits (“ITCs”) to renewable natural gas (“RNG”) projects, incentivizing the development of new projects and enabling some projects already in the development pipeline to capture material new value. Specifically, the IRA provided for the generation of ITCs pursuant…

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.