As year’s end approaches and biogas developers turn from Section 48 investment tax credits (“ITCs”) under the Inflation Reduction Act of 2022 (the “Act”), which required projects to begin construction before December 31, 2024, for eligibility, to Section 48E ITCs, it is critical to understand the differences between how each Section addresses biogas projects. Under Section 48, the Act extended and expanded existing ITCs, adding “qualified biogas property” as property eligible for credits. However, projects that begin construction on or after January 1, 2025, will be subject to the technology-neutral Section 48E clean electricity ITCs, which may leave some biogas property ineligible for credits.
Protecting Energy Project Buyout Rights From Developer Bankruptcy
Energy development contracts commonly permit landlords (on whose land the energy project is constructed) a buyout right with respect to the project, often for a nominal payment… but that right isn’t guaranteed in the event of the developer’s bankruptcy.
FERC Approves NERC’s Expanded Registration Requirements
The Federal Energy Regulatory Commission (“FERC”) recently approved the North American Electric Reliability Corporation’s (“NERC”) request to expand registration and compliance requirements to inverter-based resources (“IBRs”) that meet or exceed 20 MVA and are interconnected at or above 60 kV. This will impact certain wind, solar, battery, and fuel cell facilities that were previously too small to be required to register with NERC.
Corporate Transparency Act Considerations in Tax Equity Partnerships
Since Congress first introduced the Corporate Transparency Act (“CTA”) and the beneficial ownership information reporting framework in January 2021, much of the focus has been on the specific reporting requirements that now apply to both domestic and foreign reporting companies (including corporations, limited liability companies, and partnerships). However, the CTA also has far reaching implications for the renewable energy industry and the players involved in tax equity partnerships.
Investors and Regulators Demand Climate Disclosures, but Companies Should Beware of Greenwashing Claims
Pressure from consumers, investors, and regulators to provide climate, environmental, and sustainability disclosures is increasing, but it is important for companies to ensure such disclosures are accurate, verifiable, and not misleading to avoid claims of “greenwashing” – making false or unsupportable claims regarding how a company and its products are environmentally friendly or have a…
USDA Publishes New Meat and Poultry Labeling Guidance
On August 28, 2024, the U.S. Department of Agriculture (USDA) released an updated guidance document regarding the substantiation of all animal-raising and environment-related claims on meat and poultry packaging. This new guidance marks the first update regarding these types of claims since 2019. The guidance provides establishments with information on how to use and substantiate…
Negotiating Texas Wind Energy Leases: Do Landmen Need a License?
The Texas Attorney General recently issued Opinion KP-0467 (the “Opinion”) addressing “whether a person who negotiates a lease for property for the development of a wind power project on behalf of another, for compensation, must have a license from the Texas Real Estate Commission (“Commission”).”
Put simply, do Texas landmen need a Texas real estate license to negotiate wind leases?
FDA Allows Longstanding MOU with AAFCO To Expire
On August 2, 2024, the Association of American Feed Control Officials (“AAFCO”) announced that its Memorandum of Understanding 225-07-7001 (the “MOU”) with the U.S. Food and Drug Administration (“FDA”) outlining the AAFCO ingredient review process would not be renewed on October 1, 2024 when the MOU is set to expire. The MOU, which has been in effect for the last 17 years, established guidelines by which AAFCO reviews the safety and efficacy of new animal feed ingredients under the guidance of FDA.
Navigating Solar Development in the Appalachian Basin: Surface and Subsurface Rights
Solar developers in the PJM region, particularly in Pennsylvania, West Virginia, and Ohio, often encounter land with a complex history of mineral development. This history can significantly impact solar projects, from site planning to obtaining title insurance coverage. Understanding the interplay between surface and subsurface rights is crucial for developers to protect their interests and ensure project viability. Diligent site planning and careful review of mineral title research can go a long way in preventing worst case scenarios and mitigating risk.
Nebraska’s Department of Transportation is (Almost) Charged Up for EV Station Federal Funding Applications
On June 14, 2024, the Nebraska Department of Transportation (“NDOT”) informed potential applicants that, pursuant to its National Electric Vehicle Infrastructure (“NEVI”) plan, applications for federal funding to build electric vehicle (“EV”) charging stations across Nebraska’s Interstate 80 will be available as early as August 2024. Nebraska is currently one of only 15 states yet to make this funding available to applicants.