The Inflation Reduction Act (the “IRA”) provides funding for several tax credit incentives related to significant investments in energy projects. One of these credits is the section 48C investment tax credit (“48C Credit”), which was originally offered through the American Recovery and Reinvestment Act of 2009. The IRA includes a $10 billion allocation to the 48C Credit and also broadens the scope of eligible property a company can invest in to be eligible for the credit. If selected, the 48C Credit provides a credit equal to 30% of the project’s capital investment that is deemed to be “eligible energy property.”
Bottom Line Up Front: The Department of Energy (DOE) will implement new cybersecurity programs to enhance energy sector resilience. DOE’s announcement coincides with the Senate Energy and Natural Resources Committee’s support for the DOE’s Office of Cybersecurity, Energy Security, and Emergency Response (CESER). Expect to see resilience to cyber attacks in future government procurement activities.
On March 18, 2021, CESER announced several new research programs designed to enhance the safety and resilience of the U.S. energy sector. The Trump administration established CESER to protect critical energy infrastructure by assisting oil, natural gas, and electricity industries secure their infrastructure. Currently, energy infrastructure faces threats not only from climate and natural hazards, but also evolving and increasing physical and cyber threats.
I’m Adam Sachs, a partner in Husch Blackwell’s energy practice and a registered DC lobbyist. I will be joined in these semi-regular blog posts by my colleague and longtime Washington lawyer, Bob Horn. Bob served in the Ford administration, ran Detroit Edison’s federal affairs operations, co-founded the Republican National Lawyers Association, and most recently served as a member of the Trump transition team. I have extensive Capitol Hill experience, having served in senior policy and legal positions since the mid-1980’s. My most recent Hill gig was serving as committee counsel to now assistant Democratic leader James Clyburn of South Carolina.