As discussed previously in this blog, physical attacks against substations have been on the rise. However, the U.S. power grid[1] is also vulnerable to cyberattacks from U.S. adversaries, which includes hostile foreign governments, as well as individual bad actors such as insiders and criminals. Although there have been more physical attacks than cyberattacks
Last month, we reported how a key component of project finance—syndicated term loans—was the subject of a crucial case being heard in the U.S. Court of Appeals for the Second Circuit. In Kirschner v. JP Morgan Chase, the plaintiff contended that the term loans at issue were in fact securities that should be regulated
The Michigan Senate recently introduced legislation in an attempt to join several North American jurisdictions that have established clean fuel standards. The Michigan Clean Fuel Standard aims to reduce the average carbon intensity of transportation fuels sold and used in Michigan and incentivize investment in the production, distribution, and use of clean alternative fuels. Several
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.”
Syndicated term loans can be a significant piece of the capital stack when financing renewable energy projects; however, a crucial pending case in the U.S. Court of Appeals for the Second Circuit could complicate the use of these types of loans going forward. The case—Kirschner v. JP Morgan Chase—will seek to answer the central question at play: are syndicated term loans subject to federal and state securities laws? The eventual ruling in this case could potentially impact any borrower or lender issuing or holding a term loan in a syndicated facility.
Whether working on your first utility scale project financing or your fiftieth, the process can be costly, time consuming, and stressful. This article shares a few tips on how to make financing go more smoothly and cost less.
ESG and Renewable Energy
As corporations experience increased pressure from shareholders, consumers, employees, and the federal government to adopt Environmental, Social, and Governance (“ESG”) goals, many are procuring renewable energy as one way of meeting environmental targets. In 2022, more than 96% of S&P 500 companies published an ESG or other formal sustainability report.[1] In addition to voluntary goals and initiatives, the Securities and Exchange Commission is in the process of finalizing enhanced and standardized climate and ESG disclosure requirements for publicly traded corporations. As a result, corporate renewable energy power procurement is expected to account for nearly 40% of the projected utility-scale wind and solar project growth through 2023 and 2024 in the United States.[2]
As nations continue developing renewable energy infrastructure to meet sustainability targets, some are creating unique approaches to ensure they meet their stated goals. In what is expected to be a first for any nation (developed or otherwise), the Energy Ministry of Israel is enacting new country-wide regulations requiring all new non-residential buildings to have rooftop solar panels.
The North American Electric Reliability Corporation (“NERC”) is developing an expansion of its registration requirements to include certain owners and operators of inverter-based resources by creating a new registered entity function, called the “GO-IBR.”
As healthcare systems continue their bid to “first, do no harm,” more attention is being placed on the organizations’ broader impact on their communities, including the environment and air quality. It is estimated that the global health care industry is responsible for two gigatons of carbon dioxide each year, or 4.4% of worldwide net emissions. And according to a September 2019 report by Health Care Without Harm, over half of the industry’s emissions (representing an estimated 2.2% of the worldwide net emissions) can be attributed to the health care industry’s use of energy. The energy-intensive nature of the industry correlates with the often 24/7 use of health care facilities and the high-tech, life-saving equipment.