Energy Posts

This post was written by AHC attorney Roland Hall.

The EPA will soon propose a final rule imposing limits on carbon dioxide emissions from new power plants, including coal-fired plants.   Although the EPA’s proposal has not yet been made public, sources familiar with the draft proposal have indicated the limits will be so stringent as to effectively ban new coal plants.  Newly constructed coal plants would only be able to comply with the limits by scrubbing carbon dioxide from emissions and permanently storing it underground.  The technology for underground storage has so far only been used on a trial basis, and experts indicate that even if such technology could be implemented, use would be so costly as to make coal plant development uneconomic.  The EPA will almost certainly face legal challenge if it finalizes a rule that requires carbon capture technology for compliance, as the utility and manufacturing industries will argue that the   technology is not a demonstrated technology in commercial use for coal plants.  Read More »Anticipated Limits on New Coal Plant Emissions Would Block New Coal Plant Construction

The IRS periodically issues notices to modify the amount per kWh used to calculate certain renewable energy tax credits.  On May 28, 2013, it issued Notice 2013-22 to provide the latest inflation adjustment factors.   Read More »IRS Issues Inflation Adjustment Factors for Renewable Energy Tax Credits

Landfills contain significant amounts of gas that can be used to generate energy.  Occasionally, the original landfill developer will sell the landfill operation in exchange for long-term royalty payments.  Renewable energy developers seeking to develop a landfill gas operation should carefully draft these royalty contracts, as problems could affect profit from the operation over many years. Read More »Landfill Purchaser Must Pay Unexpected Royalties to Former Owner

Developer and Investor entered into a business venture through which Developer would construct a wind power project and Investor would find the necessary capital to fund the project.  The parties executed various agreements before construction and soon after construction began.  The parties originally planned for Investor to purchase Developer’s interest in the venture at an agreed-upon price formula.  Soon after construction began, they executed a redemption agreement through which they agreed upon a fixed-dollar purchase price and payment terms.  Read More »Renewable Energy Developer Asserts Misrepresentation Claims Against Investor

In a Chief Counsel Advisory, the IRS discussed whether it had authority to share confidential taxpayer information with the Treasury Department’s Office of Fiscal Assistant Secretary (“OFAS”).  In discussing the restrictions on such disclosure, the advisory also identified key compliance issues in connection with the Section 1603 tax grant.  Read More »IRS Will Share Taxpayer Information to Detect Section 1603 Wrongdoing

The Internal Revenue Service recently issued additional guidance on Section 1603 of the American Recovery and Reinvestment Act, which provides a grant for certain renewable energy projects.Read More »IRS Issues Additional Guidance on ARRA Section 1603 Grants