Category Archives: Wind

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IRS Issues Notice 2015-25 Extending Safe Harbor for Continuous Construction in Order to Take Advantage of Renewable Energy Tax Credits

Yesterday, the IRS issued Notice 2015-25, which updates the guidance in Notices 2013-29,  2013-60, and 2014-46. These Notices provide that a taxpayer can show that it has “begun construction” of its qualified renewable energy facility by December 31, 2014 for purposes of taking advantage of the section 45 renewable electricity production tax credit (PTC) or the … Continue reading this entry

IRS Releases Guidance on Performance and Quality Standards for Small Wind Energy Property

The IRS recently released Notice 2015-4 (the Notice), which provides performance and quality standards that small wind energy property (defined under section 48(c)(4) of the Code as property utilizing a “qualifying small wind turbine” with a nameplate capacity of not more than 100 kilowatts (kW)) must meet to qualify for the section 48 investment tax … Continue reading this entry

Production Tax Credit Extended for Renewable Projects Beginning Construction in 2014

On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014 (H.R. 5771).  H.R. 5771 includes a retroactive one-year extension of the section 45 renewable electricity production tax credit (PTC) for wind and other renewable energy facilities including geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects. Taxpayers … Continue reading this entry

IRS Releases New Guidance on Beginning of Construction

The IRS recently released Notice 2014-46 (the Notice) which provides welcome guidance to tax equity investors and developers on the construction of wind, geothermal, biomass, landfill gas and certain hydropower and marine hydrokinetic energy projects for purposes of qualifying for the section 45 renewable electricity production tax credit (PTC), or the section 48 investment tax … Continue reading this entry

Expensive Lessons Learned after 8th Circuit Rules against Wind Developer in Its $400 Million Suit against a Minnesota Utility

A large wind developer, enXco Development Corp. (“enXco”), learned a hard lesson about the importance of negotiating flexibility in contracts to deal with unforeseen regulatory hang-ups, when the U.S. Court of Appeals for the 8th Circuit affirmed a lower court’s ruling to dismiss enXco’s $400 million suit against Northern States Power Co. (“NSP”), a division … Continue reading this entry

NY Property Tax Exemption Extension for Renewable Systems

The New York legislature has passed a bill that extends a real property tax exemption for wind, solar and certain other energy systems until January 1, 2025. The bill provides that real property which includes an eligible energy system is exempt from certain real property taxes for a period of fifteen years, to the extent of any increase … Continue reading this entry

Department of Energy Announces New Loan Guarantee Program for Renewable Energy and Energy Efficiency Projects

The Department of Energy’s Loan Program Office (the “DOE”) announced on April 16, 2014, a new loan guarantee program for up to $4 billion under Section 1703 of Title XVII of the Energy Policy Act. The announcement coincides with the DOE’s release of a Draft Renewable Energy and Energy Efficiency Project Solicitation (the “Draft Solicitation”) for … Continue reading this entry

Connecticut Finally Gives the Green Light to Developers of Wind Power Projects

New England states have been heavily invested in increasing the amount of generation they procure from renewables. However, Connecticut has been an outlier in preventing the development of one form of renewable generation—wind. For nearly three years, the state legislature’s Regulation and Review Committee has not acted in approving guidelines governing the siting of wind … Continue reading this entry

Senate Finance Committee Passes PTC Extension as Part of Tax Extenders

On April 3, the Senate Finance Committee passed a modified extenders package that includes a two-year extension of the renewable energy production tax credit (PTC) under section 45 of the Internal Revenue Code as well as an extension of the option to claim the energy investment tax credit (ITC) under section 48 of the Code in … Continue reading this entry

New Renewable Power Financing and Investment Opportunities in New York as State Opens Billion Dollar Funding Initiative Through “NY Green Bank”

New York just recently opened the New York Green Bank (“NY Green Bank”), the largest of its kind in the nation. The NY Green Bank is a division of the New York State Energy Research and Development Authority and will have an initial capitalization of $210 million. This amount includes $165 million that was redirected … Continue reading this entry

Deadlines for SCE and SDG&E Renewable RFOs Fast Approaching

California’s investor-owned utilities (IOUs), Southern California Edison (SCE) and San Diego Gas & Electric Company (SDG&E), have issued new requests for offers (RFOs) in order to meet California’s Renewables Portfolio Standard (RPS). The RFOs are for Eligible Renewable Resources that provide both Renewable Energy Credits (RECs) and Energy and REC-only products. Facilities must be at … Continue reading this entry

IRS Clarifies "Begun Construction" Guidance for PTC and ITC Eligibility

On September 20, 2013, the IRS released Notice 2013-60, which clarifies the IRS’s original guidance regarding the eligibility requirements for the production tax credit (PTC) and investment tax credit (ITC) for certain renewable and alternative energy facilities. Click here to view the new Notice. You can also take a look at Notice 2013-29  and my last post on it. … Continue reading this entry

Department of the Interior Conducts Second Offshore Wind Auction

On September 4, 2013, the Interior Department’s Bureau of Ocean Energy Management (“BOEM”) held its public auction of the first federal lease for an offshore wind energy site off the Mid-Atlantic coast. This was the second federal lease sale; the first was in July for two lease areas offshore Massachusetts and Rhode Island. In this … Continue reading this entry

FERC Order Strikes Down ITC Midwest’s 100% Network Upgrade Reimbursement

FERC recently struck down a MISO Tariff provision that reimbursed new generators 100 percent for interconnection-related network upgrades in ITC Midwest, LLC (ITCM) (Click here for a copy of the Order). Now generators in ITCM will only receive reimbursement for 10 percent of the costs of network upgrades rated at or above 345 kV, and … Continue reading this entry

Energy Bootcamp Series: Bankruptcy and Buying Distressed Assets

Foley & Larder LLP has been hosting a series of energy bootcamp Webinars. The most recent installment in this series was presented on July 18, 2013, entitled  “Bankruptcy and Buying Distressed Assets.” The session was presented by Richard Bernard and Matt Riopelle and moderated by Jeff Atkin. Among other topics, the panelists discussed the following … Continue reading this entry

FERC Order on Initial Decision an Important Victory for Wind Developers Looking to Challenge Interconnection Costs

FERC recently reversed an ALJ’s initial decision and found that MISO violated its obligation with respect to the study of network upgrades by requiring Jeffers South, LLC to pay for the construction of a $43 million transmission line to interconnect its 130 MW wind facility in Minnesota (a copy of the order is available here). … Continue reading this entry

BLM Releases Final Environmental Impact Statement for SunZia Southwest Transmission Project

The Bureau of Land Management (BLM), after a multi-year environmental review process, has released the Final Environmental Impact Statement (EIS) and two related Proposed Resource Management Plan Amendments (RMPAs) for the SunZia Southwest Transmission Project. The full text of these documents can be found here.  The relevant Notice of Availability was published in the Federal Register on … Continue reading this entry

IRS Updates Notice 2013-29 ("Begun Construction" Guidance)

On April 25, 2013, the IRS updated Notice 2013-29 to clarify the original guidance issued on April 15, 2013. Notice 2013-29 provides guidance regarding the eligibility requirements for the production tax credit (PTC) and investment tax credit (ITC) for certain renewable and alternative energy facilities. Click here to view Notice 2013-29 as revised. You can also take … Continue reading this entry

IRS Releases "Begun Construction" Guidance for PTC and ITC Eligibility

It’s official! On “tax day” (April 15, 2013), the IRS released Notice 2013-29 (revised on April 25) providing guidance regarding whether a “qualified facility” will be eligible for the renewable electricity production tax credit (PTC) under section 45 of the Tax Code or the energy investment tax credit (ITC) under section 48 in lieu of the … Continue reading this entry

PTC Amount Increased for 2013

In a notice released on April 3, 2013, the IRS increased the 2013 amount of the Section 45(a) production tax credit (PTC) for the sale of electricity produced from the qualified energy resources of wind, closed-loop biomass, geothermal energy, and solar energy to 2.3 cents per kilowatt-hour. This is an increase over the 2.2 cents … Continue reading this entry

Severed Mineral Rights - Common Real Estate Title Issues in Renewable Projects, Part 1

This is Part 1 of a series of posts that will provide a high-level overview of common real estate title issues encountered in the development of renewable  energy projects. One title issue that we see on a very large number of projects is the existence of severed mineral rights. The general rule of real property is … Continue reading this entry