In line with the goals set forth in the Federal Government’s Federal Sustainability Plan, the General Services Administration (“GSA”) recently issued a Request for Information (“RFI”) stating its intent to acquire approximately 2,700,000 MWh of carbon pollution-free (“CFE”)[1] retail electricity supply annually for a term of up to 10 years in the PJM Interconnection/Regional Transmission Operator (“PJM/RTO”)[2] region. The RFI sought information from companies capable of providing CFE, including Bundled CFE[3], to Federal Government agencies and facilities in the PJM region. The RFI noted ..read more

With the recent Gulf Auction falling short of expectations and projects on the East Coast faltering, many have adopted a bearish stance on the U.S. offshore wind sector. However, California recently passed two new bills to support the state’s burgeoning offshore wind industry: the Offshore Wind Advancement Act (AB 3) and the California Offshore Wind Expediting Act (SB 286). These bills, which take effect January 1, 2024, have the potential to significantly impact offshore wind development in California. Key Provisions of the California Offshore Wind Advancement Act AB 3 mandates the Calif ..read more

While 2022 saw record commitments to renewable generation by commercial and industrial customers in the U.S., agreements with C&I customers in 2023 were affected by federal investigations into tariff avoidance, storm responses, supply chain disruptions and importation issues. Nonetheless, the outlook for growth remains promising for 2024, as corporate purchasers continue to drive the U.S. renewable markets. Learn more about what’s ahead for U.S. and global corporate PPAs in Sheppard Mullin and Bird & Bird’s International Corporate PPA Report ..read more

On October 7, 2023, California Governor Gavin Newsom signed into law two sweeping climate disclosure bills, Senate Bill 253 (“SB 253”), the Climate Corporate Data Accountability Act, and Senate Bill 261 (“SB 261”), the Climate-Related Risk Act. Taken together, SB 253 and SB 261 overlap the U.S. Securities and Exchange Commission’s proposed climate disclosure rule (the “SEC Proposed Rule”), and expand upon it in several significant ways. The SEC Proposed Rule addresses both greenhouse gas (“GHG”) emissions and climate risk, while the California measures separate the two, with SB 253 addressing ..read more

On August 29th, the Bureau of Ocean Energy Management (BOEM) held the first auction for offshore wind areas in the Gulf of Mexico. Sheppard Mullin’s preview of the auction can be accessed here. The auction concluded after just two rounds of bidding, with only the Lake Charles area off the coast of Louisiana being awarded. The two Texas areas available in the auction, Galveston I and II, received no bids. While the Biden Administration press release touted the lease sale as “an important milestone for the Gulf of Mexico region,” both bidder participation and pricing were below pre-auction expec ..read more

On July 21, 2023, the Bureau of Ocean Energy Management (BOEM) issued a Final Sale Notice (FSN) for offshore wind leases covering three areas on the Outer Continental Shelf (OCS) of the Gulf of Mexico (GOM). The auction will include a 102,480-acre area off the coast of Lake Charles, Louisiana and two areas off the coast of Galveston, Texas totaling nearly 200,000 acres. On August 29th, up to fifteen qualified bidders will vie to become the first offshore wind leaseholders in this high-potential region. The National Renewable Energy Lab (NREL) has reported that the broader Gulf holds about 15 ..read more

On February 13, 2023, the Internal Revenue Service (“IRS”) issued its “initial guidance”[1] regarding the Low-Income Communities Bonus Credit Program (the “Program”) established by the Inflation Reduction Act of 2022 (the “IRA”)[2] and codified under new Section 48(e) of the Internal Revenue Code (“IRC”) concerning “special rules for certain solar and wind facilities placed in service in connection with low-income communities.” The guidance makes strides to implement the Program required by the IRA, but it also leaves some gaps to be addressed in more guidance to come.  The Low-Incom ..read more

The U.S. General Services Administration (“GSA”) recently released a Request for Information (“RFI”) seeking input from industry to help the federal government develop strategies for the procurement of carbon pollution-free electricity (“CFE”) in accordance with Executive Order 14057’s goal of achieving 100% CFE for the federal government by 2030. The RFI seeks to gather information about the “availability of CFE in the retail electricity market and ways for the Federal Government to incentivize additional production and delivery of CFE.” CFE is defined as “electrical energy produced from reso ..read more

2023 is set to be a banner year for green hydrogen project development in California thanks to growing government commitment (see a brief timeline of key investments in 2022 below) and increasing demand. Those developing and investing in green hydrogen infrastructure should prepare now to navigate the complex state and local laws applicable to the industry. Click here to request a copy of Sheppard Mullin’s Green Hydrogen Readiness Assessment.  2022 Green Hydrogen Milestones December 15, 2022: CPUC approved SoCalGas Co.’s memorandum account application for the Phase 1 feasibility study o ..read more

As previously discussed in our blog Inflation Reduction Act: Wage and Apprenticeship Requirements, the Inflation Reduction Act (the “IRA”) restructured the tax credit system associated with qualified clean energy projects. In particular, to receive the full value of various tax credits, companies must now pay the prevailing wage rates and employ a certain number of registered apprentices in the construction, alteration, and/or repair of qualified clean energy facilities or projects as defined under the Code. Because the clean energy industry has until now not often needed to comply w ..read more