Archive: September 2022

1
Pennsylvania’s Growing Electric Vehicle Charging Network: What’s All the Buzz About NEVI Plans?
2
The Energizer – Volume 106
3
The Tax Credit Revolution
4
The Tax Credit Revolution Webinar Series
5
California Passes Suite of New Climate Bills Aimed at Reducing Emissions, Stimulating Carbon Capture, and Implementing Buffers

Pennsylvania’s Growing Electric Vehicle Charging Network: What’s All the Buzz About NEVI Plans?

By: Brianna K. EdwardsThomas R. DeCesarBuck B. EndemannTad J. MacfarlanPierce RichardsonNathan C. Howe

With electric vehicles (EVs) on the rise, recent federal legislative and policy initiatives have prompted states to develop related infrastructure plans. These plans will provide for the greater connectivity required to support the future of EV transportation. As state plans are approved and implemented, new legal issues will likely develop.

On 15 November 2021, President Biden signed the Bipartisan Infrastructure Law (BIL), which directs funding to state and local governments for transportation improvement programs, including developing and expanding EV infrastructure. Under the BIL, each state was required to submit a National Electric Vehicle Infrastructure plan to the U.S. Department of Transportation by 1 August 2022.

The Energizer – Volume 106

By: Buck B. EndemannMolly K. BarkerMatthew P. ClarkNathan C. HoweNatalie J. ReidMaeve C. TibbettsDavid Wang

There is a lot of buzz around clean technology, distributed energy resources (DERs), microgrids, and other technological innovations in the renewable energy and clean transport industries and how these developments can contribute to solving longstanding environmental justice issues. As these innovations develop, energy markets will undergo substantial changes to which consumers and industry participants alike will need to adapt and leverage. Every other week, K&L Gates’ The Energizer will highlight emerging issues or stories relating to the use of DERs, energy storage, emerging technologies, hydrogen, and other innovations driving the energy industry forward. To subscribe to The Energizer newsletter, please click here. 
 
IN THIS ISSUE

  • Department of Energy Provides US$2.5 Billion Toward New Electric Vehicle Battery Cell Manufacturing Facilities
  • U.S. Nuclear Regulatory Commission Will Certify First Small Nuclear Reactor

The Tax Credit Revolution

Please Join us as The Tax Credit Revolution Webinar series continues on Monday, 19 September at 12:00 p.m. ET. This part will be co-hosted by K&L Gates and Marsh

The Tax Credit Revolution: What You Need to Know About How the IRA Will Impact Insurance for Tax Credit Risks

Tax insurance provides renewable energy developers and tax equity investors with a cost-effective risk mitigation tool to protect taxpayers against the loss of renewable energy tax credits in the event of a successful IRS challenge. Join us for a discussion on how tax insurance has become a widely used solution to ensure successful financing in the development of renewable energy projects and how we expect coverage to expand in response to new considerations under the Inflation Reduction Act. 

Speaker: Antony Joyce MarshAlisha Soares Marsh
Moderator: Elizabeth Crouse K&L Gates

To view all previously recorded The Tax Credit Revolution webinars, follow this link

The Tax Credit Revolution Webinar Series

Webinar 3
08 September 2022
3:00 – 4:00 p.m. ET

Thank you to those of you who joined us on Friday for the second webinar in the Tax Credit Revolution series – What You Need to Know about the Wage and Apprenticeship Requirements. We hope you will join us for the third part on Thursday at 3:00 p.m. ET.  You can register using the link below. 

Webinar 3: The Tax Credit Revolution: What You Need to Know about the Domestic Content Requirements

This webinar will cover credits that will be increased when certain requirements are met. These vary from credit to credit, and will be discussed in greater detail in this program.

Speaker: Stacy Ettinger
Moderator: Elizabeth Crouse

To view recordings of the first two webinars, click on the event page links below. 

Webinar 1: The Tax Credit Revolution: What You Need to Know about Structuring Opportunities, Direct Pay and Transferability
Thursday, 01 September 2022

Webinar 2: The Tax Credit Revolution: What You Need to Know about the Wage and Apprenticeship Requirements
Friday, 02 September 2022

California Passes Suite of New Climate Bills Aimed at Reducing Emissions, Stimulating Carbon Capture, and Implementing Buffers

By: David Wang, Elizabeth C. Crouse, Buck B. Endemann

On August 31, 2022—the last day of the 2022 legislative session—California legislators passed a package of climate bills aimed at reducing statewide emissions, stimulating the carbon capture industry, and implementing buffers between communities and oil and gas developments. The bills include $54 billion in climate-related spending and come on the heels of other state and federal efforts to reduce carbon emissions across many sectors of the economy.

The package contains the following bills:

  • AB 1279, which codifies California’s existing goal of carbon neutrality by 2045.
  • AB 1757, which requires the state Natural Resources Agency to establish targets for natural carbon sequestration and nature-based climate solutions.
  • SB 846, which authorizes the Diablo Canyon nuclear power plant to continue operations until December 31, 2030, and provides Pacific Gas & Electric Company (“PG&E,” the plant’s operator) with a $1.4 billion loan to help facilitate those operations.  While Diablo Canyon was originally going to be retired by 2025, many saw Diablo Canyon’s 2,256 MW as critical for providing carbon-free power during the afternoon and evening ramp.
  • SB 905, which directs the California Air Resources Board (“CARB”) to establish a program to evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage (“CCUS”) and carbon removal technologies. The bill also requires CARB to adopt various regulations governing CCUS and carbon removal projects, including a unified permit application for such projects and measures to minimize leakage from carbon storage reservoirs.
  • SB 1020, which sets interim targets regarding retail sales of electricity. Current law requires 100 percent of all energy sales to California end-use customers to be supplied by eligible renewable energy sources or zero-carbon resources by 2045.  SB 1020 sets interim targets of 90 percent by 2035 and 95 percent by 2040. SB 1020 also requires state agencies to source 100 percent of their energy from eligible renewable or zero-carbon resources by 2035—ten years earlier than the current target.
  • SB 1137, which establishes 3,200-foot buffer zones between oil and gas facilities or wells with a wellhead and facilities that qualify as “sensitive receptors,” including private homes, schools, community centers, nursing homes, hospitals, and prisons.

Legislators failed to pass AB 2133, which would have made stricter California’s emissions reduction goals (raising from 40 percent to 55 percent the reduction below the state’s 1990 emissions levels that California would have to meet by 2030).

Each bill now goes to Governor Gavin Newsom to sign by September 30, 2022, which he is expected to do after publicly advocating for them earlier in August. The California legislature’s actions come several days after CARB announced a new rule that would require by 2035 all new cars, trucks, and SUVs sold in the state to be greenhouse gas emission-free. These state-level efforts complement recent federal efforts to catalyze and develop a low-emissions energy economy, notably the Infrastructure Investment and Jobs Act of 2021 (“IIJA,” or Bipartisan Infrastructure Law, which included $47.2 billion for improving climate resilience) and the Inflation Reduction Act of 2022 (“IRA,” which included $369 billion in climate-related spending, tax credits, and incentives). These initiatives represent a concerted effort on both the federal and state level to rapidly shift the economy towards low-emissions energy sources, and consequently provide ample opportunities for new investment opportunities, financing structures, and stakeholders.

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