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Biden Administration Continues to Shift National Infrastructure and Transportation Networks to Pave the Way for Electric Vehicles

On Tuesday, US National Climate Advisor Gina McCarthy publicly underscored President Joe Biden's commitment to supporting the electric vehicle (EV) industry and other industries aimed at tackling the climate crisis. She noted the administration's goal is to build more than 500,000 EV chargers. The electric vehicle charging station market size is projected to surpass around USD $39.2 billion by 2027 and witness a compound annual growth rate of 40.7% from 2020 to 2027. McCarthy made her comments during a meeting with key stakeholders and influential policymakers in the EV and EV charging industries, including senior staff of the Department of Transportation, chief executive officers of companies producing electric vehicle charging infrastructures, the National Economic Council and the Council of Environmental Quality. This is a further demonstration by the administration that it will rely upon the insight of renewable energy leaders to produce, navigate and...

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Granholm Confirmed as Energy Secretary

Today, Jennifer Granholm was confirmed as secretary of energy, winning US Senate approval by a 64–35 vote. Granholm's confirmation serves as another boost to President Joe Biden's plan to tackle climate change and develop clean energy across the United States. Granholm, who is an advocate for electric vehicles and other low-carbon technologies, will join Pete Buttigieg, the secretary of transportation, as a member of President Biden's cabinet selected to further a green economy and green infrastructure. Granholm, who served two terms as the governor of Michigan, worked with the automotive industry during her term to obtain more than $1 billion in federal funding for Michigan companies to manufacture electric vehicles and batteries. Under Granholm's leadership, Michigan also adopted standards requiring utilities to utilize renewable energy sources. Granholm promoted the use of wind and solar technology during her confirmation hearing by telling senators, "We...

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Buttigieg Confirmation Signals Increased Investment in Renewable Energy Infrastructure and Electric Vehicles

Today, Pete Buttigieg was sworn in as secretary of transportation after his nomination passed the US Senate 86-13. His confirmation means a likely boon for investment in US infrastructure, particularly for those investing in renewable energy infrastructure, electric vehicle infrastructure and electric vehicles. In an email distributed to his staff today, he advised them that "...we will break new ground: in ensuring that our economy recovers and rebuilds, in rising to the climate challenge and in making sure transportation is an engine for equity in this country." US President Joe Biden has made similar pledges about infrastructure. Last week he signed an Executive Order that took bold steps to combat the climate crisis both at home and throughout the world, creating a number of opportunities for developers, lenders and investors in the renewable energy space. Buttigieg's confirmation is noteworthy since it is another concrete step by the Biden-Harris...

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$40 Billion Available through Biden’s Department of Energy’s Loan Program Office for Innovative Technologies

With Democrats taking over the White House and the Senate, many eyes are on climate change and the role that the federal government can take to combat it. A variety of proposals have been floated about the best way for Congress to enact legislation to help in the fight against climate change, but certain actions can be taken immediately. One such action is to deploy $40 billion in loan capacity that was previously allocated to the Department of Energy as part of the 2009 stimulus package. This money is already available to the Department of Energy's Loan Program Office (the LPO”) to spend at any time as a loan or a loan guarantee for qualified projects. Any new loans would follow $30 billion of loans and loan guarantees previously provided by the LPO under these same programs (most notably under the Obama administration and one large loan associated with a nuclear reactor project under the Trump administration). Under the Biden administration, there is strong...

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IRS Provides Relief for Offshore Wind and Federal Land Projects

New guidance from the Internal Revenue Service (IRS) extends the Continuity Safe Harbor to 10 years for both offshore wind projects and projects on federal land. The relatively quick release of this guidance following enactment of the offshore wind investment tax credit (ITC) last week suggests strong support for these projects by Congress, the US Department of the Treasury and IRS. Access the article.

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COVID-19 Stimulus Bill Includes Key Renewable Energy Tax Credits

The US stimulus bill passed into law yesterday includes several key extensions and additions to the tax credits available for renewable energy. The bill had been agreed to by Congress early last week and was signed into law by the president last night. Access the full article here.

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Five Takeaways: Utility Acquisition of Renewable Projects – A Discussion of the Legal and Tax Issues Regarding Utilities, Developers and Tax Equity

Increasingly, utilities are replacing older generation fleets with more cost-effective generation technologies. Renewables are cost-competitive alternatives in this effort for a number of reasons, including the current tax incentives. A utility’s acquisition of a renewable asset presents many issues not otherwise present in a non-utility acquisition, particularly if the utility intends to include its investment in rate base. In our webinar, we discussed the legal and tax issues associated with renewable energy transactions based on our experience representing both utilities and developers. Below are key takeaways from this week's webinar: 2021 will bring an increase for the renewable energy industry, despite the effect COVID-19 has had on the market. Some issues to consider when creating a tax equity structure that involves a utility are: regulatory investment limitations, related party and normalization considerations. Utility build-transfer agreements...

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Seeing Beyond the Wall of Capital

In the United States, despite the continued spread of COVID-19 and the uneven approach to reopening, where that is even occurring, deals in the renewable energy sector are happening. In a recent article for Project Finance International, Chris Gladbach and Seth Doughty discussed the state of the US market for renewable power projects, including how investments (and investment styles) have changed, new technologies and more. Access the article. Republished with permission from Refinitiv Project Finance International.

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Six Takeaways from Wind Turbine Vendor Update: A Conversation with GE Renewable Energy

McDermott hosted GE Renewable Energy North America Services Sales Leader Ben Stafford, Commercial Director of Onshore Wind for the North Region Rob Bienick and Commercial Director of Onshore Wind for the West Region Matt Lynch on July 30 for a discussion about COVID-19’s impact to turbine supply chain and construction, the effects of the Production Tax Credit (PTC) safe harbor extension, and how GE is preparing for 2021 and beyond. Below are key takeaways from this week’s webinar. 1. COVID-19 continues to impact both supply chain and construction - requiring more communication with customers, subcontractors, and within GE, but products continue to be manufactured, delivered, installed, and maintained. 2. The large wind project pipeline in the United States (even prior to the PTC extension) shows that there remains great optimism for the wind industry, despite the current PTC phase-out schedule. 3. The repowering market for wind is growing, providing many...

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New York Announces One of the World’s Largest Procurements for Offshore Wind and Onshore Renewable Energy Projects.

On July 21, 2020, New York Governor Andrew Cuomo announced the largest combined clean energy solicitation ever issued in the United States, seeking up to 4 GW of renewable capacity. This capacity is broken up into 2500 MW of offshore wind and 1500 MW of onshore large-scale renewable energy projects. Access the full article.

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