Tax Credit Bonds are taxable obligations issued by state and local governments and governmental entities for a wide array of qualifying purposes.  Unlike bonds that bear interest that is exempt from federal gross income tax, Tax Credit Bonds entitle the bondholder to a direct subsidy in the form of a federal tax credit, and in some cases receipt of interest that is includable in gross income for federal income tax purposes, rather than the issuer paying the bondholder tax‑exempt interest.  There are a variety of purposes for which Tax Credit Bonds can be issued, two of which relate to the areas of renewable energy and conservation:  (1) new clean renewable energy bonds (“New CREBs”)* and (2) qualified energy conservation bonds (“QECBs”).  Both New CREBs and QECBs are subject to certain rules applicable to tax credit bonds and to federal labor standards.  See General Tax Credit Bond Rules and Davis‑Bacon Labor Standards below. [Read more →]

On July 22, 2010, Senate Democrats held a caucus meeting  to discuss strategies for passing energy legislation in the Senate, after which they announced that they have temporarily abandoned plans to introduce a comprehensive bill before the August recess including either cap-and-trade of carbon emissions or a renewable electricity standard.  Senate Majority Leader Harry Reid (D-NV) spoke to the media after the caucus, announcing that Democrats will instead introduce a smaller energy bill headlined by BP oil-spill response legislation. [Read more →]

As Congress returned from the July 4 recess, legislative efforts on cap-and-trade focused on the possibility of a utility-only program.  Majority Leader Harry Reid (D-NV) announced that he intends to bring a bill to the floor during the week of July 26 that will include four components:  the Gulf oil spill, clean energy, energy efficiency and cap-and-trade.  The only form of cap-and-trade that seems possible at this point, however, is one that applies only to the electric utility industry. [Read more →]

The recognized environmental benefit of utilizing renewable sources of energy is the primary driver for investment in renewable energy projects.  However, the development of renewable energy projects may also involve significant environmental challenges as well.  Even “environmentally-friendly” sources of power, such as wind and solar, can have environmental consequences and may also be subject to various environmental laws and regulations.  [Read more →]

On January 29, 2010, the U.S. Department of Interior (“DOI”) and Department of Energy (“DOE”) announced that the agencies have entered into a Memorandum of Understanding (“MOU”) to collaborate in developing commercial-scale offshore renewable energy projects on the Outer Continental Shelf (“OCS”). [Read more →]