Developments in Law and Policy of Energy, Commodities and Environment
On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law, directing a record $370 billion toward clean energy investments.
Yesterday, the White House released a 182-page guidebook to the IRA entitled Building a Clean Economy. John Podesta, Senior Advisor to the President for Clean Energy…
Continue Reading The Biden Administration Publishes a Guidebook to the Inflation Reduction ActToday, the IRS released Revenue Procedure 2022-42 to address the reporting requirements for vehicle manufacturers and sellers. These reporting requirements are prerequisites for purchasers’ eligibility for clean vehicle tax credits under Sections 25E, 30D, and 45W. Section 30D(d)(3) requires that a manufacturer enter into a written agreement to become a qualified manufacturer, which requires periodic written reports to the IRS. Similarly, Section 30D(1)(H) requires that the person who sells a vehicle furnish a report to purchasers and the IRS.Continue Reading IRS Releases Reporting Requirements to Determine Eligibility for Clean Vehicle Tax Credits
The United Nations annual climate change conference—officially known as the 27th Conference of the Parties to the UN Framework Convention on Climate Change (“UNFCCC”), or COP27 for short—held in Sharm el Sheik, Egypt, finally concluded early Sunday morning. COP27 was held amidst the ongoing Russian war in Ukraine and its consequent economic turmoil, as well as increasingly tumultuous global weather events over the past year. Against this challenging backdrop, COP27 was never going to be straightforward. But difficulties were compounded by divisions between the developing and developed worlds over the priorities that should form the focus of the Summit, most clearly manifested in tensions over the issue of “loss and damage.” Although COP27 will be viewed as historic for its creation of a fund to compensate countries most impacted by climate change, there were also lost opportunities to adopt more ambitious and accelerated climate mitigation commitments that will be needed given the dire scientific warnings about the rapid impact of climate change on the planet.
Continue Reading COP27: A Flawed Though Still Consequential Climate Summit
On October 5, 2022, the Treasury Department and the IRS issued notices requesting comments on different aspects of the energy tax benefits in the Inflation Reduction Act (“IRA”). All comments are due by Friday, November 4, either electronically on www.regulations.gov or alternatively by mail to the IRS. Written comments submitted after that date will be considered as long as such consideration will not delay the issuance of guidance.Continue Reading IRS issues notices requesting comments on IRA clean energy tax credits
In a series of prior blog posts, we previously highlighted the historic implications of the Inflation Reduction Act (IRA) for the U.S.’s international climate commitments, as well as for private companies navigating the energy transition. Shortly after our series published, the Senate passed the IRA on Sunday August 7th with only minor modifications to the bill’s $369 billion in climate and clean energy spending. Today, the House passed the IRA without any further changes, and soon hereafter President Biden is expected to sign it into law.
However, this is only the beginning of the road; the IRA will have sweeping implications beyond the four corners of its pages. In the coming months and years, we expect to see intense jockeying over agency rulemakings that will shape the IRA’s implementation, as well as determine its ultimate success as an energy policy. Continue Reading House Passes Inflation Reduction Act, Marks a New Era for Climate Policy
The Inflation Reduction Act of 2022 (the “IRA”) features $260 billion in clean-energy tax credits. While the IRA extends many existing clean-energy tax credits, like the energy production tax credit and investment tax credit for wind and solar, it also establishes new credits, including credits for advanced manufacturing and hydrogen production. Additionally, beginning in 2025, taxpayers with zero emissions facilities would have added flexibility to choose between using a new technology neutral production tax credit or investment tax credit.Continue Reading Expansion and Long-Term Stability of Climate and Energy Tax Credits
One of the Inflation Reduction Act’s (IRA) notable features is the creation of a Greenhouse Gas Reduction Fund (GGRF). This fund could create a mechanism to quickly disburse up to $27 billion to clean energy technologies, without undergoing the sometimes laborious reviews required by the National Environmental Policy Act (NEPA). IRA § 60103. Continue Reading Inflation Reduction Act Sets the Stage for a National Green Bank
The Inflation Reduction Act (IRA) would make significant strides in limiting and cutting methane pollution. Methane has proven to be a significant part of the climate problem; the United Nations’ Environment Programme (UNEP) notes that over a 20-year period, methane is 80 times more potent at warming than carbon dioxide. Studies by the National Oceanic and Atmospheric Administration (NOAA) further show that the rate of methane emissions is only worsening, with 2020 recording the largest annual increase since 1983. By implementing a Methane Emissions Reduction Program, the IRA takes a significant step towards reducing methane-related warming. This program implements a carrot-and-stick regulatory regime, whereby the Environmental Protection Agency (EPA) rewards methane reduction efforts with financial assistance, and penalizes excess methane waste with a set fee.Continue Reading Methane Emissions Reduction Program: The Next Step in the United States’ Efforts to Tackle a Potent Greenhouse Gas
The environmental justice provisions included in the Inflation Reduction Act of 2022 (“IRA”) continue the Biden Administration’s commitment to environmental justice. The administration has already demonstrated a consistent desire to build environmental justice into its programs through programs such as the Justice40 Initiative. This initiative directs 40% of the…
Continue Reading Environmental Justice Provisions of the Inflation Reduction Act of 2022The transportation sector constitutes the largest source of greenhouse gas emissions in the United States, and the Inflation Reduction Act (IRA) takes significant steps to transition the U.S. vehicle fleet to zero-emissions technology. The proposed legislation takes a multi-faceted approach in doing so: it not only provides incentives for increased consumer use of electric vehicles, it also promotes domestic zero-emissions vehicle manufacturing. Continue Reading Inflation Reduction Act Shows Strong Support for the Electric Vehicle Sector and Domestic Supply Chains
