President Obama proposed several broad energy-related initiatives in his State of the Union address last week, which are summarized in David Flynn’s post below. Noticeably absent from the President’s address was “clean coal,” which had been part of the President’s “all of the above” approach to domestic energy development. The apparent absence of coal from the President’s energy agenda is another setback to the future of the coal industry, which has been declining in the U.S. due to greenhouse gas regulations and competition from natural gas. Nevertheless, recent developments in carbon capture and storage (“CCS”) technology may help the coal industry adapt to a changing regulatory environment.
Continue Reading With Impending New Regulations, Coal Industry Focuses on Carbon Capture and Storage
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New York State Extends and Expands Solar Energy System Tax Incentives
Governor Andrew Cuomo, as part of his ongoing “NY-Sun” program intended to accelerate customer-sited solar electricity capacity in New York State, recently signed into law three bills which further this initiative.
Chapter 406 of the Laws of 2012 exempts the sale and installation of commercial solar energy systems—defined as systems which convert solar radiation to energy for cooking, hot water or electricity—from State sales taxes, beginning January 1, 2013, and grants municipalities (counties and cities) the power to exempt these systems from local sales tax. New York’s similar program for residential solar energy systems continues unchanged.
Continue Reading New York State Extends and Expands Solar Energy System Tax Incentives
Wind Energy Development In The Great Lakes Again A Priority
Wind energy development in the Great Lakes has seemingly stalled, but a new Memorandum of Understanding (MOU) between five Great Lakes states and ten federal agencies may renew hopes for locating wind turbines in the Great Lakes.
The purpose of the MOU is to “support the efficient, expeditious, orderly and responsible review of proposed offshore wind energy projects in the Great Lakes by enhancing coordination among federal and Great Lakes state regulatory agencies.” Specifically, the MOU requires the creation of a regulatory roadmap, to set forth a streamlined permitting process with joint reviews of applications and clear guidance on data collection, permit processing times and agency responsibilities.
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Stimulus Grants for Renewable Energy Projects: How to Make Sure Your Project Qualifies
A critical component of the American Recovery and Reinvestment Tax Act of 2009 (a.k.a. the Stimulus) is the Department of Treasury’s (“Treasury”) Payments for Specified Energy in Lieu of Tax Credits. Rather than claim a tax credit based on placing certain specified energy property in service, applicants receive a cash grant directly from the United States Treasury during the year in which the property is placed in service. As with most targeted government incentives, the devil is in the details, particularly as to the timing of the project.
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A Post-Tax Credit “Incentive” for Renewable Energy Development
The U.S. Senate’s recent vote to repeal $5.4 billion worth of ethanol subsidies indicates an uncertain future for many renewable energy incentives. In fact, the current climate in Congress appears generally hostile towards subsidies for any energy sector, with Democrats calling on Republicans to cut oil and gas subsidies and Republicans calling for the elimination of renewable energy subsidies. With renewable energy subsidies on the table as part of ongoing deficit-reduction negotiations, Congress will need to consider other policy options and tools if, after losing significant subsidy support, renewable energy is going to be able to compete economically with fossil fuels.
Continue Reading A Post-Tax Credit “Incentive” for Renewable Energy Development
Counting Jobs at the EPA
The House of Representatives has set its sights on limiting the Environmental Protection Agency’s (EPA) authority to enforce several environmental laws in this country. For example, the House voted last week to strip the EPA of all authority to regulate greenhouse gases. Such a measure is unlikely to pass the Senate and the president has indicated he would veto such a bill; however, the House is seeking leverage to prevent regulation of greenhouse gas emissions.
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Erie County: Tilting at Offshore Windmills?
Electricity production from renewable sources, such as wind, solar or biomass, offers an opportunity not just to reduce dependence on domestic or imported fossil fuels, but can also be a driver for creating new manufacturing opportunities for small businesses in the renewable energy supply chain.
Continue Reading Erie County: Tilting at Offshore Windmills?
