Thursday, January 28, 2016

The Clean Power Plan Remains on Track as the Legal Battle Rages

by Sue Cowell, in Washington



The latest attempt to stop the implementation of the Clean Power Plan has moved to the US Supreme Court. After the DC Circuit Court denial of immediate relief,  twenty-nine states and state agencies, the US Chamber of Commerce along with other business associations, coal industry stakeholders and a number of utilities filed petitions with the US Supreme Court now urging them to stay the Clean Power Plan. 


They argue that the Clean Power Plan will be held unlawful, and that they will suffer irreparable harm if an immediate stay is not granted. The states and state agencies are concerned about spending a lot of time and resources developing implementation plans to satisfy obligations under the Clean Power Plan before the court can rule on the merits of the case.  Even though implementation plans or requests for extensions to submit the plans are not due before September 6, 2016, as a practical matter, states must start working well before that date. Since the states and state agencies believe that the Clean Power Plan will be deemed unlawful, they are worried that the time and money spent on any planning will be a waste.  US Supreme Court Chief Justice Roberts asked the EPA to respond to the petition by the states and state agencies by 3:00 p.m. next Thursday.

Thursday, January 14, 2016

#TBT: Tax Issues in Project Sales


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in June 2004 and written by Keith Martin,
co-head of Chadbourne's Project Finance group.



Monday, January 11, 2016

Shaping the Clean Power Plan's Clean Energy Incentive Program


by Sue Cowell, in Washington

Although EPA expects the U.S. Court of Appeals for the District of Columbia to rule in the coming weeks on motions to stay implementation of the Clean Power Plan, planning by states and industry continues.  One aspect of the Clean Power Plan that has drawn considerable interest from the wind and solar industries is the Clean Energy Incentive Program or CEIP.

EPA developed the CEIP to encourage early investment in eligible solar or onshore wind projects and demand-side energy efficiency measures.  Credits or allowances earned by eligible projects under the CEIP are contemplated to be sold to affected entities to use to satisfy their own Clean Power Plan compliance obligations.  States are not required to participate in the CEIP; however, a state that wishes to participate must make a non-binding statement of such intent as part of that state's implementation plan or initial submittal that is due by September 6, 2016.  States that participate in the CEIP may award early action credits or allowances to eligible projects and, as an extra incentive, the EPA will provide matching allowances or credits up to a total of 300 million short tons of CO2 emissions.    

Thursday, January 7, 2016

#TBT: Financing Pollution Control


This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in the October 2005 issue of the Project Finance NewsWire featuring Keith Martin, a partner in Chadbourne's Project Finance group.




Financing Pollution Control


Any power company planning to install new pollution control equipment should consider whether it is possible to get the US government to pay part of the cost.