The momentum behind offshore wind has continued to grow since our February 2021 post on the topic. Last week, the U.S. Department of the Interior announced plans to open seven more offshore wind leases by 2025 off both coasts of the U.S. These potential leases will cover projects in federal waters in the Gulf of Mexico, Gulf of Maine, and off the Mid-Atlantic, the Carolinas, California, and Oregon. The agency’s announcement follows a March 2021 commitment by the Biden Administration to deploy 30 gigawatts (30,000 megawatts) of offshore wind by 2030. The agency’s announcement also came on the same day the Department of Energy set aside $13.5 million to support continued research on the impact of offshore wind on birds, bats, and marine mammals.
Continue Reading From Sea to Shining Sea, U.S. Continues Renewable Energy Push with Biden Administration’s Latest Commitment to Offshore Wind

Farm leases are a common occurrence on land being developed for solar and wind energy projects, due to the size and rural nature of land sought for development. While title searches will discover written leases that are made of record with the county clerk, farm leases are often verbal “handshake” agreements, meaning they go undetected during a standard title search. It is always recommended to conduct a site visit and inquire as to the existence of any grazing or crop operations when entering into a real estate contract for land intended for development. If a farm tenant is leasing a portion of the project property, such lease may need to be terminated, particularly in the context of a solar energy project that will require more surface use of the land.
Continue Reading Terminating Oral Farm Leases

Companies with ESG policies – including financing parties investing in renewable energy projects – should assess the impact of Texas Senate Bill 19 on their government contracting opportunities, and should expect and prepare for heightened state regulation of corporate firearm policies in the future.

Effective September 1, 2021, Texas Senate Bill 19 prohibits government entities from contracting with companies that have policies that restrict business with the firearms industry. The bill specifically targets banks and other financial institutions that have at least ten employees and are seeking government contracts of at least $100,000. Under the bill, such institutions are required to provide written verification that they do not have practices, policies, guidance, or directives that “discriminate” against a firearm entity or firearm trade association.
Continue Reading The Government Contracting and Energy Implications of Texas Senate Bill 19: Navigating State Regulation of Corporate Firearm Policies

What if you could substitute a renewable battery powered motor for the internal combustion engine just twelve years after its invention? At minimum, we would not be faced with the challenge of limiting greenhouse gas emissions. For all of the benefits the internal combustion engine has brought humanity, its environmental consequences are not among them.
Continue Reading The Argument for Mining Bitcoin from Clean Energy and Waste Energy Streams

The Texas legislature recently passed Senate Bill 760 (“SB 760”). SB 760, which takes effect on September 1, 2021, relates to the decommissioning of solar power facilities.  Under the new law, solar companies must now comply with similar decommissioning requirements as those previously imposed on wind companies during the 2019 legislative session.  SB 760 requires solar power facility agreements to now provide that the grantee is responsible for removing its solar power facilities from the landowner’s property.
Continue Reading Texas Legislature Expands Decommissioning Requirements to Solar Power Facility Agreements with Enactment of SB 760

The colocation of energy storage facilities with solar and wind projects has emerged as a popular trend within the renewable energy field. Many Independent System Operators have reported an increase in hybrid resources projects in their interconnection queues in recent years. For example, CAISO (California Independent System Operator) reported that hybrid projects constitute two-thirds of all solar projects in its interconnection queue.

Continue Reading Real Estate Concerns for Hybrid Renewable Energy Projects

Prior mortgages are typical due diligence items in the real estate title review process for renewable energy projects. Resolving issues related to prior mortgages is key to establishing a title policy that is satisfactory to lenders and investors while also protecting the project company’s real property assets. The following serves as an introduction to prior mortgages and the mechanisms for resolving them, but every project is unique, so the path forward will necessarily vary from project to project. While the process can be tricky, there are some key strategies that can keep the title curative and development process on track.
Continue Reading Resolving Prior Mortgage Issues on Greenfield Renewable Energy Projects

During the course of any acquisition of a renewable energy project, the parties may be required to obtain consents from certain of the counterparties to the project contracts. This will be the case if a project contract includes a clause that requires the consent of the counterparty for (i) the assignment of such project contract, and/or (ii) the direct or indirect change of control of a party to the contract. The procurement of such consents can be time intensive, cause delays to a project sale, and expose a project to additional obligations if not addressed from the outset. For renewable energy projects, often times, major project contracts (e.g., revenue agreements, interconnection agreements, equipment supply agreements, etc.) include anti-assignment and/or change of control clauses.
Continue Reading M&A Time and Cost-Saving Measures: Third Party Consents in Project Development