Tax considerations are one of the main drivers for renewable energy projects. This fall, Husch Blackwell’s Energy and Natural Resources team hosted a webinar that explored the available federal and state credits, abatements, incentives, and in some cases, specialty taxes that affect the profitability of renewable energy projects. During the program, we received a number of questions worth sharing with our blog subscribers that are navigating tax issues on their renewable energy projects. This article addresses those questions.
Continue Reading Digging Deeper: Tax Considerations for Renewable Energy Projects

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

Renewable energy accounted for 11% of all energy generated in Illinois last year. That may sound low at first glance, but that percentage ranks Illinois second in the Midwest for installed renewable energy power and fifth in the nation for installed wind power with almost 4,000 MW of wind and 60 MW of solar. Nonetheless, the State of Illinois needs to increase the pace of renewable development and generation if it wants to maintain its reputation as a renewable energy leader in the U.S.  The State took steps last week to do just that.  On Wednesday, September 15, Illinois Governor J.B. Pritzker signed SB 2408, known as the Climate and Equitable Jobs Act (“Act”), establishing one of the most comprehensive state-level renewable energy initiatives to date. The Act’s highlights include $580 million a year for wind and solar development to increase Illinois’ renewable energy standard to 40% by 2030 and 50% by 2045.

Continue Reading New Illinois Climate and Equitable Jobs Act Adds Fuel to Renewable Energy Development in Illinois

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

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

In order for renewable energy projects to gain traction on a larger scale in the United States, significant investments need to go into building the required underlying infrastructure, including a green sustainable grid across the country.

Eminent domain, the government’s right to expropriate private property for public use with just compensation, has historically been the go-to tool for the fossil fuel industry to build and expand its vast network of pipelines by obtaining the parcels of land needed to build the pipeline. Eminent domain is a controversial concept and has been a popular target for environmentalists looking to slow the expansion of the fossil fuel pipelines.  Recent examples include the PennEast Pipeline, the Atlantic Coast Pipeline and the Dakota Access Pipeline.
Continue Reading Eminent Domain as Climate Policy: From a Target to a Potential Tool for Expanding Renewable Energy Projects

Texas property owners are becoming more knowledgeable on renewable energy as wind and solar projects continue to thrive in the state of Texas. In the early stages of renewable development, leases were not heavily negotiated and were executed swiftly, at little cost to developers. Today, the expectation is quite different.
Continue Reading Increased Landowner Sophistication Ramps Up Lease Negotiations in Texas

Europe’s offshore wind sector enjoyed a record $31 billion of investment in 2020. The U.S has some serious work to do to catch up. While development of land-based wind and solar projects continues at a rapid pace across the U.S., we lag far behind many other countries when it comes to offshore project development. There are currently only two small offshore wind projects operating in the U.S.

There are signs, though, that change is coming.


Continue Reading Offshore Wind Positioned to Take Off Under Biden