While the election results are not yet final, this article will proceed from the assumption that former Vice President Biden will become President in January and that Republicans will win at least one of the two U.S. Senate seats in Georgia to be decided by runoff, and thus will have a majority in the U.S. Senate.
Continue Reading Energy and Environmental Legislation in the 117th Congress
On September 6, Assistant Secretary of Energy for Electricity Bruce Walker issued an order under Section 202(c) of the Federal Power Act declaring an emergency shortage of electric generation and directing the California Independent System Operator (CAISO) to require the dispatch of electrical output from specified electric generating units, if the CAISO determines the generation is necessary to meet demand. The order applies during afternoon and evening hours from September 6 through September 13, 2020.
Continue Reading DOE Issues Emergency Order to Address California Electricity Shortage
The Treasury Department and IRS have issued long-awaited Proposed Regulations regarding the tax credit for carbon capture and sequestration under Section 45Q of the Code1 (the “section 45Q credit”).
Generally, the amount of the section 45Q credit and the party that is eligible to claim the credit depend on whether the taxpayer captures qualified carbon oxide using carbon capture equipment originally placed in service at a qualified facility before February 9, 2018 (“Old 45Q Facility”), or on or after February 9, 2018 (“New 45Q Facility”), and whether the taxpayer disposes of the qualified carbon oxide in geological storage (“sequestration”), uses it as a tertiary injectant in a qualified enhanced oil or natural gas recovery project (“EOR”), or utilizes the carbon oxide in certain specified ways (“utilization”). The effective date of the amendments to the Code extending and expanding the section 45Q credit is February 9, 2018 (the “Credit Effective Date”). The Credit Effective Date appears throughout the Proposed Regulations to distinguish between Old 45Q Facilities and New 45Q Facilities and establishing the effective date for certain provisions.
Continue Reading Treasury Issues Proposed Regulations on Section 45Q Tax Credit for Carbon Capture
The largest market for CO2 captured from industrial sources through carbon capture utilization and storage (CCUS) is enhanced oil recovery (EOR), using the CO2 to produce oil. Captured CO2 can be used for cement, algae production, and other uses, but EOR has vast potential. Moreover, it has a nearly 50-year track record in the US, where it was pioneered. Carbon dioxide injected into oil formations becomes permanently stored as part of the process.
Continue Reading CCUS After the Pandemic
On Sunday, April 12, Virginia Governor Ralph Northam signed into law the Virginia Clean Economy Act and the Clean Energy and Community Flood Preparedness Act. These two new laws will require Virginia to transition to 100 percent carbon-free energy by 2050 and join the Regional Greenhouse Gas Initiative (RGGI).
Continue Reading Virginia Enacts Aggressive Clean Energy Laws
On August 27, 2019, the Federal Energy Regulatory Commission (FERC) and North American Electric Reliability Corporation (NERC) issued a White Paper proposing to disclose the names of entities that violate Critical Infrastructure Protection (CIP) standards, while continuing to withhold other details of those violations. This significant change in policy reflects broader issues in FERC’s handling of security information.
Continue Reading FERC’s CIP Information Proposal: Is it Time to Tip the Scale Toward Security?
Hunton partners Paul Tiao and Fred Eames discuss the challenges to businesses operating in a constantly evolving cyber threat landscape and steps some companies have taken to protect from attacks. It’s important for companies operating in this space to adjust to changes to international, federal and state regulations regarding critical infrastructure and information sharing, including seeking application for a US SAFETY Act certification.
Continue Reading Inside Look: Managing Threat in Today’s Cybersecurity Landscape
The Department of Treasury and Internal Revenue Service have released Notice 2019-32 seeking comment on key issues to be interpreted in the Section 45Q carbon oxide sequestration tax credit. Congress significantly enhanced the Section 45Q tax credit in the Bipartisan Budget Act of 2018, increasing the credit from $10/ton for CO2 used as a tertiary injectant (i.e., to produce oil or gas) to $35/ton; and increasing the credit for CO2 geologically stored but not used as a tertiary injectant from $20/ton to $50/ton. See our previous blog post here for additional details on the applicable credit amounts for projects before and after enactment of the Bipartisan Budget Act and other credit amount details.
Continue Reading IRS to Seek Comment on Key Issues to be Interpreted in Section 45Q Tax Credit
Congressman Alexandria Ocasio-Cortez (D-NY) introduced a federal resolution to recognize a “duty” of the federal government to create a Green New Deal (GND). Addressing climate change may be a primary focus of the resolution, but “green” is perhaps a misnomer.
Continue Reading Green New Deal Goes Beyond Green
Energy companies may not be thinking much yet about federal legislation to regulate the consumer data they hold, but they should be. Privacy is shaping up to be a key legislative topic this year.
Why would an energy company need to care about privacy legislation? Because lots of different energy companies have extensive consumer data. Oil companies’ service station loyalty programs, electric utilities’ customer data—these are among the many types of consumer data that might end up being regulated under legislation Congress is expected to consider. Any company with large amounts of consumer data should pay attention to the issue. In addition, HR data may also be covered by privacy legislation, affecting every US company whether or not they hold consumer data.
Continue Reading Issue Spotting: How Privacy May Impact the Energy Sector