As previously discussed in our blog Inflation Reduction Act: Wage and Apprenticeship Requirements, the Inflation Reduction Act (the “IRA”) restructured the tax credit system associated with qualified clean energy projects. In particular, to receive the full value of various tax credits, companies must now pay the prevailing wage rates and employ a certain number of registered apprentices in the construction, alteration, and/or repair of qualified clean energy facilities or projects as defined under the Code.Continue Reading Inflation Reduction Act: Prevailing Wage and Apprenticeship Requirement FAQs and Key Takeaways from the Initial Guidance from the Treasury and IRS

On November 14, 2022, the Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) published a proposed rule that would amend the Federal Acquisition Regulation (FAR) to require Federal contractors that receive annual Federal contract obligations over a specified amount to disclose their greenhouse gas (GHG) emissions[1] and climate-related financial risk, and set science-based targets to reduce GHG emissions.[2] This proposed rule implements section 5(b) of Executive Order 14030, Climate-Related Financial Risk, which we previously wrote about here. The Government will consider comments from interested parties that are submitted by January 13, 2023, after which a final rule will be formulated.Continue Reading Proposed Rule Requires Contractors to Disclose Greenhouse Gas Emissions and Climate-Related Financial Risk

The dust has settled on the Bureau of Ocean Energy Management’s (BOEM) first west coast auction for federal offshore wind lease areas. The California auction for the Morro Bay and Humboldt Call Areas brought an aggregate $757,100,000 to federal coffers at a $2,028 per acre value (with variances between the areas discussed below). This per acre value is well below the results of the other BOEM auctions of 2022, New York Bight (approximately $9,000 per acre, the highwater mark in the U.S.) and Carolina Long Bay (approximately $2,800 per acre). The final figure places the final result firmly within, but on the low end of, BOEM’s pre-auction estimate of $400M – $1.6B.Continue Reading California’s First Offshore Wind Auction Finalized – Key Takeaways

The eyes of the offshore wind sector are turning with excitement to the west coast of the United States today as the Bureau of Ocean Energy Management (BOEM) conducts a scheduled mock auction for the Morro Bay and Humboldt Call Areas leading into the live auction tomorrow, December 6th.Continue Reading Market Conditions Among Factors Adding Variability to Potential California Offshore Lease Outcomes

After the landmark prices received for eight offshore wind leases in the New York Bight, and with great anticipation for the upcoming December 6, 2022, lease auction for the Humboldt and Morro Bay Wind Energy Areas (WEAs) off the coast of California, the U.S. Department of Interior’s Bureau of Ocean Energy Management (BOEM) is turning its sights to the Gulf of Mexico. The Biden Administration’s announced goal of developing thirty (30) gigawatts (GW) of offshore wind energy by 2030 now includes two WEAs in the Gulf of Mexico with the potential of producing up to 3 GW of power.Continue Reading Offshore Wind Comes to the Gulf of Mexico

On October 21, 2022, the U.S. Bureau of Ocean Energy Management (“BOEM”) published a Final Sale Notice (“FSN”) for commercial leasing for wind power on California’s Outer Continental Shelf (“OCS”). Specifically, the FSN announces a list of eligible bidders, deadlines, lease stipulations, and financial terms and conditions for an auction of five leases within the Humboldt Wind Energy Area (“WEA”) and Morro Bay WEA. We highlighted these elements of the FSN and discussed bid credits in prior blog posts. Here, we summarize several aspects of the FSN which stem from the California Coastal Commission’s consistency determinations for both WEAs.Continue Reading California Offshore Wind Lease Sale Announced by Bureau of Ocean Energy Management

One of the most noteworthy features of the October 18th Final Sale Notice (FSN) for the PACW-1 offshore lease auction – which will be the first west coast auction held by the Bureau of Ocean Energy Management (BOEM) – is the availability of “multi-factor” bid credits. The multi-factor approach will allow bidders to earn credits for activities BOEM hopes to stimulate, including making commitments to domestic workforce training and supply chain development as well as entrance into community benefit agreements (CBAs) addressing the impacts of offshore development on local stakeholders. Up to 30% of the cash value of their bid is available to bidders in the form of bid credits, a not insignificant figure given both government and market estimates of potential lease values.Continue Reading Bid Credits Intended to Stimulate Local Coordination and Development in Upcoming California Lease Auction Add New Wrinkle to Bid Strategies

The U.S. Fish and Wildlife Service recently published a proposed rule revising regulations that authorize permit issuance for eagle incidental take and eagle nest take under the Bald and Golden Eagle Protection Act (the “Act”). In addition to retaining the individual permits already available under the Act, the new rule proposes creation of a “general” permit for qualifying wind energy and power line infrastructure projects.Continue Reading U.S. Fish & Wildlife Service Proposes New Regulations Creating General Eagle “Take” Permits for Certain Wind Energy and Power Line Infrastructure Projects

On October 18, 2022, the Department of the Interior announced that the Bureau of Ocean Energy Management (“BOEM”) will hold an auction to sell five offshore wind energy leases in federal waters off the California coast, with two off the coast of Humboldt and three off the coast of Morro Bay. PACW-1 is the first sale of offshore wind leases on the west coast of the United States, and the first to support the development of floating offshore wind projects anywhere in the US. The auction follows the record-breaking New York Bight auction and the Carolina Long Bay auction, both held earlier this year.Continue Reading California Offshore Wind Auction