The IRS published Revenue Ruling 2021-13 on July 1, 2021, addressing a series of issues on the Section 45Q tax credit for carbon capture projects.
On March 31, 2021, President Joe Biden announced the American Jobs Plan (the Plan). The Plan proposes approximately $2 trillion in government funding over the next decade focused on infrastructure, the electric grid, high-speed broadband, climate change, and jobs creation.
To promote U.S. offshore wind projects, the Biden administration recently extended the Title XVII Innovative Energy Loan Guarantee Program (the “Title XVII Program”) to offshore wind and offshore transmission developers, suppliers, and other financing partners and has set certain criteria on eligibility for these federal loan guarantees.
President Biden has announced ambitious energy and environmental goals in an effort to combat the effects of climate change. Many of the president’s goals hinge on increasing support for alternative forms of energy production, increased use of low or zero emissions vehicles and fuels, as well as investment in and deployment of carbon reduction technologies, such as carbon capture and storage (“CCS”).
The Biden administration has committed to supporting increased renewable power generating capacity, calling to decarbonize the national electric grid by 2035. President Biden has already begun taking steps to support this goal, including a recent Executive Order directing the Department of Interior to review and assess options for increasing renewable energy production on federal lands and in federal offshore waters, with the goal to double offshore wind energy production in federal waters by 2035.