The U.S. Department of the Treasury and Internal Revenue Service have released proposed guidance on the Clean Electricity Production Credit and Clean Electricity Investment Credit established by President Biden’s Inflation Reduction Act (IRA).
The IRA sunsets the existing Production Tax Credit and Investment Tax Credit by limiting their availability to projects beginning construction before next year and transitioning to the Clean Electricity Production Credit and the Clean Electricity Investment Credit for projects placed in service after December 31.
These new Clean Electricity credits are meant to provide incentives for the first time to any clean energy facility that achieves net zero greenhouse gas emissions. They are also meant to provide the ability for new zero greenhouse gas emissions technologies to develop over time, while also providing long-term clarity and certainty to investors and developers of clean energy projects.
The Notice of Proposed Rulemaking (NPRM) identifies specific technologies meeting the standards set out in the IRA and would qualify as zero greenhouse gas emissions for the purposes of the Clean Electricity Production Credit and Clean Electricity Investment Credit. The technologies recognized include wind, solar, hydropower, marine and hydrokinetic.
The proposed guidance also clarifies how energy storage technologies would qualify for the Clean Electricity Investment Credit. The proposed rules released seek comment on important questions related to the required lifecycle analysis for combustion and gasification technologies.
Treasury, in consultation with interagency experts, will review comments received and continue to evaluate how additional clean energy technologies, including combustion and gasification technologies, will be able to qualify for the clean electricity credits.
“President Biden’s Inflation Reduction Act has driven an investment boom that is adding historic levels of new clean power to the grid while keeping consumer energy costs in check, reducing greenhouse gas emissions and bolstering energy security,” says U.S. Secretary of the Treasury Janet L. Yellen.
“The Clean Electricity Tax Credits created under the Inflation Reduction Act provide certainty to the market and are poised to drive substantial further growth and lower utility bills over the long-run.”
These proposed rules generally follow rules from the existing Production and Investment Tax Credits, aimed at providing clarity and certainty to developers as they move forward with clean energy production projects.
The guidance proposes that any future changes to the set of technologies designated as zero greenhouse gas emissions or the designation of lifecycle analysis models that may be used to determine greenhouse gas emissions rates must be accompanied by an analysis prepared by the U.S. Department of Energy (DOE)’s National Labs, in consultation with agency technical experts and other experts.
The NPRM also proposes a process by which taxpayers can request a Provisional Emissions Rate, which DOE would administer in consultation with the National Labs and other experts as appropriate.
Additionally, the NPRM includes proposed rules that provide clarity on the inclusion of costs of interconnection-related property for lower-output clean energy facilities that take the Clean Electricity Investment Tax Credit. The proposed rules continue the approach taken in the proposed rules for the Section 48 Investment Tax Credit, which was modified by the IRA to cover qualified interconnection costs.
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Treasury, IRS Release Proposed Guidance to Support Clean Energy Production
Renewable Energy
What Shapes Our Politics?
I may have mentioned that I’m lucky enough to be a part of a group of boyhood friends from our prep school in Philadelphia that meets monthly on Zoom.
Yesterday the question came up as to how our political beliefs are formed, and the group found my input somewhat shocking.
First, from what I can understand from neurologists, our brains are “wired” to function in certain ways. Via some combination of genetics, epigenetics, and early experiences, we are incapable of looking at the world in a fundamentally different way than we do now. I am no more capable of being a Trump supporter than I am of starting as quarterback in the NFL or memorizing the first 22K digits of pi, the way certain savants can.
This is validated by studies showing that our political philosophies are shaped by the way our brains fire under certain circumstances. When experimental subjects were hooked up to electronics that monitored their brain activities were shown pictures that depict certain threats, the results from self-described “liberals” and “conservatives” differed considerably. When shown photographs of kittens and mountain ranges, both groups processed those images in the same regions of the brain. But when shown photographs of snakes and tarantulas, conservatives were far more likely to process these images through the amygdala, the “fight-or-flight,” or “reptile” brain that kicks in when we interpret something as a danger to our survival.
I’m not losing my mind about immigration into the U.S.; I’m unconvinced that hordes of immigrants from our south or the Muslims from the Mideast are destroying our nation.
Why is that? My brain is wired to doubt it. For whatever reason, I’m more inclined to think that I’m one of 8 billion people on this planet that have almost identical goals and ideals. We all want to survive, to love our children, to be productive and responsible human beings, and to appreciate beauty.
On top of that, I’m a follower of Sam Harris, neuroscientist, author, and philosopher, whose work has shown that free will is an illusion. He points to a study whose findings are that, when we make up our minds in an instant to do a certain thing, say lift our finger from a table at a certain point of our choice, that our brains have made that decision a full half-second before.
Needless to say, there is a ton more to understand here about Sam Harris and his work on this subject. I urge readers to take that step forward.
Renewable Energy
Nordex Invests in Türkiye, Vestas Wins First V182 Order
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Nordex Invests in Türkiye, Vestas Wins First V182 Order
Allen covers Nordex’s Türkiye expansion, Chinese turbine makers seeking European partners, Vestas’ first V182 order, and two Pennsylvania repowers.
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Renewable Energy
Is There a Pattern in Republicans’ Behavior?
I’m not sure it’s as simple as this, insofar as Bush 41 and 43 weren’t criminal sociopaths.
I happened to be driving through Manhattan on the very day that Colin Powell was addressing the United Nations just a few miles away and claimed, and I think honestly, that Saddam Hussein had “weapons of mass destruction,” and must be stopped by a U.S. military invasion.
Contrast that against what we’re doing in Iran. Fifteen years ago, the Joint Comprehensive Plan of Action (JCPOA), included Iran, the P5+1 nations (the United States, China, Russia, France, the United Kingdom, and Germany), alongside the European Union made an agreement in which most of the developed world agreed that Iran must not have a nuclear weapon.
That stood firmly in place until Trump’s latest war crime, which is costing lives and choking the world economy, solely to defend our president’s neuroses.
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