In This Issue:
- DOE Announces Fourth Authorization for LNG Exports to Non-FTA Nations. Does This Mean Full Steam Ahead?
- FERC Addresses ISO-NE Capacity Supply Obligations, Walks a Fine Line Between Generator Cost Recovery and Maintaining Reliability
- EPA Proposes Carbon Emission Standards for New Power Plants: First of a One Two Punch for Coal?
- CRS Report Spotlights PTC and Other Expiring Energy Tax Incentives
- Energy Highlights
- The IRS has issued additional guidance clarifying the qualification rules for facilities claiming the production tax credit (PTC) under the new “start construction” definition enacted earlier this year. Earlier guidance provided two methods to determine when construction has begun on a facility: 1) actually starting physical work of a significant nature; or 2) when a taxpayer pays or incurs five percent or more of the total cost of the facility. In either case, the taxpayer must make continuous efforts to advance towards completion of the facility. The additional guidance clarifies those two qualification tests and describes how a facility can still qualify for the PTC if the facility’s ownership changes hands. The guidance also clarifies that a “master contract,” which is defined as a “binding written contract for a specific number of components to be manufactured, constructed, or produced for the taxpayer by another person under a binding written contract,” meets the safe harbor qualification test. The new PTC guidance is posted here.
- On September 19, FERC issued Order No. 785, Final Rule on Generator Requirements at the Transmission Interface in Docket No. RM12-16-000, accepting a NERC proposal to revise four existing Reliability Standards to extend and/or clarify their applicability to generator interconnection facilities. The modifications are designed to close a perceived reliability gap involving such facilities, and will go into effect 60 days after the rule is published in the Federal Register.
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