Washington Energy Update - November 2013

by White & Case LLP

In This Issue:

- Trans-Pacific and Trans-Atlantic Treaties: Opportunities and Challenges for LNG Exports

- Suit Against Chinese Solar Firms Seeks Nearly US$1 Billion in Damages

- Major Energy Bills Get Started in Congress, But Enactment Unlikely

- Excerpt from Energy Highlights:

- The US Internal Revenue Service (IRS) has updated its guidance for “advanced nuclear power facilities” that can claim the 1.8 cents per-kilowatt-hour production tax credit. The rules describe the allocation method for the national megawatt capacity limit for the credit and the application process, which has been streamlined so taxpayers need only apply to IRS. As initially set forth by IRS in 2006, the application had to be sent to the IRS and the US Department of Energy (DOE) for certification. IRS will now get DOE’s approval in lieu of the taxpayer. The new guidance clarifies the rules for facilities that are owned directly or indirectly by more than one party. It also allows that the electricity can be sold to a related person if thereafter it is sold to an unrelated party. The IRS says the credit will not be reduced even if the facility claims other grants, tax-exempt bonds, subsidized energy financing and other credits. An “advanced nuclear facility” is defined as being designed and approved by the Nuclear Regulatory Commission after December 31, 1993, and placed in service before January 1, 2021. The production credit applies to electricity produced during the first eight years of service.

- On October 17, 2013, the US Federal Energy Regulatory Commission (FERC) issued a clarifying order requiring sellers of reactive power to file a rate schedule with FERC for such service, even where there is no compensation for the service. The new rate schedule order would likewise apply for the provision of reactive power within the reactive power deadband set forth in the applicable interconnection agreement. FERC said this new filing requirement will only be enforced on a prospective basis. To assist those affected by the new rule, FERC has directed its staff to conduct a workshop “to explore the mechanics of public utilities filing reactive power rate schedules for which there is no compensation.” At press time, the date for this workshop had not been finalized. FERC opened Docket No. AD14-1-000 for purposes of the workshop.

- The nonpartisan Joint Committee on Taxation (JCT) has provided a revenue estimate for legislation introduced by Senator Chris Coons (D-DE) that would expand the types of entities that qualify as master limited partnerships (MLPs). The bill (S. 795), which would allow certain renewable energy businesses to qualify for MLP tax treatment, would reduce federal revenues by US$1.3 billion over ten years, JCT says. Specifically, the bill would amend section 7704 of the Internal Revenue Code to expand the definition of “qualifying income” for MLPs to include income and gains from renewable and alternative fuels (in addition to fossil fuels), including energy derived from thermal resources, waste, renewable fuels and chemicals, energy-efficient buildings, gasification, and carbon capture in secure geological storage. Income from nonrenewable natural resources currently qualifies for MLPtreatment, which has led to a concentration of MLPs in the oil and gas sectors, particularly pipelines. Senator Coons argues that expanding MLPs to renewables will provide “parity” between green energy and energy from hydrocarbons. Senators Mary Landrieu (D-LA) and Susan Collins (R-ME) recently joined Senators Jerry Moran (R-KS), Lisa Murkowski (R-AK) and Debbie Stabenow (D-MI) as cosponsors of the bill.

Please see full newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© White & Case LLP | Attorney Advertising

Written by:

White & Case LLP

White & Case LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.