This CLE course will guide renewable energy counsel on overcoming challenges in developing renewable energy projects on federal land. The panel will discuss key issues in using federal lands and facilities for solar and wind energy and new IRS extensions and guidance for continuity safe harbors. The panel will also discuss the beginning of construction requirements under Section 45 and 48, assessing and protecting against liability exposure, and other key items to ensure regulatory compliance.
Developing renewable energy on federal land requires strict compliance with federal regulations and exceptional knowledge of specific requirements and administrative proceedings. Counsel must recognize key issues in using federal lands and facilities and implement methods to minimize obstacles in the financing, development, and operation of renewable energy projects on federal lands.
Generally, for purposes of Sections 45 (production tax credit) and 48 (investment tax credit), the "beginning of construction" requirement can be satisfied if physical work has commenced or the taxpayer has paid or incurred five percent or more of the total cost of the facility. Both require continuous progress toward completion once construction has begun. However, the COVID-19 pandemic has delayed such progress, jeopardizing many energy projects.
On Dec. 31, 2020, the IRS issued Notice 2021-05, extending the continuity of safe harbor to 10 years for renewable energy projects constructed on federal land. It modifies the prior notice, notably related to the "beginning of construction" requirements providing relief for the impact of delays on qualified facilities and energy projects being constructed offshore or on federal lands.
Although IRS Notice 2021-5 provides some relief for renewables, counsel must still effectively navigate complex regulatory, financing, and operational challenges for developing projects offshore and on federal lands.
Listen as our panel discusses the necessary and most practical processes for using federal lands for renewable energy projects, protecting against liability exposure, financing options, and other key items.
