On July 20, 2010, new legislation was introduced in the Senate to provide investment tax credit ("ITC") to energy storage facilities. Senate Bill No. 3617, the Storage Technology of Renewable and Green Energy Act of 2010 (the "STORAGE 2010 Act"), would offer up to $1.5 billion in tax credits to storage projects that are connected to the U.S. electric grid.
This legislation is designed to promote intermittent energy sources, including wind and solar power, while reducing energy demands during peak hours and contributing to a smart grid that is more reliable overall in order to modernize the U.S. electric grid and meet the nation's clean energy goals. The STORAGE 2010 Act would help meet these goals by improving the efficiency, flexibility, and reliability of the nation's electric grid, and by making energy storage technologies more affordable for homes and businesses.
The STORAGE 2010 Act would offer ITCs for two categories of energy storage projects: (1) storage systems connected to the electric grid, and (2) on-site energy storage for businesses and homes.
Grid-Connected Energy Storage
The STORAGE 2010 Act would provide a 20 percent ITC for facilities that store energy for delivery or use at a later time, provided that those facilities are connected to the U.S. electric grid. This ITC is capped at $30 million per qualifying project.
In allocating these tax credits, the Secretary of Energy would be required to select only those projects with a reasonable expectation of commercial viability and projects that represent a variety of technologies, applications, and project sizes. Priority would be given to projects that provide the greatest increase in reliability or economic benefit, that enable the greatest improvement in integration of renewable resources with the grid, or that enable the greatest increase in efficiency in operation of the grid.
On-Site Energy Storage
The legislation would also provide a 30 percent investment tax credit to businesses and homeowners for on-site storage projects. Those ITCs would be capped at $1 million annually per qualifying project.
If this bill becomes law, the available tax credits may create critical opportunities for your business. For further information about the bill, including its status, please contact any of the attorneys listed.
Paul Belval will be co-presenting a webinar, "Developing and Financing Wind Energy Projects: Contract Provisions, Protecting Developer and Landowner Interests," for Strafford.
On June 13, Beth Barton and Harold Blinderman spoke at the Connecticut Business & Industry Association (CBIA) 2019 Energy & Environment Conference in Cromwell, CT.
On June 13, Sebastian Lombardi will be moderating a panel, "Northeast Updates on Tackling Fuel Security," at the 2019 Energy Bar Association (EBA) Northeast Chapter Annual Meeting in Washington, DC.
Alex Judd will be moderating a panel, "Future Cities: Building Projects from the Green Up," at the 2019 New England Energy Conference & Exposition (NEECE), a joint conference of the Northeast Energy and Commerce Association and the Connecticut Power and Energy Society being held at the Mystic Marriott in Groton, CT.
On April 4, Joe Fagan will be speaking at Natural Gas & Pipeline Issues, a 50th Anniversary Master Class presented by the Environmental Law Institute (ELI) and held in Washington, D.C.
Josh Cohen, chair of Day Pitney's Bankruptcy and Restructuring practice group was quoted extensively in an article, "FERC Rebuke Won't Be Last Word In PG&E Power Deals Fight," published by Law360.
David Doot, Steven Cash and James Blackburn, IV authored an article, "Risk and Opportunity with the Industrial Internet of Things," which was published in the July-August 2019 issue of The Journal of Robotics, Artificial Intelligence & Law.
Day Pitney Press Release
Partners Josh Cohen and Dave Doot were quoted in an analysis article, "PG&E's Ch. 11 Brings Rift With FERC Over Power Deals," published by Law360.
Day Pitney associate Alexander W. Judd has been elected to serve as Chair of the Energy, Public Utility and Communications Law Section of the Connecticut Bar Association (CBA).