Recent Updates on Infrastructure and Tax Acts Impacting Energy Sector
Stay informed with the latest developments related to infrastructure and tax acts affecting the energy sector, including updates on funding opportunities, incentives, and implementation guidelines. Learn about key provisions in the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, and how they impact various aspects of the industry.
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Presentation Transcript
Show me the Money December 9, 2022 Michael Purdie, Director of Regulatory Affairs and Markets, NHA
Infrastructure Investment and Jobs Act Infrastructure Investment and Jobs Act Enacted 11/15/2021. Aka Bipartisan Infrastructure Law. $909M in incentives, $800M in state dam safety investments, and $800M in dam removal. Section 242 Existing program which funding increased from $7M to $125M for adding hydro generation Section 243 never funded program now funded to $75M for efficiency improvements of 3% or more. Section 247 new program that provides $553.6M in grants for environmental improvements, dam safety enhancements, and grid resiliency improvements.
IIJA continued IIJA continued Section 242 Historically, funding opportunities opened in May except in 2021 which opened in the end of December due to IIJA enactment. NHA/EEI/APPA responded to 243/247 RFI on September 6. Section 243 DOE indicates that draft guidance is scheduled for mid- March 2023. Guidance and open solicitation in mid-June 2023. Section 247 Draft Guidance available in January 2023. Guidance and open solicitation scheduled for May 2023.
Inflation Reduction Act Inflation Reduction Act Enacted August 16, 2022 $369B in tax credits Through 2024: Extension of Existing PTC at parity with Wind 2025-2032: Tech-Neutral PTC/ITC 2025-2032: Energy Storage ITC Section 48C ITC (30%) for manufacturers. Capped at $10B. Section 45X Advanced Manufacturing Production Credit Section 45V Clean Hydrogen Direct Pay and Transferability Base level of credits but will increase 5x if meet prevailing wage and apprenticeships requirements. Further bonus credits if in energy communities or meet domestic content requirements.
Inflation Reduction Act continued Inflation Reduction Act continued NHA stood up a working group for IRA implementation. The working group has supported NHA in responding to 5 Notices. Notice 22-47: Manufacturing Credits under 48C and 45X Notice 22-49: Energy Generation Incentives (ITC/PTC) Notice 22-50: Direct Pay and Transferability Notice 22-51: Prevailing Wage, Apprenticeship, Domestic Content, and Energy Communities Notice 22-58: Clean Hydrogen IRS has issued Prevailing Wages and Apprenticeships guidance on November 30. Effective January 29th. Will continue coordinating the industry response as guidance and rulemakings are released.
