Wednesday, October 6, 2010

Solar Energy "Alert" from Frank Cannone of Gibbons P.C.


A Message from the Chair - September 28, 2010

Welcome to Gibbons Inaugural "Solar Energy Alert."

We are entering a new era as solar energy in the United States becomes an economically viable alternative to fossil fuels. Significant opportunities for the deployment of distributed photovoltaic systems in the United States are increasing almost daily.

In New Jersey, our Renewable Portfolio Standard (RPS) is one of the most aggressive in the United States. As a result, New Jersey currently ranks second in the nation behind California with solar capacity of about 150 megawatts. The current RPS requires that the NJ suppliers of electricity procure at least 2,518 gigawatt hours by 2021, and 5,316 GWH by 2026, which spells very significant growth from now well past 2020.

Yet, funding for energy projects, particularly solar and other renewable energy projects, is complex and difficult. It is for this reason that the Gibbons Corporate Department founded in late 2009 our Renewable Energy Finance Practice. Gibbons leverages our many years of financing experience and a broad array of relationships in business, equity, commercial banking, investment banking, and government to help our clients structure, finance, and close these complicated transactions.

In our ongoing effort to bring value to clients, friends, and others interested in current events in solar energy in New Jersey and the surrounding area of Pennsylvania and New York, we have introduced our first "Solar Energy Alert" with five articles of interest. In fact, as the articles show, much has been going on in the short time since our Solar Energy Conference just last month. The first article analyzes the critical issues under the U.S. Treasury "Grants in Lieu of Tax Credits" requirement to "begin construction" before January 1, 2011. The second article covers recent alternative energy developments in New York, New Jersey and Pennsylvania. The third article discusses the U.S. Environmental Protection Agency's (EPA's) innovative program to site renewable energy projects on contaminated land and mine sites (former Superfund sites, landfills, brownfields, abandoned mine lands, former industrial sites, and certain governmental installations). In the fourth article, you can read about pending New Jersey legislation affecting solar energy projects, in particular several bills aimed at the creation of new solar energy projects in the Garden State.

As you read these articles, and ponder developing your own projects or working on projects of others, Gibbons is privileged to have the opportunity to provide you with this information on solar energy in New Jersey, Pennsylvania, and New York. We recognize that we are living through historic times with respect to the industry. Solar energy is still in its infancy and its outlook will be heavily influenced by external factors, especially public policy and the state of the economy.

Frank T. Cannone, Esq., Chair, Corporate Department


Treasury Grants in Lieu of Tax Credits: Beginning Construction Before January 1, 2011

By: Peter J. Ulrich, Esq., Director, Corporate Department and Steven H. Sholk, Esq., Director, Corporate Department

Section 48 of the Internal Revenue Code provides taxpayers with a federal income tax credit equal to thirty percent of certain property placed in service during a taxable year, including qualified fuel cell property, qualified small wind energy property, and certain solar energy property. Importantly, Section 16039(a) of the American Recovery and Reinvestment Act of 2009 permits taxpayers to apply to the Treasury Department for a cash grant ("Treasury Grants") in lieu of certain energy investment tax credits or tax credits, including those for most solar energy projects. This article analyzes the critical issues for taxpayers applying for Treasury Grants. 

Click here to view the full article

Recent Alternative Energy Developments in New York, New Jersey and Pennsylvania

By: Lawrence Cohen, Esq., Director, Corporate Department

The importance of emerging green technologies, especially in a financial climate that finds all levels of government struggling to create jobs and promote private sector growth, warrants keeping abreast of the laws and regulations that impact these industries. This article provides a summary of recent laws and regulations in New York, New Jersey, and Pennsylvania that impact alternative energy markets in these states. 

Click here to view the full article

U.S. Environmental Protection Agency Program to Develop Solar Energy on Contaminated Lands

By: Thomas More Griffin, Esq., Director, Corporate Department

Renewable energy (wind, solar and biomass) comprises only two percent of the electricity supply of the United States. By 2030 U.S. electricity production will need to increase by nearly thirty percent to meet demand. Production of renewable energy will increase seventy percent or more by 2030. The U.S. Environmental Protection Agency ("EPA") has a program to site renewable energy projects on contaminated land and mine sites, such as Superfund sites, landfills, brownfields, abandoned mine lands, former industrial sites and certain governmental installations (collectively the "Available Sites"). Notably, investment funds that specialize in investing in renewable energy may find lucrative opportunities in the EPA's and states' efforts to open up and facilitate the use of Available Sites to renewable energy generation.

Click here to view the full article

What’s In The Pipeline?

Pending New Jersey Legislation Affecting Solar Energy Projects

By: Frank T. Cannone, Esq., Chair, Corporate Department, James J. Petrucci, Esq., Director, Corporate Department and Vito N. Ciraco, Esq., Associate, Corporate Department

Several bills pending in the New Jersey legislature for the 2010-2011 session would create mandates and financial incentives for the creation and development of new solar energy projects in New Jersey, which demonstrates the Garden State's continued commitment to renewable energy developments. This article provides a synopsis of the most significant proposed legislation.

Click here to view the full article

Antitrust Agencies Release Revised Merger Guidelines

By: Anthony A. Dean, Esq., Counsel, Business & Commercial Litigation Department

On August 19, 2010, the United States Department of Justice and the Federal Trade Commission issued revised Horizontal Merger Guidelines, a set of internal rules that govern the evaluation of a proposed merger by these two agencies. Although the Guidelines have been revised several times, the latest revision is the most extensive since 1984. Our final article focuses on the important enhancements in the 2010 Guidelines as compared to the former version. 

Click here to view the full article

This communication provides general information and is not intended to provide legal advice. Should you require legal advice, you should seek the assistance of counsel.

Copyright © 1997-2010 Gibbons P.C. All rights reserved. ATTORNEY ADVERTISING. Prior results do not guarantee a similar outcome.

Bookmark and Share


Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home