This week, the Energy Workforce & Technology Council Government Affairs team hosted a briefing for Member Companies on the implications and opportunities in the recently passed Inflation Reduction Act. Participants got an in-depth look at the new and adjusted tax provisions, funding opportunities and changes to regulations that impact the industry.
Energy Workforce SVP Government Affairs Tim Tarpley opened the presentation with an overview of the new tax provisions. This included the expansion of the 45Q tax credit for carbon capture projects, the creation of the 45V credit for clean hydrogen and 45X for components of clean energy projects. Tarpley also discussed the qualifications and requirements to utilize these credits. Tarpley went on to discuss the tax implications and creation of a methane fee that could have major impacts for Member Companies. The stock buyback tax and alternative minimum tax were of specific interest, and outlined in Tarpley’s portion of the presentation as well.
Maria Suarez, Director Government Affairs, went on to discuss the creation of a “green bank” to be managed through the Environmental Protection Agency (EPA). She outlined the programs disbursal of funds through qualifying state green energy programs, and the types of projects that may be of interest to these state-run groups.
Energy Workforce Director of Government Affairs Deidre Kohlrus discussed the funding and financing opportunities in the Inflation Reduction Act. This included additional funding of the Loan Program Office and Office of Clean Energy Demonstrations at the Department of Energy, as well as the Methane Emission Grant Program at the EPA. Kohlrus also discussed the provisions that impacted the federal oil and gas leasing program. This included the increase in royalty rates and the requirement for the Department of Interior to hold oil and gas lease actions prior to approving new federal wind or solar projects.
The Energy Workforce Government Affairs team will continue to monitor these funding and tax opportunities and regulatory changes as they are enacted. Member Companies wishing to participate in working groups in response to agency Requests for Information (RFI) can contact the Government Affairs team who will organize groups as the RFIs are released.
The full presentation is available online.
Deidre Almstead Kohlrus, Director Government Affairs, writes about industry-specific policies for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.