Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 306
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United States
Both the ITC and PTC base credit levels can
be increased as follows:
• ITC by 10 percentage points, or PTC
by 10%, if the turbines/facility satisfies
domestic content requirements, i.e. is
made in the U.S.; and
• ITC by another 10 percentage points, or
PTC by 10% if an interconnection facility is located in an "energy community,"
defined as a census tract (or adjacent
one) where there was a former coal
mine or coal power plant.
Significantly, the IRA also for the first time
with respect to tax credits for green energy
allows all of these credits to be transferred to another U.S. taxpayer, allowing easy
monetization of the credits. The IRA also
allows tax exempt and government entities
to claim direct pay for the amount they are
due for these tax credits.
6. GRID CONNECTION
FOR OFFSHORE WIND
The Biden Administration announced in
2021 a goal of achieving 30 GW of offshore
wind integrated onto the U.S. electric grid by
2030. 49 In an effort to meet and surpass the
Biden Administration’s goal, DOE and BOEM
have engaged in a coordinated offshore
wind transmission effort that would support
system interconnection. 50
6.1 Legal Framework
The Outer Continental Shelf Lands Act
(OSCLA) provides the federal regulatory framework for integrating offshore wind to the
U.S. electric grid. 51 The OSCLA requires the
issuance of a grant of a lease, easement, or
right-of-way on the outer continental shelf
for activities relating to the transmission of
energy sources other than oil or gas. 52
Under this framework, there are two paths
for transmission: transmission as part of an
offshore wind lease, and transmission under
a Right-of-Way (ROW) Grant. Transmission
as part of an offshore wind lease occurs
when BOEM’s lease for the project confers
on the lessee the right to one or more project easements without further competition
for transmission. This type of transmission
path typically occurs when the project
company’s proposal for the project includes a proposal for an easement to shore,
where the details of the easement, including
49 https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/29/fact-sheet-biden-administration-jumpstarts-offshore-windenergy-projects-to-create-jobs/.
50 Id.
51 43 U.S.C. 1331 et seq.
52 Id. at § 1337(p)(1)(C).
