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FEDERAL & STATE INVESTMENT & INCENTIVES
SERIES SPONSORS OCT 7, 2021
SESS
ION
SPE
AKE
RS
CHRIS RICE Chief of Staff
Maryland Energy Administration
DAVID BROWN Senior Vice President,
Federal Government Affairs & Public PolicyExelon
LEE PETERSONPartner
CohnReznick
ERIC COFFMANDirector of Energy Programs
Maryland Energy Administration
SYDNEY BOPPChief of Staff, Loan Programs Office
U.S. Department of Energy
An Overview of DOE’s
Loan Programs Office
Financing American Energy Infrastructure
June 2021
5
Financing American Energy Infrastructure
The Department of Energy’s
Loan Programs Office (LPO)was established for borrowers seeking
access to debt financing for energy
infrastructure projects.
With over $40 billion in available
debt capital, LPO programs finance
high-impact projects and first-time
commercializations, partnering with
borrowers to customize deal structures.
Access to Debt Capital
that private lenders cannot or
will not provide.
Flexible Financing
customized for the specific
needs of individual
borrowers.
A Committed Partner
offering expertise to
borrowers for the lifetime of
the project.
June 2021
6
$40 Billion in Available Debt CapitalLPO offers project financing across energy sectors through three distinct loan programs.
ATVMDirect Loans $17.7 Billion Available
Advanced TechnologyVehicles Manufacturing
TELGPPartial Loan Guarantees Up to $2 Billion Available
Tribal Energy Projects
TITLE 17Innovative Energy
Loan Guarantees
$8.5 Billion Available
$10.9 Billion Available
Up to $4.5 Billion Available
Advanced Fossil Energy
Advanced Nuclear Energy
Renewable Energy & Efficient Energy
June 2021
7
LPO can provide affordable, custom financing to meet the specific needs of individual borrowers.
✓ Various Loan Types | Depending on the program, LPO can offer direct
loans from U.S. Treasury’s Federal Finance Bank (FFB), 100% guarantee of
FFB loans, and partial guarantees of commercial loans. Loan terms are specific
to the proposed project and are subject to negotiation.
✓ Affordable Debt & Long Tenor | Senior secured debt priced
competitively with commercial rates.
✓ Flexible Deal Structures | Structures may include project finance,
structured corporate, corporate or warehousing lines.
✓ DOE Role | Can serve as sole lender or as a co-lender.
✓ Debt Amount Determination | Based on credit profile, business
plan, market risk, technology, cash flows, project risk allocation and other
relevant factors.
✓ Viability Standard | Emphasis placed on certainty of cash flow to the
project during initial financial viability review and during subsequent due
diligence.
Offering Flexible Financing Solutions
$43
Million
$532
Million
$940
Million
$5.9
Billion
Smallest Loan Median Loan Average Loan Largest Loan
June 2021
8
Bridge to Bankability
June 2021
9
Let’s Talk About Your ProjectContact LPO to see what financing options may be available for your project:
Call or write to schedule a no-fee, pre-application
consultation: 202-586-8336 | [email protected]
Learn more about LPO and all of its lending
programs at: energy.gov/LPO
U.S. DEPARTMENT OF ENERGY energy.gov/LPO
Sydney Bopp
Chief of Staff
Intro to MEA Programs
10
October 7, 2021
MCEC Connecting to the Energy Economy
Speaker Series
One Agency - Many Priorities
11
Clean Energy, Reliability, Affordability
+• GHG Reductions
• Resiliency
• Equity and Inclusivity
• Clean Energy Economy and Workforce
• Innovation
• Market Transformation
• Strategic Energy Management
Incentives and Resources
12
• Administrator of the Strategic Energy Investment Fund (SEIF)
• Rebates
• Grants
• Technical Support
• Subject Matter Expertise
• Partnership
• Tax Credits (Application Review)
Note: Energy Storage Tax Credits are not Funded through the Strategic Energy Investment Fund but Review of Applications is Supported by MEA.
Energy Efficiency and Fuels
13Note: Streetlight Technical Support Funded through DOE Grant
• Low-to-Moderate Income Energy Efficiency
• Commercial, Industrial and Agricultural Energy Efficiency
• Data Center Energy Efficiency
• Jane Lawton Energy Efficiency Loans
• Maryland Energy Infrastructure
• Local Government Streetlighting Technical Assistance
Clean Energy and Resiliency
14
• Clean Energy Rebates
• Public Facility Solar (Grants and Technical Support)
• Low-Income Solar (Pilot)
• Solar Canopies
• Low-to-Moderate Income Community Solar
• Combined Heat and Power
• Resilient Maryland
• Resiliency Hubs
• Offshore Wind Capital
• Offshore Wind Workforce
• Energy Storage Tax Credit
Photo Credits : IKEA Baltimore and Baltimore Washington Medical Center
Clean Transportation Fuels and Partnerships
15Photo Credits – Frostburg Police Department and Frederick County
• Electric Vehicle Supply and Equipment Rebates
• Clean Fuels Incentive Program
• Maryland Smart Energy Communities
• Energy Efficiency
• Clean Energy
• Transportation
• Many other efforts supported by the Strategic Energy Investment fund across multiple departments, agencies and other organizations
Contact Information
Eric R. Coffman
Director of Energy Programs
Visit MEA at Energy.Maryland.gov
Follow us on social media:
Facebook | Twitter | LinkedIn
Questions
16
CohnReznick LLP
October 7, 2021
CohnReznick LLP
October 7, 2021
CohnReznick LLP
October 7, 2021
CohnReznick LLP
RENEWABLE ENERGY INDUSTRY PRACTICE
Presented by Lee J. Peterson
18
FEDERAL TAX CREDIT CONSIDERATIONS
• PTC/ITC Refundable Tax Credit Proposed
• Tax Exempt Use Rules
Now – IRC section 50(b)(3) & (4) – no ITC credits
• Requires more complex structuring, i.e., corporate “Blockers” or
IRC section 7701(e) Service Contract, or
PPA.
If new federal law passes. - Service Contract or PPA may not be needed
• Direct-Pay would change the game on many, many levels …..
Section 42 LIHTC and ITC (solar, ground-source, CHP, fuel Cell)
• Now – if double dipping on LIHTC and ITC, basis reduction under section 50(c) caused LIHTC basis reduction.
• Proposed, no LIHTC basis reduction
Caution: Federal Grant Reductions to LIHTC still an issue
Proposed New Tax-Exempt Use Rules: Federal Tax code
19
GOVERNMENTAL COMPLIANCE – A NEW WORLD
• Grants – 1099-G Compliance
Grants are generally taxable (IRC Section 61)
• Loan in lieu of “grant”
IRC Section 136 – “Rebate” or Subsidy vs. taxable grant
• Basis Reduction – Tax Impacts
Depreciation
Tax Credits
IRC Section 179D – deduction assignable by governments to “designer”
• Direct-Pay Refundable PTC/ITC Proposal
Who in tax exempt or govt. org. prepares, signs tax return, files, receives cash?
179D – who makes, signs the deduction assignment ?
New Systems and Processes If Federal Infrastructure Bills Become Law
20
FIRM PROFILE
• Today’s renewable energy industry is a complex and
evolving landscape of change, growth, and opportunity.
• We help our clients effectively navigate the industry’s
nuanced business, regulatory, and financial issues
with holistic, integrated solutions.
• The size, diversity, and expertise of our renewable energy
practice allows us to tailor our services to each client’s
unique needs and to deliver exceptional results.
*CohnReznick Capital Markets is a registered broker-dealer, and could perform all
fundraising and placement services during an engagement.
OCT 12: WORKFORCE READINESS FOR ADVANCED ENERGY
OCT 18: INNOVATION AHEAD: ADVANCED ENERGY & CARBON EMISSIONS REDUCTION
UPCOMING WEBINARS
WWW.MDCLEANENERGY.ORG/SPEAKERSERIES
