Several states and the District of Columbia have adopted renewable portfolio standards (RPS) that are designed to remain in effect over the next 10 to 20 years or longer. While the requirements under each RPS vary, generally, these standards establish a percentage of the total annual retail sales of electric power within the relevant jurisdiction that must be generated by a renewable energy source. Such sources typically may include electric power generation from solar, wind, landfill gas, biomass, hydroelectric and other specified facilities, or the use of certain conservation or energy efficiency technologies and methods to offset electric power consumption.
Renewable Energy Credits (RECs) may be created in accordance with a particular RPS or under various voluntary protocols, such as the Center for Resource Solutions's Green-e Energy National Standard, and may be issued and traded using an established regional tracking system or through transfer of an environmental attributes attestation form. The revenue associated with the generation and sale of RECs, coupled with the availability of certain federal, state and local tax credits, can make development of a renewable electric power generation project economically viable.
Cooley's Clean Energy & Technologies attorneys have extensive experience with advising clients regarding the requirements under each of the RPS standards implemented to date, as well as the Green-e and other voluntary protocols. We have represented clients as sellers and purchasers in numerous multi-million dollar REC transactions, as stand-alone transactions and as part of long-term power purchase agreements, energy hedge agreements, and asset acquisition agreements. We have developed substantial expertise in working with the rules governing each of the existing REC tracking and transfer systems, and have represented clients in proceedings before governmental authorities concerning, for example, the generation of RECs associated with imported energy and the disaggregation of RECs from associated energy.
Representative Transactions
- Development of form REC purchase and sale agreements for use by buyers and sellers.
- Negotiation of long-term REC sales agreements associated with renewable energy generation projects located throughout the United States.
- Representation of renewable energy generation project sponsors in proceedings before state agencies to qualify projects under RPS orders and regulations.
- Strategic counseling regarding policies affecting the evolution of REC and carbon credit markets in the United States.
Related Practices
Related Industries