Contract analysis

1. Overview of the U.S. Renewable Energy Regulatory Framework The development, construction, ownership, and operation of utility-scale renewable energy and battery energy storage projects in the United States are subject to a multi-layered and complex regulatory environment involving federal, state, and local authorities. These authorities regulate, among other things, the generation, transmission, and wholesale and

2. Federal Energy Regulatory Commission (FERC) 2.1 FERC Jurisdiction and Authority FERC regulates the transmission and wholesale sale of electricity in interstate commerce under the Federal Power Act (the "FPA"), 16 U.S.C. §§ 791a–828c. FERC's jurisdiction extends to the rates, terms, and conditions of wholesale electricity sales by public utilities, the licensing and operation of non-federal hydroelectric projects,

3. North American Electric Reliability Corporation (NERC) 3.1 Mandatory Reliability Standards NERC, as the FERC-certified Electric Reliability Organization under Section 215 of the FPA, is responsible for developing, implementing, and enforcing mandatory reliability standards for the planning, design, and operation of the bulk power system in North America. These standards are designed to ensure the reliable operatio

4. State Public Utility Commission Regulation 4.1 Texas — Public Utility Commission of Texas (PUCT) and ERCOT Texas operates a competitive, deregulated wholesale electricity market that is unique among the states in which CBR operates. The wholesale electricity market in Texas is administered by ERCOT, a membership-based, independent system operator that manages the flow of electric power to approximately 26 million

5. Federal Tax Incentives — Investment Tax Credit (ITC) and Production Tax Credit (PTC) 5.1 Overview of ITC and PTC Framework Federal tax incentives have been, and continue to be, a critical component of the economics of renewable energy development in the United States. The Internal Revenue Code of 1986, as amended, provides two primary tax credit mechanisms for renewable energy facilities: • The Investment Tax Cred

6. Environmental Compliance — Federal Laws 6.1 National Environmental Policy Act (NEPA) The National Environmental Policy Act of 1969 ("NEPA"), 42 U.S.C. §§ 4321–4347, requires federal agencies to assess the environmental impacts of "major federal actions significantly affecting the quality of the human environment" before taking such actions. NEPA applies to a wide range of federal agency decisions, including the is