Insights

Current political priorities in Congress will continue to push many industries under the microscope of Congressional investigations, including universities, tech companies, entities that receive federal funds, and energy-sector companies. When the chambers of Congress and the executive branch are controlled by the same party, Congressional oversight of the executive branch is less intense and instead public and private sector, state, and local entities are more likely to find themselves in the crosshairs. If a chamber of Congress changes hands in the midterm elections, the focus of the oversight may shift to reflect the policy priorities of the moment and include more executive branch oversight, but even the executive branch is often contending with requests for information that may implicate their dealings with third parties; for example, there is a risk that agency oversight triggers requests for privileged material belonging to a government contractor or grantee. The topics and industries of highest interest may play musical chairs, but entities across sectors would do well to incorporate a few best practices that will mitigate their risk should they end up in the hot seat, either directly or through a government partner.

On July 23, 2025, the White House released Winning the Race: America’s AI Action Plan (“the Plan”) the Trump Administration’s most significant policy statement on artificial intelligence to date.

On July 4th, President Trump signed into law the One Big Beautiful Bill Act (the “Act”), which included a phaseout of incentives for solar and wind generation projects. Projects must either begin construction within one year or be placed in service by 2027 to qualify for the Section 45Y Clean Electricity Production Tax Credit or the Section 48E Clean Electricity Investment Tax Credit. The House’s version of the legislation required a more accelerated phaseout than the Act and only allowed projects that began construction within 60 days of enactment of the bill to be eligible for the tax credits.  In discussions last week with House conservatives who favored the faster phaseout of solar and wind tax credits, which was not adopted in the Act, President Trump promised strict enforcement of the rules, including the beginning of construction requirements, for solar and wind projects to qualify for energy tax credits.

You want to own electric generation or energy storage facilities that are used to sell power to data centers or other end user parties (e.g., other types of industrial or commercial customers, institutional entities, traditional utilities, or RTO/ISO markets).  Will Federal Energy Regulatory Commission (FERC) regulation apply to you?     

On May 15, 2025, U.S. Department of Energy (“DOE” or the “Agency”) issued a memorandum outlining the Agency’s new policy for evaluating financial assistance awards (e.g., grants, cooperative agreements, and technology investment agreements) to identify waste, fraud, and abuse. Businesses, universities, non-profit organizations, and other entities that have received DOE financial assistance awards now face increased risk of investigation and potential award termination, withholding of funding, and project modification.

The Inflation Reduction Act (“IRA”) and Infrastructure Investment and Jobs Act (“IIJA”) appropriated hundreds of billions of dollars in grants, loans, and other funding to facilitate clean energy and infrastructure deployment, advance Environmental Justice policy objectives, and address climate change concerns. While many companies, non-profits, and other recipients have reaped the benefits of those programs, they may also now be exposed to increased risks from Congressional investigations; enforcement actions; inspector general reviews; terminations for alleged waste, fraud, and abuse; and in extreme instances, potential exposure to criminal liability.

On Friday, February 21, Rep. Brett Guthrie (R-KY) and Rep. John Joyce (R-PA), the Chairman and Vice Chairman of the U.S. House Committee on Energy and Commerce, issued a Request for Information (RFI) inviting stakeholders to provide comment as the Committee explores the development of a federal data privacy and security framework. After efforts to consider a bipartisan and bicameral bill failed last year under former Chair Cathy McMorris Rodgers (R-WA), Chairman Guthrie is starting the effort anew, forming a working group with the goal of developing comprehensive legislation “that can get across the finish line.”

On February 18, President Trump issued an Executive Order titled “Ensuring Accountability for All Agencies” that directs independent agencies (as well as Cabinet Departments and their sub-agencies) to route all “proposed and final significant regulatory” and budgetary actions through the White House and the Office of Management and Budget. If implemented to its full extent, this action will significantly strengthen the authority of the White House by weakening the political autonomy of these independent agencies. As an assertion of the President’s inherent powers under Article II of the U.S. Constitution, it also stands to weaken congressional influence over these independent agencies, both through the appropriations and confirmation processes.

On January 20, 2025, President Trump issued an Executive Order directing the withdrawal of all areas on the Outer Continental Shelf —an expansive area of submerged land under federal control— from eligibility for offshore wind leasing. This Executive Order was one of several energy-related executive orders reportedly intended to increase oil and gas production and curtail the deployment of clean energy resources signed by Trump shortly following his inauguration. The Order is premised on stated concerns for meeting “the country’s growing demand for reliable energy,” maintaining a “robust fishing industry for future generations” and providing “low cost energy to [U.S.] citizens.”

Since its passage in 2022, the Inflation Reduction Act’s renewable energy tax credits have been in the crosshairs of Congressional Republicans. With many of the Tax Cuts and Jobs Act provisions expiring at the end of 2025, and a full plate of Trump and Congressional Republican Campaign promises for tax cuts in play, the Republicans have pointed to repeal of the IRA as a source of funding to pay for other tax breaks.

To keep our clients informed about the proposed policies and announced platforms of the presidential candidates and the potential composition of the new Congress, Crowell is launching its Election 2024 series. The series will provide insight and analysis on what the election of Vice President Harris or former President Trump could mean for business, as well as explore what’s at stake in key state and congressional races. 

The Department of Defense (“DoD) recently took important actions to expand and deepen its relationships with companies bringing critical energy production and storage technologies to the DoD marketplace. As one of the largest consumers of energy in the world, DoD has the scale and resources to catalyze new industries, and mission assurance increasingly requires a diverse generation mix and incorporation of advanced technologies.

As the Department of Energy’s (“DOE”) Loan Programs Office (“LPO”) continues to finance clean energy manufacturing and deployment in the United States, the recent announcement by the DOE’s Office of Inspector General’s (“DOE OIG”) that it intends to scrutinize LPO’s due diligence process increases the risk to program applicants. According to a recent notice issued on SAM.gov, the DOE OIG intends to issue a sole source contract for legal support “assessing the policies and procedures” for the due diligence of loan applications, and evaluate specific LPO loans and guarantees to assess their compliance with, consistency in application of, and the effectiveness of LPO policies and procedures, as well as related Governmentwide regulations, policies, procedures, and directives, to identify specific points of weakness in due diligence practices, and to recommend improvements to mitigate risks.

In one of the first rulings applying Loper Bright Enterprises v. Raimondo, the Supreme Court on Tuesday vacated and remanded the D.C. Circuit’s decision in Solar Energy Industries Association v. FERC for further consideration.

The Federal Energy Regulatory Commission (“FERC” or “Commission”) issued Order No. 1920 on May 13, 2024 to increase the pace of transmission grid expansion and strengthen regional transmission planning.[1] The landmark order, as well as the concurrence and dissent of the Commissioners voting on the order, is summarized below. At bottom, it represents a fundamental reshaping of the transmission planning landscape, requiring long-term transmission planning, closer coordination between generation interconnection and regional transmission planning, and revisions to the local transmission planning process to close loopholes created by Order No. 1000 in 2011.

In the Crowell & Moring case Parsons Government Services, Inc. v. Department of Energy, CBCA 7822, the Civilian Board of Contract Appeals (Board) denied the government’s motion to dismiss concerning Parsons’ claim for additional incentive fee in connection with its performance operating a salt waste processing facility at DOE’s Savannah River Site.  The underlying contract relates to a first-of-its-kind facility to treat and reduce liquid radioactivity in nuclear waste.  In its decision, the Board rejected the government’s motion to dismiss, holding that Parsons had pled sufficient facts to support its claims regarding superior knowledge, impracticability of performance, and breach of the duty of good faith and fair dealing.

The Treasury and IRS published their final rules on transferability for clean energy tax credits on April 30, 2024. The final rules include very few changes from the proposed regulations and rejected many of the suggestions offered by commenters during the public hearing.

The DOE in 2023 significantly increased its enforcement activity against manufactures and importers alleged to have violated EPCA’s energy and water conservation standards and related certification requirements, based on available public information. As we previously flagged, the substantial rise in enforcement activity comes as the Biden Administration increasingly focuses on EPCA as a means of achieving environmental policy objectives, including reducing carbon emissions. The Department has continued its enforcement efforts in 2024 and early data from this year sheds light on the Department’s enforcement priorities.

Tax partner Carina Federico is joined by Tyler O’Connor, an energy and government affairs partner, to discuss how the upcoming presidential election will affect the IRA.

On June 14, 2023, the Treasury Department and the Internal Revenue Service (IRS) released proposed regulations regarding the clean energy tax credits eligible for direct pay and transferability under the Inflation Reduction Act (IRA). The IRS also released FAQs for both direct pay and transferability, which provides further guidance to interested taxpayers.