On January 7, 2025, the U.S. Department of Treasury and the Internal Revenue Service released final regulations providing guidance on the Clean Electricity Production Tax Credit and the Clean Electricity Investment Tax Credit, collectively known as the Clean Electricity Tax Credits. These credits aim to incentivize the development of net-zero greenhouse gas emissions clean energy facilities, including technologies like wind, solar, hydropower, and hydrogen storage. The regulations address several key points: - The removal of the requirement for hydrogen storage property to store hydrogen solely for energy purposes, allowing for alternative uses like in fertilizer production. - Definition and examples of Waste Energy Recovery Property (WERP) which generates electricity from building heat, expanding the scope of eligible properties. - Guidelines for life cycle analysis (LCA) to determine emissions rates, emphasizing a 30-year horizon and updating baselines every 10 years. - Clarity on the One Megawatt Exception, exempting facilities from certain requirements to receive the full tax credit. - Confirmation of the eligibility of progress expenditures under the Clean Electricity Investment Tax Credit for direct payment. - Treatment of decommissioned nuclear facilities restarting operations in determining increased capacity. Moreover, the regulations delve into the treatment of biogas, Renewable Natural Gas (RNG), and fugitive sources of methane to ensure comprehensive coverage of clean energy sources. The emphasis on environmental accountability and flexibility in regulations signals a positive outlook for the clean energy sector and encourages investment in sustainable technologies.