1603 Cash Grant Applications Underpaid

On October 31, 2016, the Federal Court of Claims ruled that the U.S.  Department of the Treasury underpaid 1603 cash grant applications made in respect of the Alta Wind Energy Center by approximately $206 million.  The much-awaited decision in a 2013 case filed by the owners of the 1,500-megawatt wind project may be a harbinger of good news for similarly situated cash grant applicants who did not receive full awards on their 1603 applications and investment tax credit players, though there are mitigating circumstances surrounding the case that leave some questions as to whether other stakeholders will have similar success.

The 11-phase Alta Wind Energy Center was developed by Terra-Gen Power LLC following its acquisition of the project development rights for the plant in 2008.  The first five phases of the project were sold into trust vehicles designed to facilitate sale/leaseback financing transactions with Union Bank of California and Citibank.  The sixth phase was