Listen to the article 9 min This audio is auto-generated. Please let us know if you have feedback. Two months after the passage of the One Big Beautiful Bill Act, which trimmed the lifespan of most of the Inflation Reduction Act’s clean energy tax credits, the industry is still trying to understand the implications of the legislation’s new foreign entity of concern rules and hoping for clarity from upcoming Treasury Department guidance. “I discuss this almost every day, it seems like,” said Vinson & Elkins tax partner Jenny Speck. “Having clear, administrable rules is the first step, because we already have a statute that creates ambiguity. We’re hearing that this is priority guidance — it should be at the top of their list in terms of what they’re working on.” The FEOC provisions in OBBBA were expanded from the IRA’s original rule restricting foreign entities of concern – entities with ties to China, Russia, North Korea or Iran – from claiming clean vehicle tax credits. The new FEOC rules apply to the 45X advanced manufacturing credit, the 45Y production credit, and the 48E investment credit.  “We look at wind, solar and 45X as the three that are going to have probably the most rigorous diligence,” Speck said. Ties to foreign entities of concern “can be such things as 25% or more ownership by a single Chinese shareholder or 40% by two or more such shareholders or at least 15% of total debt held by Chinese lenders, only counting debt holders at original issuance,” law firm Norton Rose Fulbright said in a July article. “Licensing arrangements with Chinese interests can also turn a supplier into a prohibited foreign entity … It is not clear how U.S. developers will be able to spot such arrangements.” Advait Arun, senior associate for energy finance

China appears to be setting up a system to import regular cargoes of liquefied natural gas from a Russian project sanctioned by the US, a move that will test the Trump administration’s willingness to penalize Beijing in its efforts to curb Moscow’s energy revenue. Having taken the first-ever overseas export from the Arctic LNG 2 project in Russia in late August, China is now taking more blacklisted Russian LNG and has designated the Beihai terminal in southern China to accept shipments, according to people with knowledge of the matter. By choosing a single port with limited international exposure, Beijing should be able insulate its wider gas sector from retaliation. Purchases are also being done via a little-known company to obscure the actual end-user, the people said, asking not to be named as the matter is sensitive. Meanwhile, Chinese importers, including state-owned Cnooc, are diverting regular deliveries away from Beihai to avoid being connected with the trade and falling afoul of the US, the world’s largest LNG exporter, the people said. Several overseas traders are avoiding the port for the same reason, they added. China’s first cargo from Arctic LNG 2 came ahead of Russian President Vladimir Putin’s meeting with his Chinese counterpart, and so was largely seen as a symbolic gesture. By continuing to accept deliveries, Beijing is sending a stronger signal and also threatening to get caught up in Washington’s efforts to pressure Moscow over the war in Ukraine. While the Trump administration has singled out India for its oil trade with Moscow, Beijing so far has escaped similar criticism or economic penalties. A third shipment of fuel from Arctic LNG 2 project is set to land in southern China as soon as Monday, according to ship-tracking data compiled by Bloomberg. At least four more vessels are also en route, the

Dive Brief: Hiring fell last month and unemployment rose to 4.3%, the Labor Department said Friday in a report that primed the Federal Reserve for a reduction in the main interest rate at its next scheduled policy meeting on Sept. 16-17. Employers added a less-than-forecast 22,000 jobs in August, the Labor Department said, while noting in a revision that payrolls in June shrunk by 13,000 jobs in the first such decline since December 2020. “This report green lights a September Federal Open Market Committee easing and implies further action will be required to stabilize the labor market before year end,” Pantheon Macroeconomics Chief U.S. Economist Samuel Tombs said in a client note. The data “make us more confident that the FOMC will ease” the benchmark rate by 0.75 percentage point by December and by 0.75 percentage point next year, he said. Dive Insight: The newest data showing labor market weakness puts at loggerheads both sides of the Fed’s dual mandate to maintain stable prices and ensure maximum employment. The U.S. has expanded payrolls by just 598,000 in 2025, the slowest increase of any year since the pandemic. Meanwhile, inflation, as measured by the personal consumption expenditures price index minus food and energy prices, edged up in July to 2.9%, well above the Fed’s 2% inflation target. Labor market weakness has prompted several Fed officials during the past several weeks to focus less on reducing price pressures and favor aiding the labor market with looser monetary policy. Two Fed governors dissented from a July 30 FOMC vote to leave the federal funds rate unchanged, saying weak hiring warranted a reduction in borrowing costs. The central bank for five consecutive policy meetings this year has held the federal funds rate at a range between 4.25% and 4.5%. Last month Fed Chair Jerome Powell,

Alex Thornton is executive director of LF Energy. Late last fall, my neighbors and I received a notice from our utility, Pacific Gas & Electric, informing us of proposed rate increases from an eye watering $761.3 million Billing Modernization Initiative. Digging further into their filing with the California Public Utilities Commission, PG&E highlights the need to update a profoundly outdated system, featuring a potpourri of vendor and custom in-house software from the 1990s and 2000s, much of it written in a programming language (COBOL) that peaked in popularity last century and for which there are vanishingly few engineers with expertise in it. Additionally, the filing highlights that the billing system has been unable to keep pace with regulatory needs, forcing delays and complex workarounds. In brief, PG&E’s key digital systems are unable to satisfy business needs and therefore need an expensive overhaul, raising customer rates. As a result, my monthly electric bill is going up. I pick on PG&E because I’m their customer and they offer a good example, not because they are an industry exception. Most utilities and regulators struggle with these very same digital modernization challenges. Billing is a core function for any business. If utilities can’t maintain their core systems, then how can they be expected to roll out and operate more advanced digital functionality such as dynamic rates, distributed energy resource orchestration, virtual power plants, demand response programs, electric vehicle charging optimization and AI, all while defending against ever-increasing cyber security attacks and maintaining affordability? Short answer: they can’t, not without a serious culture change to become technology companies that embrace best practices for digital innovation. As part of their CPUC filing, PG&E notes that Southern California Edison and San Diego Gas & Electric launched similar billing system upgrades in 2016 and 2017, respectively. This key point

In a statement sent to Rigzone recently, Society of Petroleum Engineers (SPE) Aberdeen announced that it had launched the 2026 Offshore Achievement Awards (OAA). The awards “celebrat[e]… excellence across the energy spectrum”, according to the statement, which highlighted that next year’s iteration marks the 39th “year of recognizing outstanding achievements that drive innovation and excellence across the offshore energy industry”. “Building on the success of previous years, the 2026 OAAs continue to reward groundbreaking technologies, exceptional company growth, and the remarkable contributions of individuals who shape the future of energy,” SPE Aberdeen said in the statement. “From emerging innovators to industry veterans, the awards celebrate those who demonstrate excellence, leadership, and vision in advancing the sector,” it added. Entries are now open to all UK registered companies operating within the oil and gas and renewables sectors, the statement noted. The ceremony will take place on March 5 in Aberdeen, the statement revealed. The 2026 award categories “span the full breadth of offshore energy achievements”, the statement said. They can be seen in full below: Emerging Technology  Field Proven Technology  Collaboration  Sustainability  Skills Development  Offshore Workplace of Choice  Inclusivity Champion  Industry Expert  Young Professionals  Industry Returner/Transferer  Significant Contribution “The energy industry continues to evolve at an unprecedented pace, and the OAAs evolve with it,” Graham Dallas, Chair of the Offshore Achievement Awards Committee, said in the statement.  “These awards provide a vital platform to showcase the innovations, partnerships, and individual excellence that will define our industry’s future. We encourage organizations and individuals across the entire energy spectrum to share their success stories,” Dallas added. “We’re thrilled to have Bilfinger return as Principal Sponsor for the second year running. Their ongoing support reinforces our shared commitment to celebrating the innovations and individuals driving our industry forward,” he continued. Rod Agnew, Vice President

Delta Air Lines, in cooperation with Shell plc and Portland International Airport (PDX), has taken delivery of sustainable aviation fuel (SAF) for the PDX fuel system. Delta said in a media release that this marks the first commercial-scale SAF uplift at PDX, owned and operated by the Port of Portland. Shell supplied the batch of more than 400,000 gallons of neat SAF to Zenith Terminal in Portland, where it was blended with traditional jet fuel to meet regulatory requirements, before being delivered to PDX via barge, truck, and pipeline, Delta said. The blended SAF entered the airport’s privately owned fuel supply system earlier this month. “Every SAF delivery is a powerful example of how industry collaboration can unlock markets for sustainable aviation fuel”, Charlotte Lollar, Delta’s SAF director, said. “By working with Shell and the Port of Portland to tap into existing infrastructure, we’re able to access SAF at more airports and continue to prove its viability and ultimately scale it in a way the industry needs”. “We’re excited about this step toward bringing sustainable aviation fuel to PDX. It’s a move that can help improve local air quality and cut down on greenhouse gas emissions, which is great news for our communities”, Dan Pippenger, Port of Portland Chief Aviation Officer, said. Delta noted SAF is a renewable jet fuel that reduces lifecycle emissions by over 80 percent, and is compatible with existing infrastructure and aircraft engines. Production is still nascent, expensive, and scarce, amounting to less than a week’s worth of global flights, it said. Locally, Delta said it collaborates with the Port of Portland and others to establish a SAF market. Federally, Delta advocates for incentives to boost production and affordability, including the 40B SAF Blenders Tax Credit and the 45Z Clean Fuel Production Credit, extended through 2029,