Empact’s goal is to help energy companies maximize the tax credits for their clean energy projects. Photo courtesy of Empact

A Houston company has an update to its first-of-its-kind software to assist emerging technology and energy companies with Inflation Reduction Act Energy Community Bonus Credit compliance management and reporting requirements for renewable energy projects.

Empact Technologies has released a software update that incorporates support for the latest IRA Energy Community Bonus management and reporting requirements. The new software is provided at no additional cost to existing Empact clients, and is available to qualified communities through a free trial via Empact’s website.

Empact’s goal is to help energy companies maximize the tax credits for their clean energy projects.

“Empact is the first (and only) company that provides technology and services to help the project developers qualify for and ensure compliance with all of those IRA tax incentive compliance requirements,“ CEO Charles Dauber tells EnergyCapital. “We work with project developers of solar, energy storage, carbon capture and sequestration, and other projects in ERCOT and around the country to manage compliance for the PWA, domestic content, and energy community compliance requirements and make sure they have all of the documentation required to prove to the IRS that these tax credits are valid.”

The software is the first in the industry to incorporate the most recent energy community guidelines released by the U.S. Department of the Treasury and the Internal Revenue Service, known as Notice 2024-48. These guidelines outline Energy Community Bonus qualification requirements for the “Statistical Area Category” and the “Coal Closure Category” in Notice 2023-29.

Empact’s platform will provide tax incentive compliance management for all three types of credits, which will be covered in the IRA’s estimated $1.2 trillion in tax incentives. The credits include a base energy project tax incentive (30 percent) for projects that meet prevailing wage and apprenticeship requirements, a domestic content tax adder (10 percent), and an energy community tax adder (10 percent). Notice 2024-48 is able to be used by developers to confirm project qualification for Energy Community Bonus opportunities.

Empact will support clients on eligibility requirements, manage compliance documentation and verification requirements.

“The IRA is considered the greatest and biggest accelerator for clean energy in the U.S.,” Dauber says. “The IRA provides significant tax incentives for developers of solar, energy storage, wind and other clean power technologies, as well as energy transition projects such as carbon capture and sequestration, hydrogen, biofuels and more.”

According to Empact, the way the IRA works is that developers of projects can “generate” tax credits based on meeting certain project requirements. There are three main factors in play:

  1. The foundational element of the tax credits provides a 30 percent tax credit of the project cost if the project meets requirements related to ensuring a fair wage for construction workers and utilizing a certain amount of apprentices on the project (called Prevailing Wage and Apprenticeship). The project developer (all the EPC and all contractors) must provide documentation that every worker has been paid correctly and that all apprenticeship requirements have been met. Some projects have hundreds of workers from 10-plus contractors every week.
  2. The second tax credit relates to the project utilizing steel and iron and other “manufactured products” such as solar modules, that are made in the U.S. If the project meets the “domestic content” requirements, it is eligible for another 10 percent tax credit. Project developers have to prove the products they use are made in the U.S. and there are calculations that must be done to meet the threshold that goes up every year.
  3. The third tax credit is related to the location of the project. The government is trying to incentivize project developers to put projects in locations with high unemployment, or sites that have existing power generation facilities, or are in areas that used to be coal communities. That tax incentive is called “Energy Communities” and provides an additional 10 percent tax credit for the project developers. To qualify for that tax credit, the developer must provide proof that the project is located in an energy community location.

Companies that remain in compliance by using the software will see immediate benefits, and the clean energy industry as a whole will benefit from Empact’s facilitation of tax credit utilization.

“If a developer does this all correctly, they can qualify for tax credits equal to 50 percent of the cost of the project which is an enormous benefit to getting more projects built and encouraging a balanced energy program in the U.S.” Dauber says. “For example, a 100MW solar farm may cost $100 million, and if they meet all of the criteria, they can qualify for $50 million in tax incentives. The same calculations work for carbon capture, hydrogen and other projects as well although there are some slight differences.

Last August, Stella Energy Solutions, a utility-scale solar and storage developer, entered into a multi-year agreement with Empact to use the platform to manage Stella's IRA tax incentives on all its projects for the next five years.

Stella Energy Solutions will use the newly launched Empact platform to ensure its projects meet IRA requirements. Photo courtesy of Empact

Houston solar company snags partnership with clean energy SaaS platform

IRA ready

Houston solar utility and story company has tapped into tech from a clean energy incentive management software and services business.

Stella Energy Solutions, a utility-scale solar and storage developer, has entered into a multi-year agreement with Empact Technologies, which provides software and services for clean energy tax incentive management. The new platform launches this week and is "designed to maximize the impact of clean energy project incentives under America’s Inflation Reduction Act," according to a news release.

Moving forward, Stella will use the Empact Technologies platform to manage its IRA tax incentives on all its projects for the next five years.

“Ensuring adherence to the new IRA tax incentive requirements is a critical element of our project financing,” says Staats Battle, senior vice president of operations at Stella Energy, in the release. “We chose Empact Technologies to manage the entire process on our behalf, from working with our EPCs and project suppliers, to providing third party proof of our compliance to our financing partners.”

The Empact platform uses a combination of software and services to make sure projects meet IRS regulatory requirements, which focus on wage and apprenticeship, domestic content, and energy and low-income community incentives, according to the release.

“We’re on the brink of a global transformation to a clean energy future. Empact’s platform will enable a more sustainable and equitable energy transition by optimizing the financial, social, and environmental impact of clean energy projects,” said Charles Dauber, founder and CEO of Empact Technologies, in the release.

Per a Goldman Sachs report, the IRA is estimated to provide $1.2 trillion of incentives by 2032.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Tesla's EV Robotaxis officially launch in Texas' largest metros

On The Road

Tesla’s Robotaxi service has taken to the streets of Houston. In a brief statement Saturday, April 18 on its X social media account, Tesla Robotaxi says the autonomous rideshare service just launched in Texas’ two biggest metro areas — Houston and Dallas.

“Try Tesla Robotaxi in Dallas & Houston!” Tesla CEO Elon Musk says in a reposting on X of the Robotaxi announcement.

One of Robotaxi’s competitors, Alphabet-owned Waymo, beat the Tesla service to the Dallas, Houston, and Austin markets. Another competitor, Amazon-owned Zoox, has Dallas flagged for its autonomous rideshare service.

Robotaxi previously kicked off in Austin, where Tesla is based and manufactures electric vehicles, and the San Francisco Bay Area. Nearly 50 Robotaxis operate in Austin, where the service’s inaugural rides happened last year, and more than 500 in the San Francisco area.

Of the three rides logged in a 31-square-mile area in Dallas as of Monday morning, the average fare was $7.96 and the average trip was 3.5 miles, according to an online tracker of autonomous rideshare services. The tracker showed only one Robotaxi was on the roads in Dallas.

As of Monday morning, a 25-square-mile area in Houston had two Robotaxis on the road, according to the online tracker. The average fare for five recorded rides was $11.34 and the average trip was six miles.

“We want Robotaxi pricing to be simple and easy for you to understand,” according to the Robotaxi website. “Initially, as part of our introductory program, we will charge a simple, affordable rate plus applicable taxes and fees for all rides within the available service area.”

The tracker shows the Robotaxi in Dallas did not have a human aboard to monitor each trip, and only one of Houston’s two Robotaxis did not have a human monitor in the driver’s seat.

For now, all passengers ride in Tesla Model Y cars. Robotaxi operates from 6 am-2 am daily.

To use the service, you first must download the Robotaxi app, which works only on iPhones.

Robotaxi lets you stream music and adjust climate settings and seat positioning from the Robotaxi app or the vehicle’s touchscreen. Climate and media settings are stored in your Robotaxi profile and automatically transfer from one vehicle to another. If you own a Tesla, certain profile settings and media preferences are available in your own car as well as in a Robotaxi.

In January at the World Economic Forum in Davos, Switzerland, Musk said a “widespread” network of driverless rideshare vehicles would be operating in the U.S. by the end of this year, CNBC reported.

---

This article originally appeared on CultureMap.com.

Major Texas energy port wrestles with water crisis due to years of drought

Resource Report

In parched southern Texas, a yearslong drought has depleted Corpus Christi's water reserves so gravely that the city is scrambling to prevent a shortage that could force painful cutbacks for residents and hobble the refineries and petrochemical plants in a major energy port.

Experts said the city didn't expect such a bad drought, and new sources of reliable water didn't arrive as expected. Those problems arose as the city increased its water sales to big industrial customers.

“We just have not kept up with water supply and water infrastructure like we should have. And it's decades in the making,” said Peter Zanoni, the city manager since 2019.

Corpus Christi, a city of about 317,000 people that also supplies water to nearby counties, is closely tied to its oil and gas industry. The region makes everyday essentials like fuel and steel and ships them to the world.

Zanoni said it is highly unlikely the city will run out of water, but without significant rainfall or new sources, residents may face forced cutbacks and industry may have to do with less. At a time when the Iran war is already raising gas prices, the shortage is hitting an area that produces 5% of the U.S. gasoline supply.

Droughts are common, but this one has dragged on for most of the past seven years. Key reservoirs are at their lowest point ever. The quickest fix is different weather.

“We are actively praying for a hurricane,” former city council member David Loeb said, half in jest. Loeb doesn't want anyone injured, but after wrestling with previous droughts in his time on the council, he feels the lack of rain acutely.

The drought isn't expected to lift by summer, leaving officials scrambling to tap more groundwater to avoid an emergency.

Lessons from last time

After the last drought in the early 2010s, the city approved a pipeline extension to bring in more water from the Colorado River and promoted conservation. In the years that followed, water use actually fell. The city, seeing opportunity, added a petrochemical plant and steel mill to its long list of industrial customers.

City officials had allowed for drought in their calculations — just not this kind of drought, Zanoni said. It has hit especially hard because reservoirs never fully recharged after the last one.

And it's come at a bad time.

After many years, the pipeline extension finally delivered its full capacity only last year. Meanwhile, discussion of building a desalination plant that would remove salt from seawater — a potentially drought-proof solution recommended in 2016 — bogged down over concerns about costs as high as $1.3 billion and environmental impact.

“If the then-city council had followed through on that, we would have had that plant up and running by now,” Zanoni said.

It's an industry town

Corpus Christi has followed its long-established plan for reducing water use. Stage 1 seeks voluntary actions from citizens like taking shorter showers and limiting how often they can water. Currently, the city is in Stage 3, which means pauses on many outdoor water uses.

Many residents are angry that they can’t water their lawns, that their bills are set to rise sharply and that they may face fines, said Isabel Araiza, co-founder of a grassroots group active on water issues. Some don’t feel industry will be asked to share in the pain, she said.

The city's drought plan allows for charging residents and businesses extra if they use lots of water. But big industry, which Zanoni says consumes as much as 60% of the city's water, can opt to pay a permanent surcharge to avoid the possibility of having a much larger fee added in times of drought.

Araiza calls it a bad system. Once industry pays the surcharge, she said, they have no incentive to conserve water.

The city has defended the system, saying in a statement that industry does not “get a pass on water conservation” or forced curtailment. The statement said the business surcharges have raised $6 million a year.

It is wrong to suggest industry isn’t helping, said Bob Paulison, executive director of the Coastal Bend Industry Association. Companies have stopped landscaping, they recycle water for essential cooling needs and they are looking for alternative water sources, he said.

The city hasn't imposed extra costs on anyone yet.

But Zanoni said water rates may eventually double as the city invests roughly $1 billion on infrastructure — costs that some argue will disproportionately benefit industry and make life for residents more expensive.

What's the way out?

The city is in a water emergency when it has 180 days before water supply can't keep up with demand. Officials have run through different scenarios for getting new water and the drought easing, and have said an emergency could come as early as May, as late as October, or not at all.

The city has tapped into millions of gallons of new groundwater, and it hopes to get even more.

The biggest unknown is the Evangeline Groundwater Project, which involves a pipeline and about two dozen wells that could add enough water to head off an emergency. It still needs state approval but the city hopes water could be flowing as soon as November. New sources come with drawbacks – some have raised water quality concerns, and there are worries too much pumping could deplete groundwater.

If the city has to declare a water emergency, it would be able to more aggressively curtail water use – mandatory reductions that would apply evenly to all industry and residents. That is a sensitive decision and is likely to be a “knock-down drag-out bloodbath,” Loeb said.

Because residents on average have already reduced their water use, future mandatory cuts are likely to fall heavier on industry.

“It’ll be an unbelievable disaster,” said Don Roach, former assistant general manager of the San Patricio Municipal Water District that has lots of industrial customers in the area. “When you cut the cooling water off to most of these industries, they just have to shut down. There’s no other way around it.”

Paulison said companies that produce fuel, polymers, iron and steel “have the least amount of flexibility in just cutting water usage.” He added, however, that companies remain optimistic they can reduce usage, adapt and continue operations.

Zanoni said the city's plans should buy time to avert the worst.

“We are hoping we don’t get there, but we don’t work on hope,” he said.

Fervo Energy officially files for initial public offering

going public

Fervo Energy has officially filed for IPO.

The Houston-based geothermal unicorn filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission on April 17 to list its Class A common stock on the Nasdaq exchange. Fervo intends to be listed under the ticker symbol "FRVO."

The number and price of the shares have not yet been determined, according to a news release from Fervo. J.P. Morgan, BofA Securities, RBC Capital Markets and Barclays are leading the offering.

The highly anticipated filing comes as Fervo readies its flagship Cape Station geothermal project to deliver its first power later this year

"Today, miles-long lines for gasoline have been replaced by lines for electricity. Tech companies compete for megawatts to claim AI market share. Manufacturers jockey for power to strengthen American industry. Utilities demand clean, firm electricity to stabilize the grid," Fervo CEO Tim Latimer shared in the filing. "Fervo is prepared to serve all of these customers. Not with complex, idiosyncratic projects but with a simplified, standardized product capable of delivering around-the-clock, carbon-free power using proven oil and gas technology."

Fervo has been preparing to file for IPO for months. Axios Pro first reported that the company "quietly" filed for an IPO in January and estimated it would be valued between $2 billion and $3 billion.

Fervo also closed $421 million in non-recourse debt financing for the first phase of Cape Station last month and raised a $462 million Series E in December. The company also announced the addition of four heavyweights to its board of directors last week, including Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE.

Fervo reported a net loss of $70.5 million for the 2025 fiscal year in the S-1 filing and a loss of $41.1 million in 2024.

Tracxn.com estimates that Fervo has raised $1.12 billion over 12 funding rounds. The company was founded in 2017 by Latimer and CTO Jack Norbeck.