Rural Utility Cooperative Law Blog

RUS amended its regulations to address renewables, including solar, wind, and storage plants. New accounts were created for bundles and unbundled environmental credits. RUS provided guidance about gains and losses from disposition of those credits, as well as penalties. It

In a closely monitored case, the U.S. Supreme Court ruled that that Universal Service Fund does not violate the nondelegation doctrine. In F.C.C. et al. v. Consumers Research et al., the petitioners requested the Court to rule that the USF

In prior posts, I addressed revisions to regulations for electric borrowers. These regulations have been amended again to accomplish the following objectives: provide more flexibility for the RUS Electric Program borrowers to complete emergency repairs while maintaining the ability to

The FCC has ruled that electric consumers consent to calls when they provide their phone number to electric utilities. For demand-response functions, the utilities' calls are closely related to their utility service.  In its ever-increasing demand for power along with

THIS POST HAS BEEN UPDATED. SEE THE MOST RECENT UPDATE BELOW. On December 26, 2024, the Fifth Circuit lifted its stay of the district court's injunction -- thus, re-instating the injunction against enforcement of the CTA's beneficial ownership reporting requirement. 

Senate Resolution 424 establishes the Senate Study Committee on Franchise Fees to examine and make recommendations regarding the imposition and distribution of franchise fees by electric utilities, particularly in unincorporated areas of Georgia. The resolution states: [M]unicipalities lease their rights

A telecom provider has sued a gas utility for allegedly damaging its fiber-optic cable. Zayo Group contends Atlanta Gas Light damaged the line while excavating with mechanized equipment. As a result, Zayo Group alleges it suffered disturbance to its rights

The IRS is seeking comment on Form 1099-PATR "Taxable Distributions Received from Cooperatives."  Under IRC Sec. 6044, Subchapter T cooperatives must issue Form 1099-PATR if patronage payments to any person exceeds $10 in the aggregate.  However, the rule does not

On an issue of first impression, the Court of Appeals of Georgia concluded that renewable energy credits are considered "specific intangible property" that is subject to a claim of conversion. Conversion is a claim that another person exercises ownership or

High-quality telecommunications is extremely important to rural communities. Rural telecom cooperatives are essential to providing those services, and USF is an important method of keeping those services affordable. So when a group challenged the constitutionality of the program, rural utility

Introduced earlier this month, Senate Bill 341 would exempt certain broadband grants from federal income tax. If enacted, the bill would exempt the following grants from tax: We have previously written about the act that rendered grants subject to taxation,

The U.S. Supreme Court ruled that the federal False Claims Act applies to claims made under the E-Rate program, even though the funds are received and handled by the Universal Service Administrative Company. This is an important ruling because the

On December 26, 2024, the Fifth Circuit lifted its stay of the district court's injunction -- thus, re-instating the injunction against enforcement of the CTA's beneficial ownership reporting requirement.  Coincidentally, the order was issued on the same day that the

A prior post addressed RUS' amendment of its audit requirements.  RUS publishes final rule on audit requirements – Cook & Associates (and comments requested here: RUS Seeks Comment on Audit Rules – Cook & Associates).  The RUS again amended it regulations to conform

A recent IRS ruling addresses how one taxable telephone cooperative managed to avoid a devastating taxable gain on the sale of its interest in a subsidiary.

In a recent private letter ruling, the Service addressed a cooperative's reorganization into a for-profit corporation. The transaction qualified under Section 354(a) and Section 368(a)(1)(F).  In the reorganization, the cooperative transferred its assets to an LLC taxed as a corporation

In a recent letter, NTCA–The Rural Broadband Association requested members of Congress promote and sustain universal service. With new grant programs beginning to address challenges where broadband has remained unavailable, as the Affordable Connectivity Program (“ACP”) seeks to help consumers

On June 5, Florida Governor Ron DeSantis signed into law HB1221, which took effect on July 1, 2023. The new bill will subject rural electric cooperatives to new pole attachment regulations.  According to the new rules, a cooperative that offers broadband

In a prior post, I addressed new regulations from Treasury Department addressing clean energy tax credit options. The post discussed options for elective payment or transfer of the clean energy tax credits, including I.R.C. Section 48. In one of its

In a recent ruling, the Service addressed a telecom cooperative that divested its cellular business to focus on broadband services. It had transacted business through a partnership that was partially owned by various consolidated subsidiaries. Through the years, it had

The IRS issued proposed regulations and frequently asked questions addressing the elective payment option and transfer option for certain clean energy credits, including I.R.C. Section 48. Elective Payment Option: The IRS summarized the proposed regulation for the elective payment option

RUS recently made minor modifications to a final rule with regulations it previously adopted to implement the 2018 Farm Bill. The modifications clarify the regulations to indicate the RUS mapping tool will include information from applications for broadband funding. 88

RUS finalized ratio requirements for electric borrowers, which we discussed in a prior post.  Click here for the prior post. View other posts about: The rule is effective May 1, 2023. The Rural Utilities Service (RUS), a Rural Development (RD) agency of the United States Department of Agriculture

RUS finalizes ReConnect Rules