BUDE and Stratton received a special visit from the continent recently as they welcomed 30 friends from their twinned town in France.
As part of its 45th anniversary, Bude-Stratton Twinning Association and Ergué-Gabéric Twinning Association have come together in the coastal town.
Thirty residents from the French town of Ergué-Gabéric made the long trip across the Channel to visit Bude for a fun-filled weekend.
Following the formal presentation, attendees enjoyed a buffet lunch followed by an informative talk from the town council’s project and strategy manager, Francesca Churchill-Zerilli, on the project to relocate the Storm Tower. This presentation was simultaneously translated into French for the benefit of the guests.
On Sunday, the group took a trip to Padstow, starting with a walk from Daymer Bay to Rock and then the ferry across to Padstow. Sunday evening they were once again warmly welcomed, this time by everyone at the Beach House restaurant in Widemouth Bay, with musical entertainment from local singer/songwriter Ezmay Grace, followed by a sumptuous banquet and local Cornish cheeses from Whalesborough Cheeses.
Monday saw an early start, with a visit to the Tamar Bridge Visitor Centre, a fascinating tour discovering the history of life before and after the construction of the bridges, which also gave insights in to the engineering and operations of the Tamar Bridge and Brunel's Royal Albert rail bridge.
In the afternoon the group paid a visit to the Mayflower museum, learning about the Mayflower story and looking at the history and legacies of voyages to America and the impact of colonisation. Finally, they enjoyed some free time exploring the Barbican and the Hoe, finishing the day with fish and chips at Pier One Restaurant overlooking Plymouth Sound, before their guests departed on the overnight ferry.
A spokesperson from Bude-Stratton Twinning Association said: “The weekend was a great success, enjoyed by all, who celebrated long-standing and new friendships. Our French guests were made to feel very welcome wherever they went and we enjoyed glorious weather, showing off the best of Bude, Cornwall and Plymouth!
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In light of the Treasury Department’s final rules for transferring clean energy tax credits
companies should be aware that such transfers have potential for project-related risks
They should understand and take steps to mitigate these risks if they want to purchase clean energy tax credits
companies that buy (and thus claim) clean energy tax credits will bear all the risk of losing the credits if there are qualification deficiencies or tax credit overstatements by the seller
And when the transfer is of investment tax credits
purchasers bear all risk of liability to repay all or part of the tax credit to the government if certain project-related events occur
the Treasury rejected the idea that tax credit sellers should be allowed to divide the tax credits from a particular project into higher-risk and lower-risk tranches to accommodate buyers with different risk tolerances
addressing these challenges through deal structuring and terms
Sellers of credits should anticipate these issues and proactively consider structural and transactional means to reduce a buyer’s risk to help ease transactions
Clean energy tax credit risks generally fall into two buckets
The first is risk of disallowance for claiming credits to which the applicable project wasn’t entitled
either because the project didn’t meet applicable qualification requirements or because the amount was otherwise overstated
The final rules call this an “excessive transfer” but place the risk on the purchaser
The rules also impose a 20% penalty on the purchaser unless the purchaser can show that it performed a reasonable level of due diligence
The second bucket is “recapture” liability and applies only to ITC projects
all or a portion of the ITC must be repaid if there’s a change of ownership of a ITC project—or the project is permanently taken out of service—during a specified period (generally five years)
The recapture amount is 100% during the first year and steps down annually in equal increments to 0% in the first year following the recapture period
Except for an indirect change of ownership of a project owned by a partnership
the rules again place recapture liability on the purchaser
Market participants should expect to perform detailed due diligence about the underlying project’s tax credit qualifications and amounts to avoid additional penalties under the final rules
Sellers should be prepared to provide documentation and third-party verification of critical facts
including compliance with prevailing wage and apprenticeship requirements
third-party verification of the nature and amount of costs or production
and an appraisal supporting any ITC basis step-up
Most tax credit purchasers don’t insist on full-blown diligence about the project itself
because their return is based on the tax credit purchase price discount rather than on the project’s performance
because ITC purchasers are exposed to recapture liability upon a shut-down or transfer of the project (due to bankruptcy
ITC sellers can expect buyers to conduct some level of diligence on the project’s viability
strong representations regarding the project’s tax credit qualification and claimed amounts
Many tax credit purchasers don’t have much experience with clean energy tax credits
The new prevailing wage and apprenticeship requirements raise novel issues
as do the qualification requirements for new and “bonus” credits
tax credit purchasers have no project ownership interest through which to access project cash-flows and recover their expected return
Due to the forward-looking nature of recapture events
ITC buyers should require—and ITC sellers should expect to commit to—strong negative covenants prohibiting actions that constitute or increase the risk of a recapture event
Both sides also should prioritize affirmative covenants
including obligations to maintain insurance that will enable the project to continue operation following a material liability or casualty event
Indemnities are only as strong as the entity standing behind them
A tax credit seller often is a single-purpose entity with no assets other than the project
and the project itself may be highly leveraged with senior debt
Sellers therefore should expect purchasers to seek guarantees or similar support from a creditworthy entity to support the seller’s indemnification obligations
Purchasers may require tax credit insurance
the premium of which is often paid by the seller
in lieu of or in addition to upstream credit support
the coverages and exclusions of these policies may differ significantly
Both parties should carefully consider the policy’s coverage
Nearly all policies will cover tax credit qualification and amounts
but coverage for forward-looking recapture risks isn’t universal
Exclusions based on the accuracy of representations to the insurer by the seller
would undermine the policy’s value to a tax credit purchaser
If material credit support isn’t practical
prospective ITC sellers should proactively consider pre-sale structuring to mitigate a buyer’s recapture risk
This could include structuring ownership of the project through a bankruptcy-remote special purpose vehicle (and related protections) and loss-payee casualty insurance endorsements
It also could include working with project financing parties up front to agree on acceptable foreclosure forbearance terms or to establish
a financing structure that permits foreclosure without triggering recapture liability for the tax credit purchaser
Although the allocation of project-related risk to a purchaser of clean energy tax credits presents challenges
Understanding and proactively addressing the risks in deal structuring and terms allows both sellers and buyers the opportunity to get these deals done
This article does not necessarily reflect the opinion of Bloomberg Industry Group
the publisher of Bloomberg Law and Bloomberg Tax
Martha “Marty” Pugh is a corporate tax partner in K&L Gates’ power practice group
focusing on renewable energy incentives related to wind
Jim Goettsch is a mergers and acquisitions and finance partner in K&L Gates’ power practice group
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The Crescent Flood Defence and River Restoration Project is expected to be completed next April and will better protect 22 homes and 15 commercial and community properties on The Crescent and Ergue-Gaberic Way, between the River Neet and Bude Canal.
Site set up and pre-commencement work got underway this week ready for the main works to begin on 29 August. Nanny Moore’s Bridge and Ergue-Gaberic Way will be closed from 29 August until the end of October for heavy construction works. Erque-Gaberic Way will then have partial closures until April 2024, with access maintained for local premises.
Tony Rago, Asset Performance Advisor at the Environment Agency said:
The new works will strengthen the existing flood scheme and better protect the local community and economy from flood events, predicted to increase in the near future as a result of climate change.
When the construction work has been completed, the Environment Agency will replant the embankment with native species of local provenance. This will provide enhanced foraging and habitats and will act as an important green corridor. Some non-native and ornamental species will also be planted to maintain the river character.
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The Bude flood defence and river restoration scheme is a £2.1 million scheme to improve the existing flood alleviation scheme
It will also restore the ecological potential of the River Neet between Whalesborough Weir and Pethericks Mill Nature Reserve
Bude has a long history of flooding from several sources:
The original Bude flood alleviation scheme was built after an extreme flood event in the 1950s
The scheme was later updated following a major fluvial flood in 1993
Over time some parts of the scheme have declined in condition
These now needed work to maintain the design standard of protection it provides
The parts of the scheme which required attention were:
the earth flood embankment to the rear of Bude tourist information centre running between the canal and Bencoolen Bridge
the masonry-faced embankment on Ergue-Gaberic Way between the Masonic Hall and Nanny Moore’s Bridge
Since the construction of the existing Bude flood alleviation scheme
Bude has continued to be affected by severe flood events
Environment Agency Field Services teams provide pumps to remove water caused by waves over-topping the defences
The scheme received £2.1 million funding from the government’s £170 million fund to accelerate the delivery of flood risk management schemes nationally
The Crescent flood defence and river restoration project will better protect the local community and economy from flood events
This includes the increase in future flood events predicted because of climate change
The work focused on the renewal of the flood defence along Ergue-Gaberic Way
This work includes the construction of a new flood wall on the landward face of the bank behind the existing roadside kerb
Having completed the construction along Ergue-Gaberic Way
we will replant the top of the bank with a selection of native plant species
The project includes a river restoration element that focuses on the River Neet upstream of Bude between Whalesbourough Weir and Pethericks Mill Nature Reserve
The Water Framework Directive is a European directive which aims to protect and improve the water environment
the River Neet currently has moderate ecological potential
The river must achieve good ecological potential by 2027
The River Restoration Centre has investigated potential measures to improve the status of the watercourse
We will put these mitigation measures in place along this reach of the channel to help increase the ecological potential of the watercourse
For further information, email DCISenquiries@environment-agency.gov.uk