Supreme Court Decision Strikes Down Construction Subsidy Program

June 2, 2016

It’s not every day that a decision by the United States Supreme Court has the potential to impact the construction industry. But the Court handed down a decision last month that could hinder the pace of power plant construction around the country. In Hughes v. Talen Energy Marketing, LLC, the Court unanimously struck down a Maryland regulatory program that provided subsidies to incentivize new power plant construction in the state.

Jason Copley and Allie Hallmark  of Cohen Seglias Pallas Greenhall & Furman PC have posted their opinion, "Lights Out for Maryland's Power Plant Construction Subsidy Program" discussing  how the Supreme Court's decision will affect developers and contractors hoping to use power generation incentive programs to build new power plants.

Without long-term contracts and subsidies, developers will be less inclined to invest in new construction in some states, potentially chilling power plant infrastructure projects across the nation.

So far, the Court says this ruling affects only the Maryland incentive program, but the legal trickle-down effect is something to watch.

Read Copley and Hallmark's post here. This bears watching, especially as the current policy makers talk up infrastructure repair.