Chirag Lala


CPE Elective Pay Model (2.0)

Access our new Elective Pay Model here. In September 2023, Center for Public Enterprise (CPE) published the first iteration of our Elective Pay Model. The model is a free tool that allows users to analyze project-level financial considerations for state, municipal, or nonprofit projects claiming elective pay on either the investment or production tax credits, […]

Making the Most of SEFI: A Model RFI

A Model RFI for Engagement and Collaboration with the Loan Programs Office

Tax Credits Are Industrial Policy: Answering the Derisking Critique on Discipline and Investment

The Inflation Reduction Act (IRA) is criticized for "derisking" private investment by increasing the gains to private firms. The derisking critique argues that the IRA insufficiently disciplines private firms; it does not utilize legal or financial penalties which would force firms to undertake green investment and bar emissions-intensive investment. This paper answers that critique by providing a Post-Keynesian theory of capital expenditure.

CPE Elective Pay Model

The CPE Elective Pay Model is a tool developed in-house to help understand the financial considerations public utilities and other public agencies might face when making an elective pay investment in clean energy assets. Included here is report detailing the model, its assumptions, and results, a simulator tool (below) comparing tradeoff scenarios for the primary clean energy tax credits (Investment Tax Credit and Production Tax Credit), and the financial model itself.

CPE’s comments on the proposed rules for elective pay and transferability

Read our full comments to the IRS on the proposed rules for sections 6417 and 6418 of the Inflation Reduction Act.

Direct pay: an uncapped promise of the Inflation Reduction Act

The direct pay provisions of IRA §6417 allow tax exempt entities such as state and municipal governments to receive tax credits as direct transfers from the Internal Revenue Service (IRS).  These direct pay provisions create new opportunities for public outlays on energy generation while having no formal cap on how much the government will spend through 2032.

Cooling oil consumption to ease price pressures

The Russian invasion of Ukraine has created a situation where it may be difficult in the near term for domestic supply of petroleum products to match domestic demand. This has led to record high gasoline prices. The use of strategic petroleum reserves has proved insufficient to bring supply up to the level of demand. But the other side, the demand for petroleum products, has not been directly addressed. 


Greenhouse Gas Reduction Fund, Part 3: Public Options Support Public Finance

Entities seeded by the GGRF will have to change their strategy when governing the markets that they created: they will have to work to become public options that compete with and shape the behavior of other market participants. This is important not only because private investors may underbuild, but because they may deliver bad outcomes. Just because a market works does not mean it is not predatory or prone to faltering—look no further than rooftop solar.

Greenhouse Gas Reduction Fund: purposeful public financing for decarbonization

There has been over a decade of advocacy by the Coalition for Green Capital and others for green banks, alongside proposals for even more comprehensive infrastructure and public development banking options. As a watershed moment in public policy, this blog explores some of the theories behind why the GGRF, and the green bank model, is necessary for clean energy investment and decarbonization in the US.

Comments on Domestic Content Rules

The Center for Public Enterprise (CPE) submitted comments on domestic content rules as they relate to the elective pay provisions under § 6417 of the Inflation Reduction Act (IRA). You can read those comments in full here.

June Update on Direct Pay (Elective Pay)

What Is Elective Pay (aka Direct Pay)? Here's How It Makes Clean Energy Tax Incentives More Accessible

Prioritize Transmission in Permitting Reform

Future efforts toward permitting reform should focus on the transmission infrastructure buildout that is needed for decarbonization of the electrical grid. A study by Princeton’s Net-Zero Lab finds that 80 percent of the Inflation Reduction Act’s (IRA) emissions reduction benefits would be lost if the growth rate of transmission capacity remains at its recent diminished rate of about1 percent per year. Transmission is vital to decarbonization, but not expanding fast enough.