Energy lawyers spend hours drafting Renewable Energy Credit purchase agreements, navigating complex regulatory requirements across multiple tracking systems like WREGIS and PJM GATS. Each agreement requires careful attention to certification standards, warranty language, and delivery mechanisms, while ensuring compliance with evolving renewable energy regulations and market standards.
Renewable Energy Credit purchase agreements require navigating complex regulatory frameworks across multiple jurisdictions, tracking system protocols, and certification standards. Manual drafting takes 12+ hours to address product specifications, title transfer mechanisms, compliance requirements, and balanced risk allocation between buyers and sellers.
CaseMark generates complete, legally enforceable REC Purchase Agreements in under 20 minutes. Our AI ensures compliance with state RPS programs, tracking system requirements, and voluntary certification standards while incorporating industry-standard terms for delivery, payment, warranties, and dispute resolution.
This workflow is applicable across multiple practice areas and use cases
Environmental attorneys draft REC purchase agreements to help clients comply with renewable portfolio standards and environmental regulations while ensuring proper certification and tracking system compliance.
RECs are environmental commodities directly tied to environmental law compliance, requiring expertise in Green-e certification, tracking systems, and environmental regulatory frameworks that environmental law practitioners regularly navigate.
RECs are environmental commodities that are bought and sold as assets, requiring purchase agreements with warranties, title transfer provisions, and delivery terms similar to other asset purchases.
The workflow creates purchase agreements for tradable environmental commodities with standardized sale terms, warranties against title defects, and transfer mechanisms that mirror traditional asset purchase transactions.
Corporate counsel managing sustainability initiatives and environmental compliance programs need REC purchase agreements to meet renewable portfolio standards and corporate environmental commitments.
In-house corporate teams regularly purchase RECs as part of corporate sustainability strategies and regulatory compliance, requiring standardized agreements that protect against double-counting and ensure proper title transfer.
Transactional attorneys handling commercial contracts for renewable energy projects and environmental commodity transactions use REC purchase agreements as standard commercial instruments.
The workflow produces commercial purchase agreements with standard transactional elements including price terms, payment provisions, warranties, and delivery mechanisms applicable across general transactional practice.
Bundled RECs are sold together with the underlying electricity commodity, while unbundled RECs are sold separately from the electricity. Most REC purchase agreements involve unbundled RECs, where the environmental attributes are separated from the power. The agreement must explicitly state which structure applies and confirm that all environmental attributes transfer with the RECs, preventing the seller from making environmental claims after the sale.
The agreement must identify the specific tracking system (WREGIS, PJM-GATS, M-RETS, etc.) and require both parties to maintain active accounts. It should establish transfer timelines, specify account identification numbers, allocate tracking system fees, and create procedures for addressing transfer failures. The agreement typically provides that title transfers upon successful completion of the transfer in the tracking system, when RECs appear in the buyer's account.
Sellers should warrant that they have full title to the RECs free of liens and encumbrances, that RECs haven't been previously sold or retired, and that the generating facility meets all regulatory and certification requirements. This includes representations about tracking system registration, permit compliance, and eligibility for specified RPS programs or Green-e certification. Sellers should also covenant to maintain eligibility throughout the delivery period and notify buyers of any status changes.
Agreements should specify which party bears the risk of regulatory changes affecting REC value or eligibility. Common approaches include termination rights if changes make performance illegal or impracticable, price renegotiation mechanisms for material regulatory changes, or explicit risk allocation to one party with appropriate pricing. For compliance-focused purchases, the agreement should address consequences if RECs become ineligible for the target RPS program due to regulatory changes or facility decertification.
Agreements can involve one-time purchases of fixed quantities or ongoing deliveries over extended periods with monthly, quarterly, or annual delivery schedules. Quantity commitments may be firm (seller must deliver regardless of generation) or output-based (tied to actual facility generation). Payment typically occurs within 30 days following delivery and acceptance, upon receipt of seller's invoice with transfer documentation. The agreement should address consequences of generation shortfalls, excess generation, and payment disputes.
The seller must warrant that RECs haven't been previously sold, transferred, or retired, and that they retain no rights to make environmental claims after sale. The agreement should confirm that all environmental attributes transfer with the RECs, including greenhouse gas reductions and renewable energy benefits. Upon title transfer, the buyer obtains exclusive rights to retire the RECs and make environmental claims, while the seller is contractually prohibited from claiming credit for the underlying renewable generation.