HATTIESBURG, MISS. August 8, 2023 – In the fall of 2022, Jones Power was selected as the civil construction contractor for a 300-megawatt utility-scale solar power facility located in Goliad County, Texas. The project schedule overlapped with the final clarifications and implementation requirements of the newly passed Inflation Reduction Act (IRA). The IRA allows clean energy projects the opportunity to receive tax credits, with additional tax credits for items such as domestic content and apprenticeship programs. Because of the early ambiguity of the IRA’s policy details and parameters, projects such as this one in south Texas began construction without clear instruction on the requirements for IRA compliance. However, in parallel to the early development of this project, Jones Power worked proactively and diligently with the US Department of Labor (DoL) to ensure the documentation and processes employed during civil construction would fulfill the eventual IRA requirements.

Keeping any complex project on schedule comes with its own set of difficulties. Keeping this particular project on track while maintaining IRA compliance, at a time when the IRA regulations were still being finalized, was a particularly daunting challenge. The Goliad project needed a civil subcontractor with a history of proven success, the discipline to implement and document the IRA compliance processes, while being agile enough to navigate the changing IRA requirements. Because of the challenges above, very few contractors were capable of meeting the requirements in time to keep the project on schedule. However, the main EPC contractor selected Jones Power in part because of their ability to navigate the IRA process.
 

The second challenge was meeting the prevailing wage requirement. Contrary to initial perceptions, meeting the wage minimums was not the main concern. Jones Power’s compensation package already exceeded the standards in most project locations. As is often the case with regulations, the bigger challenge was providing the necessary documentation and reporting to satisfy the new regulations.

Achieving government compliance required new investments and additional resources. It took approximately eight months to evaluate various software offerings, select the appropriate solutions, upgrade these systems, and implement the HR, payroll, and document management systems to meet IRA standards. It was no simple task by any means. However, the implementation of these new systems and the implementation of the Power Forward™ program have given Jones Power great confidence in their ability to meet their industry leadership and IRA compliance goals, and at the same time have helped them to meet the needs of the Goliad project.

ABOUT JONES POWER

Jones Power was created in 2011 to provide logistics and specialty services to the energy industry. Industries serviced today remain primarily renewable energy and midstream oil & gas. Core services range from project planning, civil construction, environmental controls, yard and inventory management, logistics, and pipeline storage, staging, and stringing. The Jones Power team brings decades of experience to every project, with excellence as the only goal. To learn more, visit us at JonesPower.com, or find us on LinkedIn at LinkedIn.com/company/JonesPower.

ABOUT JONES CAPITAL

Jones Capital (Jones) is a family-owned private equity capital provider focused primarily on investing in middle- market companies in the transportation and logistics, industrial, and business services markets. Headquartered in Hattiesburg, Miss. with offices in Houston, Texas, Jones Capital traces its heritage over seven decades to the incorporation of Jones Lumber Company in 1949. Today, Jones’ portfolio includes investments in transportation and logistics, recycling, energy infrastructure, technology, real estate and timber industries. Jones Capital is actively seeking new investment opportunities.