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Table of Contents
<br />See "We operate in a highly competitive industry, and our current or future competitors may be able to compete more effectively than we do, which could have a material
<br />adverse effect on our business, revenues, growth rates, and market share" in Item 1 A, Risk Factors for further discussion of competition.
<br />Regulatory
<br />Various regulations affect the conduct of our business. Federal and state legislation and regulations enable us to enter into ESPCs with government agencies in the United States.
<br />The applicable regulatory requirements for ESPCs differ in each state and between agencies of the federal government. We are also subject to local regulations in the
<br />international jurisdictions where we operate, including Canada, Italy, the United Kingdom, and Greece.
<br />Our projects must conform to all applicable electric reliability, building and safety, and environmental regulations and codes, which vary from place to place and time to time.
<br />Various federal, state, provincial, and local permits are required to construct an energy efficiency project or renewable energy plant.
<br />Renewable energy projects are also subject to specific governmental safety and economic regulation. States and the federal government typically do not regulate the
<br />transportation or sale of LFG unless it is combined with and distributed with natural gas, but this is not uniform among states and may change from time to time. States regulate
<br />the retail sale and distribution of natural gas to end -users, although regulatory exemptions from regulation are available in some states for limited gas delivery activities, such as
<br />sales only to a single customer. The sale and distribution of electricity at the retail level is subject to state and provincial regulation, and the sale and transmission of electricity at
<br />the wholesale level is subject to federal regulation. While we do not own or operate retail -level electric distribution systems or wholesale -level transmission systems, the prices
<br />for the products we offer can be affected by the tariffs, rules and regulations applicable to such systems, as well as the prices that the owners of such systems are able to charge.
<br />The construction of power generation projects typically is regulated at the state and provincial levels, and the operation of these projects also may be subject to state and
<br />provincial regulation as "utilities." At the federal level, the ownership and operation of, and sale of power from, generation facilities may be subject to regulation under the
<br />Public Utility Holding Company Act of 2005 ("PUHCA"), the Federal Power Act ("FPA"), and Public Utility Regulatory Policies Act of 1978 ("PURPA"). Some of our
<br />renewable energy projects which are operating as exempt wholesale generators or operating under a special exemption from PUHCA are currently subject to rate regulation for
<br />wholesale power sales by the Federal Energy Regulatory Commission ("FERC") under the FPA and must comply with certain FERC reporting requirements.
<br />If we pursue projects employing different technologies or with a single project electrical capacity greater than 20 megawatts, we could become subject to some of the regulatory
<br />schemes which do not apply to our current projects. In addition, the State, provincial, and federal regulations that govern qualifying facilities and other power sellers frequently
<br />change, and the effect of these changes on our business cannot be predicted.
<br />LFG power generation facilities require an air emissions permit, which may be difficult to obtain in certain jurisdictions. Renewable energy projects may also be eligible for
<br />certain governmental or government -related incentives from time to time, including tax credits, cash payments in lieu of tax credits, and the ability to sell associated
<br />environmental attributes, including carbon credits. Government incentives and mandates typically vary by jurisdiction.
<br />Some of the demand reduction services we provide for utilities and institutional customers are subject to regulatory tariffs imposed under federal and state utility laws. In
<br />addition, the operation of, and electrical interconnection for, our renewable energy projects are subject to federal, state, or provincial interconnection and federal reliability
<br />standards also set forth in utility tariffs. These tariffs specify rules, business practices, and economic terms to which we are subject. The tariffs are drafted by the utilities and
<br />approved by the utilities' state, provincial, or federal regulatory commissions.
<br />See our section entitled "Risks related to Regulations or Governmental Actions" in Item IA, Risk Factors.
<br />Human Capital Management
<br />We believe our employees are Ameresco's greatest resource, as they come together to creatively integrate our advanced technology portfolio and develop innovative,
<br />transformative energy solutions for our customers.
<br />The diversity of our team coupled with our deep bench of technical expertise enables us to tackle the most complex energy opportunities. Supporting our employees and the
<br />communities in which we serve is paramount to our success.
<br />We focus on team -based employee philanthropy, wellness -focused employee benefits, and donating our time to our local communities through education and training.
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