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Wind, solar, EE, CO2 storage win tax breaks

The Energy Act of 2020 includes a two-year extension of the investment tax credit (ITC) used by solar power generators (keeping the ITC at 26% through year-end 2022 instead of falling to 22% in calendar year 2021), a one-year extender for the production tax credit (PTC) used by wind developers, and a new 30% ITC for offshore wind projects that commence construction by the end of 2025.

Wind and solar generation, energy efficiency and carbon capture all won tax break extensions in the massive stimulus and budget bill that was poised for approval by Congress Monday night.

The Energy Act of 2020 includes a two-year extension of the investment tax credit (ITC) used by solar power generators (keeping the ITC at 26% through year-end 2022 instead of falling to 22% in calendar year 2021), a one-year extender for the production tax credit (PTC) used by wind developers, and a new 30% ITC for offshore wind projects that commence construction by the end of 2025.

In addition, the in-service window for the 45Q carbon capture and sequestration credit was extended by two years to the end of 2025 and waste-to-energy projects also will be eligible for the ITC.

The bill also re-authorizes the Advanced Research Projects Agency–Energy and the Weatherization Assistance Program through fiscal year 2025 and requires the Secretary of the Interior seek to permit at least 25 GW of wind, solar and geothermal projects by 2025.

The provisions — consensus provisions from the Senate’s American Energy Innovation Act (S. 2657) and the House’s Clean Economy Innovation and Jobs Act (H.R. 4447) — were included... more [truncated due to possible copyright]  

Wind and solar generation, energy efficiency and carbon capture all won tax break extensions in the massive stimulus and budget bill that was poised for approval by Congress Monday night.

The Energy Act of 2020 includes a two-year extension of the investment tax credit (ITC) used by solar power generators (keeping the ITC at 26% through year-end 2022 instead of falling to 22% in calendar year 2021), a one-year extender for the production tax credit (PTC) used by wind developers, and a new 30% ITC for offshore wind projects that commence construction by the end of 2025.

In addition, the in-service window for the 45Q carbon capture and sequestration credit was extended by two years to the end of 2025 and waste-to-energy projects also will be eligible for the ITC.

The bill also re-authorizes the Advanced Research Projects Agency–Energy and the Weatherization Assistance Program through fiscal year 2025 and requires the Secretary of the Interior seek to permit at least 25 GW of wind, solar and geothermal projects by 2025.

The provisions — consensus provisions from the Senate’s American Energy Innovation Act (S. 2657) and the House’s Clean Economy Innovation and Jobs Act (H.R. 4447) — were included as Division Z of the Consolidated Appropriations Act of 2021, a must-pass bill for Congress.

Sen. Lisa Murkowski (R-Alaska) and Sen. Joe Manchin (D-W.Va.), the sponsors of the Senate bill, called the legislation “the first comprehensive modernization of our nation’s energy policies in 13 years.”

Murkowski, chairman of the Senate Committee on Energy and Natural Resources, and Manchin, the ranking member, negotiated what they called a “six-corner” agreement with Reps. Frank Pallone (D-N.J.) and Greg Walden (R-Ore.), the chair and ranking member, respectively, of the House Committee on Energy and Commerce, and Reps. Eddie Bernice Johnson (D-Texas) and Frank Lucas (R-Okla.), chair and ranking member of the House Committee on Science, Space, and Technology.

The bill “provides a down payment on the technologies that will be critical to reducing greenhouse gas emissions in the power sector, industry, and buildings and addressing climate change,” Manchin said in a statement. “This focus on research, development and demonstration will create high quality jobs and ensure the United States continues to lead the world in the clean energy future.”

Among the other provisions:

Advanced Nuclear: updates the definition of “advanced nuclear reactor” to include small modular reactors; (See NRC OKs NuScale’s Small Modular Reactor Design.); authorizes a research and development (R&D) program to help build a competitive fusion power industry

Carbon capture, utilization, and storage (CCUS): directs the Department of Energy (DOE) to establish research, development and demonstration (RD&D) programs for carbon storage, carbon utilization and direct air capture, including a large-scale carbon sequestration demonstration program

Energy storage: Includes RD&D provisions for energy storage and qualifies storage for loan guarantees under Title XVII of the 2005 Energy Policy Act

Energy Efficiency: Requires the DOE to implement smart building technology in federal buildings and report to the president and Congress on each agency’s energy savings performance contracts, including their initial guaranteed savings compared to actual energy savings from the previous year; establishes rebate programs to encourage replacement of inefficient electric motors and transformers; formally authorizes the Federal Energy Management Program

Supply Chain: Requires the executive branch designate a list of critical minerals and update that list every three years, an effort to rebuild domestic supply chains; expands and extends limitations on Russian uranium imports

Grid Modernization: Re-authorizes the smart grid demonstration program in the Energy Independence and Security Act of 2007, and adds commercial application of distribution automation technologies to program goals; authorizes an RD&D and commercial application program on modeling emerging technologies for security and reliability and technologies to improve sensing, monitoring and visualization

Technology Transfer: Creates programs to aid private sector access to DOE and its National Laboratories

FERC: Authorizes FERC to modify compensation to attract and retain individuals with highly specialized skillsets

‘Sweeping Update’

The bill won wide praise from renewable energy supporters.

“Stable policy support will help ensure that wind and solar can continue providing the backbone of our country’s electricity growth,” said Heather Zichal, CEO of the American Clean Power Association. “We also applaud Congress for recognizing the enormous potential of offshore wind, America’s largest untapped electricity source.”

Gregory Wetstone, CEO of the American Council on Renewable Energy, said that 13% of the clean energy workforce is currently out of work due to the coronavirus pandemic. “Extending the solar and wind tax incentives and making the investment tax credit available for offshore wind projects is a bipartisan vote of support for the renewable industry and the hundreds of thousands of Americans building our clean energy future. These policies will help get people back to work,” he said.

“Clean energy was the biggest job creating sector in the economy pre-COVID,” said Rob Cowin, director of government affairs for climate and energy for the Union of Concerned Scientists.

“This omnibus legislation features a sweeping update and expansion of federal research, development and demonstration programs for carbon capture, removal, use and storage … along with enactment of a two-year extension of the 45Q tax credit,” said Carbon Capture Coalition Director Brad Crabtree. “While the Coalition’s other top priority of a direct pay option for 45Q did not make it into the final package, the measures included in the omnibus make this year-end legislation the most important accomplishment for carbon capture and removal since passage of the 2018 FUTURE Act that reformed and expanded the 45Q tax credit.”


Source: https://rtoinsider.com/wind...

DEC 21 2020
https://www.windaction.org/posts/51990-wind-solar-ee-co2-storage-win-tax-breaks
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