Advanced Energy Perspectives

After a whirlwind fall, Congressional leaders negotiated a spending bill and tax package to end 2015. The joint package includes extensions for numerous tax provisions, including several that benefit the renewable energy and energy efficiency segments of the advanced energy industry. Not all of the industry got a boost: Proposed provisions that would aid a number of other advanced energy technologies, such as fuel cells, industrial efficiency, and combined heat and power (CHP), were not included in the final package. Still, some believed that it would take a miracle to produce a deal like this, but Congress worked for the better part of a year to build this package. The House gave its blessing this morning and the Senate voted shortly thereafter. We expect the package to be signed into law by the President. We will continue to analyze the full text, but here is what we know so far.

The world’s eyes are focused on Paris this week with the beginning of 2015 Climate Conference, also referred to as COP21. In what could be considered a case of counter-programming, Congress has pushed legislation indicating disapproval of EPA’s Clean Power Plan (CPP), thereby sending a signal that future Congresses could invalidate the centerpiece of U.S. commitments made by President Obama. At the same time, an energy package is moving forward in the House, and tax extenders are back on the table for legislative action. EPA also updated the Renewable Fuel Standard this week, reducing the volume requirements for corn-based ethanol. This action immediately turned into controversy, and just like any EPA action these days, is about to go through the legal gauntlet. With end of the year fast approaching, the tryptophan from Thanksgiving turkey clearly did not slow anyone down.

Straight out of August recess, Congress wasted no time to making national headlines. The District was abuzz with votes on the Iran nuclear deal, a visit from Pope Francis, and a potential government shutdown – which the surprise resignation of Speaker John Boehner helped to avert. Despite all the attention of these events, the House Energy and Commerce committee continued its efforts to enact sweeping energy legislation. As predicted, however, the committee turned once-unanimous agreement into a mostly party-line vote.

Fresh off Independence Day celebrations back home, Congress returned to Washington this week with a busy legislative agenda for the second half of the year. The main focus in energy will be the Senate Energy and Natural Resource Committee’s push for comprehensive legislation. The challenge: keeping it simple.