Advanced Energy Perspectives

With the start of December, we are now inside the 30-day window before several tax provisions critical to advanced energy growth are set to expire – yet there is little talk in Washington of extensions. Despite much discussion this year of comprehensive tax reform – and earnest behind-the-scenes efforts, with AEE involved – Congress now seems on the verge of making tax law by inertia.

Representatives of the biofuels industry expressed disappointment after the EPA proposed to lower renewable fuel requirements in 2014. EPA also wrapped up 11 listening sessions on its plan to regulate greenhouse gas emissions from existing power plants, which could provide a massive opportunity for advanced energy businesses. Meanwhile, Senate Finance Chairman Max Baucus began rolling out proposals to move the tax reform discussion forward.

The word around the Hill is that the PTC and ITC for wind (above 100 kW) and other technologies are likely to expire at the end of 2013 as scheduled, at least temporarily. Any discussion of extending these key tax benefits for wind development will likely be put off until some time in 2014 as key House and Senate committees examine comprehensive tax reform.

Energy Secretary Ernest Moniz announced yesterday that the Department of Energy (DOE) will make $8 billion available for loan guarantees for advanced fossil energy projects. As referenced in President Obama’s climate speech last week, this backing of technology innovation in the use of fossil fuels is one part of the Administration’s approach to making all forms of energy we use cleaner and more efficient.

The draft solicitation outlines DOE’s interest in supporting four specific technology areas (for details, see the solicitation fact sheet):