Renewable Energy News Briefs - July 2021

Thursday, July 8, 2021

A report released May 13 by the American Clean Power Association reflected installation of nearly 40% more wind power among U.S. developers in the first three months of 2021 compared to the same quarter in 2020. The Clean Power Quarterly Market Report identified 13 new wind projects, 15 utility-scale solar projects and two energy storage projects, yielding enough energy to power close to 1 million American homes. Additionally, Dominion Energy’s Coastal Virginia Offshore Wind project became operational.

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Reps. Earl Blumenauer, D-Oregon, and Mike Levin, D-California, introduced legislation in May to allow taxpayers to take renewable energy tax credits as a direct payment rather than a credit. H.R. 3180, the Renewable Energy Investment Act, would make the investment tax credit (ITC), production tax credit (PTC) eligible for an irrevocable election to receive as a direct payment.

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Bicameral legislation introduced in Congress in May would create an additional renewable energy ITC for battery storage and renewable electricity that displaces electricity generated by in disadvantaged communities by peaker plants, facilities that come online during times of high demand and release harmful emissions. The Promoting Energy Alternatives is Key to Emission Reductions (PEAKER) Act of 2021 would provide financial incentives to more rapidly dispatch clean energy and battery storage to replace aging power plants in those communities. Sen. Kirsten Gillibrand, D-New York, and Rep. Yvette Clarke, D-New York, sponsored the bill, which would create a $1 billion fund for the next 10 fiscal years for clean energy projects and would require a nationwide assessment that identifies the location of each peaker plant.

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Sens. Michael Bennet, D-Colorado, and Rob Portman, R-Ohio, introduced legislation May 27 to allow the use of private activity bonds for power plants and industrial facilities to purchase and install carbon capture and storage equipment and for direct air capture projects. The Carbon Capture Improvement Act would also allow the existing Internal Revenue Code (IRC) Section 45Q tax credit for carbon sequestration to be used by facilities for industrial emissions.

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A bipartisan group of members in the House of Representatives introduced May 27 the Coordinated Action to Capture Harmful (CATCH) Emissions Act, which would increase carbon capture tax credits for industrial facilities and power plants. The CATCH Emissions Act would increase the federal IRC Section 45Q tax credit values for carbon capture from industrial facilities and power plants.

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Sen. Tom Carper, D-Delaware, introduced legislation May 27 to create tax credits to encourage the development of clean hydrogen energy. The Clean H2 Production Act would create an ITC and PTC for production of hydrogen that uses methods that are at least 50% cleaner than traditional hydrogen production methods.

Journal Category: 
Renewable Energy Tax Credits
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