New Bill Emphasizes Important Role of Baseload Renewable Power in Decarbonizing the Economy

To decarbonize the economy, the United States needs to employ a suite of renewable energy technologies beyond wind and solar power. In particular, renewable energy that provides baseload power (i.e., 24/7 renewable electricity)—including biomass, hydropower, geothermal, and biogas—should be a critical part of a low-carbon energy portfolio. 

During an August pro forma session, Representatives Elise Stefanik of New York and Scott Peters of California introduced the Renewable Electricity Tax Credit Equalization Act (H.R. 4186) which would “amend the Internal Revenue Code of 1986 to modify the credit for electricity produced from certain renewable resources and the investment credit for certain qualified investment credit facilities.”

According to a joint press release from the American Biogas Council, Biomass Power Association, Energy Recovery Council, and the National Hydropower Association, this bill “renews and extends a tax credit which has been expired since 2017.” This tax credit would benefit renewable industries, including biomass, biogas, geothermal, hydropower, and marine energy, which have historically received less federal attention than wind and solar counterparts in tax codes. As described in a recent article from EESI in The Solar Tribune, “ensuring tax parity for these energy sources would increase private investment to develop and deploy these technologies, providing more renewable options to meet the country’s overall energy demand.”

Rep. Peters highlights the importance of creating fair tax policies across the renewable energy sector, stating “as climate change continues to threaten our planet, health, and communities, we need to invest in innovative technology that can provide baseload supply of energy.” Baseload renewable power--which consistently provides power 24/7—is crucial for moving away from fossil fuels (i.e., coal, oil, and natural gas) which have traditionally served this function.  

The Renewable Electricity Tax Credit Equalization Act could play an important role in supporting efforts across the country to reach deep decarbonization goals—reducing greenhouse gas emissions to decrease the future impacts of climate change.

 

 

Author: Anna McGinn