The World's #1 Renewable Energy Network for News, Information, and Companies.

US Senators Re-Introduce MLP Act to Level Playing Field for Renewable Energy

US Senators Re-Introduce MLP Act to Level Playing Field for Renewable Energy

JinkoSolar Holding Co. and First Solar Inc. were among solar companies that surged after four U.S. senators introduced legislation that would let renewable- energy projects qualify for a tax-advantaged corporate structure currently used by oil, natural gas and pipeline projects.

Jinko rose 14 percent to $6.49 at the close in New York, the most since April 9. First Solar gained 12 percent and the NYSE Bloomberg Global Solar Energy Index of 103 members rose 2.6 percent.

The measure would let renewable-energy companies form master-limited partnerships (MLPs), giving them the ability to raise funds like a corporation and pay taxes as a partnership, according to a statement today from Senator Chris Coons, a Delaware Democrat. He introduced the bill with Michigan Senator Debbie Stabenow, a Democrat, and Republican Senators Lisa Murkowski of Alaska and Jerry Moran of Kansas.

MLPs have “helped the oil and natural gas industry deliver the abundant and affordable energy that powers our economy today,” Murkowski, the top Republican on the Senate Energy and Natural Resources Committee, said in the statement. “Through a small change in the tax code, this legislation will provide renewables with the same opportunity.”

The bill is similar to a prior version focused on renewable power generation and biofuels projects that was introduced last year and failed to pass. The re-introduced bill widens the scope of projects that would qualify to include energy-efficient buildings, waste heat-to-power systems, carbon capture and storage and biochemicals.  The new bill was hailed by Rhone Resch, President and CEO of the Solar Energy Industries Association as "an important step toward leveling the playing field between clean, renewable energy and long-entrenched energy sources in America."

Bipartisan Support

The measure has support from Republicans and Democrats in both houses of the U.S. Congress, Murkowski said earlier this week.

The proposal is supported by at least one oil and gas group. Jack Gerard, president of the American Petroleum Institute, the industry’s main lobbying group, said MLPs would provide an incentive for private investors and help wean renewable energy producers from federal subsidies.

“Having a new vehicle to introduce some capital with some additional liquidity and a lower cost of capital probably would help demand,” Ben Schuman, an analyst with Pacific Crest Securities LLC in Portland, Oregon, said in an interview today.

Lead image: Businessman against a solar installation via Shutterstock

RELATED ARTICLES

The Big Question: What Is the Most Frustrating Part about Working in Renewable Energy?

Renewable Energy World Editors

Every industry has its challenges and misunderstandings. Sometimes the obstacles we face in simply trying to do our jobs can be very frustrating.

ViZn Flow Batteries

ViZn Turns to Jabil to Meet Growing Demand for Flow Batteries

Andrew Burger, Correspondent Energy storage startup ViZn, developer of advanced zinc-iron flow battery technology, is scaling up the size and scope of its operations as it works to meet growing demand from a variety of customers both in the U.S. and a...
Norway and Sweden flags

Nordic Renewables Boom Set to Exceed Wind Energy Target

Jesper Starn, Bloomberg

Sweden and Norway will probably exceed a joint target for renewable energy production by the end of the decade, industry consultant Nena AS said.

Renewable energy community

State and Metro Governments, Consumer Actions Drive Dramatic Shift in US Energy Landscape

Ron Pernick, Clean Edge The United States is experiencing a significant shift in its energy landscape. Last year, utility-scale wind and solar power combined for 47 percent of new generation capacity in the U.S. Based on this expansion, 11 states...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

PV-401: Advanced Field Training

Real world on the job solar installation, training, and experience is th...

PV-201: Introduction to PV Design & Installation

PV 201 Introduction to PV Design & Installation is simply the best i...

PV-301: Advanced PV Design & Installation

This highly desirable and advanced course is intended for the profession...

COMPANY BLOGS

Solar Tracking – A Key Technology for Unlocking the Full Potential ...

Quotes for very large solar photovoltaic projects in sunny parts of the ...

What is Distributed Energy and Why Does It Matter to Solar?

Distributed energy has become a hot topic of conversation in energy circ...

Meteorological Technology International Magazine - SENSORS AND SENS...

Over the past 10 years, these sensing technologies have spread tre...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS