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

Wind turbines

Why It's Time To Get Real About Energy Security

Hannah Smith, Contributor Energy is Europe’s quiet crisis. While the clamour of failing economies, desperate migrants and political clashes grabs the headlines, energy policy is rarely front-page news, but it should be — the statistics are shocking.

Largest Solar Farm in Virginia Just Commissioned by Amazon Web Services

Renewable Energy World Editors Back in 2012, Amazon received a failing grade from Greenpeace regarding its use of renewable energy to power its cloud centers. Skip a couple years and in 2014 Amazon Web Services (AWS) announced a goal of achiev...

A Closer Look at Fossil and Renewable Energy Subsidies

Susan Kraemer, Contrubutor A new study by the International Monetary Fund puts the total cost of fossil fuel subsidies at approximately $10 million a minute globally, when health costs and environmental degradation are included, never mind the effec...

How to Win Planning Permission for Renewable Energy Projects (and Influence People)

Tildy Bayar, Contributor At Tuesday afternoon’s POWER-GEN Europe and Renewable Energy World Europe conference session in Amsterdam, Paul Davison of PR firm Proteus discussed how to best communicate with the public regarding renewable ene...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

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

FEATURED PARTNERS



EVENTS

Microgrid Global Innovation Forum

Microgrid Global Innovation Forum  This event brings together thoug...

Grid Edge Live

Grid Edge Live 2015 The impressive two and a half day agenda addresses k...

2015 Solar Power International

Stop by and visit Canadian Solar at the 2015 SPI show!

COMPANY BLOGS

Signing a Solar Lease? Here are Five Things You Need to Know

Solar leases have grown in popularity, and they continue to be one of th...

DIY: Don’t Install Yourself

You finally made the choice to go solar. Seems like it might be pretty e...

Capturing Your Prospects' Attention In Three Sentences

You have about 15 seconds to capture your prospects’ attention, wh...

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