The National Hydropower Association, the American Biogas Council and the Energy Recovery Council "strongly urge[d]" Congress to take immediate action to extend expiring renewable energy tax incentives for their respective industries. 

The trade groups asserted that "[t]ime is running out as [their] incentives will lapse at the end of this year." They added that "[e]very day that passes without an extension increases the uncertainty for project developers in our industries and creates a further negative economic market signal to the investment community."

Moreover, the trade groups stated that the "looming expiration" dates put their industries "at a significant competitive disadvantage with wind and solar projects with which [they] compete in bidding on State-level Requests for Proposals for renewable electricity, particularly now that [their competitors] have the certainty that their tax incentives will be in place over a longer term."

They concluded that the end result will be "less reliable renewable baseload power . . . deployed," which they believe "is not the intent or desire of Congress and not in line with an all-of the-above energy strategy."

Commentary / James Mann

The four renewable energy groups sent letters to Congressional leadership urging extension of the tax credits that apply to their industries. When Congress extended a number of the renewable energy credits in December of 2015, some credits (wind and solar, for example) were extended for several years while other credits (such as biomass and hydropower) were extended only for a single year. That one-year extension is coming to an end, and the affected industries are understandably concerned.

This situation illustrates both the perils of relying on short-term government subsidies as well as the policy difficulties that ensue when subsidies are distributed unevenly to companies competing to provide the same goods (electricity).

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