Energy and Climate Debate -
Congress approved today a $1.1 trillion omnibus appropriations and $680 billion tax extenders package (H.R. 2029) and adjourned for the first session of the 114th Congress. Please find below a special edition of our weekly energy and environment update that includes a brief overview of the measure and a handful of other updates from this week. We will return with our next weekly energy and environment update in the new year. In the meantime, if ML Strategies can be helpful to you in the coming weeks and months, please feel free to contact us, and we wish you and yours a happy holiday season.
Following weeks of intense negotiations, the bill includes a long-term extension and phasing down of the production tax credit and the investment tax credit. It provides an extension, retroactive to January 1, 2015, of the wind production tax credit at its current 2.3 cent rate through 2020, with a phase down of 20 percent per year beginning in 2017. The measure extends the investment tax credit for solar with a phase down of 30 percent through 2019, 26 percent in 2020, 22 percent in 2021, and then expires in 2022 for residential projects and reverts to the existing 10 percent credit for commercial projects at that time. The bill lifted the four-decades old crude oil export ban, but did not include many of the environmental riders that were being considered, such as language prohibiting the Environmental Protection Agency from implementing power plant or ozone standards or the Waters of the US rule, nor did it prohibit the administration from contributing to the Green Climate Fund.
Please see full Update below for more information.