Energy Policy News
  • Latest
  • Archives
  • Data
  • Webinar
  • Index
Saturday, August 13, 2022
Log In
No Result
View All Results
  • Natural Gas
  • Oil
  • Power
  • Security
  • Sustainability
Energy Policy News
  • Latest
  • Archives
  • Data
  • Webinar
  • Index
Saturday, August 13, 2022
Log In
No Result
View All Results
Energy Policy News
No Result
View All Results

Biden’s trade plan to kickstart US solar fails to win over industry

The Defense Production Act move will catalyze finance for clean energy manufacturing

Bloomberg News by Bloomberg News
June 6, 2022
in Renewables
Reading Time: 5 mins read
0
Share on FacebookShare on TwitterShare on LinkedInShare by Email

President Joe Biden’s attempt to defuse a complicated trade dispute that’s paralyzed the US solar industry is drawing swift criticism from some of the very companies the White House had been seeking to appease.

While environmental groups and some companies that develop solar farms and rooftop systems cheered the effort, it failed to win over US panel makers that struggle to compete against Asian rivals. Their opposition reflects the challenge Biden faces when it comes to supporting domestic manufacturers without alienating the companies that rely on low-cost imports. It also underscores the White House’s oft-competing political priorities as it seeks to combat climate change while taking a firm stance against China.

Biden’s plan included invoking emergency authorities to impose a two-year ban on new tariffs for panels imported from four Southeast Asia nations, neutralizing a threat of retroactive duties that had all but frozen construction on new US solar projects. He also used sweeping powers under the Defense Production Act to support domestic manufacturers as well as other US clean-energy industries.

“A two-year delay is hardly clarity the industry is seeking, as they would like this issue to go away or be resolved,” Jeff Osborne, an analyst at Cowen & Co., said in a note Monday. “This approach allows the Biden team to appear to be responsive to repeated requests for intervention. However, the issue may still be challenged in court, and it is unclear on potential impact of tariffs that may be announced on past shipments.”

US manufacturers slammed Biden’s move, saying it does more to support Chinese solar companies than US rivals.

“Today’s proclamation directly undermines American solar manufacturing by giving unfettered access to China’s state-subsidized solar companies for the next two years,” Samantha Sloan, vice president of policy for First Solar Inc., said in an emailed statement. “This sends the message that companies can circumvent American laws and that the US government will let them get away with.”

And some developers also warned that because the actions don’t fully end the trade case, there’s not enough policy stability to plan future projects.

“The lingering threat of tariffs stemming from the ongoing circumvention case will continue to jeopardize our clean energy progress,” said George Hershman, chief executive of SOLV Energy.

The threat of tariffs stemmed from the Commerce Department’s investigation into whether Chinese companies are circumventing decade-old duties by assembling solar cells and modules in Cambodia, Malaysia, Thailand and Vietnam, countries that constitute about 80% of annual panel imports into the US. Manufacturers in the four targeted nations had largely halted shipments to the US, stalling solar projects and prompting at least one utility to warn it would keep a coal plant operating longer than planned.

At issue are antidumping and countervailing duties imposed against China a decade ago to offset subsidization and predatory pricing. The Commerce Department is set to issue preliminary findings in the case by late August.

Solar manufacturers said they were blindsided by the policies.

“It is highly problematic that the administration is apparently declaring a war or similar national emergency as the basis for negating a trade law investigation on solar,” said Tim Brightbill, a trade lawyer and partner at Wiley Rein LLP who has represented solar companies pushing for tariffs. “And it is even more troubling that the administration took this action without any input from domestic solar manufacturers.”

Mamun Rashid, chief executive officer of Auxin Solar Inc., the California-based panel maker that prompted the trade probe, condemned Biden’s action.

“President Biden is significantly interfering in Commerce’s quasi-judicial process,” Rashid said in an emailed statement. “By taking this unprecedented — and potentially illegal — action, he has opened the door wide for Chinese-funded special interests to defeat the fair application of US trade law.”

Biden is invoking emergency authority under nearly century-old US law, while the Commerce Department case is proceeding on a parallel track, a senior administration official told reporters. Under federal trade law, the president can direct duties to be suspended by declaring “an emergency to exist by reason of a state of war or otherwise.”

Some solar developers are cheering the president’s plan, saying it would rapidly spur renewable power projects while delivering a much-needed boost to domestic manufacturing. Heather Zichal, head of the American Clean Power Association, called it “a bold act of leadership” that “recognizes the immediate need to protect middle-class American jobs” while promoting US energy independence.

Biden’s action also drew rare near-unanimous praise from environmental groups, including mainstream conservationists as well as progressives who’ve criticized the president for being too timid in the fight against climate change.

Biden’s executive action follows days of brainstorming by administration officials over how to revive solar and power storage projects hampered by the Commerce Department trade investigation, which had prompted some exporters to halt panel shipments to the US. Although the president is not directly injecting himself in the case — meant to be a quasi-judicial proceeding free from political interference — his decision to waive new duties for two years effectively blunts the tariff threat in the short term, giving time for US manufacturing to ramp up.

The White House is also seeking to use the federal government’s purchasing power to help support American clean energy manufacturers. Biden is directing the federal government to apply domestic content standards when it procures solar systems, including US-manufactured solar photovoltaic components, and use special supply agreements to allow domestic clean electricity providers to more quickly sell their products to the government.

Biden’s manufacturing boost is anchored by action under the 72-year-old Defense Production Act, the same authority wielded by President Harry Truman to make steel for the Korean War and Donald Trump to spur mask production to battle the spread of coronavirus. Biden is authorizing the Department of Energy to use the law to rapidly expand American manufacturing of solar panel parts, building insulation, heat pumps and other gear, according to a White House fact sheet. Power transformers and equipment for making and using fuels generated by electricity also will be targeted, the White House said.

The Defense Production Act move will catalyze finance for clean energy manufacturing including loans and grants, a senior administration official said. At least some of the funding is likely to be made available through an existing Energy Department program, which has more than $40 billion in loans and loan guarantees available.

Presidents dating back to George W. Bush have tried to marshal US solar panel making with a mix of short-lived incentives and punishing trade barriers that at times spurred retaliation instead of a manufacturing renaissance. At one point, there were some 75 major solar parts factories in the US, but most have since shuttered.

Administration officials took pains to emphasize the trade case was continuing. Commerce Secretary Gina Raimondo said she was committed to upholding US trade laws and ensuring American workers have a chance to compete on a level playing field.

“The president’s emergency declaration ensures America’s families have access to reliable and clean electricity while also ensuring we have the ability to hold our trading partners accountable to their commitments,” she said in an emailed statement.

Tags: 3400BidenrenewablesSolar
Previous Post

FERC Friday Update: June 3, 2022

Next Post

Cutting methane emissions is a ‘commercial opportunity’

Related Posts

California’s all-renewable moment shows the future of the power grid
Renewables

Environmental groups protest Southwest Power Pool’s renewables accreditation

June 30, 2022
California sets nation’s most ambitious offshore wind target
Renewables

6GW of offshore wind planned with more on the way

June 30, 2022
Wheeler, Zinke, Others Discuss Bipartisan Efforts in Clean Energy Policy
Renewables

Offshore wind goals depend on domestic supply

June 29, 2022
Next Post

Cutting methane emissions is a ‘commercial opportunity’

Report No. 3403

FERC Friday Update: July 1, 2022

Energy Policy News says farewell

Environmental groups protest Southwest Power Pool’s renewables accreditation

6GW of offshore wind planned with more on the way

Supreme Court curbs EPA’s climate authority in blow to Biden

Offshore wind goals depend on domestic supply

FERC fines Salem Harbor $17M for capacity market fraud

G-7 leaders favor LNG investment in U-turn due to energy crisis

DC circuit court upholds Mountain Valley Southgate expansion

Natural gas industry supports NOPR to streamline rate filings

MVP requests extra time to complete project

FERC issues final EIS for Golden Pass project

  • About
  • Contact Us
  • Privacy Terms
  • ADA Compliance
  • Help Center

 Manage Cookie Consent

Follow Us

© 2022 Royal Media - Energy Policy News, formerly Foster Energy Report

No Result
View All Results
  • Latest
  • Archives
  • Data
  • Webinars
  • Index
  • SUBSCRIBE
  • Login

© 2022 Royal Media - Energy Policy News, formerly Foster Energy Report

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Effective July 1, 2022 Energy Policy News will be discontinued.

After a year of guiding readers to better understanding and awareness around the key policy issues that can make or break energy projects and growth initiatives, we made the difficult decision to shut down our publication.

We are proud of the remarkable coverage provided by our team and want to thank all our customers for your support over the past year.

Sincerely,
The Energy Policy News Team

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
34f6831605sessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
a64cedc0bfsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
cookielawinfo-checkbox-advertisement1 yearSet by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
crmcsrsessionGeneral purpose platform session cookie, used by sites written in JSP. Usually used to maintain an anonymous user session by the server.
JSESSIONIDsessionThe JSESSIONID cookie is used by New Relic to store a session identifier so that New Relic can monitor session counts for an application.
LS_CSRF_TOKENsessionCloudflare sets this cookie to track users’ activities across multiple websites. It expires once the browser is closed.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
e188bc05fesessionThis cookie is set in relation to Zoho Campaigns
iamcsrsessionZoho (Customer Support) sets this cookie and is used for tracking visitors (for performance purposes)
_zcsr_tmpsessionZoho sets this cookie for the login function on the website.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThe _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_gat_gtag_UA_84821447_11 minuteSet by Google to distinguish users.
_gid1 dayInstalled by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
663a60c55dsessionThis cookie is related to Zoho (Customer Service) Chatbox
Save & Accept
Powered by CookieYes Logo
Go to mobile version