Senator Coons leads bipartisan, bicameral letter to President Obama on MLPs, REITs

The sponsors of the Senate and House versions of the Master Limited Partnerships Parity Act will hold a press conference on Wednesday morning to discuss a letter they and more than two-dozen of their colleagues are sending to President Obama this week calling for Master Limited Partnerships and Real Estate Investment Trusts to be a priority in the federal government’s “all of the above” energy strategy. 

Their letter is below:

December 12, 2012
The President
The White House
1600 Pennsylvania Avenue, NW
Washington, DC 20500

Dear Mr. President,

Over the past four years, the renewable energy sector has seen major reductions in technology costs, including a 75 percent decline in the price of solar panels and about a 25 percent decline in the price of wind turbines. But even as technology costs have dropped, the cost of capital required to deploy those technologies has remained stubbornly high – inflating overall project costs and presenting a major barrier to wider deployment.

Minor changes to the federal tax code could provide the renewable energy industry access to large pools of low-cost private capital. Already, oil, gas, and coal infrastructure projects raise cheap capital by selling shares of Master Limited Partnerships (MLPs), as do energy transmission projects using Real Estate Investment Trusts (REITs). Wind, solar, and other renewable energy projects cannot use these investment tools and, therefore, suffer from high costs of capital.

Opening MLPs and REITs to renewable energy would level the playing field by giving renewables the same access to low-cost capital enjoyed by oil, gas, coal and transmission infrastructure projects. Small tweaks to the tax code could attract billions of dollars in private sector investment to renewable energy deployment, reduce the cost of renewable electricity by up to one third, and dramatically broaden the base of eligible investors. In fact, bipartisan legislation has already been introduced in both the House and the Senate (H.R. 6437 and S. 3275 respectively) to allow renewable energy projects to raise low-cost capital through the MLP structure. In the case of REITs, a straight forward ruling by the Treasury Department would allow access to this investment vehicle for renewable energy projects.

We strongly support moving America towards energy independence using an “all of the above” energy strategy. Renewable energy can play a critical role in accomplishing that goal. We ask that your administration move to unlock capital markets for broad-scale investment in renewable energy and help move our country towards cleaner, more efficient energy. We stand ready to work with you to accomplish this goal.

Sincerely,

Senator Coons (D-DE)
Senator Moran (R-KS)
Representative Poe (R-TX-2)
Representative Thompson (D-CA-1)
Representative Welch (D-VT)
Representative Carney (D-DE)
Representative McCollum (D-MN-4)
Representative Moran (D-VA-8)
Representative Garamendi (D-CA-10)
Representative Schakowsky (D-IL-9)
Representative Clay (D-MO-1)
Senator Begich (D-AK)
Senator Harkin (D-IA)
Representative Kissell (D-NC-8)
Senator Murkowski (R-AK)
Senator Bennet (D-CO)
Senator Tester (D-MT)
Representative Lujan (D-NM-3)
Senator Brown (R-MA)
Representative Grijalva (D-AZ-07)
Representative Capps (D-CA-23)
Representative Connolly (D-VA-11)
Senator Franken (D-MN)
Representative Matsui (D-CA-5)
Senator Shaheen (D-NH)
Representative Watt (D-NC-12)
Representative Carson (D-IN-7)
Representative McIntyre (D-NC-7)
Representative Carnahan (D-MO-3)

Senator Coons speaks on importance of heating assistance

At the Delmarva Power Low Income Energy Assistance Summit on Tuesday, Senator Coons spoke about the importance of the Low Income Home Energy Assistance Program, known as LIHEAP. The event, held in Dover, was designed to help non-profits, social service agencies and government entities better understand the types of services available for low income households.  

With winter weather fast approaching, Chris discussed his commitment to protecting funding for LIHEAP, as well as investing in other energy efficiency programs, such as weatherization, that can keep heating costs down for Delaware families.

 “In Delaware alone, LIHEAP took a cut of 25 percent – literally leaving thousands of our seniors out in the cold,” Chris said.  “Last winter, a number of families who were struggling to heat their homes called my office. We were able to work with Catholic Charities to get them the support they needed, but it just underscores how vital these programs really are.”

Click here to learn more about applying for heating and cooling assistance. If you are in need of assistance to heat your home this winter, please call Chris’ constituent services representatives at 573-6345.

Senator Coons stands behind President’s call for accelerated investments in industrial energy efficiency

U.S. Senator Chris Coons, a member of the Senate Energy Committee, expressed strong support on Thursday for President Obama’s plan to speed up investments in America’s industrial energy efficiency, including combined heat and power. The Executive Order will enhance American manufacturing competitiveness and create jobs, while also improving our nation’s energy system and reducing harmful emissions. 

“Continuing to develop our industrial energy efficiency standards will better ensure American manufacturing remains competitive in today’s international market,” Senator Coons said. “Our manufacturing sector is the backbone of our economy, and it’s imperative that we do all we can to help our businesses succeed and create jobs. President Obama’s proposal is an investment in our economy, our environment, and our energy security. I applaud President Obama for this Executive Order and look forward to continuing to advocate for the development of clean, safe, reliable energy sources.”

The Executive Order will:

• Set a national goal of 40 GW of new combined heat and power installation over the next decade;
• Direct DOE and EPA to convene stakeholders through ongoing regional workshops to foster a national dialogue to identify, develop, and encourage the adoption of best practice policies and investment models;
• Direct all Federal agencies to use existing federal policies to support investment in industrial energy efficiency and CHP, provide public information on the benefits of unlocking investment in industrial energy efficiency, and support manufacturers and states to share best practices and access technical assistance.

Investments in industrial energy efficiency, including combined heat and power, offer significant benefits to manufacturers, utilities and communities across the country, including: Improving U.S. manufacturing competitiveness; creating jobs now through investments upgrading our manufacturing facilities; offering a low-cost approach to new electricity generation capacity to meet current and future demand; significantly lowering emissions; and enhancing grid security.

For more details on the President’s plan, click here.  

To learn more about Senator Coons’ work towards clean, sustainable energy, click here.

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Senator Coons joins Secretary Chu at DSU to talk energy efficiency

On Monday, Senator Coons joined United States Secretary of Energy Steven Chu on the campus of Delaware State University. Secretary Chu’s visit marked DSU’s participation in President Obama’s national Better Building Challenge, a public-private partnership that will save billions of dollars in energy costs, promote energy independence and create tens of thousands of jobs in the hard-hit construction sector.

“We’re grateful to have Secretary Chu back in Delaware for the second time in just a few months,” Senator Coons said. “Energy efficiency is one of the most straightforward and effective ways we can save money and conserve energy.”  

As a Better Buildings Challenge partner, DSU aims to reduce energy consumption by 25% in about two million square feet of building space by 2015. To do that, the university will decrease energy usage and update vital facility systems using a new and innovative financing option. New Castle County and the State of Delaware are also partners in the Better Building Challenge.

Chris is a longtime advocate of energy efficiency programs, dating back to his work on former Governor Ruth Ann Minner’s Energy Taskforce. He is currently a member of the Senate Committee on Energy and Natural Researches and is a co-chair of the Alliance to Save Energy.

To learn more about Chris’ work on energy issues, click here.

ICYMI: News Journal praises Senator Coons’ “daring” energy-finance bill

The News Journal featured an editorial on Sunday endorsing Senator Coons’ new legislative proposal to level the playing field by giving investors in renewable-energy projects access to a decades-old tax advantage now available only to investors in fossil fuel-based energy projects.

We have witnessed a lot of talk about energy, “green jobs,” climate change and renewable sources. We have heard calls for America to be energy independent, to be innovate and to be steady in lowering the volatile energy sources. The most sensible proposal has been to go for “all of the above” when it comes to types of energy.

…

Last week, U.S. Sen. Chris Coons of Delaware introduced a bill that would create a new partnership structure for would-be investors in renewable energy. The structure would offer tax advantages that would spur investors to support companies that will meet the tests of the energy market.

The idea holds promise.

The bill is called the Master Limited Partnership Parity Act — “parity” being the key. It would give renewable energy companies the same opportunities now available to other energy industries.

Click here to read the full editorial on the News Journal’s website.

Click here to learn more about the bill.

Video: Senator Coons introduces bill to spark investment in renewable energy projects

U.S. Senator Chris Coons (D-Del.) took to the Senate floor on June 7, 2012 to discuss legislation he introduced with Senator Jerry Moran (R-Kan.) to give renewable energy projects access to a tax incentive available now only to oil, gas, and coal projects. Their bill, the Master Limited Partnerships Parity Act, brings fairness back to the tax code and helps level the playing field for investors in alternative energy projects.

Click here to read more about the Master Limited Partnerships Parity Act.

ICYMI: Writing in NY Times, experts in energy finance endorse Senator Coons’ proposal

The New York Times featured an op-ed on Saturday about the importance of developing new ways to finance alternative energy projects. The op-ed, which was penned by Dan Reicher, Executive Director of Stanford University’s Steyer-Taylor Center for Energy Policy and Finance, and Felix Mormann, a Fellow with the Steyer-Taylor Center for Energy Policy and Finance, discusses Senator Coons’ proposal to introduce legislation to allow master limited partnership investment in renewable energy to help “level the playing field between conventional and renewable energy.”

If renewable energy is going to become fully competitive and a significant source of energy in the United States, then further technological innovation must be accompanied by financial innovation so that clean energy sources gain access to the same low-cost capital that traditional energy sources like coal and natural gas enjoy.

Two financial mechanisms that have driven investment in traditional energy projects — real estate investment trusts and master limited partnerships — could, with some help from Washington, be extended to renewable energy projects to lower their cost and make America’s energy future cleaner, cheaper — and more democratic.

Click here to read the full op-ed on New York Time’s website.

Click here to learn more about Chris’ work to promote clean energy technology.

Bloom Energy breaks ground in Newark

NEWARK — Senator Coons was on hand to commemorate the ground-breaking of Bloom Energy's new manufacturing facility on the grounds of the old Chrysler plant in Newark Monday morning -- an important moment for the Delaware's economic future.

"When we think about the threads that will keep America competitive in the global economy for the next generation, we think of innovation, entrepreneurship, clean energy and manufacturing - and all of those are coming together today here in Delaware," Senator Coons said. "In building its East Coast facility here in Newark, Bloom isn't just investing in its own cutting-edge technology - Bloom is investing in Delaware's communities, our families, and our future. This is a wonderful day for Delaware, and is a day made possible because of what Delaware brings to the table: a talented workforce, a welcoming business climate, and the tremendous leadership of folks like Governor Markell, Secretary O'Mara and DEDO Director Levin. I am proud to welcome Bloom Energy to Delaware today, and look forward to a long, fruitful relationship."

Blueprint for a Secure Energy Future

This week, the White House released a one-year progress report on the President’s Blueprint for a Secure Energy Future, which identifies steps to help reduce our reliance on foreign oil, save families and businesses money, and make the U.S. a global leader in clean energy.

The President’s plan is critically important for our energy future because it identifies steps to move beyond the piecemeal approach of last several decades and offers a comprehensive set of energy policy goals.

As a member of the Senate Energy and Natural Resources Committee, Senator Coons is actively engaged in promoting energy security, efficiency, and clean energy innovation.  He believes a clear, cohesive energy policy that includes both the public and the private sector would empower investors, innovators, researchers, and entrepreneurs to develop game-changing energy technologies.

In analyzing the White House’s progress report, a few key themes emerge:

Expanding Domestic Production of Oil and Gas and Reducing Imports

Since 2008, the U.S. has increased domestic oil production by more than 12 percent and natural gas production by roughly 15 percent, making America the new world leader in natural gas production.  Currently, we have more oil and gas rigs operating than the rest of the world combined, and we are less dependent on foreign oil than in the last 16 years. 

Chris believes that we must continue to grow our domestic energy production in ways that meets health and safety standards and limits environmental impact.  While greater domestic production will not bring down gas prices overnight, it will contribute to our long-term energy security.  

Establishing New Fuel Economy Standards

This past year, President Obama announced a historic agreement with major automakers to increase the Corporate Average Fuel Economy (CAFE) standards to 54.5 miles per gallon for cars and light-duty trucks by model year 2025.  The Energy Information Administration’s latest outlook recognized that fuel economy standards have contributed to our increased energy security.

Chris recently joined 29 of his fellow Senators in signing a letter expressing strong support for the new CAFE standards, which  will save consumers $1.7 trillion at the pump and reduce oil consumption by 2.2 million barrels a day – more than the total amount we import from OPEC. 

Supporting Energy Efficiency and Renewable Energy

Since 2009, the Administration has completed energy upgrades in more than one million homes across the country, many of which will save families over $400 on heating and cooling bills each year.  Due to investments in clean energy, the U.S. has nearly doubled renewable energy generation from wind, solar, and geothermal sources since 2008.

Chris is a passionate advocate for clean energy innovation, in particular through the Advanced Research Projects Agency – Energy. He recently had the opportunity to visit their conference and see cutting-edge energy ideas at work.

Ending Subsidies for Oil and Gas Companies

The President’s FY 2013 budget seeks to eliminate subsides for oil and gas companies that cost American taxpayers $4 billion annually and impede investments in cleaner energy.  Chris agrees these subsidies are a waste of taxpayer dollars and provide unnecessary support for mature energy technology.  He voted last year in favor of the Close Big Oil Tax Loopholes Act (S. 258) to end these subsidies, and while this vote was unsuccessful, Chris will continue to work to ensure that clean energy industries are not disadvantaged in comparison to the oil and gas industry. 

Senator Coons to help introduce Clean Energy Standard Act

Senator Chris Coons, a member of the Senate Committee on Energy and Natural Resources, will join several of his Senate colleagues and leaders in the energy field for a press conference on Thursday to roll out a bill that aims to set strategic, practical clean energy standards on the largest utilities.

The Clean Energy Standards Act of 2012, which comes with no cost to the federal government, has three major objectives:

• To promote a diverse set of sources of low- and zero carbon electricity generation in the U.S.
• To drive clean energy innovation and American ingenuity  
• To do so simply, transparently, predictably, and cost-effectively with a long-term market signal.

Senate Energy Chairman Jeff Bingaman (D-N.M.) is the lead sponsor of the bill. 

The press conference will occur a day after both senators delivered remarks supporting federal investments in the development of innovative clean energy at the third annual Department of Energy ARPA-E Energy Innovation Summit.

Video, audio, and photos of Chris’ remarks will be posted to the website after the press conference.

Click here to learn more about Chris’ work advocating for clean energy.