On Tuesday, February 20, Lori Pickford and Karen Price of Morgan Meguire met with House Ways and Means Select Revenue Measures Subcommittee Staff Director Melissa Mueller and Rep. Richard Neal's (D-MA) energy Legislative Assistant Dan Houton to discuss the Clean Renewable Energy Bond (CREB) program. In the 110th Congress, Rep. Neal became Subcommittee Chairman, with jurisdiction over all revenue measures, including energy tax incentives. APPA's Legislative Director, Joy Ditto, and Large Public Power Council (LPPC) Tax Counsel, Jayne Fitzgerald, also participated in the meeting.
Pickford discussed New England's regional efforts to address climate change, noted that each state except New Hampshire has a renewable portfolio standard (RPS), and said that efforts to implement federal legislation are underway in both areas (RPS and GHG). She also highlighted the need for federal incentives, such as the CREB program, to help consumer-owned utilities reduce the cost of expensive renewable generation.
While aware of the CREBs program, it appeared the staff was not fully informed on the details of its operation, including the problems with the allocation methodology and the definition of "governmental entity." We emphasized the success of the program, judging by the $2.6 billion in applications for allocations, which underscores the need for an extension with no cap or a significantly greater one. Staff took note that, in Massachusetts, consumer-owned utilities requested over $70.5 million in CREB allocations but were granted only $3.4 million.
Mueller asked whether Treasury applied any criterion other than size in evaluating an application, for instance, a qualitative analysis of a project. We explained that the "smallest-to-largest" methodology did not consider any other criteria.
Mueller indicated that full Committee on Ways and Means would be holding the first two hearings on energy, one of them possibly as early as next week. Those two hearings will be followed by a hearing in the Subcommittee on Select Revenue Measures on energy incentives proposed by Members. Mueller thought that hearing would occur in late March. Significantly, she invited public power's testimony at these hearings. The hearings are intended, at least in part, to develop options for "spending" the so-called "trust fund" amounts raised by the repeal of the oil-and-gas incentives in H.R. 6. Melissa noted, however, that the Senate has yet to act on H.R. 6, so that there is not any money to spend thus far.