Under current law, Congress has chosen winners and losers by extending the most efficient energy tax treatment only to carbon-based energy sources.
FAIR stands for Financing American Investment in Renewables. The Coalition is advocating for a level playing through the use of Master Limited Partnerships (MLP) treatment for renewable energy sources under U.S. tax law.
The MLP tax structure would provide a predictable tax policy that does the following:
5 Encourages investment in U.S. renewable energy projects.
f Lowers the delivered cost of energy to consumers and ratepayers.
o Creates a wide range of jobs.
l Promotes American competitiveness in the global race to develop and utilize competitively priced renewable energy sources.
In February 2013, a group of renewable energy industry leaders became founding members of a new coalition to advocate for a level playing field in the energy sector by seeking to extend the availability of Master Limited Partnerships (MLPs) to wind, solar, and other assets.
Organized initially by First Wind, the Coalition for Financing America’s Investment in Renewables, known as the FAIR Coalition, includes First Wind and other leading renewable energy companies such as Vestas, Gamesa, OWN Energy, Everpower, Invenergy, Geronimo, Pattern Energy, juwi, Terra-Gen Power, Tradewind Energy, First Solar and Keybanc Utility, Power and Renewables.
The Coalition is being coordinated by the law firm of Covington & Burling LLP.
The Coalition is also reaching out to other major industry players, including developers, utilities, manufacturers, service companies, and financial sponsors. Click on CONTACT US to inquire about joining the Coalition.
We believe that as renewable energy becomes even more competitive in the energy marketplace, there is no reason to exclude these forms of energy from using the MLP structure that has allowed for strong and consistent investment in the oil and gas sectors for two decades. While MLPs have generated the abundant and affordable capital that has built our modern oil and gas infrastructure, renewable energy assets are not eligible to use the MLP, because they are not classified as “natural resources,” and so legislation is needed to level the playing field for capital formation across diverse sources of energy.
FAIR Coalition representatives have met over the past two months with many dozens of key Congressional offices. In response to tremendous interest on the Hill and in industry, Senator Chris Coons (D-DE), and Congressman Ted Poe (R-TX) recently introduced the Master Limited Partnership Party Act. These bills, S. 795 and HH.R. 1696, build on last year’s legislation and extend the MLP structure to a wide range of renewable energy activity, including not just solar and wind but other renewables and energy efficiency.
The FAIR Coalition has created this website to serve as a clearinghouse for the MLP legislative initiative. This website will contain up-to-date credible and non-partisan information about the progress of our efforts and analyses of the benefits of MLP treatment in a variety of different situations for renewable energy projects and investments. Both the House and Senate bills have bipartisan co-sponsorship and bi-partisan support.
We are now developing analytical information explaining the impact of the legislation, and meeting extensively with potential co-sponsors for both bills.
We have worked closely with a number of stakeholders to assemble 235 signatures from companies and organizations on a letter to Congress strongly supporting MLP treatment for renewable energy assets. Others who helped circulate the letter in addition to our own FAIR Coalition network were the Energy Finance Working Group; US PREF; the Clean Energy Business Network (coordinated by the Pew Foundation); and others.
We welcome membership from all segments of the renewable energy industry that benefit from passage of this legislation including those in the solar and energy efficiency industries.