For Immediate Release:
Contact: Colden Franklin
Colden@heatispower.org
September 18, 2024
Twelve U.S. Representatives, led by Congressman Brad Schneider (D-IL), sent a letter to Treasury Secretary Janet Yellen, urging the Department to recognize the clean energy benefits of waste energy recovery property (WERP) – also known as waste heat to power (WHP) – and to grant all WERP categorical inclusion under the section 45Y/48E clean electricity production and investment tax credits. The letter was signed by Reps. Brad Schneider, Earl Blumenauer, Sean Casten, Danny Davis, Marcy Kaptur, Joe Morelle, Jimmy Panetta, Chellie Pingree, Mark Pocan, Linda Sanchez, Tom Suozzi, and Paul Tonko.
In June, the Department of Treasury released a proposed rule to implement the clean electricity credits that come online January 1, 2025. The clean electricity credits allow taxpayers to receive a 30% investment credit or 1.5 cents per kWh production credit for deploying eligible zero-emission technologies. Stackable bonus credits for meeting domestic content requirements (10% adder) and building in a designated Energy Community (10% adder) further incentivize the deployment of clean energy technologies. Under the draft rule, WERP receives only partial inclusion as a categorically non-C&G facility, which means taxpayers will be required to complete an expensive and time-consuming lifecycle emissions analysis to attain credit for certain WHP projects.
The congressional letter from leading energy and tax legislators calls on Treasury to recognize all WERP projects as categorically included (non-C&G) in a final 45Y/48E rulemaking. The letter points specifically to existing Department of Energy and national lab analyses and publications that demonstrate how WERP is a valuable zero-emission technology, capable of decarbonizing hard to abate industrial and manufacturing processes.
The Heat is Power Association (HiP) has been leading advocacy efforts to encourage the Department of Treasury to grant all WERP projects categorical inclusion under the clean electricity credits. In August, HiP submitted detailed regulatory comments to the Federal Register along with an industry letter endorsed by 90 businesses and organizations that call on Treasury to recognize all WERP as categorically included (non-C&G) in a final 45Y/48E rulemaking.
The HiP thanks its congressional allies for weighing in on this important issue and working to advance smart solutions that will decarbonize the industrial sector and help meet U.S. climate goals.
Click here to view the congressional letter to Treasury.
Click here to view Rep. Schneider’s press release.
The Heat is Power Association (HiP) is an international trade association representing the waste heat to power (WHP) industry. HiP educates policymakers on the untapped clean energy opportunities presented by WHP and advocates for policies that promote parity in the research, investment, development, deployment, and tax treatment of WHP technologies with other emission-free clean energy generation resources. Learn more at www.heatispower.org
