Solar

Report: Biden would veto repeal of solar tariff pause if it clears Congress

Report: Biden would veto repeal of solar tariff pause if it clears Congress
September 14, 2021 - Joe Biden, President of the United States, speaks during a visit the Flatirons Campus of the National Renewable Energy Laboratory in Arvada, Colorado. The President received insight into NREL’s long-term research mission, vision, and critical objectives which directly align with his decarbonization goals and national energy priorities.(Photo by Werner Slocum / NREL).

President Joe Biden intends to veto a bipartisan effort to undo his moratorium on new solar tariffs if legislation is passed by Congress, according to a report from Reuters.

Reuters, which cited White House officials in the report on April 24, added that Biden does not intend to extend the tariff pause when it expires in June 2024 due to "strong trends in the domestic solar industry."

More than 400 companies signed a letter addressed to leaders in Congress on April 17 opposing the use of the Congressional Review Act to turn back Biden's executive order. The order was issued last June 6 in an effort to ease concerns that a federal trade investigation could stymy solar project development.

In addition to blocking new tariffs through June 2024, the pause blocked retroactive penalties that could result from the Commerce Department's investigation of Auxin Solar's petition alleging unfair trade practices by a handful of Chinese manufacturers. Commerce issued a preliminary determination in December that found some manufacturers with operations in Southeast Asia are circumventing trade duties against China. The agency is expected to release its final ruling on May 1.

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In January, a bipartisan group of lawmakers filed a bill to use the Congressional Review Act to roll back Biden's tariff moratorium. Bill author Dan Kildee (D, MI) called the pause on new tariffs "unacceptable" given the December preliminary ruling from Commerce in the Auxin Solar case.

The Congressional Review Act allows Congress to repeal rules imposed by the executive branch if they were put in place within 60 legislative days of the end of the last legislative session. To repeal a rule, lawmakers in turn must introduce CRA legislation within 15 days of a new legislative session.

While a simple majority is required in both chambers for passage, a CRA bill must pass the House of Representatives within 60 calendar days of its introduction, or it expires.

Kildee introduced the legislation with Representatives Bill Posey (R-FL), Bill Pascrell (D-NJ), Bob Latta (R-OH), Terri Sewell (D-AL) and Garret Graves (R-LA).

The Solar Energy Industries Association trade group suggests that passing the CRA legislation could eliminate 30,000 jobs and lead to the cancellation of 4 GW of solar project development this year, representing a lost investment of $4.2 billion.