[Congressional Record Volume 169, Number 72 (Friday, April 28, 2023)] [House] [Pages H2093-H2103] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Date: 2023-04-28
Chamber: HOUSE
Mr. BLUMENAUER: I appreciate my colleagues' newfound concern for the environment and for the industry. Mr. Speaker, I include in the Record correspondence from the solar industry in the United States opposing their resolution and supporting our position.  Re: Please Oppose Retroactive Duties and Protect American Clean Energy Jobs and Investment With a ``No'' Vote on the Auxin CRA (H.J. Res. 39/S.J. Res. 15).  We are writing to respectfully ask that you oppose H.J. Res. 39/S.J. Res. 15. Enactment of this resolution would impose over $1 billion in retroactive duty liability, increase energy costs for consumers, cost thousands of American jobs, and hamstring efforts to reduce greenhouse gas emissions. Last year, a single company filed anti-circumvention petitions with the Department of Commerce (Commerce). The threat of duties ranging from 50 percent-250 percent on solar panels and cells from Malaysia, Vietnam, Thailand, and Cambodia called for in the petitions abruptly froze solar supply chains. A significant number of domestic solar projects experienced cancellations or delays as a result. To address this disruption, after Commerce accepted the petitions and initiated a set of investigations, President Biden issued an emergency declaration that included a temporary 2-year pause on potential duties arising from the investigations. This pause allowed planned solar projects to move forward while the investigations proceeded. American stakeholders subsequently relied on Commerce's regulations to make significant business and economic decisions. Nullifying Commerce's rulemaking as provided for in H.J. Res. 39/S.J. Res. 15 would penalize companies, acting in accordance with the law, by imposing large (up to 254 percent), unanticipated retroactive duty liability for these stakeholders--back to April 1, 2022. Going back on this federal commitment would create a chilling effect on American business, setting a terrible precedent that undermines America's competitiveness in the global marketplace.       Passing H.J. Res. 39/S.J. Res. 15 would also stall or cancel planned solar projects, eliminate 30,000 jobs, including 4,000 manufacturing jobs, and $4.2 billion of investment in domestic solar projects. 4GW of planned solar projects representing roughly 14 percent of the industry's anticipated deployment in 2023 would be cancelled. This in turn would increase CO2 emissions by 24 million metric tons. American businesses need certainty and a bridge to domestic manufacturing. Right now, only about one-third of U.S. demand for solar panels (including both crystalline silicon and thin film photovoltaic panels) can be met with domestic production, and domestic manufacturers are sold out for the next 2-3 years. It is our preference to source solar panels domestically, and we are heartened by the rapid expansion of domestic solar manufacturing that is currently occurring. However, ramping up this production capacity across the solar supply chain will take time, and the temporary 2-year duty pause provides a necessary bridge to the point where domestic production capacity is more capable of meeting demand. For these reasons, and to avoid needless disruption in the solar marketplace, we respectfully ask that you oppose H.J. Res. 39/S.J. Res. 15. Thank you in advance for your consideration. Sincerely, Solar Energy Industries Association; American Clean Power; American Council on Renewable Energy; Edison Electric Institute; E2; Silicon Valley Leadership Group; Clean Energy Buyers Association; Advanced Energy United; Coalition for Community Solar Access. ____  Solar Energy Industries  Association,  Washington, DC, April 17, 2023. Hon. Jason Smith, Chairman, House Committee on Ways and Means, Washington, DC. Hon. Richard Neal, Ranking Democratic Member, House Committee on Ways and Means, Washington, DC. Re H.J. Res. 39, a resolution disapproving the rule submitted by the Department of Commerce relating to ``Procedures Covering Suspension of Liquidation, Duties and Estimated Duties in Accord With Presidential Proclamation 10414.''  Dear Chairman Smith and Ranking Member Neal: I am writing to you on behalf of the Solar Energy Industries Association (SEIA), the national trade association for the U.S. solar industry. On behalf of the 250,000 American workers employed by the solar industry, I wanted to share our perspective in advance of the Ways and Means Committee's consideration of H.J. Res. 39. Barring a major departure from the new regime governing circumvention outlined in Commerce's preliminary determination on December 8, 2022, SEIA does not plan to advocate for an extension of the 2-year duty pause beyond its current expiration on June 6, 2024. However, nullifying the Department of Commerce (Commerce) rulemaking that provided the 2-year duty pause would punish businesses who acted in good faith and complied with existing law with over $1 billion in retroactive duties and undercut the rapidly accelerating expansion of domestic solar manufacturing capacity that will onshore the industry's supply chains over the next few years.  Background  On February 8, 2022, a single company filed anti- circumvention petitions with Commerce that caused havoc in the U.S. solar industry. The threat of retroactive duties ranging from 50-250 percent on solar panels and cells from Malaysia, Vietnam, Thailand, and Cambodia called for in the petitions abruptly froze the industry's supply chains. Industry surveys indicated that 75 percent of domestic solar projects experienced cancellations or delays as a result. This significantly contributed to the drop in solar deployment in 2022 compared to the previous year. To address this issue and provide time for additional domestic solar production to come online, President Biden issued Proclamation 10414 on June 6, 2022, declaring an emergency and authorization for temporary extensions of time and duty-free importation of solar cells and modules from Southeast Asia. The proclamation gave Commerce authority to issue regulations providing a 2-year pause from June 6, 2022, through June 6, 2024, on potential duties arising from these petitions while the investigations proceeded. Commerce posted the regulations in the Federal Register on September 16, 2022.  Impact of H.J. Res. 39  H.J. Res. 39 would nullify the Commerce rulemaking that domestic stakeholders relied upon to make significant business and economic decisions. Since Commerce regulations provide that duty liability attaches upon initiation of a circumvention inquiry, enactment of H.J. Res. 39 would subject stakeholders to over $1 billion in duties retroactive to April 1, 2022. This abrupt and retroactive change in policy would eliminate 30,000 good-paying U.S. jobs--including 4,000 manufacturing jobs--and $4.2 billion in domestic investment. 4 GW of solar projects would be cancelled, which would in turn increase CO2 emissions by 42 million metric tons.  Temporary Duty Pause Provides Bridge to Domestic Solar Manufacturing  Domestic solar manufacturing capacity is rapidly expanding. In 2021, the U.S. had the capacity to manufacture up to 7GW per year of solar panels, or enough to meet roughly one-third of total domestic demand. The U.S. solar industry prefers to source equipment domestically and has put forward an aggressive yet achievable roadmap to reach 50GW of domestic solar manufacturing capacity by 2030. As an industry, solar is diligently working to onshore its supply chains. A major transition is underway. The Department of Energy National Renewable Energy Laboratory's tracking of initial public announcements shows forthcoming panel manufacturing capacity totaling 42GW--on track to meet the industry's 50 GW by 2030 goal. However, building out manufacturing facilities and all the technology necessary to fully supply the solar industry will take time. H.J. Res. 39 would unfortunately undermine this progress. Placing retroactive duties on solar cells, an essential component of a solar panel for which there is currently no domestic production, directly undercuts efforts to ramp up domestic solar panel manufacturing. The 2-year duty pause from June 6, 2022, through June 6, 2024, is a temporary measure that provides a bridge to the point that domestic manufacturing is more capable of meeting domestic demand. This policy is working, and our reliance on foreign supply chains will lessen as more domestic production capacity comes online. Barring a major departure from the new regime governing circumvention outlined in Commerce's preliminary determination, SEIA does not plan to advocate for an extension of the 2-year duty pause beyond its current expiration on June 6, 2024.  Conclusion  I appreciate the opportunity to share the U.S. solar industry's perspective and concerns with H.J. Res. 39. Many thanks in advance for your consideration, and I would be happy to visit with you in greater detail about this issue. Sincerely,  Abigail Ross Hopper, Esq.,  President & CEO, Solar Energy Industries Association.