Advocacy in Action: Giving Participants a Voice in Washington, D.C.

One of the ways MEAG Power supports Participants is through advocacy on energy-related issues that could potentially affect the cost or reliability of wholesale power. MEAG Power partners with industry and trade associations to monitor legislation and meet with state and federal government legislators, committees and/or agencies, providing a unified voice for Participants’ interests.

It was in that spirit that members of the MEAG Power staff, Board and Government Affairs Committee made their annual advocacy trip to Washington, D.C., at the end of April. The timing of the trip and the focus of the Committee’s messaging was tailored to the federal budget legislation that was being developed.

At the time, Congress was working on a tax reform bill through the budget reconciliation process that had several aspects of interest to MEAG Power and the Participants:

• Preservation of tax-exempt financing
• Support for elective pay and certain (nuclear) energy tax provisions
• Preservation of federal Build America Bond support payments

During the trip, the Committee members met with Senator Jon Ossoff, Representatives Rick Allen, Buddy Carter, Andrew Clyde, Mike Collins, Barry Loudermilk, Lucy McBath, Rich McCormick and Austin Scott, as well as staff members of several other offices. The Congressmembers learned firsthand about the vital interests of the Participant communities that could be impacted by the budget legislation.

Following to the visit, Congress continued to work on the legislation, which it eventually passed. On July 4, H.R. 1, commonly known as the One Big Beautiful Bill Act bill, was signed into law. In the end, public power fared relatively well given the possible outcomes of the bill negotiations

Key aspects of the law include:

• Tax-exempt financing was kept intact.
• Elective pay authority also was not changed.
• Clean energy tax credits are maintained for nuclear (existing and future), hydropower and geothermal facilities, though they are subject to a phaseout schedule that begins in 2033.
• Investment Tax Credits and Production Tax Credits for wind and solar projects were significantly diminished.
  • Projects that begin construction within 12 months can get 100% credit with no “Placed in Service” deadline, though a subsequent Executive Order directs the Treasury Department to significantly narrow the definition of “begin construction” to limit the availability of tax credits.
  • Projects beginning after 12 months must be placed in service by December 31, 2027.

Other energy-related outcomes from the final budget include:

• Tax credits for the purchase of new and used EVs are terminated, as are residential clean energy credits after 2025 and energy efficient home improvement credits.
• “Prohibited foreign entities” are prevented from benefiting from a range of energy tax credits, including those for clean electricity and advanced manufacturing.

Rob Talley, President of Talley & Associates, who advocates on behalf of MEAG Power and the Participants, spoke about the bill and its aftermath in a concurrent session at the recent MEAG Power Annual Meeting. He noted that passage of H.R. 1 marks the end of one process and the start of another – regulatory implementation and any necessary corrections that need to be made to the law.

Also, as relates to PAYGO budget sequestration, spending related to H.R. 1 could trigger additional discretionary spending cuts, requiring more legislative action before the end of the year to keep intact the Build America Bond support payments. So, while the efforts of the MEAG Power Government Affairs staff and Board Government Affairs Committee produced many positive outcomes in the passed legislation, their important work continues.