WASHINGTON – Today, U.S. Senators John Hickenlooper, Chris Van Hollen, and 11 other senators urged top U.S. financial regulators at the Federal Reserve, Comptroller of the Currency, and the Federal Deposit Insurance Corporation to strengthen bank capital requirements while also supporting continued robust private investment in America’s ongoing clean energy transition.
“Developers of multiple renewable energy project sponsors across the country have expressed concerns with the sudden shift in deals failing to move forward until further notice [of the rule]. This is particularly alarming for smaller project sponsors who rely on this financing to remain in operation and deploy future projects,” wrote the senators. “We urge you to consider an appropriate balance of strong capitalization and risk weightings that would prevent a permanent chilling effect on future clean-energy deployments.”
The senators expressed support for tax equity as a primary form of capital for clean energy projects, which presents low risk to the banks that participate. They urged the regulators to produce a strong final rule in the final phase of the Basel III Capital Requirements that accurately reflects the true nature of tax equity investment in clean energy, which has served as a key driver for transformative projects seeking the green tax incentives available through the Inflation Reduction Act.
The American Council on Renewable Energy (ACORE), the American Clean Power Association (ACP), and the Solar Energy Industries Association (SEIA) have endorsed the senators’ efforts to protect tax equity investments as a clean energy financing tool.
Full text of the letter available HERE.