June 23, 2020
Statement from ESA CEO Kelly Speakes-Backman on the introduction of H.R.2, the Moving Forward Act
“We greatly appreciate the House of Representatives’ leadership with the inclusion of energy storage in the Moving Forward act with the following three major areas of relief and stimulus:
- Make stand-alone energy storage eligible for investment tax credit (ITC) with the option to elect a “direct payment;”
- Include energy storage technologies explicitly as an investment option for electric vehicle infrastructure; and
- Promote storage technology innovation.
“Now more than ever, these common-sense, forward-looking policies with bipartisan and bicameral support are crucial,” said Kelly Speakes-Backman, CEO of the U.S. Energy Storage Association. “The progress the energy storage industry is making to foster resilient, efficient, sustainable and affordable electric service is being threatened by the devastating impacts of COVID-19. Energy storage companies are facing widespread project delays, reduced revenues, and the potential of lost jobs.
“Storage eligibility for the ITC, as proposed in the Moving Forward Act, will offset reductions and delays in market deployments in both the near- and medium-term due to COVID-19, protecting the expanding numbers of Americans employed in energy storage. ESA is advocating that Congress first make energy storage technologies eligible for the ITC with the option to elect direct payment—as the Moving Forward Act proposes—and also allow regulated utilities to opt-out from normalization of a direct payment election of the ITC for energy storage.
“In addition, ESA strongly supports explicit inclusion of onsite energy storage in federal funds for vehicle charging infrastructure and transportation system electrification, as well as provisions for technology demonstrations such as ESA has endorsed previously in the Promoting Grid Storage Act. These measures are aligned with ESA’s requests that energy storage be made an investment option for federal programs that provide resources to state and local governments and communities for electric resilience, efficiency, sustainability and affordability.
“According to surveys conducted by ESA, the U.S. energy storage industry has experienced significant slowdowns in business and expects revenue decreases in the second quarter from cancellations, difficulty obtaining supplies, and delays in approvals or permits, threatening potential further job losses, especially in the manufacturing sector. With industry members facing significant uncertainty and lacking a clear sense of how far into the future COVID-19 impacts will be felt, ESA looks forward to working with Congress to support economic recovery through continued energy storage deployment, industry investments, and enabling a more resilient grid.”