NGO letter to Commerce – Revised
June 22, 2022
The Honorable Gina M. Raimondo Secretary of Commerce
U.S. Department of Commerce 1401 Constitution Avenue, NW Washington, D.C. 20230
Dear Secretary Raimondo:
The organizations signing this letter represent public interest, non-governmental and environmental organizations from throughout the Western U.S. Collectively, our organizations work to create a carbon-free electric system in the West that will allow the region to address the climate crisis. Many of our organizations have worked for decades to promote and support evolution of the electric system and expansion of the transmission system, all in support of developing clean energy, including solar.
We have been gratified to see cost of solar energy plummet over the past decade to become one of the least cost energy sources available to electric utilities, businesses, and homeowners. The significant cost declines in all aspects of solar power development (e.g., cells and modules, balance of system, and installation) has resulted in significant procurement by utilities for solar and solar/battery hybrid power plants.
Energy produced by solar is needed to meet growth in the region, for replacement of aging power plants, for electrification of the transportation and building sectors, and to reduce Greenhouse Gas emissions. Many states in our region have adopted clean energy mandates1, which may not be met without a continuing supply of solar cells and modules from Cambodia, Malaysia, Thailand and Vietnam.
Today solar is the preferred resource for many Western electric utilities. However, the Auxin Solar Tariff Petition has materially affected the development of solar in the West. Utilities around the region are warning regulators, customers, and shareholders that solar project are in jeopardy or being delayed. According to the April 2022 survey completed by the American Solar Energy Industries Association2 83% of the entities planning to purchase or use solar modular are
1 https://www.ncsl.org/research/energy/renewable-portfolio-standards.aspx
2 https://www.seia.org/sites/default/files/2022-04/FINAL%20Auxin%20Impact%20Analysis%202022-04-26_0.pdf
seeing cancellation or delays in securing modules, which may result in the cancellation or delay in solar projects.
Certainly, the Biden Administration Executive Order issued June 6, 2022, which ensures tariffs will not be imposed on solar modules and cells from Cambodia, Malaysia, Thailand, and Vietnam for 24 months has eased immediate concerns.
However, until the Commerce Department has issued its ruling, the circumvention inquiries initiated pose a dire threat to solar projects in the West, which are necessary for electric utilities to provide clean, reliable, and affordable electricity. An affirmative circumvention ruling that imposes high tariffs will have a negative effect on future solar development and a lasting one on our ability to meet climate goals.
Thus, we emphatically urge you to reach negative circumvention determinations, as soon as possible, to ensure that electric utilities in the West will be able to provide essential electric service to customers while addressing climate change.
Sincerely,
Amanda Ormond Director
Western Grid Group
Sarah Wright
Director
Utah Clean Energy
Claire Broome Leadership Team
350 Bay Area
Pat O’Connell
Deputy Director Clean Energy Western Resource Advocates
Lauren McCloy Policy Director
NW Energy Coalition