Before the Christmas holidays, Congress passed a spending package that contained good news for electric cooperatives. The House and Senate averted a government shutdown by agreeing to a fiscal 2017 continuing resolution that keeps operations running until April 28.
However, decisions on some high-profile issues were deferred until the next congressional session.
Congress maintained funding to the RUS Loan Program
In the fiscal resolution, Congress maintained its level of funding for the Rural Utilities Service Electric Loan Program, funded at $5.5 billion. San Patricio Electric Cooperative, and other electric co-ops, use the RUS Loan Program to finance electricity generation and distribution. These loan funds help electric co-ops provide safe, affordable and reliable electric service to 42 million people every day.
The program is an important part of the cooperative business. As in many industries, the federal government provides assistance to each sector of the utility business. Investor-owned utilities get tax breaks, municipal utilities have access to tax-exempt financing and electric cooperatives rely on RUS. We’re pleased to see that Congress has recognized this as an essential part of powering rural America and has continued to fund the program.
Of course, this program is beneficial to the government as well, because it contributes to deficit reduction. RUS loans are repaid with interest to the U.S. Treasury. In fiscal year 2017, electric loan payments are expected to net more than $300 million to the U.S. Treasury.
Energy issues on the radar for 2017
More energy related legislation will be left for the 115th Congress and the Trump administration. During the next congressional session, the National Rural Electric Cooperative Association and electric cooperatives will push congress for important provisions that affect cooperatives, including:
Proper vegetation management on utility rights of way across federal land. Electric cooperatives that have service territory on or near federal land have asked Congress to reform current policies that make right-of-way access difficult. These co-ops must perform routine vegetation management, such as tree trimming, to ensure electric reliability to members. However, there’s often a long review process when it involves federal land. Specifically, co-ops are pushing for reforms that streamline the right-of-way review process and reduce the risk of liability.
Extending tax credits for geothermal heat pumps. At the end of 2015, Congress extended tax credits for solar and wind energy through 2022. However, they did not extend the credit to geothermal heat pumps. The tax credits for geothermal heat pumps expired at the end of 2016.
Pension legislation. Co-op leaders and employees have sent thousands of messages in support of a reduction in federal insurance premiums paid by the Retirement Security Plan to the Pension Benefit Guaranty Corp. Co-ops say increased costs could impair their ability to maintain benefit programs for their employees.
Clarifying the role of the North American Electric Reliability Corp.
Repealing a 2007 requirement that phases out fossil fuel use in new and renovated federal buildings.