Resolution 988 – support using tax deferment to improve support of clean energy
RESOLUTION ON USING TAX DEFERMENT TO IMPROVE EQUITY IN SUPPORT OF CLEAN ENERGY
WHEREAS nuclear power remains the second most important low-carbon source of electricity after hydropower worldwide and nuclear power jobs are among the highest paying jobs in the energy sector and the most likely to be unionized1, nuclear capacity is not growing fast enough to meet the required levels in the International Energy Agency’s Net Zero Emissions by the 2050 Scenario, so policy decisions are required now to put nuclear back on track2, and
WHEREAS President Biden has set a 2030 greenhouse gas pollution reduction target aimed at creating good-paying union jobs and securing U.S. leadership on clean energy technologies3, the Democratic National Committee’s platform endorses nuclear power4, the platform of the Washington State Democratic Central Committee calls for state and federal research on next generation nuclear power5, and nuclear power is included in Washington State’s Clean Energy Transformation Act6, and
WHEREAS the Northwest Power Pool warns that WA State faces a 17% probability of rolling blackouts7 by 2026 from insufficient generation to meet an increased load as the last coal plant closes in 2025, and the Northwest Power Pool and the E3 Northwest Resource Adequacy study both warn that the effective capacity contribution of Washington’s 7,100 MW of wind power in the Pacific Northwest is only 7% of its nameplate capacity, that is, only 500 MW of wind power can be expected on the coldest or warmest days in the region when the power is most needed8, and
WHEREAS decarbonizing Washington State’s economy requires clean baseload power sources to support renewables, and the next generation of nuclear power plants using small advanced modular reactors need to be deployed in tandem with solar and wind to avoid additional fossil fuel consumption, and the company X-Energy has announced its plan to build its first modular high temperature gas cooled reactor, capable of load following renewables, near the Columbia Generating Station in Eastern Washington, within the scope of the Department of Energy’s Advanced Reactor Demonstration Program9, and
WHEREAS Washington State provides a variety of tax incentives for development of solar and wind projects10, but not, currently, for other clean energy sources, an amendment11 proposed to the Invest in Washington Act is aimed at encouraging the production of advanced and small modular reactors and components in the State of Washington via sales and use tax deferrals, which are repaid after a certain amount of time, unlike exemptions,
THEREFORE BE IT RESOLVED that the Benton County Democratic Central Committee supports small advanced modular power reactor research in Washington and endorses the tax deferment amendment to the Invest in Washington Act, and
BE IT FINALLY RESOLVED that a copy of this resolution shall be forwarded to the 8th and 16th LD Senators and Representatives, to the Senate Committee on Environment, Energy and Technology, to the Governor of the State of Washington, to the Senators of the State of Washington, to the Democratic Caucus leaders of both chambers of the Washington State Legislature and that it be submitted to the Washington State Democratic Central Committee for consideration at its January 2022 meeting.
Submitted to the Benton County Democratic Central Committee December 9, 2021.
Passed by the Benton County Democratic Central Committee December 19, 2021.
References:
1 https://www.energy.gov/us-energy-employment-jobs-report-useer
2 https://www.iea.org/reports/nuclear-power
4 2020 Democratic Party Platform (https://democrats.org/where-we-stand/party-platform/)
5 2020 WSDCC Platform, lines 735-736 (https://www.wa-democrats.org/about/documents/)
6 2019 Clean Energy Transformation Act (https://www.commerce.wa.gov/growing-the-economy/energy/ceta/)
7 https://www.nwcouncil.org/reports/pacific-northwest-power-supply-adequacy-assessment-2024
8 table 14, p.37 in “Resource Adequacy in the Pacific Northwest”, https://www.ethree.com/wp-content/uploads/2019/03/E3_Resource_Adequacy_in_the_Pacific-Northwest_March_2019.pdf
11 https://app.leg.wa.gov/billsummary?BillNumber=5244&Year=2021&Initiative=false