Biden to use executive action to spur solar projects hit by probe -sources

Clean Energy Technologies

06/06/2022 03:25

(Adds detail, quote)
    By Jeff Mason
    WASHINGTON, June 5 (Reuters) - President Joe Biden will use
executive action on Monday to help bridge a solar panel supply
gap and kickstart stalled U.S. projects after an investigation
froze imports from key foreign suppliers, sources familiar with
the matter said.
    The moves come amid concern about the impact of the Commerce
Department's months-long investigation into whether imports of
solar panels from four Southeast Asian nations are circumventing
tariffs on goods made in China.
    Biden also will invoke the Defense Production Act to drive
U.S. manufacturing of solar panels and other clean technologies
in the future, with the support of loans and grants, the sources
added.
    "There is  going to be this safe harbor timeout on the ...
collection of duties, and that's at the heart of what's going to
save all of these solar projects and ensure that they are going
forward," said one source familiar with the White House's plans.
    State governors, lawmakers, industry officials and
environmentalists have expressed concern over the investigation,
which could result in retroactive tariffs of up to 250 percent.
    It has essentially halted imports from Cambodia, Malaysia,
Thailand and Vietnam, which account for more than half of U.S.
solar panel supplies and 80 percent of imports. 
    The investigation has had a chilling effect on the industry,
say clean energy groups, some of which have asked Commerce
Secretary Gina Raimondo to dismiss it, though she has said she
has no discretion to influence it.
    The source, who spoke on condition of anonymity, said
Biden's action would bring certainty back to the U.S. solar
market and allay companies' concerns about having to hold
billions of dollars in reserves to pay potential tariffs.
    The investigation, announced at the end of March, could take
150 days or more to complete.
    The issue has created a unique dilemma for the White House,
which is eager to show U.S. leadership on climate change, in
part by encouraging use of renewable energy, while respecting
and keeping its distance from the investigation proceedings.
    Using executive action and invoking the DPA, which allows
presidents some authority over domestic industries, allows Biden
to take advantage of the tools available to him without stepping
on the tariff inquiry. 

 (Reporting by Jeff Mason; Additional reporting by Nichola
Groom; Editing by Tom Hogue)
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