Master Limited Partnership Parity Act Introduced in the Senate
Today, Senator Chris Coons (DE) and Senator Jerry Moran (KS) introduced the Master Limited Partnership (MLP) Parity Act (S. 3275) in the U.S. Senate. The legislation is an important step in promoting economic growth across the energy industry and in the continued development of Marine and Hydrokinetic (MHK) renewable energy sources.
"The Ocean Renewable Energy Coalition (OREC) strongly supports the legislation introduced today by Senator Coons and others to allow master limited partnership (MLP) investment in renewable energy,” stated OREC President Sean O'Neill. "It makes sense to encourage a diverse energy generation portfolio and begin to move towards an even playing field with regard to federal mechanisms that support private investment in all forms of energy production.”
Specifically, the MLP legislation seeks to extend the publicly traded partnership ownership structure to additional energy power generation projects and transportation fuels. Current law inhibits the use of the MLP structure for renewable energy and updating the legislation to include renewables will enhance energy security, create jobs and economic development, and promote environmental improvements. Additionally, by reducing the price of renewable energy, the need for costlier subsidies will gradually decrease as these technologies are broadly deployed and made more efficient.
Marine renewable energy has potential to become a major source of electricity for the United States, and its growth could be realized through policy changes like those proposed in the Master Limited Partnership Parity Act. The development of marine technologies can significantly increase domestic energy generation while providing environmental benefits and national energy security. With Congressional support, the nation will accelerate the tremendous benefits from these emerging technologies that will create jobs, diversify energy production, and contribute to a climate friendly future.
"Extending the MLP market-based incentive structure to qualified renewable technologies, such as wave, tidal and ocean current convertors, will stimulate investment in the renewable energy sector and provide the U.S. with more home grown energy choices,” concluded O'Neill. "The members of OREC appreciate the effort behind this legislation and will do all we can to support its passage and signature into law this year.”