Master Limited Partnerships Parity Act would level energy playing field, increase private investment
For Immediate Release - April 24, 2013
Washington, DC – Today, the American Council On Renewable Energy announced its full support for new legislation opening access to a key investment structure known as a Master Limited Partnership (MLP) for renewable energy projects.
The proposed legislation, titled the Master Limited Partnerships Parity Act, is sponsored by Senators Coons (D-Dele.), Moran (R-Kan.), Stabenow (D-Mich.), and Murkowski (R-Alaska), and Representatives Poe (R-Texas), Thompson (D-Calif.), Welch (D-Vt.), Gibson (R-N.Y.), and Gardner (R-Colo.).
Master Limited Partnerships are a well-established business structure that is taxed as a partnership, but has ownership interests of a corporation including publicly traded stock, liquidity, limited liability and dividends. Currently, the MLP structure is only available for investors in fossil-fuel based energy projects. The Master Limited Partnerships Parity Act will level the playing field with the fossil fuel industry and give investors in renewable energy projects attractive access to increased capital opportunities.
“Introducing the Master Limited Partnership Parity Act shows great, bipartisan leadership,” said ACORE’s President and CEO, Admiral Dennis McGinn. “This is important legislation to level the playing field and promote greater private investment in our nation’s abundant and affordable renewable energy resources and fuels. Enabling Master Limited Partnership investment in renewable energy and infrastructure can help lower project costs, leading to more economic investment and a more diverse energy mix.”
Allowing renewable energy to benefit from MLPs will bring the United States closer to adopting a true “all of the above” energy strategy. Additionally, MLPs would greatly compliment federal energy policies such as the Production Tax Credit (PTC), Investment Tax Credit (ITC) and state policies such as Renewable Portfolio Standards (RPS).
Together, state and federal policies like the Master Limited Partnerships Parity Act will create a business-friendly environment to provide long-term certainty for financiers wishing to do business in the United States, which will ensure America’s leading role in the renewable energy industry.
ACORE, a 501(c)(3) non-profit membership organization, is dedicated to building a secure and prosperous America with clean, renewable energy. ACORE seeks to advance renewable energy through finance, policy, technology, and market development and is concentrating its member focus in 2013 on National Defense & Security, Power Generation & Infrastructure, and Transportation. Additional information is available at www.acore.org.