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FMRC hears federal tax‑credit, tariff outlook; staff say most development pipeline is insulated
Summary
Staff summarized congressional reconciliation proposals, tariff volatility and impacts on the agency’s developing renewable portfolio; presenters said most of the agency’s under‑development projects have safe‑harbored equipment or begun construction and are therefore less exposed to immediate tax‑credit or tariff risk.
San Diego Community Power staff briefed the Finance and Risk Management Committee on June 12 about federal tax‑credit proposals, recent U.S. tariffs, and implications for the agency’s developing power‑supply portfolio.
Patrick Wells, associate director of legislative affairs, summarized competing federal proposals including HR 1, which would shorten the window for capturing investment and production tax credits for utility‑scale projects (requiring projects to be placed in service by the end of 2028 under that proposal) and would add country‑of‑concern restrictions affecting component sourcing. Wells said the reconciliation bill’s timeline and contents were uncertain and that the agency is monitoring developments through trade associations and federal consultants.
Janine Camara, director of portfolio management, reviewed recent tariff volatility and supply‑chain concentration for photovoltaic modules and battery components. She said PV module supply has diversified somewhat to Southeast Asia and other countries, but that battery cell and critical materials supply remains heavily concentrated. Camara told the committee that nearly all but two of the agency’s utility renewable projects under development have either commenced construction or have safe‑harbor equipment and are therefore on track to begin operations by the end of 2028; she said roughly one project remains relatively more exposed to tax‑credit and tariff risk.
Staff framed the briefing as a forward‑looking status update and said they would keep the committee and board informed as federal legislation or tariffs evolve.
