In Wake of Recent Natural Disasters, Cantwell Introduces Bipartisan Legislation Enabling Utilities to Invest in System Upgrades

In Wake of Recent Natural Disasters, Cantwell Introduces Bipartisan Legislation Enabling Utilities to Invest in System Upgrades

WASHINGTON, D.C. - U.S. Senator Maria Cantwell (D-WA), ranking member of the Senate Committee on Commerce, Science, and Transportation and senior member of the Finance Committee, this week introduced the Disaster Zone Energy Affordability and Investment Act, which will allow utilities to more easily deploy earned federal tax credits as they rebuild and reinvest in critical systems affected by natural disasters.

"Washingtonians know that natural disasters like flooding, wildfires, and windstorms are becoming more frequent and costly. This bill will help utilities invest in system improvements that harden local power grids so they are more reliable during natural disasters and so increases in utility bills after extreme weather events can be avoided," said Sen. Cantwell.

Thousands of Washingtonians lost power during December's weather events due to damaged power lines.

The Disaster Zone Energy Affordability and Investment Act would allow energy companies to apply unused tax credits from prior years, using the savings to more quickly repair damaged energy infrastructure, lower the overall cost of these projects, and pass these savings on to energy customers.

Sen. Cantwell's legislation is supported by several energy companies, including Puget Sound Energy, a major utility provider in Washington state.

"Our customers are experiencing more frequent natural disasters, including December's historic flooding and the November 2024 bomb cyclone that hit our region. The ability to use federal tax credits, earned in the past, to invest into system improvements that can help mitigate the impacts of future natural disasters will benefit our customers by keeping costs lower," said Mary Kipp, President & CEO of Puget Sound Energy. "Thank you, Senator Cantwell, for introducing this important bill. We stand ready to help secure its passage in any way that we can."

In addition to Sen. Cantwell, the legislation is cosponsored by U.S. Senator Lindsey Graham (R-SC).

Background on the Disaster Zone Energy Affordability and Investment Act:

• In recent years Congress has enacted and extended several energy tax credits to incentivize the development of cleaner sources of energy, but certain restrictions in the tax rules are an impediment to the ability to deploy these financial resources during restoration efforts following a natural disaster.
• Under current law, businesses are permitted to transfer or sell these tax credits, yet the extent to which they may be used is heavily limited. For example, these energy tax credits are capped so that they can only be used to cover up to 75 percent of a company's tax liability, and they are unable to be applied to prior or future tax liabilities.
• This legislation would permit eligible, taxpaying companies to use energy tax credits - beyond current restrictions - to invest in areas designated as "disaster zones." In order to qualify as a "disaster zone," the area in question must be designated as such by either the President or a state governor.
• In order to receive the full benefit of the tax credits, investments must be used to support energy development projects that assist in the rebuilding of damaged energy infrastructure. By lowering the tax burden on companies contributing to reconstruction efforts, the total cost of these projects will be reduced and communities will be able to rebuild faster after disasters.

Last month, Sen. Cantwell helped lead the Washington congressional delegation's response to flooding and other damage caused by the atmospheric rivers.

On Thursday, December 11, Sen. Cantwell joined Washington state's entire congressional delegation in a letter to President Donald Trump urging him to approve Governor Ferguson's request for an expedited Emergency Declaration.

On Friday, December 12, Sen. Cantwell joined Washington state Governor Bob Ferguson for a press conference following a briefing about the impact of flooding in King County.

On Saturday, December 13, Sen. Cantwell joined Sen. Patty Murray (D-WA) and Governor Bob Ferguson in Monroe for a flooding impacts briefing from Snohomish County officials, and for a briefing at the Mount Vernon flood wall. Photos from those stops are available HERE.

That same day she also joined U.S. Rep. Rick Larsen (D, WA-02) for a briefing and roundtable discussion about flood impacts to Whatcom County from local mayors, tribal leaders, and first responders.

Sen. Cantwell is continuing to work with the National Weather Service, the U.S. Coast Guard, FEMA, the Small Business Administration, the U.S. Department of Transportation, the Army Corps of Engineers, and other federal agencies to ensure our communities have emergency management resources and will be able to recover.