Senators Ask Biden to Reject Retroactivity, Accelerate Solar Circumvention Investigation
A third of the Democratic caucus in the Senate asked President Joe Biden to expedite an investigation into antidumping and countervailing duty circumvention by solar panel manufacturers in Cambodia, Malaysia, Thailand and Vietnam, if they use Chinese components. The letter, made public on May 2, was led by Sen. Jacky Rosen, D-Nev., who made the same arguments to Commerce Secretary Gina Raimondo when she appeared before the Commerce Committee (see 2204270041).
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The letter, which was also signed by two Republican senators, told Biden: "Initiation of this investigation is already causing massive disruption in the solar industry, and it will severely harm American solar businesses and workers and increase costs for American families as long as it continues. We strongly urge your administration to swiftly review the case and make an expedited preliminary determination. Such a determination should carefully consider the significant policy ramifications and reject the petitioner’s request for retroactivity."
The senators said that half of the new solar panels in the U.S. each year come from these four countries, and that they account for 80% of imports. Even the existence of the investigation is causing shortages, they said.
Depending on which Chinese company is the ingot or wafer supplier, the combined AD/CVD could be about 49% (see 2104210015 and 2108270035) or it could be more than 270%. The letter described the upper boundary as 250%, and then gave this example: "That could mean massive price hikes for U.S. utility customers, given that with [solar] modules subject to 250% tariffs, a typical 100MW utility scale solar project would face $62.5 million in duty exposure. This would needlessly increase energy costs at a time when consumers are already facing rising prices and high costs of living."
Raimondo previously told Rosen: "My hands are very tied here. I am required by statute to investigate a claim that companies operating in other countries are trying to circumvent the duties. And I am required to have a fulsome investigation. What I will commit to is moving as fast as possible.... I understand you need certainty, but I have to follow the statute."