The American Public Power Association is urging the Senate Finance Committee to either remove or significantly increase the $800 million cap on clean renewable energy bonds and ease other tax law restrictions in any tax legislation that accompanies climate and energy bills.

In a letter sent last week to Sens. Max Baucus, D-Mont., and Charles Grassley, R-Iowa, the committee's chairman and ranking Republican, APPA said that as Congress develops new climate legislation emphasizing more expensive clean-energy investments, public power should be treated equally to investor-owned utilities. Investor-owned utilities can take advantage of unlimited production tax credits for such investments, but those tax credits are useless for publicly owned, nonprofit utilities, the group said.

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