Twenty-two U.S. senators are urging the Biden administration to 'swiftly' conclude an investigation into whether solar modules imported from four Southeast Asia countries are skirting tariffs levied against China.
The Dept. of Commerce's investigation of a tariff petition from Auxin Solar, a small San Jose, California-based solar module manufacturer, is "already causing massive disruption in the solar industry," and the investigation alone threatens thousands of American jobs, the senators wrote in a letter addressed to President Joe Biden.
The letter was signed by one Independent senator, a Republican, and 20 Democrats, including Sens. Dianne Feinstein and Alex Padilla from Auxin's home state of California.
Subscribe today to the all-new Factor This! podcast from Renewable Energy World. This podcast designed specifically for the solar industry launches May 9th with a deep-dive breakdown of the Auxin Solar tariff petition, including the impact to PPA markets and corporate net-zero targets."We strongly urge your administration to swiftly review the case and make an expedited preliminary determination," the group wrote. "Such a determination should carefully consider the significant policy ramifications and reject the petitioner's request for retroactivity."
The group of senators also requested a meeting with Biden to discuss the Auxin Solar tariff petition.
After investigating the anti-dumping and countervailing duties (AD/CVD) investigation into solar modules imported from Thailand, Malaysia, Cambodia, and Vietnam, Commerce could implement tariffs ranging from 50-250%. Tariffs could also be applied to modules imported from those countries before April 1, 2022.
Auxin Solar is a self-described contract manufacturer with about 150 MW in annual manufacturing capacity -- a relatively small operation given that around 10 GW of utility-scale solar generating capacity was developed in the U.S. last year.
Auxin Solar CEO Memun Rashid gave his first extensive interview since filing the tariff petition on the Factor This! podcast, a new podcast from Renewable Energy World designed specifically for the solar industry debuting on May 9. Subscribe wherever you get your podcasts.
The decision was made to file the AD/CVD petition after a previous petition was rejected by Commerce because a group of anonymous U.S. solar module manufacturers refused to identify themselves. Auxin was not involved in that petition, Rashid said, but the company was disappointed when it failed.
The Trump administration's Section 201 tariff and quota on imported solar cells in 2018 had a positive impact on Auxin's business -- but something changed in the last few quarters.
"We want to make sure investing in American manufacturing is a safe bet. That's what this is all about," Rashid said. "Once we saw the data (regarding solar modules produced in Southeast Asia), it looked very suspicious."
Rashid said that opponents to its trade petition "have done a pretty good job of associating our name with just negative connotations of tariffs or whether it's a bad impact for the adoption of renewable energy, our jobs in the solar industry. So they've done a pretty good job… it has had a negative impact."
The Solar Energy Industries Association, which has aggressively fought the latest AD/CVD case, has called Auxin's petition "frivolous" and abusing U.S. trade laws to benefit a single company.
Three-quarters of solar companies responding to a SEIA survey reportedly said that panel deliveries have been cancelled or delayed in the days since the U.S. Commerce Department took up the petition.
“This investigation is based on a meritless trade case that is hammering the solar industry in real-time and diminishing our efforts as a country to tackle climate change,” said Abigail Ross Hopper, SEIA’s president and CEO, in a statement sent to Renewable Energy World. “This is yet another attempt to abuse U.S. trade laws and cause serious economic harm to the American solar industry and its 230,000 workers, shockingly, all at the behest of a single company,” Hopper said.
Subscribe today to the all-new Factor This! podcast from Renewable Energy World, which debuts on May 9th. This podcast is designed specifically for the solar industry and is available wherever you get your podcasts.
Despite the threat to his company's survival, Rashid said he won't stop until the "entire supply chain" is reshored to the U.S. That may be a tall order.
While Commerce has been condemned by the greater solar industry for "choosing" to investigate the Auxin Solar tariff petition, the agency is bound by federal statute to investigate petitions from qualified U.S. companies that meet all requirements.
Last week, Commerce Secretary Gina Raimondo said her hands are "very tied," while acknowledging the impact that even the launch of an investigation is having on the solar industry.
A preliminary determination is expected 150 days after the initial petition was submitted in February.