Latest news with #CEBA
Yahoo
4 days ago
- Business
- Yahoo
Kansas may face a triple-whammy on energy bills
KANSAS (KSNT) – With the possibility of federal tax credits being repealed, low energy assistance programs on the chopping block and Evergy seeking a rate hike, Kansans face a triple-whammy when it comes to energy bills. Several studies from this year indicate the average electric bill for families could rise as much as $400 under Trump's 'One Big Beautiful Bill Act' (OBBBA), according to The Independent. The Clean Energy Buyer's Association (CEBA) raised the red flags in a recently commissioned report on May 15 on the repeal of federal energy tax credits. The Committee for a Responsible Federal Budget reports that under the bill, $249 billion in energy investment, production and manufacturing credits would be phased out. Additionally, the bill would strip funding for various environmental projects. Cutting federal investment and production tax credits could raise electricity and natural gas prices and lead to an economic slowdown, according to the CEBA. The report claims that cutting the credits could lower household incomes in 19 states between 2026 and 2032. What to know for Germanfest 2025 in Topeka 'If these tax credits disappear, American households and businesses in both red and blue states would experience economic harm,' CEBA CEO Rich Powell wrote in the report from May 15. 'This is not a partisan issue. Americans voted to combat the cost-of-living crisis in the 2024 election. Now is the time for Congress to incentivize private investment in more sources of low-cost, reliable energy that fuels economic growth and jobs, helps the United States secure energy dominance and independence, and decreases energy costs nationwide.' Kansas could lose 5,250 jobs and see energy prices increase 14.3% for households and 16.7% for businesses, according to CEBA. CEBA also reported that Kansas could see an average loss of $420 in household incomes and a $600 million decrease in state GDP. 27 News reached out to Evergy to see what federal tax credits they receive, have applied for, and whether they'll lose them under the OBBBA. The company didn't answer questions regarding tax credits but said it's working with the Edison Electric Institute to see how changes in legislation would impact the industry. 'The bill is not final and predicting what effect it may have on prices is unknowable given the changing nature of generation sources and increased usage,' Evergy spokesperson Gina Penzig wrote. Car insurance rates in Kansas and the impact of traffic violations Evergy has submitted a request with the Kansas Corporation Commission for $196.4 million, or an 8.62% rate increase, to cover the cost of increased operating expenses. If the proposal is approved as-is, the new electric rates would take hold in September 2025. Residential customers could see an average monthly increase of $13.05. Evergy will be holding public hearings on the rate hike proposals later this month. Those aren't the only things that could hurt wallets. On Tuesday, April 1, the Department of Health and Human Services (HHS) terminated the employment of everyone working on the Low-Income Home Energy Assistance Program (LIHEAP), according to a now-former employee. Kansas's Low-income Energy Assistance Program (LIEAP) helped distribute funds from LIHEAP to lower-income families under the Department of Children and Families. Those programs won't be continued under the OBBBA, according to the Independent. Free driving school for teens coming to Topeka 'To date, the Kansas Department for Children and Families (DCF) has not received information from federal partners about any potential impacts to Kansas' Low Income Energy Assistance Program (LIEAP),' DCF Deputy Director of Media Relations Erin La Row told 27 News in April. 'The current LIEAP application period ended on March 31, 2025. DCF continues to process applications and draw down federal funds as usual at this time.' 27 News checked back with DCF on June 5 for a status update on LIEAP. La Row said DCF still hasn't received any updates from its federal partners. For more local news, click here. Keep up with the latest breaking news in northeast Kansas by downloading our mobile app and by signing up for our news email alerts. Sign up for our Storm Track Weather app by clicking here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
15-05-2025
- Business
- Yahoo
Repealing energy tax credits would raise electricity costs, study says
This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. Repealing technology-neutral clean energy tax credits would raise the cost of energy for consumers and industry across 19 states from 2026 to 2032 by increasing reliance on natural gas generation sources that have constrained availability, according to a new study released Thursday by the Clean Energy Buyers Association. Republicans in Congress have targeted the tax credits for early phase-out as they seek to fulfill President Donald Trump's campaign promises to extend certain tax cuts and repeal clean energy incentives the president has derided as a 'scam.' The study found that energy-intensive sectors such as iron and steel, chemicals, cement, aluminum and nonferrous metals would be hardest hit. CEBA's members include many of the technology giants, such as Amazon, Google and Meta, whose data centers and AI models are largely driving the increase in electricity demand. 'They are very concerned that if we don't handle this rising electricity demand in a very, very responsible way, that we're going to see very high electricity price increases both for our own businesses and for our customers,' CEBA CEO Rich Powell said in an interview. He said many CEBA member companies are in 'growth mode,' pouring huge investments into building new technology, manufacturing and retail sites. 'Anything that destabilizes the electricity system right now, and the economics of the electricity system, could be really difficult for our businesses,' he added. The study, which NERA Economic Consulting conducted for CEBA, modeled the state-level electricity market outlooks assuming incremental electricity demand from the growth of data centers under two scenarios, with and without the federal investment and production tax incentives. It also provided a breakdown of projected cost increases in certain states. Seven of the 19 states would see double-digit percentage increases in average household and business electricity prices in the 2026-2032 period, according to the study. Maine would see the highest average increases, projected at 20% for households and 19.3% for businesses. The increased costs would reduce economic growth, the study states. 'As commercial and industrial activity declines, demand for labor and capital falls, leading to wage losses, declining household income, and shrinking investment,' it states. 'The scale and severity of these impacts vary by state but are significant and far-reaching.' Utilities have also voiced concerns. The Edison Electric Institute, which represents investor-owned utilities, has come out in favor of keeping the incentives, saying they support Trump's stated goals of keeping energy prices as low as possible and strengthening U.S. competitiveness, national security and energy dominance.
Korea Herald
08-05-2025
- Business
- Korea Herald
US clean energy alliance joins Seoul-led carbon-free energy initiative
The United States' biggest clean energy alliance has joined a carbon-free energy initiative led by South Korea, Seoul's industry ministry said Thursday. The US Clean Energy Buyers Association signed a memorandum of understanding for bilateral cooperation with South Korea's Carbon Free Alliance on the sidelines of a CEBA event in Minnesota on Tuesday, according to the Ministry of Trade, Industry and Energy. Under the initial agreement, CEBA will take part in the CFE's global working group, representing the American private sector, on efforts to define carbon-free energy and create international certification standards for such energy. The CFE initiative, a global initiative proposed by Seoul in 2023, focuses on achieving carbon neutrality by utilizing a wide array of carbon-free energy sources, including nuclear and hydrogen power. With CEBA's participation, the CFE global working group now has seven members, including South Korea, Japan, the United Arab Emirates and the Czech Republic. "CEBA's involvement, especially with the backing of influential US tech companies that have long advocated for RE100 compliance, marks a significant step forward in elevating the global stature and reach of the CFE Initiative," CFA Chairman Lee Hoe-sung said. Established in 2018, CEBA has over 400 member companies, including global tech giants Apple Inc., Microsoft Corp., Inc. and Google. (Yonhap)
CBC
21-02-2025
- Business
- CBC
Northern Ontario tourism businesses survived pandemic to repay CEBA loans, industry says
Social Sharing Representatives of rural and remote northern Ontario tourism operators say they have largely paid back the Canada Emergency Business Account (CEBA) loans that helped them get through the COVID-19 pandemic. And some operators in northeastern Ontario are doing better than ever as a result of pandemic-era efforts to attract more tourists from within Canada. "Before the pandemic … 95 per cent of our clientele was from the U.S.," said David MacLachlan, a partner at Lodge 88 on Esnagi Lake and the executive director of Destination Northern Ontario. "Last summer when we ran the numbers, we were basically 50/50. … You know, even though the border at Sault Ste. Marie has still been down seven per cent … those extra Ontario fishermen more than made up for the loss of American business." But other operators aren't out of the woods yet, particularly in northwestern Ontario, where American business has been slower to come back, and it's harder to draw business from the Greater Toronto Area, said Gerry Cariou, the executive director of Ontario's Sunset Country Travel Association, which promotes tourism between Upsala and the Manitoba border. Many tourism operators in the far west of the province struggled to pay the loan back, he said. Statistics Canada reports on CEBA repayment CBC News checked in with the industry after Statistics Canada released a report on Tuesday documenting the repayment status of the CEBA loans, which provided more than $49 billion in funding to nearly 900,000 businesses across Canada. The loans were part of a suite of federal programs offered to businesses during the pandemic to help them survive the drop in revenue caused by border closures and stay-at-home orders. Some Canadian business leaders are calling for similar programs to support businesses affected by new United States tariffs. Under the CEBA, businesses could borrow up to $60,000 interest-free and were offered partial loan forgiveness if they repaid before Jan. 18, 2024. Any loans not paid off by that deadline are due Dec. 31, 2026, and payable at an interest rate of five per cent per year. StatsCan found that 18.8 per cent of the loans were still outstanding at the time of the forgiveness deadline, but the number was just 13.4 per cent in the traveller accommodations sector. Agriculture, forestry, fishing and hunting were at less than 10 per cent, though it's unclear how many hunting and fishing tourism operators are so categorized. MacLachlan said the performance of Ontario's tourism sector is consistent with its performance under previous programs. "If we went back into the 1980s and '90s, when there was a lot of development programs, the tourism sector had a very, very low default rate on those programs," he said. Northern Ontario's hunting and fishing tourism operators are heavily reliant on American business and had warned of possible bankruptcies during the pandemic-related border closures, as they had to continue to pay high overhead costs, including, in some cases, the cost of maintaining and insuring small aircraft. MacLachlan said most companies, in fact, survived, and credited that survival in part to the skill of the business owners. CEBA helped operators get through lean summer after border closure MacLachlan also said the CEBA helped his business get through the first year of the pandemic, when he had only approximately 60 guests – down from more than 500 in a typical year. The co-owner of Crane's Lochaven Wilderness Lodge in French River told a similar story. Between 65 and 70 per cent of Crane's pre-pandemic business came from U.S. customers, Sue Crane said. The CEBA and other government financial supports helped keep the business open while the Cranes worked to attract Canadians from the Greater Toronto Area, who now make up around half of her business. The Cranes paid off the loan in time to get partial forgiveness, but they did so at the expense of other needed investments in their business, she said. "We didn't want that hanging over our head," Crane said. "And also, I mean it was generous of the government to, you know, forgive us for the $10,000. So, you know, that was an incentive to pay it back also." The executive director of Nature and Outdoor Tourism Ontario (NOTO) said any new government programs aimed at helping businesses through the instability brought on by U.S. tariffs should come with more flexible repayment terms than the CEBA offered. "I think it would have been wonderful had the government taken a look ... at those sectors that were most heavily impacted by the pandemic and considered, you know, carrying them for longer or … turning those into grants," Laurie Marcil said. Cariou agreed, saying the government should base the repayment terms on the length of the emergency. "They only had a half a year under their belt and they had to start paying a fairly large loan payment back," he said. "And they had to then go to, say, a private financial institution to lend the money … or else they would lose [the loan forgiveness]."
CBC
16-02-2025
- Business
- CBC
Small GTA businesses still struggling to pay CEBA loans nearly 5 years later
Nearly five years after Ontario went into lockdown to reduce the spread of COVID-19, small businesses are still struggling to pay back their Canada Emergency Business Account (CEBA) loans. Cathy Reid, who's owned Endless Tails Pet Nutrition Centre in Mississauga for 20 years, says she fears she may have to close. "Everybody wants me to stay. But, unfortunately, between this loan, rent being so high and purchasing the food … It's been a little bit difficult," she told CBC Toronto. Reid says she will be "devastated" if she has to leave her regular clientele and declare bankruptcy. The CEBA program opened for applications on April 9, 2020, in the hopes of supporting businesses during the pandemic. Initially set at a $40,000 limit per company, it was later increased to $60,000 and provided more than $49 billion to nearly 900,000 businesses. The loan was available through a variety of financial institutions, all of which had different ways of granting it— from credit cards, to cheques and direct deposit. As of Dec. 31, 2024, there were still 161,000 small businesses owing money on their loans, Export Development Canada (EDC) told CBC Toronto in an emailed statement. That equates to a total of nearly $7.8 billion. Reid took out a $40,000 CEBA loan with the Royal Bank of Canada at the recommendation of her then-accountant. She still hasn't been able to pay it back and attributes this to more Canadians choosing to shop online and difficulties affording pets and animal care products. "I think online shopping has totally destroyed not just my business, but I think a lot of businesses," she said. There are a variety of reasons why businesses have not been able to bounce back post-pandemic, says Ryan Mallough, vice president of legislative affairs at the Canadian Federation of Independent Business (CFIB). "We had interest rates going up, cost of living, affordability challenges — people weren't spending the way that they were pre-pandemic," Mallough said. Paola Girotti, owner and founder of Sugarmoon Salon, took out a $60,000 CEBA loan with TD Bank, but it wasn't enough to keep her three Toronto locations running. "We were only ever able to get one grant because it was done per corporation, not by location," she said. During the pandemic, Girotti had to close down one of her Toronto parlours, leaving her with salons only on the Danforth and at Bloor West. But, unlike Reid, she's since been able to rebuild, taking over lower capital investments of salons that are going out of business or needing some extra support. "We do have a good model for success," she said. Despite this, she says paying back the CEBA loan is not her primary concern. "My first priority is to make sure that our staff are secure, that we're able to pay them," Girotti said. She says she wishes the government would forgive the loan. "They need to just allow businesses to wipe the slate clean," said Girotti. Reid agrees that it's unfair to make businesses pay back CEBA money. "There was a lot of fraud there that the government missed," she said. "I feel that they're coming after the people who work the hardest, the ones that are out there making a [mark] in the community." A spokesperson for the EDC told CBC Toronto in a statement that the centre understands the financial struggle, hence its application and repayment deadline extensions, eligibility criteria expansions and financial support increases. "As EDC works with Canadian exporters, many of whom are small-sized companies, we are sensitive to the situation some of them are facing as a result of the pandemic," the statement says. As the country approaches the next federal election, Mallough says small businesses and the CFIB will be looking for what support each party plans to implement for the sector. "I think that our focus for all parties is: what are you doing to make the business and climate in Canada better? What are you doing to help lower taxes, to help with labour mobility, to address skilled workers challenges?" he said. Regardless of the election's outcome, Reid recommends shopping locally. "In another 10 to 15 years, your children won't know what a small independent store is. They'll be nonexistent because it's becoming more and more difficult for us to survive," she said. Girotti, meanwhile, says her own children are likely "terrified" by the prospect of opening their own business.
