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Bipartisan duo introduce renewable-electricity-standard bill in House

Posted by Kate Sheppard at 9:08 PM on 04 Feb 2009

Reps. Edward Markey (D-Mass.) and Todd Platts (R-Pa.) on Wednesday introduced legislation in the House to create a federal renewable electricity standard (RES) that would require the United States to draw a quarter of its electricity from clean sources by 2025. Markey also introduced a second bill that would require the country to reduce energy consumption 15 percent by 2020.

The American Renewable Energy Act [PDF] would put an RES in place starting in 2012. The legislators estimate that it would help create more than 350,000 new jobs over the next 10 years. Twenty-seven states and the District of Columbia already have RES's in place, including both Massachusetts and Pennsylvania, the legislators' home states.

Markey and Platts helped get an RES passed in the House last Congress as part of the 2007 energy bill, but the provision didn't make it through the Senate.

"With our economy in crisis, renewable energy can create hundreds of thousands of new green jobs, revitalize declining manufacturing sectors, and decrease global warming pollution," said Markey, who chairs the Select Committee for Energy Independence and Global Warming and the energy and environment subcommittee of the Energy and Commerce Committee.

"Establishing a federal renewable electricity standard will help to protect our environment as well as promote economic development and energy security," said Platts.

Markey's second bill, the Save American Energy Act [PDF], would create an energy-efficiency resource standard that mandates a 15 percent reduction in electricity demand by 2020. Markey estimates that the measure would reduce peak electricity demand by 90,000 megawatts and eliminate the need for 300 new medium-size power plants.

The Union of Concerned Scientists put out a statement in support of the RES bill, noting that it would increase power generation from renewable sources by 135 percent and provide enough clean electricity to power 150 million homes, according to its analysis.

"This electrifying standard would provide a smart, proven, cost-effective strategy to ramp up our clean energy use, create tens of thousands of jobs, and lower consumer utility bills," said Alan Nogee, director of the UCS Clean Energy Program. "The clean energy tax incentives that Congress is finalizing will get us moving in the right direction in the near term, and the renewable energy standard makes sure we stay on that path for the foreseeable future."

League of Conservation Voters President Gene Karpinski also praised the bill. "This bill will create an economic demand for wind, solar, and other renewable energy sources that will create hundreds of thousands of jobs in the coming years," he said. "It will help establish a powerful, productive, and profitable clean energy industry that will employ generations of Americans."

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AGENDA FOR: Commerce, Energy, Technology and Utilities Committee
MEETING: February 12, 830AM, 156C State House, Indianapolis

CHAIR: Representative Moses Jr.
VICE CHAIR: Pierce
MEMBERS: Battles, Blanton, Dvorak, Reske, Stevenson. Lutz R.M.M., Behning, Frizzell, Koch, Soliday.

AGENDA:

HB 1622 Advanced renewable energy tariffs aka Feed-in Tariffs (Pierce)

Please read these bills carefully and contact your state legislator if they are a member of this committee BEFORE the committee hearing.

Check this website around 2:30 or 3:00 pm to watch the hearing on-line. http://www.in.gov/legislative/session/video.html

AGENDA FOR: House Commerce, Energy, Technology and Utilities
MEETING: Tuesday, February 10, 2009, House Chamber, Upon Adjournment

CHAIR: Representative Moses Jr.
VICE CHAIR: Pierce

MEMBERS: Battles, Blanton, Dvorak, Reske, Stevenson.
Lutz R.M.M., Behning, Frizzell, Koch, Soliday.

AGENDA:
HB 1305 Renewable energy. (Grubb) Renewable Electricity Standard (RES)
HB 1360 Alternative energy incentives for REMCs. (Battles)
HB 1438 Renewable energy investment tax credit. (Grubb)

What impact should this have on the numerous renewable electricity standard bills filed during the 2009 session of the Indiana General Assembly? Tell us what you think? Should Indiana try to pass a state Renewable Electricity Standard (RES) again or just sit back and see if a federal RES will pass this year?

WASHINGTON -(Dow Jones)- Sen. Jeff Bingaman, D-N.M., whose committee is responsible for writing energy legislation, will next week review a draft bill that could require that 20% to 25% of the nation's electricity comes from renewable energy sources, according to aides and people close to the matter.

Analysts say an increased Democrat majority means Congress stands an excellent chance of passing such a renewable mandate, which would give the wind, solar and other alternative industries a major financial boost.

President Barack Obama has already pledged to push for a 25% mandate, with a 10% standard achieved early in the next decade, and enacting such a standard would help Democrats accelerate their clean energy program they say is essential not only for cutting greenhouse gases and reducing the nation's dependence on oil imports, but also to stimulating an ailing economy.

Senate officials and lobbyists close to the matter say the Senate Energy and Natural Resources Committee will review next Tuesday draft legislation to create a standard.

Although the House of Representatives has passed a renewable portfolio standard, or RPS, the Senate failed to by a small number of votes. Many of those "no" votes have been replaced, however, by Democrats who support the measure.

"In the coming Congress, I think we finally have the opportunity to see such a policy adopted and implemented," Bingaman said late last year. "It will start preparing our electricity sector for the inevitable requirements to reduce greenhouse gas emissions."

With strong support from Senate Majority Leader Harry Reid, D-Nev., Bingaman's also drafting measures that would reform the nation's transmission infrastructure.

The Energy Policy Act Congress passed in 2005 authorized the Department of Energy to designate national power corridors that would relieve power- transmission bottlenecks and prepare for new high-voltage lines across the country to connect new generations to demand centers. However, a host of planning and siting obstacles have prevented much progress.

That's why momentum is growing on Capitol Hill to establish federal planning and siting authority, and develop cost-allocation strategies to encourage transmission for renewables.

The current high-voltage power grid simply transmits electrons from generation to demand. Alternative sources of power like wind and solar don't produce steady streams of electricity like nuclear or coal plants. A "smart" grid, using advanced technology to balance the load from such intermittent power sources, would manage transmission much more efficiently.

Southern utility companies, including Duke Energy Corp. (DUK) and Southern Co. (SO), have lobbied against a federal renewable portfolio standard, though some encourage state mandates, saying it would put an unfair burden on states and consumers that aren't endowed with the same renewable energy resource bases others are.

Wind turbine manufacturers such as GE Energy, a unit of the General Electric Co. (GE), India's Suzlon Energy (532667.BY) and Denmark's Vestas Wind Systems ( VWS.OS), as well as solar firms such as Norway's Renewable Energy Corp. ASA ( REC.OS), and U.S.-headquartered First Solar Inc. (FSLR) and Evergreen Solar Inc. (ESLR) would benefit under a renewable portfolio standard.

Many lawmakers are likely to try to include provisions that would allow utilities to supplant a certain percentage of the mandate with projects that increase energy efficiency.

The industry is already likely to get a major fiscal boost from a stimulus bill lawmakers are seeking to pass, providing at least $13 billion in extended production tax credits, tens of billions of dollars in loan guarantees and grants, and more than $30 billion for a 30% tax credit for domestic manufacturing of renewable energy projects.

-By Ian Talley, Dow Jones Newswires; 202-862-9285; ian.talley@dowjones.com

Dow Jones Newswires
02-03-09 1435ET
Copyright (c) 2009 Dow Jones & Company, Inc.

Reprinted from Renewable Energy World, August 5, 2008
http://www.renewableenergyworld.com/rea/news/ate/story?id=53203

Utilities and Solar Marketing Programs
by Tom Nicholas, Solar Power Electric Association

Q: Our utility is not in the sunny Southwest. Does it still make sense to create solar programs for our customers? -- Larry T., Walla Walla, WA

A: The short answer is "yes!" Solar is viable anywhere in the U.S. For comparison, Germany is currently the world leader in utilizing solar electricity, yet its solar resource is comparable to the state of Alaska! Our other 49 states have a better solar footprint than the world leader. So even though most of the solar news seems to focus on California, there is no technical reason why any state or utility can't start or expand solar programs. And many new states are expanding their solar programs significantly. New Jersey in the Northeast has the second largest solar market in U.S., along with rapidly growing markets in New York, Massachusetts, and Connecticut. You might think it is surprising that the states of Washington and Oregon and many of their utilities have strong solar programs, too. See a trend here? With regard to solar resource, there isn't one.

But what is a "solar program"? And how much might it cost? And if you're not a utility staff person, what are some suggestions for your local utility? Here are some ideas, some of which are low-cost or no-cost. Note that these suggestions are directed at utilities themselves.

1. Develop or review your utility's interconnection and/or net metering policy — keep the paperwork short and simple, and the processes clear for the customer. Don't let lawyers and engineers have the only input — they need to be understood by the average person and your marketing and customer service department should be involved.
2. Provide information — Create a solar webpage, put an article in a newsletter or bill insert, or add materials to your energy efficiency outreach efforts. Also have a plan for how to manage inquiries — some will be serious, but many will only be curious, and aren't a good use of your time until the customer has done more due diligence. A good first referral is http://www.findsolar.com/ — it includes a solar calculator and a solar dealer yellow pages (and you can put HTML on your website with a direct link to your utility). The Department of Energy and local state energy offices can be good links as well.
3. Develop or Diversify a Green Pricing Program — Many utilities have green pricing programs, but most use only wind energy. Blending some solar into the mix can diversify the portfolio, and the installations can be located within the community at publicly viewable locations.
4. Start an Incentive Program — A lot of utilities offer incentives to customers installing solar systems. Before you reinvent the wheel, review other programs and "borrow" the best ideas. Again, keep the process simple and straightforward for the customer.
5. There are many other possible ideas. SEPA has developed the "Solar Programs Options Tool" to help utilities (or people looking for suggestions for their utility) get a handle on the different types of programs that are best for them. There is also a "Peer Match" tool for finding fellow utility staff who have expertise in the recommended programs (utility only access), and coming soon, Case Studies on a variety of these programs. All are available on SEPA's website for free at http://www.solarelectricpower.org/.

Tom Nicholas serves as SEPA's regional director for the Central US. He has more than 20 years of executive level experience in the electric utility industry, including 7 years on both the regulated and unregulated sides of NISOURCE in Indiana. More recently, Tom served as Central US Regional Operations Manager with the Electric Power Research Institute (EPRI), and has also served and chaired numerous EPRI and EEI utility committees.

Tom Nicholas is a new member of the Indiana Renewable Energy Association. He can be reached at (219) 508-2349 or tnicholas@solarelectricpower.org.