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WASHINGTON -- U.S. Representatives Tom Udall (D-NM), Todd Platts (R-PA), Frank Pallone (D-NJ), Mark Udall (D-CO), Chris Shays (R-CT), Diana DeGette (D-CO), Jerry McNerny (D-CA) and Lloyd Doggett (D-TX) today introduced bipartisan legislation to establish a federal Renewable Portfolio Standard (RPS) requiring electric utilities to acquire 20 percent of their electricity from wind, solar and other renewable energy sources by 2020.
The bill would increase the federal minimum standard mandating retail energy suppliers to diversify their portfolios with the first increase set for 2010, consistently increasing thereafter to meet the 2020 goal.
Suppliers can meet these requirements by purchasing credits from other entities who have obtained credits by producing renewable energy. It also allows utilities to bank credits for four years and to borrow credits from up to three years in the future.
Municipal and other publicly owned power plants and rural electric coops would be exempted from the requirements.
“As Congress addresses the many important energy issues facing our country, we must consider the benefits of renewable energy. Establishing a federal renewable portfolio standard will balance a wide range of interests,” Rep. Tom Udall said. “Not only will it help us meet our growing demand for electricity, it will also reduce our exposure to fossil fuel price spikes and supply interruptions, increase economic development in the renewable energy industry, and improve our environment.”
“This legislation takes a significant step towards establishing greater energy independence and a more stable energy supply for our nation,” said Rep. Platts. “Establishing a federal Renewable Portfolio Standard will help to protect our environment as well as promote economic development and energy security.”
"To really tackle the challenge of global warming, we need to wean ourselves off our addiction to fossil fuels," Rep. Pallone said. "Our bill provides an efficient, market-based way of moving ourselves towards sustainable, clean energy and ending this addiction."
“We believe this legislation will create public benefits for everyone. The renewable energy goals the bill sets are significant, and the bill is not overly burdensome for states as it gives them flexibility to achieve these goals. Our RPS bill will benefit farmers, save consumers money, reduce air pollution, and increase reliability and energy security,” said Rep. Mark Udall who is cochair of the Renewable Energy and Energy Efficiency Caucus in the House of Representatives.
“Energy independence is one of my top priorities as a Member of Congress. This legislation will provide the incentives needed to finally bring renewable energy into the mainstream and create a balanced energy policy,” said Rep. Shays.
“Colorado voters recognized two years ago the importance of requiring utilities to generate power using renewable energy; it’s about time the federal government got the message. As Vice Chair of the Committee on Energy and Commerce I will do everything in my power to see this legislation enacted into law,” said Chief Deputy Whip DeGette.
Over 20 states already have renewable generation standards with various timelines and targets and the legislation does not pre-empt states that have stronger standards, the group noted.
The bill would also protect consumers against fossil fuel price increases. According to a study by the U.S. Energy Information Administration, a national renewable portfolio standard could save consumers money by reducing natural gas prices, which are currently spiking around the country.
The National Academy of Sciences is also required to conduct an evaluation of the program within eight years of enactment and use the results of that evaluation to transmit recommendations for strengthening or modifying the legislation to Congress not later than 2016.
The legislation is actively supported by a number of organizations, including the Union of Concerned Scientists, the Sierra Club, and renewable energy industry groups. |
