American Renewable
Energy Act (S 433 in Senate, H.R. 890 in House)
Repowering America with renewable energy
will help fix our economy, transform our energy future, safeguard our
public lands and forests, and slow climate change. In order to make
this happen, we need a national commitment to renewable energy.
The American Renewable Energy Act will
establish a national renewable electricity standard (RES) of 25 percent
by 2025, building a robust renewable energy industry including wind,
solar, sustainable biomass, geothermal, and other renewable energy technologies.
Enacting this legislation will help diversify our energy supply, stabilize
electricity prices, reduce global warming emissions, and create jobs,
especially in the manufacturing sector and rural
areas.
A National Renewable Electricity
Standard (RES)
A RES (also know as a renewable portfolio
standard or RPS) is a proven policy to increase renewable energy production
and encourage investment and economic growth in the clean energy industry.
Already, 28 states and the District of Columbia have enacted an RES,
more than half of which establish requirements of 20% or higher. According
to a Union of Concerned Scientists (UCS) analysis a 25 percent RES will
save industrial, commercial, and residential consumers $94 billion on
cumulative electricity and natural gas bills through 2030.
How it works.
A RES is a market-based policy that requires utilities to gradually
increase the percentage of electricity produced from renewable sources.
The American Renewable Energy Act defines these sources as: wind, solar,
sustainable biomass, geothermal, marine and hydrokinetic, and some forms
of low-impact hydropower. Every region of the country possesses substantial
amounts of various renewable resources which are distributed far more
evenly than fossil fuel reserves across the U.S.
Renewable energy generators would receive
“renewable energy credits” or “RECs” for the amount of renewable
electricity they generate which they can sell or trade. Utilities would
then submit RECs to the government each year for their required amount
of renewable electricity generation starting at six percent of their
sales in 2012 growing to 25 percent of their sales in 2025. Allowing
utilities across the country to buy and sell renewable energy credits
creates competition among renewable energy generators, providing the
greatest amount of clean energy for the lowest price. The legislation
does not preempt or interfere with state RES programs, and takes into
consideration alternative mechanisms for complying with state standards,
such as paying into a renewable energy procurement program.
What is sustainable biomass?
Done right, biomass energy sources can contribute significantly to renewable
electricity production. We must strike a balance, however, between responsible
sourcing from forests, agriculture crops, and waste streams, while protecting
natural ecosystems and wildlife habitat and ensuring that we don’t
cause unintended consequences to the climate. As H.R. 890 moves
forward it will be important to improve the safeguards against the loss
of natural resources, threats to our Federal lands, and unintended negative
climate impacts.
A Critical Global Warming Solution.
A RES, along with complimentary policies,
such as an economy-wide cap on global warming emissions is needed to
reduce the threat of climate change. A RES can be implemented quickly
and ensure that currently available clean technology is deployed immediately
to jumpstart near-term emissions reductions. A RES will also provide
incentives for continued technological improvement that will help achieve
greater emission reductions in the future at a lower cost.
A
National RES will Protect Consumers from
Volatile Energy Prices.
Studies by the Department of Energy,
the Union of Concerned Scientists, and numerous consulting groups have
shown that by reducing demand for natural gas a national RES can lower
natural gas prices and cumulatively save consumers on their electricity
and gas bills. Furthermore, the future cost of natural gas and coal,
is unknown but expected to rise. Hedging against the potential
volatility and price spikes in fossil fuels with increased renewable
energy can benefit consumers over the long term.
An RES Will Create Jobs and Encourage
Long Term Economic Growth.
A national commitment to renewable
energy can provide a bright light in these dark economic times. Establishing
a national RES would send a clear signal to businesses and investors
that the U.S. is dedicated to developing our renewable energy resources
and diversifying our energy supply resulting in expansion and job growth
across the clean energy industry. For example, According to the Department
of Energy’s 20% Wind Energy by 2030, the U.S. could get 20%
of its electricity from wind alone. This would create 500,000
jobs in construction, manufacturing, and renewable energy operations
and maintenance.
The U.S. Also Needs an
Energy Efficiency Resource Standard.
Some RES policies allow utilities to
meet a certain percentage of their required renewable energy generation
through energy efficiency improvements. H.R. 890 applies only to renewable
energy generation. The Save
American Energy Act (H.R. 889),
also introduced by Rep. Markey, would create a separate Energy Efficiency
Resource Standard (EERS) that would require utilities to achieve gradually
increasing energy savings. Efficiency standards are an important tool
in the arsenal of policies available to reduce greenhouse gas emissions,
promote energy security, and reduce consumer costs. Efficiency standards,
therefore, should complement, not compete with renewable energy policy.
For more information, contact:
Kate Johnson
kate.johnson@sierraclub.org or (202) 548-4595
