Rep. Tom Udall, D-N.M. (3rd CD), issued the following news release:
Today, for the second time since August, the U.S. House of Representatives passed energy legislation including a bipartisan provision authored by Rep. Tom Udall, D-N.M, to create a federal standard for electric utilities to provide 15 percent of their electricity from wind, solar, and other renewable energy sources and energy efficiency measures by 2020.
Udall, who first introduced Renewable Electricity Standard (RES) legislation in 2002, said almost half the states in the Union, including New Mexico, have led this effort by already implementing their own RES.
"New Mexico is a leader in producing renewable electricity," said Udall. "After surpassing its initial goal of 10 percent years in advance, our state has now enacted a 20 percent by 2020 standard. New Mexico and many other states have recognized that energy security and national security are directly correlated, and now the responsibility rests with the Senate to send the president the message that we must move our nation towards a more stable energy future."
Udall urged colleagues in the Senate to pass the measure, "The benefits of an RES are clear and I call on my colleagues in the Senate to enact this provision because it will strengthen our energy security, lower our energy bills, create jobs, revitalize rural America, spur our economy and slow global warming."
Udall directly addressed the false rhetoric asserting that the implementation of this standard could negatively impact certain states and consumers. "Opponents of an RES have made false claims that the provision would increase electricity costs for consumers, but study after study has shown the contrary. It has consistently been found that a strong federal RES could actually save American consumers money."
While somewhat more conservative in their findings, the most recent study from the Department of Energy's Energy Information Administration (EIA) - which provides official energy statistics for the U.S. government - show cumulative savings in the amount $6.1 billion and $1.3 billion in savings, respectively, through 2020. And by 2030, cumulative savings are $5.5 billion and $3.3 billion, respectively. Other studies show more significant savings. A recent study conducted by the Union of Concerned Scientists found an RES would save consumers $13 billion to $18.1 billion on electricity and natural gas bills cumulatively by 2020. In March, the energy consulting firm Wood Mackenzie projected that consumers would save more than $100 billion dollars with an RES in place. They also found that with more diverse energy sources and a decrease in fossil fuel consumption, reduced demand for natural gas would lower prices by as much as 20 percent by 2026.
In addition, Udall says reaching the RES is achievable for every region of the nation, refuting the claim that the southeastern region lacks the resources necessary to meet the standard.
According to the EIA analysis, a 15 percent RES shows that the technology that does best under a 15 percent RES is biomass. According to the National Renewable Energy Lab, the southeast region of the country has the best biomass resources. The EIA found that while wind generation would increase by 50 percent, biomass generation would increase by 300 percent. Since there is already twice as much biomass generation as there is wind, a 15 percent standard results in four times as much biomass generation as wind generation.
Currently, 2500 Megawatts of generation is coming from biomass in the southeast from mostly pulp and paper mills. According to the EIA, five times as much is being burned to produce process steam and for other purposes that is not generating electricity. Far more is available that is not being used at all.
"To make the RES even more flexible than it already is for states to meet the requirements, the definition of biomass has been expanded to include all animal waste and also now includes hydrokinetic energy as a qualified renewable energy resource. These provisions further increase the potential benefits available to the Southeastern region under an RES. If the Southeast takes advantage of the potential from these resources, this standard is not a burden, but an opportunity," said Udall.
If enacted into law, the initial requirement in year 2010 is a modest 2.75 percent of electricity from renewables, gradually increasing thereafter to meet the 2020 goal.
Several methods for compliance are available to utilities to meet these requirements. They can generate electricity from renewables, purchase credits from other entities who have obtained credits by producing electricity from renewables, or make "alternative compliance payments" that will go to a grant program designed to assist states generate additional renewable resources. Also, utilities can bank credits for three years, and borrow credits from up to three years in the future as long as they are repaid by 2020.
"Today, we stand on the verge of a new energy horizon. One that promises a more secure America with thousands of new manufacturing and high-tech jobs and both lower and more stable energy prices," Udall said. "But this America will only be realized by ushering the legislation before us today into law. This legislation reflects a bold vision with the scope needed to respond to many of the gravest threats facing our nation. A vision befitting the United States Congress, the world's greatest deliberative body, and I urge my colleagues in the Senate to support it."
By passing a national Renewable Electricity Standard, this Congress would make good on its word to:
- Slow global warming: By displacing the use of fossil fuels to generate electricity, an RES can cut emissions of conventional pollutants and greenhouse gases. A 15 percent RES would reduce carbon dioxide (CO2) emissions by 500 million tons below business-as-usual levels, the equivalent to taking millions of cars off the road;
- Reduce energy bills: Energy research firm Wood Mackenzie found that an RES would lower natural gas and electricity prices and save more than $100 billion for American consumers;
- Create jobs: Wind and solar energy are likely to be among the largest sources of new manufacturing jobs worldwide during the 21st Century. A recent Union of Concerned Scientists (UCS) study found that an RES would create hundreds of thousands of new American jobs;
- Revitalize rural America: Farmers and rural land owners in windy areas are reaping payments of $3,000-$8,000 per turbine per year, while still being able to work their land. The "wind harvest" can carry hard-pressed farmers through difficult times, such as droughts, even if crops fail; and
- Strengthen energy security: Domestic renewable energy can reduce projected imports of liquid natural gas (LNG) from such unstable regions as Qatar, Russia and Iran (which together hold more than half the world's gas reserves) and reduce U.S. energy payments to these nations.