Renewable Energy: The Regional Debate

The U.S. Senate is currently debating a National Renewable Energy Standard. Under an amendment sponsored by Sen. Jeff Bingaman (D-N.M.), who chairs the Senate Energy and Natural Resources Committee, electric utilities would be required to obtain a growing percentage of their electricity from renewable energy sources (biomass, geothermal, new hydro, solar, wind), with the percentage reaching 15% by 2020.

Notwithstanding the fact that the Bingaman amendment would be Congress's first major action to address the growing issue of global warming, Senate Republicans are blocking it by threatening a filibuster (meaning that 60 votes would be needed to pass it rather than a majority.) During the debate, much was made of the argument that some states are not windy, and would therefore be disadvantaged by the Bingaman amendment, and that it would "shift wealth" from one region to another. For example, Sen. Pete Domenici (R-N.M.) said, "We cannot ignore the reality that some regions of the country cannot meet the [standard]. Since they cannot produce it, they’ll have to pay a fine, a pretty whopping penalty."

It's an interesting and compelling point, if true. Would a Renewable Energy Standard really introduce a sweeping change into the way that energy is currently produced and distributed in the U.S.? Consider:

Most if not all states import fuel--coal from other states; natural gas from other states, Canada and overseas; uranium, ditto; oil from overseas (yes, some imported oil is indeed used to generate electricity, mostly in New England and Hawaii).

"Importing" wind--a domestic "fuel"--from state to state (via transmission lines) will benefit the whole country (due to reduced imports of natural gas and oil from overseas), and is not a departure from current practice on behalf of other fuels.

A very preliminary (all we have had time for so far) look at state-by-state distribution of commercial energy production reveals the following:

32 states have commercial wind installations (and at least one more will soon)
32 states have natural gas production
28 states have petroleum production
25 states have coal
3 states have uranium

Thus, wind is actually one of the most widely distributed natural resources. Also, it appears that huge transfers of wealth are no problem for opponents of the Bingaman amendment, as long as they are already happening--only modest future transfers that might run in some different direction need to be stamped out.

We’ve made investments to move natural gas, coal and uranium across state lines and, in some cases (e.g., building transmission lines to so-called "mine-mouth" electric power plants that are built next to coal mines), to use the fuel on location. Likewise, wind is a resource we should encourage all states to use.

(In addition, all of the Southeastern states that have poor wind resources have excellent biomass energy potential, according to the U.S. Department of Energy--but that's another story.)

The Bingaman amendment may come up soon for a vote in the Senate. If you support this first meaningful step to fight global warming, contact your Senator's office through the U.S. Capitol switchboard at 202-224-3121 and let him/her know you support the Bingaman Renewable Energy Standard. Or go to powerofwind.com.

Regards,
Tom

Senate Republicans Block Renewable Energy

Senate Republicans have threatened to filibuster against the Bingaman Renewable Energy Standard amendment. With the polls showing very strong, indeed overwhelming, support for clean alternative energy sources and for action against global warming, it's hard to understand this position. Nearly half of all states (24) have similar renewable energy standards already, and some have even passed new laws increasing the percentages of renewable energy required.

The Bingaman Renewable Energy Standard would:

Reduce global warming pollution from electric power plants;

Create brand new manufacturing industries with thousands of new jobs;

Revitalize rural communities through the increased tax base and payments to landowners that wind and other renewable energy projects bring;

Help meet America's steadily growing electricity demand;

Save consumers more than $100 billion through 2026.

If you support this first meaningful step to fight global warming, contact your Senator's office through the U.S. Capitol switchboard at 202-224-3121 and let him/her know you support the Bingaman Renewable Energy Standard. Or go to powerofwind.com.

Regards,
Tom

Costs of a Renewable Portfolio Standard?

Marlo Lewis of the Competitive Enterprise Institute complains that the Energy Information Administration has found that the Bingaman Renewable Portfolio Standard (RPS) would cost consumers a net of $18 billion through the year 2030.

It should be noted that a similar analysis in March by Wood Mackenzie, a respected oil & gas research firm, found that the same RPS provision would save consumers more than $100 billion through 2026. From the Wood Mackenzie press release:

According to the report, the adoption of a 15% Federal RPS will require a flood of new wind and other renewable projects well beyond current proposed projects, leading to a 500-percent increase in renewable capacity from current levels by 2026. This increase translates into an incremental construction cost of $134 billion (2006 dollars) between 2006 and 2026. The report also shows the switch to renewable energy will drive down demand and price of natural gas. "The lower fuel costs and fossil fuel consumption will lead to lower electricity costs," continued Sannicandro. "Over the next 20 years, the Federal RPS case leads to a savings of $240 billion (2006 dollars) in wholesale power costs, outweighing the higher capital investment to build the additional capacity."

Regards,
Tom

Close Vote Likely on Bingaman Renewable Energy Standard

Inside word on the Bingaman Renewable Portfolio Standard is that the vote will be very tight. If you support this concept, the time to weigh in is right now. You can reach any Senator's office through the U.S. Capitol switchboard at 202-224-3121. Further information here.

Regards,
Tom

Wind Group Asks Support for RPS

FOR IMMEDIATE RELEASE:
June 12, 2007 Contact:
Christine Real de Azua (202) 383-2508

STATEMENT BY THE AMERICAN WIND ENERGY ASSOCIATION
ON A NATIONAL RENEWABLE PORTFOLIO STANDARD (RPS)

AWEA urges Congress to enact strong Bingaman RPS,
oppose weakening Domenici Amendment

As the U.S. Congress takes up wide-ranging energy legislation, the American Wind Energy Association (AWEA) issued the following statement in support of the Renewable Portfolio Standard (RPS) proposed by the Chairman of the Senate Committee on Energy & Natural Resources, Senator Jeff Bingaman of New Mexico. Sen. Bingaman’s RPS would require that 15% of the country’s electricity come from wind, solar and other renewable energy sources by 2020.

“A strong RPS is an essential element of an effective national energy strategy: it can address the simultaneous challenges of growing electricity demand and climate change,” said AWEA Executive Director Randall Swisher.

Strike a real blow against global warming! Register your support for a strong RPS today!

“Wind energy technology is the single most cost-effective, zero-carbon energy option that we have available today. Our nation is also blessed with an abundance of solar and other renewable, zero-carbon energy sources. The Bingaman RPS provides the crucial long-term policy support that is needed for wind and all renewable energy technologies to become major contributors to electricity supply and solve the double challenge of global warming and growing electricity demand. Any attempts to weaken it should be opposed.”

There is broad support for a strong national RPS. A coalition including Fortune 500 companies, the United Steelworkers, and major environmental groups has sent a letter to Members of Congress urging adoption of a strong RPS.

AWEA opposes a proposal by Senator Pete Domenici, Ranking Member of the Committee on Energy & Natural Resources, that would undermine the RPS and introduce several serious loopholes. AWEA has sent a letter to Senate leaders respectfully urging a vote against it. The Domenici standard would weaken the RPS and:

* Authorize the Secretary of Energy to certify any form of energy as “clean;”
* Allow states to opt out of the bill’s requirements;
* Would continue a long history of playing politics with the climate issue.

AWEA, formed in 1974, is the national trade association of the U.S. wind energy industry. The association's membership includes turbine manufacturers, wind project developers, utilities, academicians, and interested individuals. More information on wind energy is available at the AWEA web site: www.awea.org.

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Daschle, Industry Leaders: Global Warming Will Increasingly Push Wind Power Industry

The wind power industry can become a key contributor to the electricity resource mix, but it’s going to take stable and long-term policy to get there, said a lineup of WINDPOWER 2007 Conference & Exhibition panelists that included top industry executives along with former Senate Majority Leader Tom Daschle.

Speaking at a general session on expanding the wind industry, the panel—verbalizing the overall buzz at WINDPOWER 2007, which surpassed 6,500 attendees on its first full day—said that wind and renewables stand poised for major breakthroughs in terms of growth and penetration. Daschle said the renewables industry has the potential to have the “same economic impact as the dot-com revolution.” He called for a long-term extension of the production tax credit and a federal renewable portfolio standard—two specific policies that will likely be taken up in Congress in the coming weeks and months.

The panel consensus was that, as Steve Sawyer, secretary general of the Global Wind Energy Council, said, “Climate change will increasingly be the determining factor” in terms of policy affecting wind energy. The public, panelists said, is coming to understand the necessity of addressing global warming and the importance of renewables; however, members of the panel said, the industry needs to do even more in communicating this message. “I think one of our priorities has to be to make this case to the public,” said Robert Lukefahr, president, Power Americas at BP Alternative Energy.

As an executive with BP, Lukefahr offered a perspective of the broader energy industry, saying that achieving 20% wind penetration seems “nearly impossible” but that it actually is achievable, especially when considering the energy industry’s history of reaching large-scale goals. One example: in the mid 1970s, the oil industry was limited to drilling in water depths of 500 feet; now it drills approximately five miles down.

Regarding global warming and greenhouse gas emissions, Steven Chalk, deputy assistant secretary for energy efficiency at the U.S. Department of Energy, said it is imperative that the nation scale up in wind power and other renewables. “Energy efficiency is not going to get us to our goals,” he said. Agreeing with Chalk, Lukefahr illustrated the point by saying that if all the automobiles in the world ran on hydrogen, greenhouse gas emissions would still rise because of the huge role power plants play in contributing to the problem.

On the technology side, GE Energy Vice President of Renewable Energy Vic Abate said that ramping up to 20% wind will involve a “multi-generational product plan.” He projects a 15% increase in capacity factor on new turbines, although the overall fleet of turbines in use in the U.S. naturally will vary in technology because of their varying ages. That’s a natural evolution, he said, likening it to advances in fossil-fuel plants between the 1950s and now.

Oregon's RPS Termed 'Historic'

The Eugene (Ore.) Register-Guard for May 27 has a strongly positive article on the state's newly approved renewable portfolio standard, saying in part:

By a surprisingly lopsided 41-19 vote, the House approved a bill that requires Oregon's biggest utilities, including the Eugene Water & Electric Board, to generate 25 percent of their power by 2025 from renewable energy sources. The Senate passed a similar version of the bill last month, and is expected to quickly endorse the House changes and send the measure to Gov. Ted Kulongoski to be signed into law.

Oregonians should be proud of this historic legislation, which should help limit carbon emissions while at the same time promoting alternative energy and boosting the state's economy. The proposal's scope and complexity, along with the initial wariness of powerful utility and business interests, made its passage anything but a foregone conclusion.

As I have commented elsewhere, hopefully "business interests" will come to see that this type of legislation is in their best interest, because (1) it helps to stabilize energy prices (wind power, which likely will provide a major chunk of the electricity from renewable sources, uses no fuel and is therefore immune to fuel price spikes on world markets); and (2) it reduces the risk of future carbon emissions regulation and/or taxation.

Congratulations to Oregon! That's a standard of 25% of electricity supply from renewable energy sources by 2025.

Regards,
Tom

Broad Alliance Backs Renewable Portfolio Standard (RPS)

A wide-ranging coalition of more than 180 organizations, including wind companies (the obvious usual suspects) but also powerhouse corporations (Google and GE), labor (United Steelworkers), environmental groups (Natural Resources Defense Council, Union of Concerned Scientists, U.S. PIRG, Sierra Club), faith groups (Union for Reform Judaism, National Council of Churches of Christ in the USA), farm groups (Rocky Mountain Farmers Union) and more, lined up last week in support of a Renewable Portfolio Standard (RPS) (also sometimes referred to as Renewable Electricity Standard, or RES). The groups sent a joint letter to U.S. Senate leaders urging adoption of strong RPS legislation as part of an energy bill that will soon come up for debate on the Senate floor.

You can express your support for the RPS through a new action Web site that includes a link to the full text of the letter and its signers.

In other related news, the American Wind Energy Association has kicked off a radio ad campaign that will focus on several states whose Senators have not yet declared their support for an RPS. You can hear a sample ad here.

For even further reference, many RPS resources are available at Endangered Spaces.

Over 3,000 MW of New U.S. Wind Seen in 2007

The American Wind Energy Association (AWEA) today released its First Quarter Wind Power Market Report, announcing that the U.S. wind energy industry is on track to install over 3,000 megawatts (MW) of wind power generating capacity nationwide in 2007, with Texas likely to account for about two thirds of the new installations. Over 100 MW have newly come online in the U.S. so far this year, and over 1,000 more are under construction in Texas alone, according to AWEA. (One megawatt of wind, on average, generates as much electricity as 250 to 300 homes use.)

In addition to providing details about the new projects, the release emphasizes the role of the Renewables Portfolio Standard (RPS) in spurring wind energy development. The full release is available online.

Regards,
Tom

Renewables Portfolio Standard Awaits Senate Consideration

At this writing, it appears that a Renewables Portfolio Standard (RPS) proposal will be offered as a stand-alone amendment to the energy bill now making its way through the U.S. Senate. What is the RPS? It's a provision that would require utilities throughout the United States to obtain a certain minimum percentage of the electricity they sell from clean alternative energy resources like wind and solar power.

The passage into law of an RPS would mark a clear step away from our traditional energy policies (or rather, lack of energy policies) and toward a long-term approach aimed at dealing with the increasingly urgent problem of global warming. Twenty-two states have already adopted an RPS in some form and more are currently considering it.

The American Wind Energy Association's Legislative Priorities page contains:

1) A brief description of the benefits of a national RPS;
2) A link to a fact sheet on a national RPS; and
3) A link to a legislative action Web page where you can let your representatives in Congress know your opinion on the RPS.

Please help support this vital legislation.

Regards,
Tom