Mr. President, today I am introducing comprehensive legislation to ensure the reliable delivery of electric power in the United States. Last Congress, in August of 2003, nearly 50 million people in the Northeast and Midwest were affected…
Mr. President, today I am introducing comprehensive legislation to ensure the reliable delivery of electric power in the United States.
Last Congress, in August of 2003, nearly 50 million people in the Northeast and Midwest were affected by a massive power outage. This event emphasized the vulnerability of the U.S. electricity grid to human error, mechanical failure, and weather-related outages. We must act to protect the grid from devastating interruptions in the future. That is why I am introducing this bill today to ensure greater reliability in our electricity delivery system.
My bill, the Electric Reliability Security Act of 2005, will help achieve reliability and security of the electricity grid in an efficient, cost-effective, and environmentally sound manner. It does so by creating mandatory, nationwide electric reliability standards.
The bill also mandates regional coordination in the siting of transmission facilities, and provides $10 billion dollars in loan guarantees to finance ``smart grid'' technologies that improve the way the grid transmits power.
While a $10 billion dollar investment may seem to be a large investment, it is significantly less than the transmission cost estimates that have circulated following the Northeast blackout. Industry experts estimated that it would cost consumers as much as $100 billion dollars to upgrade transmission systems and site new lines to meet future reliability needs.
However, even this hefty price tag does not factor in the costs of additional generation, does not consider the rising cost of natural gas due to increasing electricity consumption, and does not include the environmental and other social costs of continued expansion of our presently centralized power system. Power lines are expensive and are rarely welcomed by the nearby public. The loan guarantees in the bill will help balance the need for new transmission lines by providing federal resources to help improve existing ones.
In addition to addressing system operation and transmission needs, the bill also promotes sound system management. It establishes a Federal system benefits fund as a match for state programs. Historically, regulated electric utility companies have provided a number of energy-related public services beyond simply supplying electricity that benefit the system as a whole. Such services have included bill payment assistance and energy conservation measures for low-income households, energy efficiency programs for residential and business customers, and pilot programs to promote renewable energy resources. More than 20 states, including my home state of Vermont, have public benefits programs. This bill will provide needed federal matching money to States for these programs. Our states can use these funds. They will be able to move more quickly to deploy these low-cost strategies with federal help.
The Alliance to Save Energy estimates that a federal program to match existing state public benefits programs would save 1.24 trillion kilowatt-hours of electricity over 20 years, and cut consumer energy bills by about $100 billion dollars. Mr. President, my bill, which has the potential to save consumers $100 billion dollars is far preferable to raising consumer electricity bills by the $100 billion dollars to raise money for grid expansion. My Vermont constituents would prefer to keep the lights on, and their money in their own pockets. The bill also establishes energy efficiency performance standards for utilities. The United States has experienced tremendous growth in electricity consumption over the past decade. Current estimates are that electricity consumption is increasing at roughly 2 percent per year.
Between 1993 and 1999, U.S. summer peak electricity use alone increased by 95,000 megawatts. This is the equivalent of adding a new, six-state New England to the nation's electricity demand every fourteen months. Energy experts estimate that as much as 50 percent of expected new demand over the next 20 years can be met through consumer efficiency and load management programs. Over the past two decades, utility demand-side efficiency programs have avoided the need for more than 100 300-megawatt power plants. However, with the advent of electricity deregulation, utility spending on these efficiency programs has dropped by almost half. The federal government should seek to correct this trend, and this bill takes a strong first step in that direction by phasing in a requirement that utilities reduce their peak demand for power and their customers' power use between 2006 and 2015.
Finally, the bill enacts standards that enable increased on-site, or distributed, generation to reduce pressure on the grid and lessen the impact of a blackout should one occur. We have an obligation, Mr. President, to ensure that the electricity grid is secure. We currently have a giant system consisting of almost 200,000 miles of interconnecting lines that constantly shift huge amounts of electricity throughout the country. Such a giant and complex system, traversing miles of city and countryside, is inevitably subject to unforseen problems. Simply making it bigger will never take away all uncertainty, nor can it eliminate the vulnerability of the grid to sabotage or terrorist attack. We should do all we can to make certain such vulnerabilities are reduced.
In summary, I am introducing this legislation because I feel that we should be cautious in our assumptions that the answer to our nation's reliability woes lies primarily in building a bigger, more expansive grid. Simply building more transmission lines is not the answer. Investments in energy efficiency and on-site generation can significantly improve the reliability of the nation's electricity grid and in most cases will be cheaper, faster to implement and more environmentally friendly than large-scale grid expansion. We also must fill the regulatory gaps in the system, which my bill does. Congress should establish mandatory reliability standards and close other regulatory gaps left by state deregulation of the electricity sector. In addition, no national reliability program will be effective or complete without strong incentives for demand-side management programs for efficiency and for on-site generation.
We cannot solve today's energy problems with yesterday's solutions. My bill is an innovative approach to ensuring electric reliability by maximizing energy efficiency, regulatory efficiency, and efficient investment. Given the high costs of power outages to our country, we cannot afford to do otherwise.
I invite my colleagues to join me in my efforts to advance energy security and reliability in the United States. I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, I rise today to introduce the Renewable Energy Investment Act of 2005 to accelerate the use of clean, domestic renewable energy sources as an integral part of our Nation's electrical generation.
A recent episode of the television show, West Wing, portrayed renewable energy as science fiction. The truth is closer to Reality TV.
Eighteen States, plus the District of Columbia, have already instituted minimum renewable standards. This bill would establish a national renewable portfolio standard requiring that, by the year 2020, 20 percent of U.S. electricity be derived from clean, domestically produced renewable energy including wind, solar, biomass, geothermal and wave energy.
As the ranking member of the Senate Environment and Public Works Committee, I think obtaining 20 percent of our country's electricity from renewable energy represents the modest end of what we could achieve.
Let me offer five reasons why I believe we need a national commitment to encourage renewable power.
First, renewable power would help consumers by reducing electricity prices. According to data provided by the Bush administration's Energy Department, a 20 percent renewables requirement similar to that set forth in the bill I am introducing today would lower consumer energy costs by the year 2020. Why? Because adding additional renewables to our energy mix will decrease the pressure on natural gas supplies, bringing overall costs down.
This point is worth repeating. Despite concerns from those in the fossil fuel and nuclear industries, the Department of Energy has consistently found that a mandatory renewable portfolio standard would not raise overall energy costs and would have no significant adverse impact on America's wallets.
Estimates are that reaching 10 percent renewable energy production by the year 2020 could reduce the demand for natural gas by as much as 1.4 trillion cubic feet, and could reduce the price of natural gas by 6 percent. With the higher renewable portfolio standard in my bill, the price reductions are even greater.
I have received letters from the chemical industry expressing deep concern about the high price of natural gas, and imploring me to take steps to help alleviate shortages and reduce costs.
Much to my consternation, however, neither the chemical industry, nor this administration have addressed the obvious link between increasing renewable energy production and easing demand on natural gas supplies. Instead, their solutions have been to open sensitive lands to more drilling, reduce environmental compliance and advance clean coal technologies.
Whatever merits there may be to some of their suggestions, an obvious step that should be taken is diversifying our energy sector and easing the growing demand on natural gas by promoting other clean energies which can be readily produced on American soil.
The second reason for a national commitment to encourage renewable power is the public health and environmental benefits.
Electricity generation is the leading source of U.S. carbon emissions, accounting for over 40 percent of the total. Carbon dioxide emissions are the primary greenhouse gas, contributing to harmful climate change. A 20 percent renewables requirement would, according to the U.S. Department of Energy, reduce carbon emissions from power plants by up to 18 percent by the year 2020.
A 20 percent renewables requirement would also significantly reduce emissions of sulfur and nitrogen oxides. These pollutants contaminate our water, cause smog and acid rain, and contribute to respiratory illnesses. As a result, a renewable portfolio standard would help alleviate asthma, which has become the most common chronic disease for children.
Coal burning electric power plants are also the largest source of mercury pollution, releasing an estimated 98,000 pounds of mercury directly into the air, and generating an additional 80,000 pounds a year in mercury tainted waste. A renewable portfolio standard would help the estimated five million women and children regularly exposed to mercury at levels that EPA considers unsafe.
And according to the Department of Energy, these public health benefits would be achieved without raising consumer energy costs.
Third, a 20 percent renewable portfolio standard would enhance our national security by diversifying our energy supply. As we increase our reliance on natural gas, much of the demand may have to be met by liquified natural gas shipped to the U.S. from other countries. It is unthinkable that we should sink to greater reliance on foreign fuel imports when we have abundant, inexhaustible renewable energy right here.
Further, much of the U.S. energy system including power plants, refineries, and pipelines, present significant safety and security risks. Renewable energy facilities are generally smaller, more geographically dispersed and do
not involve disposal or transportation of radioactive or combustible materials.
A 20 percent renewable portfolio standard such as I offer today will help bring the costs of on-site generation down even further, making providing your own electricity a reality for a growing number of homes and facilities. In these times when we worry about the potential security of our energy grid, that option becomes increasingly attractive.
Fourth, a national renewable portfolio standard builds on the successful experiments by the States. To date, 18 States, plus the District of Columbia, have adopted mandatory renewable energy standards. These State programs provide excellent incentives for renewable energy. In September 2004, New York created the second- largest new renewable energy market in the country, behind only California, when the state Public Service Commission adopted a standard of 24 percent by 2013. Earlier in 2004, Hawaii, Maryland, and Rhode Island also enacted minimum renewable electricity standards.
Texas has one of the most successful state programs. The Texas Renewable portfolio standard was signed into law by then Governor George W. Bush, and administered by Pat Wood, who now chairs the Federal Energy Regulatory Commission. These men know the value of renewable energy. Texas now has enough wind power to run about 300,000 homes a year, with huge benefits to ranchers who can lease acreage for wind turbines.
However, as good as these State efforts are, they are subject to the inherent limitation that they can only address electricity sales and production within their own State boundaries. Yet as we know, electricity generation and transmission are regional in nature. State renewable requirements alone cannot provide the market and other mechanisms necessary to address regional and national electricity transmission.
But these State programs demonstrate that renewables requirements can work, and operate to the benefit of consumers.
Finally, I call for a national commitment to encourage renewable power because a cleaner energy future is in our grasp. The U.S. has the technical capacity to generate 4.5 times its current electricity needs from renewable energy resources. European investment continues to outstrip U.S. markets, but that is changing. Worldwide, approximately 6,500 megawatts of new wind energy generating capacity were installed, amounting to annual sales of about $7 billion. Almost a third of that came from the United States, which installed nearly 1,700 megawatts of new wind energy in 2001, or $1.7 billion worth of new wind energy generating capacity.
Yet, renewable energy still accounts for only a little over 2 percent of U.S. electricity generation.
It is not that we expect this renewable portfolio standard to make conventional energy sources obsolete. Undoubtedly, fossil, nuclear and other fuels will be with us for some time. But isn't it time that we charted our future with cleaner energies? The potential is there, but we have to give it the assistance of market incentives, as we have traditionally done for our more established fuel sources.
I urge my colleagues to again demonstrate our strong commitment to renewables and support my legislation. I ask unanimous consent that the text of the bill be printed in the Record.
Mr. President, it is a pleasure for me to introduce today, along with my colleagues Senators Smith, Collins, Chafee, and Rockefeller, the ``Pathways to Independence Act of 2005.'' This legislation is the product of a bipartisan effort to ensure that those individuals in our welfare system who face the toughest barriers to work, such as individuals with disabilities or substance abuse problems, are provided the best opportunity for future success and productivity. This legislation gives states the tools and incentives necessary to assist them in moving individuals from welfare to work.
The current welfare system has been widely regarded as a success in moving individuals off the welfare rolls, and states have been given incentives to do so. While this approach has been regarded as successful, it has one major flaw. Although the states are provided incentives for removing people from the welfare rolls, no incentives exist for placing individuals into sustainable employment. States receive the same credit for moving a welfare recipient into a high paying job as they do for sanctioning that person outright. This perverse incentive has been particularly difficult for the many welfare recipients who have disabilities or struggle with substance abuse problems. In many states it is easier to write these people off than to give them the support necessary to become truly independent.
In Vermont, approximately 15 percent of the welfare caseload has been diagnosed with a disability and receive services through the Vermont Department of Vocational Rehabilitation. Vermont's effort to provide these services enables welfare recipients to, move from welfare to work. However, these services are not included in the core work activities allowed under the current welfare law. Vermont receives no credit or incentive for moving these individuals to independence. This policy is wrong. If we truly want welfare to be an initiative that helps people to become independent and self-sufficient, then our policies must reflect our intentions. That is where ``The Pathways to Independence Act of 2005'' comes into play.
The ``Pathways to Independence Act of 2005'' would allow states to count certain rehabilitation services for individuals with disabilities and treatment for substance abuse toward work activities. Here's how it works: the legislation would give states the ability to count a welfare recipient who is engaged in work, or work preparation activities, to participate in a drug treatment program for three months. At the end of this 3-month period, the state would be given the opportunity to re- evaluate the status of the individual and decide whether to continue treatment for an additional 3 months. This is the same process that is envisioned in the ``Personal Responsibility and Individual Development for Everyone (PRIDE) Act'' that the Finance Committee is planning to consider this spring. The PRIDE approach would then require an individual with a severe barrier to meet the same standard as a non- disabled individual. However, the ``Pathways to Independence Act'' would allow the state to continue treatment for the individual, provided that the individual is meeting at least half of the regular work requirements and following their treatment program for the remaining hours.
This is a common sense proposal. It is consistent with the research on providing effective support programs for people with disabilities and effective treatment programs for people struggling with substance abuse leading to sustainable employment. By allowing states to count these individuals in the ``working'' category, we provide the states with the necessary incentives to engage those most difficult to serve in meaningful ways that will help them to work. It will allow the states to place people with disabilities and substance abuse problems on a pathway to independence.
The ``Pathways to Independence Act of 2005'' would supply the states with the tools and incentives necessary to provide welfare recipients with the greatest chance for independence and self-sufficiency. If we truly want to take the necessary steps towards achieving this goal and improving upon our current welfare system, this legislation must be part of any welfare reform reauthorization that is enacted.
I would like to thank the members of the Consortium for Citizens with Disabilities for their help in developing this legislation and their strong letter in support of this initiative. I especially want to thank my colleague from Oregon, Senator Smith, for his commitment to this legislation and all of our cosponsors in this endeavor.