Mr. Speaker, I would like to insert an article in the Record that takes a look at the latest shape of the comprehensive energy bill. The author of the article is Ken Bossong, coordinator of the Sustainable Energy Coalition, a coalition of…
Mr. Speaker, I would like to insert an article in the Record that takes a look at the latest shape of the comprehensive energy bill. The author of the article is Ken Bossong, coordinator of the Sustainable Energy Coalition, a coalition of 60 national and state environmental, business, consumer, and energy policy organizations founded in 1992 to promote increased use of renewable energy and energy efficient technologies. The Renewable Energy and Energy Efficiency Caucus--of which I and Representative Zach Wamp are co-chairs--works closely with the Coalition to coordinate events and briefings and to otherwise spread the word in Congress and throughout the nation about the importance of clean energy.
We're told there will be a vote on the conference agreement very soon, but few Members--even fewer on our side of the aisle--know what is in the final report. But from what has been reported in the press, it seems likely that the bad in the bill outweighs the good. By not taking into consideration opposing views, the Republicans have crafted an unbalanced bill--one that ultimately doesn't address the energy needs of this country today or into the future.
[From SolarAccess.com News, Oct. 20, 2003]
A Faltering Energy Bill
(By Ken Bossong)
Barring a major train wreck--which remains within the realm
of possibility--congressional conferees may have a final
energy bill ready for votes in the U.S. Senate and House of
Representatives by the end of this month. The final product,
representing more than three years' work, will undoubtedly be
described by its authors as ``comprehensive'' and
``balanced.'' In reality, it will be neither.
Among the pressing issues facing the United States today
are those of growing oil and natural gas imports--
particularly from politically unstable regions of the world,
escalating environmental and economic damage from greenhouse
gas emissions that contribute to global climate change, and
an electrical generation and transmission system that is
unreliable and--due to its reliance on large central station
facilities--insecure. Yet the emerging energy bill will do
little to address any of these issues; in fact, it may very
well exacerbate all three.
Among the best strategies for addressing these energy
problems are greatly expanded energy efficiency initiatives
and investments in decentralized renewable energy
technologies. Yet the energy bill will probably offer little
more than crumbs for sustainable energy while continuing and
expanding federal support for the mature, polluting fossil
fuels and nuclear power industries.
It is supremely ironic that completion of work on the
energy bill may correspond to the thirtieth anniversary of
the OPEC oil embargo that began on October 17, 1973. Over the
past three decades, total U.S. oil imports have nearly
doubled with imports now accounting for more than half (54
percent) of the nation's oil consumption. Yet the energy
bill largely fails to address oil consumption in the
transportation sector--which now accounts for more than
two-thirds of U.S. oil use--by not including provisions to
substantially raise automobile fuel economy standards. It
even fails to include the Senate bill's directive (passed
by more than 90 votes) that would set a goal of reducing
oil consumption by one million barrels per day by 2013 (a
modest 5 percent of current consumption). Instead it opts
for a ``drain America first'' strategy that may include
drilling the Arctic National Wildlife Refuge, opening the
door to expanded oil exploration in moratorium areas, and
facilitating expanded development in other ecologically
sensitive areas as well as subsidies for an Alaskan
natural gas pipeline.
It is true that the final legislation will likely
incorporate a Renewable Fuels Standard that will mandate that
5 percent of liquid fuels be derived from renewable sources
which could be a boon to the domestic ethanol and biofuels
industries. Yet these fuels will be burned in increasingly
inefficient cars and SUVs which means they will be wasted and
ultimately not reduce the nation's dependency on petroleum
imports.
Similarly, natural gas imports have been inching upwards
and now exceed 15 percent of total U.S. consumption with
future imports increasingly likely to come in the form of
expensive LNG shipments from politically unstable sources
such as Algeria, Nigeria, and Oman.
Presently, more than a quarter of the natural gas used is
burned in inefficient and wasteful electricity generating
stations. The most environmentally-sound approaches to
curbing this waste, and hence imports, include improving the
efficiency of (or reducing) electricity end-uses, expanding
the use of combined power and heating systems for electrical
generation, and displacing natural gas generating plants with
renewable electric technologies. A recent study by the
American Council for an Energy-Efficient Economy shows that
even modest gains in energy efficiency and renewable energy
production from these kinds of policies would help reduce gas
prices substantially.
Yet the energy bill provides, at best, only limited support
for any of these strategies. Its efficiency title is expected
to include new standards to improve the efficiency of
building transformers, torchiere lighting fixtures, exit
signs, traffic lights, unit heaters, and compact fluorescent
bulbs, as well as directives to the U.S. Department of Energy
to set new efficiency standards on several other products.
Small tax incentives for combined heat and power as well as
efficient new homes, commercial buildings, refrigerators,
clothes washers, and fuel cells are also probable.
While steps in the right direction, they fall far short of
the aggressive efficiency standards, tax incentives, and
public benefits fund to support efficiency programs needed to
make a serious dent in electricity consumption. That is, the
bill completely lacks aggressive measures needed to moderate
electricity demand that would reduce the risk of future
blackouts while cutting air pollution and greenhouse gas
emissions. Moreover, the tax provisions are likely to
eliminate incentives for hybrid vehicles, the nation's best
chance to save oil in the next twenty years.
The most important provision to expand the use of renewable
electricity production and displace natural gas, a Renewable
Portfolio Standard (RPS), now appears certain to end up on
the conferees' cutting room floor. Even if a token RPS
somehow makes it into the final bill, it is apt to be a
provision significantly weaker than those already enacted by
many states and far below the projected technical and cost-
effective potential for electricity generated from solar,
wind, geothermal, biomass, and hydropower resources (i.e., 20
percent or more by 2020).
Failure to include a strong RPS coupled with weak or non-
existent energy efficiency standards also insures that the
final energy bill will do very little to address the
growing problem of climate change. Indeed, a climate
change title does not even exist in the bill.
Proponents of the bill suggest that it includes provisions
that will help reduce greenhouse gas emissions and point to
increased renewable energy authorization levels such as the
$300 million over five years to establish a solar electric
(photovoltaic) energy program for the procurement and
installation of solar electric systems in new and existing
public buildings. Left unsaid, though, is that an
``authorization'' is merely permission to spend a certain
amount of money if the funds can be found; an
``authorization'' is not an ``appropriation.''
In reality, federal funding levels for renewable energy
programs--i.e., the appropriations--have been cut during each
of the last three budget cycles, notwithstanding
authorization levels that would allow for significantly
higher funding. Given the massive budget deficits now being
forecast as a result of the White House's tax cuts and the
war in Iraq, it is extremely dubious that the recent downward
funding trend will be reversed; in fact, it is highly
probable that renewable energy budgets will be slashed even
further regardless of the authorization levels included in
the energy bill.
Moreover, the levels of federal support given to renewables
in the form of direct appropriations and tax incentives are
likely to be swamped by those being proposed for the fossil
fuels and nuclear industries which have been estimated to
total $18 billion. These include $1.1 billion to build a new
nuclear power plant, $400 million in loans for oil and gas
development loan, guarantees to build a new coal plant that
may cost $2-$3 billion, and $350 million for hydrogen
production from polluting sources. Not included in this
figure is the extension of the Price-Anderson Act which
shields nuclear utilities from most liability in the event of
a major accident; the precise dollar value of this is
incalculable but conservatively worth tens of billions of
dollars in saved insurance costs.
Consequently, the unbalanced financial incentives provided
for in the energy bill for competing energy sources may
actually worsen the competitive position of renewable energy
technologies in the marketplace.
That would further compound the problems with the
reliability of the nation's electrical grid as highlighted by
the August blackout in the Northeast and the long power
outages in the mid-Atlantic following Hurricane Isabel not to
mention the national security risks posed by excessive
reliance on highly-centralized and large-scale power
generating facilities. Distributed renewable energy electric
technologies are uniquely suited to lessening these problems.
However, the energy bill fails to create the regulatory
framework to tap this potential and, in fact, through
provisions such as the proposed revocation of the Public
Utilities Regulatory Policy Act (PURPA) as well as the Public
Utility Holding Company Act (PUHCA), could make the situation
worse.
At the least, the energy bill should include mandatory net
metering and interconnection standards to enable renewable
energy generators to tie into the grid rather than the
essentially optional, advisory guidelines that it now
includes.
It should also include a long-term renewable energy
production tax credit (PTC), including a tradable credit for
public power and rural cooperatives, that benefits the cross-
section of renewable energy technologies. To provide some
stability and predictability in the marketplace, any such tax
incentive should be enacted for at least five to ten years.
By comparison, the proposed renewal of the Price-Anderson Act
is 20
years. However, the energy bill now provides for only a
three-year PTC extension. Such a short-term PTC threatens to
continue the start-and-stop cycle that has plagued the
renewable energy industry, particularly wind energy
developers, for more than a decade as investments dry up when
the existing PTC is set to expire and its supporters scurry
around madly trying to get another extension.
Wind energy advocates may be tempted to support the pending
energy bill arguing that a three-year PTC is far better than
no PTC just as the solar investment tax incentives,
geothermal reforms, Renewable Fuels Standard, and hydropower
relicensing components are important and generally positive
provisions that will benefit their respective industries.
Similarly, advocates of energy efficiency can point to some
gains that may come from the bill if enacted as now written.
However, when weighed against the lopsided provisions to
advance fossil fuels and nuclear power, it is questionable
whether the end result will actually move this country closer
to a sustainable energy future.
Moreover, the recent series of closed-door, Republican-
dominated, conference meetings in which the House-Senate
energy bill is being finalized, and which have largely
excluded those Democrats who have championed the bill's
efficiency and renewable energy provisions, have provided
nuclear and fossil fuel lobbyists an opportunity to further
skew the bill the wrong way.
Consequently, even if the Congress approves and the
President ultimately signs an energy bill this year, the
nation's energy policy work won't be done. The bill that is
likely to emerge is one that will evade the problems of
energy imports, global warming, and electric grid stability.
It is also one that will fail to incorporate an adequate
Renewable Portfolio Standard, auto fuel efficiency standards,
aggressive appliance and industrial efficiency standards,
mandatory net metering and transmission standards, and a
sufficient mix of tax incentives and federally-funded R&D
programs to move the nation away from its reliance on fossil
fuels and nuclear power.
Under the circumstances, while many weary renewable energy
and energy efficiency advocates may wince at the prospect, it
would likely be far better to have no energy bill than the
one that seems to be nearing completion.