Strategies for your business to survive in a cap and trade world

FREE Panel Discussion and Networking event:
Thursday, September 03, 2009 ---5:30 PM - 8:00 PM (EDT)
The Columbia Club, 121 Monument Circle, Indianapolis, IN 46204

Green Business Network presents second Green Business Networking Series event at the Columbia Club on September 3rd, 2009.

Green Business Network is an Indianapolis based organization that promotes green businesses through education and connection. Part of the proceeds will benefit the Indiana Chapter of the US Green Building Council and the Hoosier Environmental Council.

Learn about current Greenhouse Gas legislation and how it applies to your business; What effect will it have on your business operations; Identify tools available to mitigate the risks and take advantage of tax and investment incentives. The speakers include:

1. Anthony Paul, an economist at Resources for the Future, a nonprofit organization that conducts independent research on environmental, energy out of Washington DC will provide economist perspective on carbon regulations and implications for Indiana businesses as well as the compliance costs to manufacturer, small businesses.

2. Tony Sullivan – partner with Barnes & Thornburg will cover Waxman Markey bill definition, applicability, main provisions and current status in the Congress.



3. Michael Radcliffe - RMT Strategic Advisory Services Leader will elaborate on how holistic value chain business assessment will help businesses to compete and stay profitable in present economic environment.


4. Ann McCabe with Climate registry out of Chicago, IL will cover available tools for Indiana businesses in measuring and reporting Greenhouse Gas emissions.


5. Matthew Morgan and Anneliese Williams with Barnes & Thornburg will discuss available business incentives: tax credits;cash payments; loans; grants on federal, state and local levels for Indiana businesses provided by current legislature.

6. Kristen Trovillion - Program Manager with Indiana Office of Energy Development will highlight the state’s energy efficiency programs for businesses and nonprofits and will discuss Alternative Power and Energy (APE) grant for businesses

Learn more about panel speakers


Moreover, the event has dedicated a two-hour period after the panel discussion, for participants to engage in Green Networking.

The program seeks diversity in its attendance, which will include corporate leaders, business professionals, business owners, local policymakers, educators, and local media persons.



The event is FREE but advance registration is requested. Space is limited and assigned on first come first serve basis.

REGISTER HERE.

Senate Committee Markup on Energy Bill defeats Amendments

Senate panel's RES markup previews floor showdown
by Katherine Ling, E&E reporter, Greenwire.com

The Senate Energy and Natural Resources Committee defeated efforts today to make significant changes to a proposed renewable electricity standard (RES) in a sweeping energy bill.

The panel expelled bids to remove caps on energy efficiency that would count toward the standard, exclude all nuclear power from the baseline and raise the standards.

Chairman Jeff Bingaman's RES provision would require utilities to use renewable generation for at least 15 percent of their electricity by 2021 and allow them to substitute energy-efficiency measures for slightly more than a quarter of the target.

The committee did approve several amendments, including two from Sen. Bob Corker (R-Tenn.) and ranking member Lisa Murkowski (R-Alaska) that would exclude electricity from new nuclear reactors and expansions of existing reactors capacity from the baseline of a utility's electricity sales.

Other approved amendments would exclude electricity from coal-fired power plants equipped with carbon capture and sequestration technology from the RES mandate and also make exemptions for qualified hydropower, biogas, waste to energy and the definition of biomass.

The panel also accepted a proposal by Sen. Sam Brownback (R-Kan.) that would give triple credits for carbon-emission reductions that use algae and an amendment by Sen. Maria Cantwell (D-Wash.) to create a low-interest loan program to finance renewable-energy projects.

But other efforts to alter the RES provision failed to crack a 12-vote coalition built by Bingaman.

Several efforts to include all nuclear to the baseline was rejected in 11-12 votes -- which included Brownback voting against and Democrats Mary Landrieu of Louisiana and Evan Bayh of Indiana voting for.

Bingaman opposed all those amendments, calling them "the worst of all possible outcomes."

"Including nuclear power as a resource in the RES ... doesn't make it more likely that nuclear power will be built," the New Mexico Democrat said. "The issues of not getting nuclear built relate to financing, prohibitive costs, and to some extent proliferation."

An amendment in the nature of a substitute by Landrieu to lift the cap on the amount of energy efficiency that could count toward a renewable standard also failed in an 11-12 vote. Landrieu said she would also offer such a measure on the floor.

"Somewhere along the line, we started confusing the means to the ends with the ends themselves," Landrieu said. "I offer this amendment in the spirit of compromise. We may not win today in this committee, but this is an issue that will be front and center" on the floor.

Landrieu added she might consider a higher target "if we can get it right" and it would be less disruptive to "underappreciated" industries.

Bayh, meanwhile, offered an amendment that would create tax incentives for renewable energy, which would spread the costs of promoting renewables across all regions. He withdrew the amendment and said he would also offer it on the floor.

Amendments by Sen. Byron Dorgan (D-N.D.) to raise the standard to 20 percent by 2021, with a 5 percent efficiency offset, and Sen. Mark Udall's (D-Colo.) bid to boost the standard to 25 percent were passionately discussed but withdrawn. Both lawmakers vowed to resurrect their proposals on the floor.

Sen. Bayh Votes Against Federal RES

If you support establishment of a federal Renewable Electricity Standard (RES), you may wish to convey your disappointment with Sen. Evan Bayh. One amendment was considered today that would have eliminated the RES title completely: it failed 9-13, with Sen. Bayh as the only Democrat voting in favor.

Please contact Sen. Bayh by calling (202) 224-5623 or senator@bayh.senate.gov.

Or you may wish to send your comments to Sen. Bayh's Energy/Environment Legislative Assistant, Chris Murray at chris_murray@Bayh.senate.gov.

May 21, 2009

Bayh opposes renewable-energy requirement

By MAUREEN GROPPE
Gannett Washington Bureau
http://www.jconline.com/article/20090521/NEWS09/90521017

WASHINGTON - Sen. Evan Bayh was the only Democrat to oppose a renewable-energy requirement approved by a Senate energy committee today as part of a broader energy bill.

Bayh said Indiana would be among the states that would bear a disproportionate share of the cost of meeting the requirement. He said a fairer system would be offering tax credits for producing power from renewable sources.

The energy bill the Senate Energy and Natural Resources Committee is working on would require power companies to get 15 percent of their electricity from renewable energy sources or from energy efficiency improvements by 2021.

"A lot of states like Indiana and most of the states in the Southeast and others around the country are going to find the renewable sources are not cost-effective," said Sen. Jeff Sessions, the Alabama Republican who tried to strip the requirement from the bill.

Sen. Jeff Bingaman, the New Mexico Democrat who heads the committee, had softened the requirements from an earlier version in hopes of winning over moderate Democrats including Bayh, Sen. Mary Landrieu of Louisiana and Sen. Blanch Lincoln of Arkansas.

Lincoln voted for the requirement, and Landrieu did not vote.

But because two Republicans voted with Democrats, the requirement had enough votes to keep the bill alive. The committee plans to take up multiple amendments before completing action.

Twenty-eight states, not including Indiana, have a renewable-energy requirement.

"Twenty-eight states have done it and we can't do it?" said Sen. Byron Dorgan, D-N.D. "Of course we can."

Sen. Debbie Stabenow, a Michigan Democrat who supported the national requirement, said Michigan's standard has resulted in new jobs as power companies strive to meet it.

Will failure to pass state RES adversely affect efforts to attract renewable energy manufacturing investment in Indiana?

Dear Blog readers,

I received this as an e-mail follow-up to a telephone conversation I had earlier today with Doug Ahlfeld as I reported to him the progress of renewable energy legislation still pending during the 2009 session of the Indiana General Assembly. Many renewable energy advocates believe that we can and will get a better Renewable Electricity Standard (RES) passed by the U.S. Congress than the Indiana General Assembly. If we do not pass a state RES again it may have a negative impact on economic development efforts to recruit renewable energy industry investment in our state. We are hearing that those who make such business investment decisions want to see a committment to the renewable energy industry from the State of Indiana. Not only that but it may send the wrong signal to Sen. Evan Bayh as he prepares to vote on a federal RES as a member of the Senate Energy and Natural Resources Committee. The committee vote on a federal RES is expected THIS WEEK.

Yes, the wind farms may continue to be developed within our state because we have the wind resources but some of that wind generated electricity may be transmitted to other states to help utilities meet RES requirements in other states. But what about the opportunities for renewable energy manufacturing investments here in Indiana? What are your thoughts?

Laura,

The Northeast Indiana Partnership, http://www.chooseneindiana.com. who serves an 11 county area of local economic development organizations, along with the Northeast Indiana Green Build Coalition and Indiana & Michigan Power held a very successful wind energy supply chain workshop at the Grand Wayne Convention Center in Fort Wayne this past week. Nearly 300 attendees learned of the potential for building components as the automotive industry continues to diminish area business. At least 60% of the attendees were in an automotive related business.

One of the outcomes from this workshop was the possibility of turbine manufacturers moving to the Northeast Indiana area to take advantage of our manufacturing capacity. I met personally with Mayor Henry, who would welcome such a diversity in manufacturing to this area. However, one of the drawbacks we hear from turbine manufacturers moving to Indiana is the lack of a consistent policy on wind. They want to move to a State who has a favorable policy which will promote their business. I know of two companies who are actively looking at Indiana. As I travel to Chicago next week for the National Wind Conference with some of the Northeast Indiana Partnership officiers, it would be a great advantage to us in our discussions with these turbine manufacturers to have that policy in hand before the legislation closes.

The number of jobs which could come to our area ranges from construction, to service, to manufacturing, to large truck hauling and all the other related businesses with new manufacturing. This would certainly be a vital link to bring a change in direction to our area economy.

I wish you well with your efforts in bringing jobs and wind to Indiana,

Doug Ahlfeld
Board of Directors, Northeast Indiana Green Build Coalition
Education Committee of the Indiana Wind Energy Workgroup
Office 260-693-9380
FAX 260-693-0797
Cell 260-437-1478

US Congress to bundle RES + cap-and-trade + smart grid

How will this delay in enacting a federal Renewable Electricity Standard (RES) impact the efforts during the 2009 Indiana General Assembly to pass a state RES? Please share your thoughts.

Senate Dems to put energy, emissions bills in one package -- Reid (03/05/2009)

Darren Samuelsohn, E&E senior reporter

Senate Majority Leader Harry Reid (D-Nev.) confirmed today that he will package energy and global warming measures together into one large bill for consideration later this year, a decision that should put to rest questions about whether Democratic leaders on Capitol Hill have different strategies for one of President Obama's top agenda items.

Reid gave only a one-word answer -- "yes" -- when asked whether he planned to wrap a cap-and-trade bill together with separate bills establishing a nationwide renewable electricity standard (RES) and promotion of a modernized grid that can improve energy efficiency, reliability and renewable energy management.

As recently as last week, Reid had spoken of splitting the energy and climate items up into at least three different bills, with the energy provisions moving forward first while holding back on the global warming measure for the late summer. Reid did not elaborate today on his change of plans, and his spokesman, Jim Manley, declined further comment.

But sources tracking the Capitol Hill climate debate said Reid's shift came after a month of intense lobbying for the one-bill strategy that originated with House Energy and Commerce Chairman Henry Waxman (D-Calif.).

Waxman first convinced House Majority Leader Steny Hoyer (D-Md.) and House Speaker Nancy Pelosi (D-Calif.) on his approach. Pelosi, in turn, got approval from the Obama White House before pitching Reid the idea earlier this week during their weekly conference meeting.

Pelosi went public with her endorsement of Waxman's strategy Tuesday. "I would like to see one bill, which is the energy bill with the cap and trade and the grid piece," she told reporters. "They're the three elements that we have to pass more fully. I'd like to see it as one bill."

As far as timing, Pelosi and Reid have both promised floor votes this year on the global warming and energy measures, though they have been less clear about exactly when that may occur. Waxman has pledged a committee markup by Memorial Day, fueling speculation his measure could be handled by other committees that have jurisdiction on the issue and still be ready for the floor before lawmakers break for their summer recess in August.

Pelosi spokesman Drew Hammill today would only point to Waxman's Memorial Day schedule.

In the Senate, Reid had previously said he wanted to hold a floor debate in the spring on energy, while holding back on the climate bill until later this summer.

"This is a big beast, you can't predict the timing," said one former Senate Democratic aide.

Different views on one-bill strategy

There is plenty of different opinions about the one-, two- or even three-bill strategy on and off Capitol Hill.

"Personally, I think they go hand in hand," Senate Foreign Relations Chairman John Kerry (D-Mass.) said in an interview today. "I'm very comfortable putting them together."

Rep. Rick Boucher (D-Va.) advocated for the combination strategy as well, saying it helps lawmakers grasp the entire picture of what they are voting on "You can adjust one in order to compensate for changes you might want to make in another," Boucher said. "It does create a broader opportunity for balanced legislating. So I think it's a better way to do it that way."

Anna Aurilio, director of the Washington office of Environment America, said the logistics of the energy and climate legislation should be secondary to passing a measure as fast as possible. That said, she backs a single bill. "We want to get it done," she said. "If it moves together, if it moves separately, we want to get it done. The urgency of solving the problem is paramount, so obviously enacting one bill is easier than enacting separate bills."

But not everyone is on the same page.

Senate Energy and Natural Resources Chairman Jeff Bingaman (D-N.M.) said earlier today that he wants to mark up the energy and "smart grid" legislation this month and he still has doubts whether a cap-and-trade bill can move within the same timeframe. "I hate to see all of that sort of held hostage until we can get agreement on a cap-and-trade bill," he told reporters today.

Sen. Olympia Snowe (R-Maine), a critical swing vote for Democrats as they pursue Obama's agenda, said she was not aware of Reid's new position on combining energy and climate. Even so, she said she had some concerns with the approach. "I think you have to be careful not to make things such mega-bills," she said. "You give people plenty of reasons to vote against this."

And Senate Minority Whip Jon Kyl (R-Ariz.) also found fault in taking energy and climate change up in one package.

"It's an enormous undertaking," Kyl said. "And I don't think we're anywhere close to having the information necessary to pull all of this off. There's a great error being made here that we really know how to make all this stuff work. It's a bit like running the banking and financial institutions. If you're comfortable with the way we do that, well, then maybe you're comfortable with the way we run the energy system of the entire country I think not."

Reporters Ben Geman and Kate Ling contributed

Smart grid language probably will be added to federal RES bill; U.S. Senate Committee to hear about 'smart grid'

The federal Renewable Electricity Standard (RES) bill introduced in the U.S. Senate is likely to be amended to include 'smart grid' language. The committee hears testimony tomorrow morning.

Watch the U.S. Senate Committee on Energy and Natural Resources on Wed., Mar 3 beginning at 10:00 AM.

Full Committee Oversight Hearing: to receive testimony on the process of smart grid initiatives and technologies (SD-106). PLEASE NOTE ROOM CHANGE. The purpose of this oversight hearing is to examine the progress on smart grid initiatives authorized in the Energy Independence and Security Act of 2007, and funded in the stimulus bill, and to learn of opportunities and impediments to timely installation of smart grid technologies.

Witnesses
Panel 1
The Honorable Suedeen Kelly , Commissioner , Federal Energy Regulatory Commission
Ms. Patricia Hoffman , Department of Energy
Dr. Patrick Gallagher , National Institute of Standards and Technology

Panel 2
The Honorable Frederick Butler , National Association of Regulatory Utility Commissioners
Ms. Katherine Hamilton , GridWise Alliance
Mr. Edward Lu , Google Inc.
Mr. Evan Gaddis , National Electrical Manufacturers Association

March 2, 2009

Senate panel to study details of setting up electric 'smart grid'

By KATHERINE LING, Greenwire

Lawmakers, regulators and industry officials have declared that a "smart grid" is necessary for the nation's energy security and clean energy future, but the technology has yet to be adopted nationwide.

The Senate Energy and Natural Resources Committee will examine the smart grid dilemma in a hearing tomorrow with discussion on what exactly a smart grid is made up of, the benefits -- including jobs -- it creates and what barriers restrict its implementation.

"Clearly, everyone agrees we should do more," Chairman Jeff Bingaman (D-N.M.) said in an interview. "But we know we have to get down to the details of what does that mean." Bingaman said there is likely to be a smart grid component in upcoming energy legislation that he hopes to introduce and mark up in the next four to five weeks.

Despite including $11 billion for smart grid initiatives in the economic stimulus bill, lawmakers, businesses and the public alike are still absorbing what a digitized, intelligent grid could do for renewable energy, consumption behavior and information, and grid operation and efficiency.

Advocates for smart grid technology have been trying to get their voice heard for more than seven years and have welcomed the recent exposure and attention it has received as an enabler of renewable energy. But there is some worry about more near-term applications of smart grid technology getting lost within the transmission and renewable energy discussion.

"Smart grid is much more down on the distribution level that is much easier and cheaper to get to," said Steve Hauser, head of market development at GridPoint, an intelligent energy management company, and a president emeritus at the GridWise Alliance.

In a smart grid hearing last week in the House Select Committee on Energy Independence and Global Warming, Tom Casey, CEO of Current Group LLC -- a smart grid software and analysis company -- took more than five minutes to explain to lawmakers that the smart grid is more than meters seen in residences or devices in appliances.

"A smart grid, in many ways is like an Internet for electricity, a network of devices that are monitored and managed with real-time communications and computer intelligence," Casey said.

Frederick Butler, who is president of the National Association of Regulatory Utility Commissioners and will testify at tomorrow's hearing, is a strong advocate for the smart grid, especially for improving the communication system and other components on the distribution system before pushing smart meters into houses and buildings.

Within the $11 billion allotted for smart grid technology in the stimulus package is $4.5 billion for smart-technology matching grants. A majority of the grants, however, will likely go to smart metering programs since many of those projects are already before public utility commissions and can put the stimulus money to work and create jobs faster.

Barriers

Regulators and utilities have been hesitant to adopt smart grid technology since it is evolving and, like any computer software, can often require costly upgrades. It also currently lacks standards and industry-wide consistency -- all of which could be quite costly to consumers if companies choose technology that becomes obsolete.

Energy Secretary Steven Chu recently told a Center for American Progress clean energy forum that it is policies and standards, and not technology, that is holding up wider implementation of smart grid technology.

Bingaman is likely to ask representatives of the Federal Energy Regulatory Commission and the National Institute of Standards and Technology the status of creating smart grid standards for protocols and information management to achieve integration of different smart grid devices and systems as mandated in the 2007 energy bill.

NARUC and FERC also formed a "smart grid collaborative" one year ago to facilitate the implementation of the smart grid. The collaborative -- led by Butler and FERC Commissioner Suedeen Kelly -- aims to inform federal and state regulators about technological developments and other issues regarding the smart grid and what impacts there could be on consumers.

Smart grid technology also carries significant upfront costs that may end up saving companies and consumers in the long run but can create some barriers at the beginning of the project. Advocates of smart grid technology say Congress should consider more incentives for smart grid investment, including accelerated depreciation.

Copyright 2009 E&E Publishing. All Rights Reserved.

For more news on energy and the environment, visit www.greenwire.com.

Federal and State Renewable Electricity Standard (RES) Bills to be Heard Today

Members of the House Commerce, Energy, Technology and Utilities Committee will hear testimony on HB 1305 establishing a state Renewable Electricity Standard (RES) today (2/10/09) upon adjournment in the House Chambers. What's "upon adjournment"? The Indiana House of Representatives is scheduled to go into session on the floor at 1:00 pm today. Here is a link to their calendar http://www.in.gov/legislative/reports/2009/BCALH.PDF. So how much of this calendar will they attempt to address before the committee hearing on HB 1305 "upon adjournment"? Who knows for sure but I would tune in around 3:00 pm to see where they are on their calendar.

To watch HB 1305 this afternoon visit http://www.in.gov/legislative/session/video.html

The hearing on the federal Senate RES bill starts this morning at 10 AM.
For details on this federal committee hearing see: http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.Hearing&Hearing_ID=3de47fcb-99e4-e0fd-c5e6-52532f60f256

To watch the committee hearing click the link above and then . or http://energy.senate.gov/public/index.cfm?FuseAction=Hearings.LiveStream


News Release

U.S. SENATE COMMITTEE’S PROPOSAL FOR A NATIONAL RENEWABLE ELECTRICITY STANDARD IS “DOWNRIGHT WIMPY” – GOAL SHOULD BE MUCH HIGHER

For Immediate Release: Monday - February 9, 2009
Contact: Ken Bossong, 301-270-6477 x.23

Washington DC – The proposed Renewable Electricity Standard (RES) to be considered by the U.S. Senate Committee on Energy & Natural Resources at a hearing on February 10 falls far short of what is doable and needed according to the SUN DAY Campaign.

The Senate committee will meet on Tuesday morning at 10:00 am (in Room 366 of the Dirksen Senate Office Building) to take testimony on the Democratic staff draft for Chairman Jeff Bingaman’s Renewable Electricity Standard. The amendment requires sellers of electricity to retail consumers to obtain certain percentages of their electric supply from new renewable energy resources.

Calendar Year: .......................... Minimum annual %:
2011 through 2012 .................................... 4.0
2013 through 2015 .................................... 8.0
2016 through 2018 ................................... 12.0
2019 through 2020 ................................... 16.0
2021 through 2039 ................................... 20.0

Qualifying renewables (including distributed generators) are wind, solar, ocean, geothermal, biomass, landfill gas and incremental hydropower. Existing hydropower generators and municipal solid waste generators are excluded from the base amount from which the percentage requirements are calculated.

However, according to statistics compiled in its “Electric Power Monthly” the Energy Information Administration reports that renewables (excluding large hydro and municipal waste) already account for almost 3% of U.S. electricity production. Moreover, in recent years, solar and wind have been expanding by more than 30% annually while geothermal is poised to double its current contribution within the next several years. Biomass and incremental hydropower are also expanding. In fact, in 2008, renewable energy accounted for the largest share of new electricity capacity additions.

Consequently, at current growth rates, renewables could - and probably will - easily surpass the committee’s proposed 4.0% target well before 2011-2012. Furthermore, President Barack Obama has proposed a goal of doubling renewable energy within the next three years, which would yield a renewable share of roughly 6% of U.S. electricity supply by the end of 2011.

“In light of present trends, the Senate committee’s proposed standard is well below what is realistically doable and likely over the next several years - even at only very modest ‘business-as-usual’ growth rates,” said Ken Bossong, Executive Director of the SUN DAY Campaign. “Assuming there is a significantly more aggressive national commitment to developing sustainable energy technologies, then the Senate proposal is downright wimpy.”

Longer-term, dozens of recent studies suggest that the Senate committee’s proposal for renewable energy’s share of the nation’s electricity supply falls far short of what is technically and economically feasible and likely. (A compilation of 2008 news stories that discuss the findings of these studies is available upon request from the SUN DAY Campaign.)

At a minimum, a target of 25% of U.S. electricity supply from renewable energy sources (excluding large hydro and municipal waste) by 2025 is achievable. This is roughly equal to the goal set by the European Union for its member nations. It is also consistent with a resolution unanimously adopted by the Members of the U.S. Senate in June 2007.

However, if matched by an aggressive campaign to substantially improve energy efficiency and reduce total electric demand - particularly in light of the threat of climate change, renewable energy’s share could be significantly higher. Given the right mix of tax policy, access to financial credit, R&D funding, government procurement, transmission grid development, interconnection standards, and other forms of public sector support, renewable energy sources conceivably could account for at least half - and maybe significantly more - of the nation’s electricity supply within the next quarter-century.

“The Senate committee should be designing a renewable electricity standard that envisions near-term targets at least twice as high as now proposed,” concluded Ken Bossong. “If the United States fully committed itself to sustainable energy development and discontinued squandering resources on dead-end nuclear and fossil fuel options, a national electricity generating system based 100% on renewable energy sources could become a reality.”

The SUN DAY Campaign is a non-profit research and educational organization founded in 1993 to promote sustainable energy technologies as cost-effective alternatives to nuclear power and fossil fuels.

SUN DAY CAMPAIGN, Ken Bossong, 6930 Carroll Avenue, Suite #340; Takoma Park, MD 20912, 301-270-6477 x.23 sun-day-campaign@hotmail.com

US Senate Panel To Review Draft Renewable Energy Bill-Sources

What impact should this have on the numerous renewable electricity standard bills filed during the 2009 session of the Indiana General Assembly? Tell us what you think? Should Indiana try to pass a state Renewable Electricity Standard (RES) again or just sit back and see if a federal RES will pass this year?

WASHINGTON -(Dow Jones)- Sen. Jeff Bingaman, D-N.M., whose committee is responsible for writing energy legislation, will next week review a draft bill that could require that 20% to 25% of the nation's electricity comes from renewable energy sources, according to aides and people close to the matter.

Analysts say an increased Democrat majority means Congress stands an excellent chance of passing such a renewable mandate, which would give the wind, solar and other alternative industries a major financial boost.

President Barack Obama has already pledged to push for a 25% mandate, with a 10% standard achieved early in the next decade, and enacting such a standard would help Democrats accelerate their clean energy program they say is essential not only for cutting greenhouse gases and reducing the nation's dependence on oil imports, but also to stimulating an ailing economy.

Senate officials and lobbyists close to the matter say the Senate Energy and Natural Resources Committee will review next Tuesday draft legislation to create a standard.

Although the House of Representatives has passed a renewable portfolio standard, or RPS, the Senate failed to by a small number of votes. Many of those "no" votes have been replaced, however, by Democrats who support the measure.

"In the coming Congress, I think we finally have the opportunity to see such a policy adopted and implemented," Bingaman said late last year. "It will start preparing our electricity sector for the inevitable requirements to reduce greenhouse gas emissions."

With strong support from Senate Majority Leader Harry Reid, D-Nev., Bingaman's also drafting measures that would reform the nation's transmission infrastructure.

The Energy Policy Act Congress passed in 2005 authorized the Department of Energy to designate national power corridors that would relieve power- transmission bottlenecks and prepare for new high-voltage lines across the country to connect new generations to demand centers. However, a host of planning and siting obstacles have prevented much progress.

That's why momentum is growing on Capitol Hill to establish federal planning and siting authority, and develop cost-allocation strategies to encourage transmission for renewables.

The current high-voltage power grid simply transmits electrons from generation to demand. Alternative sources of power like wind and solar don't produce steady streams of electricity like nuclear or coal plants. A "smart" grid, using advanced technology to balance the load from such intermittent power sources, would manage transmission much more efficiently.

Southern utility companies, including Duke Energy Corp. (DUK) and Southern Co. (SO), have lobbied against a federal renewable portfolio standard, though some encourage state mandates, saying it would put an unfair burden on states and consumers that aren't endowed with the same renewable energy resource bases others are.

Wind turbine manufacturers such as GE Energy, a unit of the General Electric Co. (GE), India's Suzlon Energy (532667.BY) and Denmark's Vestas Wind Systems ( VWS.OS), as well as solar firms such as Norway's Renewable Energy Corp. ASA ( REC.OS), and U.S.-headquartered First Solar Inc. (FSLR) and Evergreen Solar Inc. (ESLR) would benefit under a renewable portfolio standard.

Many lawmakers are likely to try to include provisions that would allow utilities to supplant a certain percentage of the mandate with projects that increase energy efficiency.

The industry is already likely to get a major fiscal boost from a stimulus bill lawmakers are seeking to pass, providing at least $13 billion in extended production tax credits, tens of billions of dollars in loan guarantees and grants, and more than $30 billion for a 30% tax credit for domestic manufacturing of renewable energy projects.

-By Ian Talley, Dow Jones Newswires; 202-862-9285; ian.talley@dowjones.com

Dow Jones Newswires
02-03-09 1435ET
Copyright (c) 2009 Dow Jones & Company, Inc.