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.

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