Congress Asked to Consider Nationwide Renewable Portfolio Standard
U.S. Senators and cousins Mark Udall (D - Colo) and Tom Udall (D – N.Mex) introduced a bill in Congress to set a federal renewable portfolio standard. The Udalls' proposal is to require electric utilities to produce 25% of their electricity from renewable resources by 2025. The bill also includes interim targets, the first being a 6% renewables minimum by 2012. Municipal, publicly owned, and rural co-op utilities would be exempt from the requirements.
At least 28 states already have renewable portfolio standards. Some state standards are less stringent than the proposed federal standard and some are more strict. Hopefully, any federal standard would not pre-empt states that choose to enact more challenging targets, but would set a floor for utilities in all 50 states to meet. Numerous studies have shown that a federal renewable portfolio standard will create jobs, reduce energy bills and carbon emissions, and strengthen energy security. A federal standard would also drive investment in our energy infrastructure and development of newer and better technologies.
A federal renewable portfolio standard is one part of the "holy trinity" on the renewable energy industry's legislative wish list. The other two are long-term extensions of the federal tax credits that support renewable energy (or replacement programs providing similar benefits), and a nationwide carbon control program. The federal production and investment tax credits for renewable energy have been extended through 2013 and 2014, respectively. The Udalls' bill represents a significant step toward the second wish, and carbon legislation is expected later this year or in 2010.
Post authored by David Petersen, partner practicing in the Sustainability and Real Estate and Land Use Groups.
