LOBBYING ATTACK ON NEW ENERGY

Politics, famously described as the art of the possible, is at the moment a battleground to determine what US leaders are willing to believe is possible in New Energy.

Representatives of Old Energy like Rudy Giuliani’s PR firm are facing off against representatives of New Energy like Al Gore’s partners. They are trying to sway members of the Senate right or left on the Renewable Electricity Standard (RES) that would require utilities to find renewable sources for a percentage of their power.

Old Energy says it can’t be done and it will cost too much. New Energy says it can be done and it will save ratepayers in the long run.

As NewEnergyNews was putting this post up, breaking reports had Senate Democrats sacrificing the RES in favor of the incentives package shifting billions from fossil fuels to New Energy. If this is true, it is a compromise New Energy will have to live with, given the harsh realities described here. A vote on the compromise version of the legislation is said to be coming December 13.

The next question: Will President Bush veto?

Energy legislation faces tough battle in Washington
Daniel Whitten and Tina Seeley, December 10, 2007 (Bloomberg News via International Herald Tribune)
and
Senate Dems push ahead on energy bill
H. Josef Hebert, December 11, 2007 (AP via Yahoo News)

WHO
Utilities Southern Co. (David Ratcliffe, CEO) and American Electric Power; Representative Edward Markey (D-Mass), venture capitalists Kleiner Perkins Caufield & Byers (Al Gore, partner), Bracewell & Giuliani (Rudolph Giuliani, partner and Scott Segal, lobbyist/director, Electric Reliability Coordinating Council)

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WHAT
Utilities and other energy interest groups are spending millions on lobbying against elements of the energy bill passed by the House of Representatives and now facing Senate approval. The Renewable Electricity Standard (RES) requiring utilities to obtain 2.75% of their electricity from renewables by 2010 and 15% by 2020 is the chief target of the utilities. Tax subsidies and other incentives shifted by the House bill from fossil fuel industries to New Energy are targeted by oil, gas and coal industry representatives.

WHEN
- The House passed the legislation December 6. For it to come to a vote in the Senate, the legislation will have to have 60 votes for it. Otherwise, opponents can threaten a filibuster and there would not be the 60 votes necessary to end it. By common understanding, the Senate usually waits to take up such controversial bills until compromises have been worked out that gain the 60 vote support.
- It is unlikely a bill containing measures that prevent a 60 vote majority in the Senate would escape President Bush’s veto anyway.
- Congress has debated an RES since the 1990s and the Senate has passed 3 versions since 2001.
- In November, Britain revised its 10% renewables goal from 2010 to 2020.
- The EU’s goal is 20% renewables by 2020.

WHERE
- K Street in Washington, D.C., infamous for the lobbyists whose offices are located there and whose info-influence is exerted there.
- 25 states, including Texas and California, have passed and are working toward fulfilling an RES.

WHY
- Utilities claim the RES would cost the country $67 to adhere to the House RES. Other research suggests ratepayers would save hundreds of billions.
- The RES ramps up over 10 years from a 2.75% renewables requirement to the 15% requirement, allowing utilities time to develop resources.
- Opponents of the RES claim renewable sources are too expensive while advocates argue that the mandate would give the New Energy industries the incentive they need to generate the economies of scale and technological breakthroughs they need to bring costs down.
- Opponents claim some regions of the US lack resources to generate New Energy but a quick look at the facts proves all regions have some resources.
- The bill allows all utilities to count efficiency measures for 4% of the 15%.

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QUOTES
- Representative Edward Markey (D-Mass): "The lobbying effort led by Southern Co. is the principal obstacle to America unleashing a renewable-electricity revolution…"
- Ratcliffe, Southern Co: "We're not opposed to renewable energy…We are opposed to sort of a one-size-fits-all federal mandate that would be very difficult for us to achieve with any economic sense."
- Segal, Bracewell: "Advocates for the renewable-portfolio standards have a tough road ahead of them to get the votes in the Senate…"
- Ben Lieberman, Heritage Foundation: "The only reason renewable electricity needs to be mandated in the first place is that these alternatives are far too expensive to compete otherwise…Washington is forcing costlier energy options on the public."
- Jeremy Symons, National Wildlife Federation: "Power plants are responsible for 40 percent of all U.S. global-warming pollution…The old guard will continue to argue for the most polluting technologies."
- Senate Majority Leader Harry Reid (D-Nv): "If we can't get it all, we'll get part of [the House’s energy bill]…The American people deserve it."