DEMS TO SETTLE ON DIMINISHED NEW ENERGY STANDARD

House Dems settle on 15% renewable energy target
Ben Geman (w/Darren Samuelsohn and Josh Voorhees), May 13, 2009 (NY Times)
and
Revamped House climate and energy bill has the votes to pass, says Waxman
Kate Sheppard, 13 May 2009 (Grist)

Note to the Democrats from Will Rogers: “You've got to go out on a limb sometimes because that's where the fruit is.”

SUMMARY
In a huge disappointment to the New Energy community, House Democrats are reportedly going to settle for a national Renewable Electricity Standard (RES) requiring U.S. utilities to obtain 15% of their power from New Energy sources by 2020 and drop their initial proposal that would have required 25% of utilities' power to come from New Energy by 2025.

The deal would be a big step toward bringing the “discussion draft” of the Waxman-Markey American Clean Energy and Security Act of 2009, the Obama administration's flagship energy and climate change legislation, to the full House for debate and a vote.

A huge step backwards for New Energy is that a national Energy Efficiency Resource Standard (EERS) requiring utilities to obtain improved efficiencies in the use of electricity and natural gas by their ratepayers has been dropped from the bill.

The worst part of the compromise is that a minority of backward politicians have forced Democratic leaders to turn away from something a huge majority of voters from across the political spectrum and everywhere in the country favor. (click to enlarge)

The positive spin: With other increases in efficiency provisions, the total requirement could be described as 20% by 2020.

The negative spin: A provision allowing efficiency measures to replace New Energy in the RES could bring the total requirement down to 12%.

The only real spin: The bill’s co-authors, House Energy and Commerce Chair Henry Waxman (D-Calif) and House Energy Subcommittee Chair Ed Markey (D-Mass), who have repeatedly promised to get their legislation through the Committee markup process and bring it to the House floor before the Memorial Day recess, say the compromises move the bill nearer passage.

Watered down? (click to enlarge)

COMMENTARY
The discussion draft’s original proposal was for a 25% New Energy requirement by 2025. The compromise is necessitated by staunch opposition from conservative and Blue Dog Democrats who want to see provisions for fossil fuels development and for the auto industries in their districts added to the legislation. The Democratic majority must find ways to placate this minority in their party because, together with recalcitrant members of Party-of-No Republicans who insist their states cannot meet more rigorous New Energy requirements, they would be strong enough to stop the legislation.

Denise Bode, CEO of the American Wind Energy Association (AWEA), released a statement expressing disappointment that the RES target in the bill could be, at 12% by 2020, less than HALF President Obama’s original proposal. Bode said the lowered standard could cost well over 100,000 potential New Energy jobs.

A 15% by 2020 RES was passed by the House in the 2007 energy bill fight but it failed in the Senate. There were high hopes in the New Energy community the Obama era heralded the possibility of an even more potent, long-term policy. Now, the hope resides in the possibility of this limited provision getting through the Senate. The Democrats may have recently put together a filibuster-breaking 60-vote supermajority but the party remains torn, especially on energy issues, by regional factions.

click to enlarge

Other new provisions reportedly emerging from negotions on the bill:
(1) New nuclear plants and coal plants with carbon capture and sequestration provisions will NOT be included in the New Energy requirement;
(2) More biomass WILL be allowed as New Energy;
(3) LESS of the requirement can be met by alternative compliance payments from utilities;
(4) MORE municipal solid waste, processed into biogas-generating electricity, can count.

The pared-down House RES has left environmentalists frustrated. A Sierra Club spokesman said the bill shows signs of the influence of the fossil fuels industries. The National Wildlife Federation spokesman said they will push for improvements. Greenpeace said the original bill has been watered down. Only the Environmental Defense Fund acknowledged how hard it is to get such legislation through such a diverse legislative body.

Senator Jeff Bingaman (D-N.M.), Chair of the Senate Energy and Natural Resources Committee, is negotiating a Senate RES with conservative Senate Democrats that some reports say will require utilities to obtain 20% of their power from New Energy sources by 2021.

click to enlarge

QUOTES
- Representative Bart Gordon (D-Tenn.), Chair of the House Science Committee and a compromise negotiator: "I think we have put together something pretty good…if everything else works out…I know there are changes being made. I feel like we are going to get there on allowing more biomass…"
- Representative James Clyburn (D-S.C.), House Majority Whip: "Under the configuration of this bill, I'm pleased…"

A majority of state legislatures have already passed an RES. (click to enlarge)

- Representative Jay Inslee (D-Wash.): "I think that's in the ballpark…"
- Representative John Dingell (D-Mich.), ousted Energy and Commerce Chair: "There are some agreements that are among certain members, but the general agreement does not yet exist…"
- Representative Baron Hill (D-Ind.). "The municipal solid waste language I wanted in the bill is in there. And I'm happy about it…"
- Jennifer Rennicks, federal policy director, Southern Alliance for Clean Energy: "Would we be satisfied with what came out almost two years ago? I don't think so…We should be more progressive now."
- Carl Pope, Executive Director, Sierra Club: “Chairmen Waxman and Markey have done heroic work in reaching agreement on the Energy and Commerce Committee around a comprehensive clean energy and climate plan, a critically important milestone that has faced seemingly insuperable obstacles...It is clear that Big Oil, Big Coal and other polluters are still holding out for a congressional bailout. They will continue to try to riddle this legislation with loopholes, water it down, and load it up with hundreds of billions of dollars in giveaways.”