The amendment to the broader Senate energy bill, offered by Senators Bingaman (D-NM) and Coleman (R-MN), represents the third time such a law was approved by a Senate majority. And as in congressional sessions past, it has been roundly opposed by the fossil fuel lobby, electric utilities, and the Bush Administration, which believes such a measure is best left to the states.
Eighteen states currently have an RPS law, many having enacted them within the past few years. This state-based support is cited as a bright spot for renewable energy support and stands in contrast to resistance at the Federal level to such measures.
High energy prices, mounting concerns over the national security implications of energy, and a growing interest in renewable energy as a new realm for economic growth is fueling increasing support for renewable energy.
Renewable energy advocates and the environmental community see the amendment as one of the strongest, most progressive measures to be included in the Senate energy bill, which otherwise is tilted quite heavily towards the traditional fossil and nuclear energy industries.
Renewable energy resources currently account for just over 2 percent of the nation's electricity production, and that's without a mandate of any kind. The 10 percent requirement, escalating from current levels today, will ensure major new investments in renewable energy by utilities. The U.S. Department of Energy will be instructed to implement a market-based trading system for renewable energy credits to help utilities meet the mandate if they haven't made the necessary investments in renewable energy projects of their own.
A total of three RPS measures were introduced by Senate lawmakers, including an ambitious 20 percent measure from Sens. Jim Jeffords, I-Vt., and John Kerry, D-Mass. Ultimately, the middle-of-the-road 10 percent mandate from Sens. Bingaman and Coleman won enough support to pass.
The victory could be short lived however, as there is no such measure included in the House energy bill. If the Senate manages to pass the broader energy bill — which it has failed to do so for three congressional sessions in a row — the House and Senate side will need to be combined into one final bill to be sent to the President.
The Senate is expected to continue debating their version of the energy bill for approximately two more weeks during which time these and other renewable energy measures could materialize. A number of contentious issues still need to be resolved before the Senate is likely to pass the broad bill.
