The Affordability of the Proposed National Renewable Standard
posted by Erica Rowell (Editor)
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Increasing the amount of electricity generated by renewable sources like wind turbines is affordable, energy department numbers show. (Getty Images)
After extensive debate in the House last week, the draft Waxman-Markey climate bill (the American Clean Energy and Security Act of 2009) is expected to enter the markup (or pin-the-amendment-on-the-bill) stage next week in the Energy and Environment Subcommittee. Even the relatively innocuous renewable electricity standard is expected to be a target.
The draft climate bill that will emerge from the subcommittee markup may be quite different from what went in. Indications are that conservative and moderate Democrats will try to reshape (some might argue water down) the bill, while Republicans will try to go for the jugular and kill — or at least delay — it for another year.
One aspect under attack by moderate and conservative Democrats is the renewable electricity standard. But after reading the government's just-released economic analysis of the impact of the proposed numbers, I have to ask why. Here are some statistics to consider.
Benefit of the Draft Bill's Proposed Renewable Standard Is Significant
Nominal amount of renewable electricity mandated by the draft bill: 25%
Actual amount after efficiency credits and exemptions (such as small retailers, existing hydro and municipal waste) are factored in: 17%
Estimated reduction in carbon emissions from electricity sector in 2030, from standards proposed in draft proposal: between 7 and 12%
Upping Renewable Electricity Production Affordable
How much the average household's current monthly electricity costs is expected to go up or down under proposed renewable electricity standards versus business as usual
- The energy department analyzed two renewable scenarios — one with maximum energy efficiency credits used and one without. The monthly cost difference shown here comes from the most expensive scenario. Based on analysis by the Energy Information Administration http://www.eia.doe.gov/oiaf/servicerpt/acesa/index.html
A typical U.S. household consumes about 940 kWh per month. http://tonto.eia.doe.gov/ask/electricity_faqs.asp
Democratic Reps Looking to Weaken Proposal
House Democrats who have publicly come out against the proposed 25% renewable standard (note - this list is not comprehensive): Rick Boucher (D-VA), Mike Doyle (D-PA), Charles Gonzalez (D-TX), G.K. Butterfield (D-NC), Charlie Melancon (D-LA), Baron Hill (D-IN), John Dingell (D-MI), Gene Green (D-TX), Mike Ross (D-AR), Jim Matheson (D-UT), John Barrow (D-GA)
Help in watering down the legislation
Not surprising but still relevant to the debate. The issue is squeezed from both political sides, more so from one than the other. Or you can take a Nobel Prize-winning economist's word for it:
http://www.nytimes.com/[…]/01krugman.html?_r=1&ref=opinion
What I do not hear is the discussion of whether the option of making it tax-neutral will debate or happen. I believe people like Al Gore are for an equivalent reduction in payroll taxes, which could have a large (more positive) impact for those lower on the socioeconomic ladder. This addresses two problems, one piggybacking on the other. It tackles that issue while seemingly pacifying the more conservative crowd who fear that the Heritage Foundation's claims (first link) will come true.