Sustainable Energy Coalition Urges Energy Bill Conferees to Reject Portions of House Electricity Proposal that are a Step Backward for Clean Energy

September 18, 2002

Dear Energy Bill Conferee;

We are writing to urge you, in tomorrow’s consideration of the House Republican electricity proposal, to include and strengthen the following provisions in order to ensure the increased generation of clean energy and wider use of energy-efficient technologies. The House Republican proposal not only fails to incorporate provisions to increase the use of clean energy, but actually takes a backward step by repealing the only federal law that requires utilities to buy renewable power. The following critical policies need to be satisfactorily addressed in both the House proposal and the Senate bill.

         Renewable Portfolio Standard – The House proposal does not include a Renewable Portfolio Standard. It also repeals the PURPA provisions that require utilities to buy renewables, and requires a UTILITY to only submit a plan for “diversifying” the fuels it uses, which may or may not include renewables. The modest RPS in the Senate bill, which could result in four to five percent of our electricity being generated from new renewable sources by 2020, is a good first step, but a truly effective RPS could result in 20 percent of our electricity being generated from new renewable sources by 2020.

         Net metering – The House proposal and Senate bill both include net metering provisions that are available to residential facilities of 10 kW or less and commercial facilities of 500kW or less. Both have good net metering provisions, but FERC must be given the authority to guarantee that states do not undermine their effectiveness with onerous terms and conditions.

         Interconnection Standards – While both the House proposal and the Senate bill provide interconnection safeguards for existing COGENERATION and renewables systems, neither one contains satisfactory interconnection standards for new Combined Heat and Power (CHP), FUEL CELL, and RENEWABLE ENERGY systems. The Senate bill is lacking standards for systems that are not qualifying facilities under PURPA, but are too large to qualify for net metering, which is the vast majority of new combined heat and power and renewable energy systems. The bill must include requirements to allow new renewable, fuel cell, and CHP systems to connect to the grid, as found in S. 933 and H.R. 1945.

         Public Benefits Fund (PBF) –Utility investments in ENERGY EFFICIENCY and other public benefits have fallen dramatically in recent years, increasing consumer energy bills, air pollutant and GREENHOUSE GAS emissions, and the risk of blackouts. Neither bill contains a national PBF to provide matching funds to states and utilities for public benefits expenditures such as energy efficiency and renewables programs, which would reduce.  Nor does either bill offer any effective alternative methods for providing such funding.

Congress has a rare opportunity to pass a package of comprehensive energy policies to increase our reliance on clean renewable energy and energy efficiency policies, which will enhance our national security, keep energy dollars at home, diversify our electric supply, lower greenhouse gas emissions and other pollutants, improve public health, and create jobs. We urge you to reject the portions of the House proposal that are a step backwards for clean energy, and instead vote to take balanced steps toward increased reliance on energy efficiency and renewable energy.

Sincerely,