Good for the Congress, they managed to do something and something important. While we can poke many holes in the legislation, it does include 15% national renewable portfolio standard and shifts some $16B toward renewable energy and conservation programs. This was an important step and Congress should be commended for getting it done, a little late, but better than never.

A mainstream press account of the event is available here.

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About H.R. 969:

Introduced February 8, 2007. Amends the Public Utility Regulatory Policies Act of 1978 to prescribe requirements for a Federal Renewable Portfolio Standard for calendar years 2010 through 2039.

Specifies a schedule of graduated annual percentages of a supplier’s base amount that shall be generated from renewable energy resources, from 1% in 2010 up to 20 % in 2020 and thereafter.

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Authorizes a retail electric supplier to satisfy such requirements through submission of renewable energy credits to the Secretary of Energy.

Provides for energy credit trading or borrowing among suppliers.

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Directs the Secretary to:

(1) encourage federally-owned utilities, municipally-owned utilities, and rural electric cooperatives that sell electric energy to electric consumers for purposes other than resale to participate in the renewable portfolio standard program; and

(2) establish by December 31, 2009, a state renewable energy account program.

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If the personal energy and passion of the Assistant Secretary of Energy, for Energy Efficiency and Renewable Energy (EERE) could be harvested, we’d have quite a power source. In a marked style contrast to his boss, Sam Bodman, Karsner is engaged and enthusiastic – about the industry, its potential, and what can and should be done about it. He gives a good speech. Despite the stylistic differences, the messages were aligned in the DoE.

During the keynote session yesterday, he was very tough on Congress effectively foreshadowing the Energy Bill that was adopted late in the day yesterday by the Senate. Curiously, the Republican Administration and the Republican representatives in the Senate are not on the same page. Both Bodman and Karsner talked about the necessity of a stable policy toward renewable energy mentioning the incentives by name.

Karsner ripped the law makers for lack of vision and action on the energy bill and its proposed content – in a way that perhaps seemed overly harsh at the time. Not so now, Karsner was right.

Yesterday, the Senate passed a “do nothing energy” bill with a vote of 65-27.

The bill ignores the challenge from the Bush Administration to cut gasoline usage 20% by 2010 – adopting weak CAFE standards that won’t be in force until 2020. That’s what’s getting the ink this morning.

But, far more troubling to the renewable energy industry is the cut of $32 in production and investment tax credits. This means project developers are again in the midst of the boom/bust cycle of annual renewals (sometimes, expiration tends to happen before renewal.) Long term, these credits should not be necessary. But until and unless the fossil fuel industry has to work within a carbon cap or tax environment – which would begin to finally make the true cost of harnessing fossil fuel for power visible – the incentives are necessary to gain access to funding, both equity and debt.

This bill is worse the do nothing, it’s downright harmful. Senate Majority Leader Harry Reid has promised to take up the incentives in the next session. In the meantime, untold gigawatts of renewable energy projects have just pressed the hold button while Congress puts its head in the sand. We’re glad you’re all so concerned about: energy security (aka national security) and climate change. Way to hold the US to a high standard, the CAFE standard adopted would get the US to Europe’s present level – in more than a decade. Next up: The Senate’s boat building bill. After seeing the movie Evan Almighty over the recess, it occurs to the leaders in our Congress that boats are good. Let’s just spend another several hundred billion dollars building them, shall we? We’ll need it on the coasts and soon to be large inland sea (formerly known as the Great Plains – other things come from there too, right? Like food…nevermind, it can wait.)

Great leadership. Inspiring. Enjoy your summer vacation.

This opinion piece was authored by Mike Harding and does not necessarily reflect the views of Montara Energy Ventures or its other partners.

Today at the REFF conference, it’s been announced that the Republicans in the Senate Finance Committee are working to kill the production and investment tax credits for renewable energy projects. If you’d like to help, here is a link to the Finance Committee Members, write or call these Senate members and make your voice heard on this vital catalyst to renewable project development.