Friday, February 13, 2009

R-P-S...Easy as 1-2-3?

"R.P.S." The acronym now being batted around Washington isn't nearly as intimidating to the uninitiated as the full name, Renewable Portfolio Standard. If your response remains, Huh?, well, the principle actually isn't all that complex.

We're talking about electricity generation, most of which comes from burning natural gas or coal, or using nuclear heat, to fire generation turbines. So, how much generation do we get from renewable resources (wind, solar, biomass)? Now that's where this gets complicated.

The idea of an RPS is to establish a minimum amount of total generation that must come from renewable sources. 27 states now have these standards in place, as does the District of Columbia. But, as Energy Ventures Analysis principal Tom Hewson explains to me, "With 28 different regional RPS out there, that means there are 28 different ways of calculating an RPS." In short, the definitions vary as to what qualifies as a renewable generation source.

Barack Obama has pushed his idea of a national RPS ever since he unveiled his New Energy for America plan on the campaign trail. He wants us to reach at 10% standard by 2012, and 20% by 2025. Now, six months later, that Plan became an Agenda and is on the verge of becoming Policy. The thing is, the Energy Information Administration says renewable energy accounted for just 7% of our energy consumption in 2007. And more than one-third of that was from hydroelectricity, not necessarily a renewable resource. Getting to 10% in three years simply might not be possible.

This week, the Senate Energy and Natural Resources Committee discussed Chairman Jeff Bingaman's (D-NM) Democratic Staff Draft on a "Renewable Electricity Standard," the same principle as an RPS. Sen. Bingaman has indicated this kind of legislation should be a precursor to climate-change legislation, and his point is valid. Forcing states to draw on renewable energy, and scaling back on coal-fired generation, goes hand-in-hand with capping their CO2 emissions.

Sen. Bingaman's set of standards would establish lower (or, if you prefer, more realistic) goals for renewable generation than the White House. He wants to start with a seemingly reachable goal of a 4% RPS by 2012, less than half the President's target. Then, as technology and transmission catch up, the senator expects to get 20% of our electricity from renewable generation by 2021.

Honestly, after talking with Jeff Bingaman and getting a glimpse of his pragmatic approach to both crafting and passing this legislation, I can envision his bill landing in the Oval Office and getting an welcome, inky reception. That is, if his plan survives a potential conference committee showdown with Rep. Ed Markey's (D-MA) pending RPS legislation, a bill that promises loftier goals more along the lines of the President's plan.

You can read Sen. Jeff Bingaman's Discussion Draft here, on his committee's website: http://energy.senate.gov/public/index.cfm?FuseAction=IssueItems.View&IssueItem_ID=07730eb9-369e-4d57-8fc1-3e3b9fc42bec

The White House Energy & Environment Agenda outlines the President's Renewable Portfolio Standard goals here: http://www.whitehouse.gov/agenda/energy_and_environment/

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