16/02/09

Before the Senate can move ahead with a cap-and-trade bill to cut; greenhouse gas emissions, it is likely to weigh in on legislation that; would set a national quota for producing renewable energy. The Senate; energy committee, chaired by Democrat Jeff Bingaman, held a hearing; this week on its newest proposal for a national renewable energy; standard (RES), which requires 20 per cent of energy produced; domestically to come from renewable sources by 2021.Bingaman said that creating a national RES should become a priority in; Congress during the beginning of this year, and would ultimately make; it cheaper for the US to comply with inevitable carbon caps. Bingaman; said he expects Congress to get into the cap-and-trade debate later in; the year, with House and Senate bills set to be introduced as early as; May.”When you add the fact that we are going to do something to put a; price on carbon emissions, probably through a cap-and-trade system,; you have to know that the cost of whatever we do to reduce carbon; emissions will be greatly reduced by a signifi cant spur to the; renewable generation of electricity such as the RES,” said Bingaman in; his opening remarks. This is the Senate energy committee`s fourth; attempt to get a national RES passed in Congress.An RES bill passed in the Senate during three attempts in 2005, 2006; and 2007 but failed to pass in the House of Representatives. Last; year, the House passed a national RES but the bill failed to come to a; vote in the Senate. This time, said Bingaman, both houses of Congress; are poised to pass the provision and get the president to sign the bill.Ralph Izzo, chairman of New Jersey`s Public Service Enterprise Group; (PSEG), said at the hearing that setting renewable energy targets; would only cut carbon dioxide by 7 per cent below current levels by; 2020.That is still a long way from the goals set by the Obama; administration to reduce greenhouse gas emissions by 80 per cent below; 1990 levels by 2050, he said. “Putting a price on carbon with a carbon; cap-and-trade programme is a crucial step,” said Izzo.”But we need a comprehensive package of policy solutions to achieve; our goals.”Twenty-nine US states currently have in place some form of a renewable; energy standard, known also as a renewable portfolio standard (RPS).; While Bingaman has said that creating a national standard would reduce; greenhouse gas emissions, diversify the energy resource base and; stabilise the economy, opponents have said a “one-size fits-all”; approach raises concerns about creating regional disparities in the; country.At the hearing, some lawmakers and officials raised concerns that; adopting a national quota would disadvantage the southeast, where; renewable energy resources are scarce.”While some parts of our nation are blessed with abundant renewable; resources – others – particularly the southeast – lack renewable; resources other than biomass needed to reach a 20 per cent; requirement,” said Senator Lisa Murkowski, the top Republican on the; energy committee.David Wright, South Carolina`s public service commissioner, said; states must first be given a chance to task their public utility; agencies with creating their own RES if they do not already have one; in place.”Each state`s RPS should recognise its renewable resource potential; and should push for a best achievable RPS within a given period of; time,” suggested Wright. Those companies that fail to meet the state; standard would pay a penalty fee, which would be used to invest in; renewable energy technology.He added that money used to buy tradable renewable energy certificates; would leave the states, the very areas that need the revenue most.;; http://www.zeeli.pro.br;; _______________________________;; Jose Eli Da Veiga;; UNIVERSITY OF SAO PAULO – BR;; Dep. Economics – Professor;; _____________________________