Background on Energy Bill

America needs an energy policy that increases our energy security and protects the environment. Unfortunately, the energy bill crafted by congressional leaders last year (HR 6) threatened to take us backward by opening our public lands to oil and gas drilling, letting polluters off the hook for contaminating our drinking water, and funneling billions of dollars in taxpayer money to polluting industries and rolling back key Clean Air Act protections. In November 2003, the Senate rejected this dangerous bill, with the opponents criticizing both the substance of the legislation and the closed-door process that locked most Republicans and all Democrats out of final negotiations.

Following this defeat, Senator Pete Domenici (R-NM), Chair of the Senate Energy Committee, began efforts to resurrect the bill in 2004 by crafting a scaled-back version. Unfortunately, the new bill retains massive subsidies to dirty fossil fuels and nuclear power while largely excluding renewable energy and efficiency measures that would improve our energy security, save consumers money, and cut global warming pollution. Thanks to the efforts of UCS activists and other groups across the country, the Senate rejected the bill again on April 29, 2004, with 12 Republicans joining 30 Democrats and one Independent in denying Senate leadership the 60 votes needed for final passage. UCS will continue to push for clean energy solutions that improve our energy security, provide economic stimulus, and reduce the harmful effects of fossil fuel and nuclear power production.

Flawed Energy Bill Lacks Renewable Electricity Standard

Both versions of Senator Domenici’s failed energy bill lack sufficient commitment to clean energy solutions. In particular, the bill does not include a renewable electricity standard (RES) that would require utilities to generate 10 percent of our nation's electricity from clean, renewable sources such as wind, solar, geothermal, and bioenergy by 2020.

Senator Domenici's decision to omit the RES ignores strong Senate support for the provision, which passed as part of Senate energy legislation two years in a row. Last year, 53 senators signed a statement calling for the inclusion of the RES in any bill emerging from the conference of the House and Senate bills. Although a bipartisan majority of senators on the conference committee voted to include the RES in the conference report in 2003, the House conferees rejected the provision. The resulting exclusion of the RES figured prominently in some senators' decision to oppose the final bill.

Feasibility and Benefits of the RES

The Bush administration's studies show that a 10 percent RES is both affordable and achievable. In fact, according to a recent UCS report, renewable energy could easily supply 20 percent of our electricity needs by 2020—twice the percentage called for in the modest Senate approach. Studies by UCS, the Department of Energy and others show that the standard would actually reduce the heavy demand for natural gas and reduce natural gas prices—saving consumers and businesses more than $13.2 billion on their energy bills over the life of the program.

The RES would also stimulate domestic investment in new renewable energy throughout the nation, creating jobs and providing income to rural areas. According to the Department of Energy, wind energy alone could provide $1.2 billion in new income for farmers and rural landowners and create 80,000 new jobs by 2020.

In addition, the RES would reduce the air pollution and emissions of global warming gases that threaten our health and the well being of our planet.

Forwarding Clean Energy Initiatives

With the energy bill stalled again, UCS will continue to work for passage of clean energy provisions, such as the RES and renewable energy production tax credits, in alternative legislation.