Domenici: Evidence That RPS Will Burden Consumers Mounting
Consumers on the Hook for $175 Billion if Federal RPS Passes
June 12, 2007
07:27 PM
WASHINGTON – U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today said that evidence was mounting that consumers would face a multi-billion dollar burden if a federal renewable portfolio standard is adopted.
Domenici today released the results of a study commissioned by the Edison Electric Institute that reveals that nationally, the cost of a federal RPS would be $175 billion through 2030. Much of that burden will be on states that lack the natural resources to meet the RPS, especially those in the southeast, though according to the study, 27 states will be unable to meet the standard.
“The numbers that are coming in on the cost of a federal Renewable Portfolio Standard are exactly what I feared. A federal RPS which includes just a limited number of resources will do little to lower emissions, since so many states simply can’t meet it. Consumers that live in states without wind energy will face higher costs through no fault of their own,” Domenici said.
“A federal RPS discriminates against states that don’t naturally have resources like wind. The burden on taxpayers in the 27 states that cannot meet the federal RPS will be substantial. It makes more sense to pursue a Clean Portfolio Standard that will include more resources and allow states to implement technologies that will actually lower emissions, rather than simply paying fines,” he continued.
The study’s analysis revealed that the cost of producing the limited amounts of renewable energy that are included in an RPS would exceed the amount that a non-compliant state would pay the federal government. As a result, it would be more economical for a state falling below the standard to pay the government rather than to invest in new, clean sources of energy.
When an RPS amendment is introduced, Domenici and others plan on introducing a Clean Portfolio Standard (CPS) amendment that would require that 20 percent of our energy sources come from clean energy sources, including renewable energy, but also allows for inclusion of other clean energy sources like nuclear, new hydropower, efficiency standards, and other clean energy as determined by the Energy Secretary.
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