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March 29, 2007

What's In a Name? Renewable Energy Standard Bill Passes Out of Committee

Great news for clean energy supporters! With a new name (or number, that is), plus an addendum supporting increased energy efficiency programs, the Renewable Energy Standard bill passed out of Committee on Tuesday of this week. As you may remember, the Renewable Energy Standard (RES) calls for 25% of Oregon's electricity to come from renewable sources by 2025. And its next stop is the Senate floor! The RES bill, previously SB 373, is now called SB 838, but has the same great combination of benefits for customers and the environment that CUB staff and our allies took such care in proposing.

Voting for the bill was a bipartisan group including Senate Committee Chair Brad Avakian, Sen. Jason Atkinson, Sen. Alan Bates, and Sen. Floyd Prozanski; Sen. Roger Beyer voted against the bill. We believe chances of a Senate floor passage of the bill are good, and that a statewide group of Oregon Senators exists who understand that the time for clean energy is now. We also want to make sure our Senators act upon the understanding that customers deserve the kind of long-term protection, both of affordable rates and stable power sources, that an RES would provide. (See the end of this article for an action you can take to help secure passage of SB 838.)

There are benefits and protections in this bill for everyone, starting with Oregon residential utility customers.

Those customers will benefit from having a significant portion of their electricity needs met from renewable sources developed to take advantage of sun, wind, geothermal, and hopefully someday wave energy. Diversifying power sources away from fossil fuels will make our electricity more stable, more local, and will keep long-term prices down. Once we invest in wind turbines or photovoltaics, there is no cost for the fuel. Talk about a free market!

Industrial customers will receive the same benefits as the residential customers CUB represents, though at this point they remain unconvinced. We have heard arguments against the bill to the effect that it will drive up prices. However, studies have shown this not to be the case in other states with similar laws. And the Oregon RES provides a cost cap of 4% which will quite likely never even be reached. Chances are far greater that relying on increasingly volatile fossil fuel markets to produce our energy will result in higher prices. We haven't quite figured out the sense behind these industrial customers' position, which so far has seemed to oppose additional investment in any new energy, either on the supply side or in managing demand (such as through energy efficiency programs). CUB recognizes that we will have to invest once in a while in the electricity production system to keep it functional, keep it sufficient to meet demand, and move it toward sustainability. We think the RES fits the bill (and in fact is the bill).

Rural Oregonians benefit from the taxes paid to those counties in which renewable projects are built, and by the possibility of increasing numbers of jobs in renewable power industries. Urban Oregonians benefit by buying the clean power their rural neighbors produce. Both urban and rural Oregonians benefit from the establishment of economic ties between different parts of the state.

Large utilities are protected by the assurance that they will be reimbursed for prudent investments. Smaller utilities are also protected, since they are only required to meet the standard if they sell more than 1.5% of the state's retail electricity. If they sell less than 1.5% they must meet a standard of only 5% renewables by 2025, an eminently reasonable goal.

Finally, this bill addresses a much-needed reduction in the amount of greenhouse gases our nation emits, 40% of which is attributable to the electricity we produce and consume. Climate change has added urgency to an already important issue. Producing "green" power rather than "brown" provides huge benefits for all of the humans and other creatures who depend on clean air and clean water to live. That would be you and I, and our children, and our children's children, and the many plants and animals that share the Pacific Northwest with us. Business and technology have brought us to a time of unprecedented population growth and relative comfort. Now, we must bring our business and technology to a place of sustainability, so that we don't collapse our society under the very weight of the engine that powers it.

This is only one piece of legislation in one state of one nation on the planet. But it is important in the overall scheme. If we can pass SB 838, the Renewable Energy Standard Bill for Oregon, we will have completed a pattern with Washington and California (who have already passed similar energy standards) that creates a sizable chunk of geographic and economic territory focused on finding a better balance between environmental health and human resource consumption. The Pacific Northwest can lead in sustainable energy and we will - all of us - be the better for it.

So call your Senator and let him or her know that this is THE bill to pass this session (Capitol Switchboard is 800-332-2313 or in Salem 503-986-1000). Or visit them on the web and send an email urging their support. We need clean and affordable energy and we need it now. Tell them to Vote YES on SB 838!

Posted by Oregon CUB at 01:38 PM | Comments (0)

March 19, 2007

Energy and the Environment Take Leading Roles in Upcoming Forums

CUB wants to let our members know about two upcoming forums on energy and the environment that will be happening in the next few weeks. We encourage you to share these notices with your friends and family, and if possible to attend one of these events, bringing your questions, your ideas, and your passion for clean, stable energy choices.

Congresswoman Darlene Hooley to Convene Public Forum on Renewable Energy in Oregon: Opportunities, Obstacles and Outlook

As a newly appointed member of the Energy and Commerce Committee, Congresswoman Darlene Hooley's (OR-5) top priorities include promoting energy efficiency and production of alternative fuels, reducing our dependence on fossil fuels and minimizing the factors that contribute to global climate change.

Experts have predicted that climate change could have a devastating impact on Oregon with severe rain and snow patterns, diminished water supplies and crop productivity, increased forest fires and pests, and threatened ecosystems. Thankfully, Oregon is ahead of the game in dedicating resources to research and development of alternative energy such as wind, ocean wave energy, biomass and biofuels. By capitalizing on our unique assets, our state is poised to provide alternatives to fossil fuels while improving the economic and environmental forecast for all Oregonians.

Come learn what Oregon is doing to produce new sources of energy, and what it will take to become the model for the rest of the nation. Congresswoman Hooley is looking forward to your contribution to this important discussion.

Date: Monday April 2, 2007

Location: Portland State University
Smith Memorial Student Union
1825 SW Broadway Avenue, Rooms 327-328
Portland, OR

Check-In: 8:30 a.m. - 9:00 a.m.

Forum: 9:00 a.m. - 11:30 a.m.

Please call or e-mail Andrea Salinas at 503-557-1324 to RSVP or to receive more information.

Energy and Environment Forum with Rep. Ben Cannon (Oregon HD 46)

Event: Environmental Forum with Representative Ben Cannon

Date & Time: Saturday March 24, 9-11 am - rain or shine.

Location: Mt. Tabor Park, Picnic Shelter A. It's on the north side of the park, near the amphitheater.

Contact: Leon Lindstrom, (503) 349-6033

On Saturday March 24, from 9 to 11 am, Representative Cannon will host a House District 46 environmental forum at Mt. Tabor, focusing on environmental legislation during the current legislative session and environmental goals for 2008 and 2009. The public is invited and welcome.

The Oregon Legislature is considering a number of key environmental issues year. Renewable-energy standards and Measure 37 reform are two top priorities. Senate Bill 373, the Renewable Energy Standard bill, is perhaps the most important bill for Oregon's energy future now before the 2007 Legislature, and Ben has been a strong supporter. If passed, it would require that 25% of Oregon's electricity come from renewable sources by the year 2025.

Healthy air, water, and land are critical to Oregon's economic future and livability. We must build on our region's heritage as a leader in conservation, land-use planning, public transportation, recycling, and pollution reduction. The issues go beyond those listed here, and securing the state's environmental future will require much more than we can accomplish this year in the Legislature. The March 24 environmental forum will address current legislation, and will also consider goals for 2008 and beyond.

Oregon is well-positioned to be a leader in a cleaner, renewable economy, but it will require planning, diligence, and the active participation of citizens in the public process. The forum on March 24 is a key piece of working through the details of legislation in the 2007 session and building energy for long-term environmental reform in Oregon.

Rep. Cannon is honored to co-host this event with the Oregon League of Conservation Voters, the Oregon Conservation Network, and the Citizens' Utility Board of Oregon.

Oregon State Representative Ben Cannon
900 Court St. NE H-487, Salem, OR 97301
(503) 986-1446
rep.bencannon@state.or.us

Posted by Oregon CUB at 02:23 PM | Comments (0)

March 08, 2007

Renewable Energy Standard Bill Gets a Hearing

The Renewable Energy Standard (RES) bill, Senate Bill 373, had its first hearing Tuesday in the Senate Environment and Natural Resources Committee, chaired by Sen. Brad Avakian. Governor Kulongoski made a brief speech about the importance of passing this bill, which would require that 25% of Oregon's electrical power be produced from new renewable resources by the year 2025. CUB's Program Director, Jason Eisdorfer, also testified at the hearing in support of the bill. We are happy to say that OSPIRG, the Northwest Energy Coalition, the AFL-CIO, and Portland General Electric have also signed on as supporters.

The bill is, of course, not without its opponents, (those groups were given a voice in the March 7th Oregonian). We are convinced, however, that the RES is good environmental policy, is good for statewide economic development, and is a fundamental customer protection issue. As consumer advocates, we'd like to elaborate on that last item. Here's what an RES offers Oregon utility customers:

1) Diversity of Resources & Cheap Fuel

Resource planning for a utility's customers should ideally be both broad and deep. The breadth of the resource portfolio is what is addressed here. By adding significant amounts of new renewable resources to our energy resource portfolio, we are without a doubt reducing our own risk of being exposed to fluctuating costs. Partially, this is because there are simply fewer costs to begin with. All energy resources require capital investment and will have Operations & Maintenance costs. However, fuel costs can simply be written out of the equation when you are dealing with many renewable energy sources. As Jason Eisdorfer said at the RES hearing Tuesday, "There's no market for sunshine. There's no market for wind. There's no market for the tidal pull of the moon." Greater diversity also means less risk falls on any one resource.

2) Long-term Resource Prudence

On the depth side of resource planning, we need to be looking not just 2, not just 5, not just 10 years out, but decades into the future in order to ensure a steady and affordable and sustainable source of electrical power. We are on the cusp with the issue of global warming; concern is building and will soon turn to some form of governmental action regarding greenhouse gas emissions. Fossil fuels in general, and coal in particular, will be targeted with some form of carbon regulation and the result will be costly. All coal power production will become more expensive and it will likely end prematurely the lifespan of some coal plants. A Renewable Energy Standard would set Oregon utility customers up well for the future, ensuring that we don't get caught holding the bag.

3) Protective Rate Cap

CUB is always working to protect reasonable rates. In fact, working for renewables is the best way we see to protect ratepayers' long-term economic health (see again No. 2). But new resources require new capital investments to get going, and so this Renewable Energy Standard Bill includes a cost cap to ensure that those initial investments do not become too big a burden on customers. The cost cap in the RES bill has been set at 4%, so that the differential between the green power we hope to acquire and the brown power we would otherwise have bought shouldn't raise rates more than 4%. We don't believe this cost cap will be triggered, but if it was the investment would pay huge dividends as fossil fuel-based energy becomes more scarce, more volatile, and more regulated.

4) Addresses Future Market Volatility

Did we mention more volatile? Market volatility will apply not only to fossil fuels (an area in which natural gas markets, for instance, have been on a roller coaster ride for several years). Even without variable fuel costs, renewable energy markets could be subject to price volatility, as well. This is because renewables like large wind farms are site-specific, and once the best sites are developed, the demand for power from those sites will grow and the cost will rise. Oregon, without an RES, would be at the mercy of California and Washington power customers, who have passed Renewable standards into law and who will be looking to meet their states' goals. If prices for renewable power should spike, Oregon's RES would offer the Oregon Public Utility Commission the ability to choose a market price at which customers' green power investment (again, the differential between green and brown power) would be channeled into a savings fund, until such time as the market settles and the opportunity to invest in a prudent renewable energy source arises. This mechanism is called the Alternative Compliance Payment and it is a mark of Oregon's foresight.

5) Helps Keep Planet Habitable. 'Nuff said.

If you have not already done so, now would be a good time to contact your Oregon State Senator and Representative, which you can do online here or by calling 1-800-332-2313. Let them know that passing the Renewable Energy Standard Bill, SB 373, is important to you.

And by the way, if you didn't catch the fact that the Superbowl this year was carbon neutral and the Oscars was calling itself a green event (and by doing more than simply giving Academy Awards to the documentary Inconvenient Truth and its lead song, Melissa Etheridge's I Need to Wake Up), here is an article about global warming from that bastion of environmental thought, Sports Illustrated. Global warming isn't on the fringe anymore -- it's a mainstream issue now.

Posted by Oregon CUB at 10:16 AM | Comments (0)