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!

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