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BINGAMAN, COLLINS AND JEFFORDS URGE INCLUSION OF RENEWABLES IN ENERGY BILL CONFERENCE

Washington, DC -- U.S. Senators Jeff Bingaman, D - NM, Susan Collins, R - Me., and Jim Jeffords, I- Vt., today sent a letter signed by 53 Senators to the Energy Bill Conference Committee leadership, Chairman Domenici and Chairman Tauzin, urging the inclusion of a strong Renewable Portfolio Standard (RPS) as part of the energy bill conference report. The Senate passed Energy bill included an RPS that would require ten percent of electricity to be generated from renewable sources by 2020. Less than two percent of electricity in the United States today is produced by wind, solar, geothermal and biomass energy sources. Using more renewable energy resources will reduce air and water pollution caused by burning of fossil fuels, provide a sustainable, secure energy supply now, and protect our environment for future generations. Developing these resources will also create new investment, income and jobs in communities, especially in rural areas. The following is the text of the letter: September 29, 2003 The Honorable Pete Domenici The Honorable W. J. Billy Tauzin Chairman Chairman Senate Committee on Energy and Natural Resources House Committee on Energy and Commerce Dear Chairman Domenici and Chairman Tauzin: As the Senate-House energy bill conference commences, we are writing to express our support for the inclusion of a strong renewable portfolio standard (RPS) in comprehensive energy legislation that emerges from the conference committee. An RPS employs market-based mechanisms to promote the production and consumption of electricity generated with renewable resources such as wind, solar, biomass and geothermal. By ensuring that retail electric utilities have generation portfolios that include a specific percentage of renewable energy or purchase credits from others that generate renewable energy, Congress can take an important step towards producing sound energy legislation. Such a standard has twice been passed by the Senate, in H.R. 4 from the 107th Congress, and again this year in H.R. 6. Enactment of a strong RPS would provide several very real benefits. An RPS will promote fuel diversity and reduction of our substantial dependence on natural gas. This will ease shortages and price spikes in our natural gas supplies. An RPS will also encourage on-site generation of renewable energy. On-site generation, also known as distributed generation, will help ease pressure on the centralized grid and will reduce the impacts if grid disruptions should occur. In addition, as the Department of Energy=s own Energy Information Administration has noted on several occasions, an RPS would have a negligible impact on consumer energy costs. In fact, residential and industrial consumer natural gas costs would decline as a result of an RPS. Finally, encouraging an increased market share for renewable energy resources will have substantial environmental benefits. It will reduce nitrogen oxide, sulfur dioxide and mercury emissions from the utility sector, as well as the emission of greenhouse gases. An RPS will enable utilities to more easily meet their current and future Clean Air Act requirements, while enhancing public health. Approximately a dozen states are moving forward with their own renewable portfolio standards. Nevertheless, it is important that Congress adopt a federal standard to ensure that regional renewable energy markets develop more efficiently.