WIND CONSIDERS CLEAN ENERGY

Green Lobby Weighs 'Political Realities' of Energy Policy, Finds 'Clean Energy Standard' Isn't So Bad
Anne C. Mulkern, January 7, 2011 (NY Times)

"The wind industry's largest trade group a few months ago rejected the idea of a "clean power" mandate on utilities that included nuclear, some coal and natural gas as options. But American Wind Energy has a new opinion…The wind industry, along with other energy trade groups and companies, is re-examining its positions on the clean energy standard, or CES…

"Sen. Lindsey Graham (R-S.C.)…is starting work on a bill that would require utilities to generate a portion of power from clean energy, which would include renewables, nuclear and coal with carbon capture and sequestration. The CES is thought to be more popular with Republicans than the greens-only requirement called the renewable electricity standard, or RES…Groups representing energy sources potentially affected by such a measure are setting up meetings with lawmakers, particularly the newest members of Congress. For businesses like nuclear, it is time to move into the spotlight. For others [like wind] it is time to consider concessions…"

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"…[The] RES that wind companies, other renewable-energy companies and environmental groups wanted never made it to the Senate floor for a vote…The Center for American Progress [CAP], a liberal think tank [which last year backed the RES], also is taking a new look at a CES. It expects to have a proposal in about a week…The CES [now seems to CAP] a good option to help drive demand for renewables and keep new businesses alive…

"For the nuclear industry, a CES that includes the fuel as an option would be a kind of new frontier, said John Keeley, spokesman for the Nuclear Energy Institute…Nuclear has bipartisan support, Keeley said. And a CES with nuclear would give a federal seal of approval on the technology, he said…"

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"The trade group for independent natural gas companies said that natural gas should be considered as part of a CES…[but] does not yet have a policy in support or opposition…Graham has not mentioned natural gas as part of his plan for a CES bill. But the fuel has supporters in Congress…[though] some environmentalists condemn [hydraulic fracturing, a [natural gas-drilling] technology,] as dangerous to water supplies…There is disagreement within the natural gas industry…about whether a CES -- even one that included natural gas -- would benefit the fuel.

"Some in the natural gas industry will be encouraging Congress instead to not enact either a CES or an RES, said one natural gas lobbyist who asked not to be identified to speak freely. Some companies believe it will mean less natural gas will be used. Electricity demand is not growing significantly, the lobbyist explained. So utilities that had to generate 10 percent clean energy have to cut back elsewhere…Utilities are more likely to cut back on natural gas first, he said, because it's more expensive than coal generation…A CES could face a tough battle for passage…[and] is likely to be a piece of a larger energy bill…[that] could come partly in reaction to rising gasoline prices…"