Renewable energy standards is dropped from federal energy bill

WASHINGTON (Oct. 1) -- A renewable energy portfolio standard has been dropped from the energy bill being crafted by a House and Senate conference committee.

The standard is unlikely to be restored despite a letter from 53 senators asking for its inclusion, according a congressional source close to the talks.

The bipartisan letter, dated Sept. 29, urged the two conference committee chairmen -- Sen. Pete Domenici, R-N.M., and Rep. Billy Tauzin, R-La. -- to include requirements for power companies to purchase renewable energy generated from wind, biomass, solar and geothermal sources.

The Senate-passed energy bill would have required that 10 percent of electricity be generated from renewable sources by 2020, but the House version excluded that provision, and the compromise measure also excludes it.

"Enactment of a strong [Renewable Portfolio Standard] would provide several key benefits," the 53 senators wrote to the conference committee. "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."

However, the conference committee decided to omit the renewable energy portfolio standard because it was not included in the House version and because of fears that utilities in certain parts of the country -- including Tauzin´s home state of Louisiana -- would have difficulty meeting renewable energy requirements, according to the congressional source.