As committees in both the House and the Senate begin to
consider a slew of legislative energy proposals, one promising area for
potential bipartisan collaboration is coming into focus – the Public Utility
Regulatory Policies Act, or PURPA. Today, the Center for American
Progress is releasing a new report that recommends how to amend PURPA to help
address the pressing energy challenges we face today.
The electricity sector in the United States is experiencing
a period of dynamic change. Technological advancements are making energy
available from new and innovative sources and offering an array of tools for
managing and understanding the way we use energy. Market forces are
pushing natural gas in and backing coal out, while renewable energy is
increasing its share of the national market. Regulations, like the proposed
Clean Power Plan, are charting a course toward a low carbon future. And
the reality of climate change is barging onto the scene for the electricity
sector – bringing challenges such as straining water supplies relied upon for
cooling coal-fired and nuclear power plants and turning hydroelectric
turbines.
Both Democrats and Republicans have introduced legislation
to establish new so-called “must consider” standards under PURPA. These
standards acknowledge that electric retail markets have historically been
regulated at the state level, but some issues are of such importance that the
federal government has a strong interest in ensuring they are addressed.
Over the past four decades, Congress has periodically
amended PURPA to call upon the state public utility commissions, or PUCs, to
consider adjusting their electricity policies using an open and evidence-based
review process. By simply requiring that PUCs “must consider” the merits of
various policies through public proceedings, PURPA has triggered states to
adopt smart policies that have helped save energy and promote renewable energy.
The last three times PURPA was amended in this fashion, it enjoyed bipartisan
support and was signed by a Republican president.
In light of today’s challenges, the CAP report recommends
that Congress amend PURPA to require state PUCs to consider three policy
standards. First, PUC’s should consider boosting energy efficiency
efforts through technology and regulation. Second, they should consider
establishing policies to encourage utilities to use clean energy to reduce
pollution. Finally, the state PUC’s should consider ensuring utilities develop the
resilience to reliably function in the future.
Prompting states to carefully consider the merits of these
policies would be a modest but important step forward. It would help
American families by encouraging cleaner, more affordable and more reliable
power. These policies will help the electric utilities as well by
facilitating the coming transition to a low-carbon future. And amending
PURPA will help Congress, by showing that heated rhetoric can be put aside,
science can be acknowledged, and steps can be taken to deliver a more
sustainable future for our children.
Last week, Sen. Lisa Murkowski (R-Alaska), chairman of the
Senate Energy and Natural Resources Committee, said she was interested in
putting aside divisive messaging efforts in order to build support around a
bipartisan energy bill. The chairman even indicated that energy
legislation could take steps to address climate change by cutting pollution and
increasing energy efficiency. For anyone interested in making progress on
the nation’s energy challenges, this was welcome news.
The 114th Congress may not be able to deliver policies
most sought by either the left or the right -- a comprehensive climate change
bill or approval of new tar sands pipelines -- but the chance to send an unambiguous
policy signal that carbon pollution must be reduced swiftly by boosting energy
efficiency and promoting renewable energy is an opportunity that shouldn't be
missed.
In the coming weeks, some are likely to argue that policies
to address climate change and encourage clean energy are too controversial to
pursue. They'll argue for an approach that doubles down on the energy
approaches of the past and asks us to accept the attendant increase in carbon
pollution. This is where Murkowski’s approach will be tested. For
the good of everyone, let’s hope she can lead the Senate to a bipartisan
accomplishment.
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