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Generating Solutions: How States Are Putting Renewable Energy Into Action

2/21/2002

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News Release

Executive Summary

As the new home of Illinois PIRG's environmental work, Environment Illinois can be contacted with any questions regarding this report.

Our current reliance on dirty, unreliable sources of energy such as coal, oil and nuclear has left this country with a legacy of asthma attacks, oil spills, radioactive waste and global warming. America deserves a safe, clean, affordable energy future. We can create jobs and secure this energy future by using America’s technological know-how to increase production from renewable sources, such as solar and wind. Consumers could save billions in energy costs each year if companies used available technology to make our cars, homes and appliances more energy efficient.

This report examines 21 states and their potential for electricity generation from renewable resources using state-of-the-art technology. We highlight success stories from Washington State to Maine that point to the enormous untapped potential for clean power generation from renewable resources.

Only 2% of our energy comes from clean, renewable sources. However, the potential power output of wind, solar, and geothermal resources in the United States is many times greater than our current total electricity consumption. The wind that blows in just four states––North Dakota, South Dakota, Kansas and Nebraska––is enough to meet the electricity needs of the entire country. The sun’s energy that hits the surface of the Earth every minute is greater than the total amount of energy that the world's human population consumes in a year. We still only harness a fraction of that power, but the potential to generate energy from renewable sources is great.

Clean renewable energy has become increasingly more cost competitive. The American Wind Energy Association estimates that the cost of electricity generated from utility-scale wind systems has dropped by more than 80% over the last 20 years. According to the Solar Energy Industries Association, the cost of solar energy has dropped by a similar factor.

Because of the dramatically improved economics of renewable energy, state governments and municipalities across the country are implementing small-scale renewable energy programs. Often the testing ground for new, innovative policies, states have proven that we can increase production of renewable energy while creating jobs and saving consumers money. States will remain critical in increasing renewable energy generation, but to ensure that all Americans can enjoy the benefits of clean, renewable energy, we also need national standards.

In order to encourage increased energy production from renewable sources, we should implement policies at the state and national level that include the following:

• A clean energy standard, known as a renewable portfolio standard (RPS), to increase the amount of electricity generated from renewable sources of energy to 20% of power generation nationally by 2020.

• A public benefits fund to provide funds for energy efficiency programs, investments in promising renewable energy technologies, and low-income assistance programs. A national fund would provide matching funds to the states to help enhance state programs.

• National and state net metering standards that allow consumers who generate their own electricity from renewable technologies (e.g. a small wind turbine, a rooftop solar panel) to reduce their electric bill by getting credit for any power generated.

• A five-year extension of the Production Tax Credit (PTC) to encourage new energy generation from renewable sources, including wind, solar, geothermal energy, and clean biomass—specifically excluding municipal solid waste incinerators. The Production Tax Credit is critical in making renewable energy price-competitive with conventional energy sources, such as oil, coal and nuclear, which are heavily subsidized by the federal government. The extension of the credit will enable the renewable energy industry to develop and improve its technology, drive costs down even further and provide Americans with significantly more clean, emissions-free electricity generation.