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July 16, 2010

Senators float clean energy ideas as talks continue on climate bill

Senator Amy Klobuchar of Minnesota is proposing more subsidies for the biofuels industry and a nationwide renewable energy standard for electricity

With a finance bill passed, the eyes of Congress are turning to clean energy ahead of the summer recess.

Proposed legislation has been coming thick and fast from US Senators this week, as discussions continue about a possible comprehensive climate and energy bill.

Yesterday saw Midwest Senators putting a national renewable energy standard on the table, with introduction of a bill seeking a 25% renewable energy target by 2025.

The nationwide standard, requiring utilities to source a certain amount of their electricity from clean energy projects, would save $168.6 billion in energy costs by 2020 according to the American Council for Energy Efficiency.

Led by Minnesota Senator Amy Klobuchar, the Securing American’s Future with Energy and Sustainable Technologies (SAFEST) Act also seeks a 5-year, $30 billion subsidy scheme for ethanol and biodiesel.

Senator Klobuchar, who introduced the bill with South Dakota Senator Tim Johnson, said it would set targets for advanced biofuels and biofuel infrastructure.

She said of the bill: “With the ingenuity of American farmers and manufacturers, we have the ability to be the global leader in energy. This bill will provide incentives that can boost our economy and help us secure our energy future.”

The legislation is being supported by renewable energy industry groups, including the American Wind Energy Association, the Renewable Fuels Association and the National Corn Growers Association, along with the ethanol lobby group Growth Energy.

The AWEA described the proposals as “essential”, stating that a 25% renewable electricity standard would create “thousands” of jobs.

The RFA also stressed the “vital” nature of measures to support jobs in rural America.

The connection with the ethanol industry has already drawn criticisms from environmental lobbyists, who have accused the proposals of favoring “mainstream” biofuels producers rather than advanced biofuels that would save more greenhouse gas emissions.

Reid bills

Meanwhile, Senate Majority leader Harry Reid might be leading negotiations for a comprehensive climate and energy bill, but he has also found time to put forward two clean energy bills of his own this week.

With companion legislation put forward in the House of Representatives by Nevada Congressman Dean Heller, the bills seek to set up a pilot leasing program for wind and solar projects to make use of federal lands, and set up a fund to help geothermal energy exploration projects.

The Clean Energy, Community Investment, and Wildlife Conservation Act would set up a leasing program that gives 25% of the royalties to counties and states, along with shares for fish and wildlife conservation agencies.

The Geothermal Exploration Act proposes a Department of Energy fund to provide loans to geothermal energy developers for “high risk” exploration and drilling.

Nevada Senator Reid said: “These bills encourage renewable energy development, ensure that state and county governments get fair compensation, and make critical investments in our wildlife and other natural resources,” Reid said. “These efforts will move Nevada’s clean energy economy forward and make job-creating renewable energy projects a win-win for our state, counties and wildlife.”

Other legislation proposed in Congress this week has included a bill from Alaska’s Senator Lisa Murkowski pushing the benefits of hydropower (see this BrighterEnergy.org story).