On March 6th, US Rep Jay Inslee (D-WA) proposed the Clean Energy Buy-Back Act which
would guarantee U.S. producers of clean energy connection to the grid and predetermined rates from utilities for their power. It is the first ever proposal in Congress that would implement... a performance-based incentive (PBI) policy, also known as a feed-in tariff.
Hmmm... wherever did I read a proposal to require utilities to guarantee renewable energy producers a minimum price?
Oh yes, maybe it was the Micro Power Producers Act of 2007(pdf), produced by an Energize America Team that I led.
Or maybe it was Why wind needs feed-in tariffs written four days earlier by Jerome?
I do not want to imply Jerome or I influenced Inslee. Instead, I claim that this bill is stronger and better than Energize America's proposal.
And it was proposed by an influential Representative.
Inslee's Clean Energy Buy-Back Act
Inslee proposed his Bill at the Washington International Renewable Energy Conference (WIREC) last week. It was inspired by the successful experience of a comparable Bill in Germany.
According to the press release:
Based on a policy that has enabled Germany to achieve 55 percent of the world's installed solar capacity and to provide 14 percent of its electricity supply from renewable sources, Inslee’s Clean Energy Buy-Back Act would guarantee U.S. producers of clean energy connection to the grid and predetermined rates from utilities for their power. It is the first ever proposal in Congress that would implement what Inslee calls a performance-based incentive (PBI) policy, also known as a feed-in tariff, which has been proven to be the most effective means of increasing adoption of renewable-energy technologies in Germany, Spain, France and other countries.
Adding some details from a press release his office emailed me, anybody who produces renewable energy, and meets certain technical standards established by Federal Energy Regulatory Commission (FERC) based on best practices, could sell energy to the grid, at rates set by FERC which would provide a reasonable rate of return. (Just like anybody who produces a car that meets certain technical standards set by the government can sell to the public, and anybody who creates an invention that passes certain standards for utility and non-obviousness established by the Patent Office can prevent others from independently making that invention.)
So this guarantees a market for the excess power from small-scale rooftop panels (assuming certain standards are met), the power generated from landfill gas at your city dump, and utility scale power from concentrated solar thermal power (or high-altitude wind farms).
As noted in the press release, a similar law in Germany is a big part of the reason why Germany derives 14% of its power from renewables (vs. under 2% in the US)-- its why Germany has more installed solar capacity than the rest of the world put together. Rep Delahunt (D-MA) said (my emphasis) "In my travels to Germany I have been amazed at how this very simple policy has created an explosion of grassroots interest in the use of solar and wind energy. It is time to bring this renewable energy revolution to the United States."
German utilities have figured out how to build a reliable power supply from intermittent sources-- surely American utilities can, too.
Also, note the bill's title: the "Performance-based incentives." That sounds a lot better than the more traditional name of "feed-in tariffs."
Energize America's Micro-power Producer's Act
While involved with Energize America, I led the team that wrote the Micro-power Producer's Act. (PDF warning)-- a proposed bill whose stated objective was
To stimulate investment and innovation in renewable energy and energy-efficient systems and to promote energy conservation through minimum federal standards for grid interconnection.
Sound familiar?
Again, I'd like to make clear that I am not attempting to claim any influence on Rep Inslee. Rather, he and I (and everyone else I worked with, and Jerome, and pretty much anyone who pays attention to these things) were influenced by the same thing: the observation that performance-based incentives work.
The Bill that Energize America proposed limited itself to small-scale entrepreneurs: "homeowners, small businesses, farmers, and nonprofits that have a utility account and generate some or all of their own electricity from certifiably renewable sources" who generate less than $500 worth of electricity per month.
Inslee's Bill, by contrast, has no such upper limit. It includes both entrepreneurs and utilities. We considered doing this, but rejected it as too politically ambitious.
The EA Bill focussed more on individual (small-scale) entrepreneurs, while Inslee's Bill focuses more on utilities. Nevertheless, many of the arguments in favor of Inslee's Bill could be lifted straight from the Micro-Power Producers Act summary. Aw heck, I'll just do that.
- Increases personal energy freedom by making it easier for individuals to generate their own electricity and sell any extra they produce
- Encourages innovation and diversifies energy sources
- Reduces fossil fuel use by encouraging renewable sources like solar, wind, hydroelectric, and biomass
- Increases grid resiliency through a decentralized architecture
- Reduces reliance on the grid by increasing the number of users who can generate some or all of their own electricity in emergencies
- Allows electricity supply to keep up with demand growth by removing obstacles to innovation in power generation
Prospects for passage and next steps
Obviously, no sane energy policy has a chance of getting passed before Jan 20th, 2009. But think of this bill as a marker of what a sane energy policy looks like.
Feed-in tarrifs Excuse me, Performance-based incentives are a crucial step towards spurring the growth of renewables industries. We need to do what we can to help this Bill get passed, to make sure that PBIs are a part of all future energy Bills, and to try to encourage (all three) Presidential candidates to discuss and commit to PBIs.
And even if this Bill doesn't pass, its great to get the ideas out there. As StrandedWind wrote yesterday in a inspirational diary, getting a good idea out there can lead to lots of good things.