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Renewable Portfolio Standard

(RPS)

Support a RPS that Requires 20% of our Electricity be Generated by Renewable Sources by 2020

America is dependent on expensive, polluting fossil fuels that threaten our environment, our health, and our security.  A transition to clean, renewable sources of energy will help stabilize increasing and volatile fossil fuel prices, ease energy supply shortages and disruptions, lessen our dependence on foreign supplies of energy, and clean up dangerous air and global warming pollution from fossil fuels. The United States needs a sound energy policy based on renewable energy and higher automobile fuel economy standards instead of drilling our special places like the Arctic National Wildlife Refuge.  

What is a Renewable Portfolio Standard?

The Renewable Portfolio Standard (RPS) is a market-based mechanism that requires utilities to gradually increase the portion of electricity produced from renewable resources such as wind, biomass, geothermal, and solar energy. Sierra Club supports a national RPS to provide 20% of U.S. electricity from renewable sources by 2020.

20% by 2020 is Achievable

Renewable energy sources are already providing thousands of megawatts of power around the country, and they have immense potential for becoming a major source of energy in the near future. We estimate that the states of South Dakota, North Dakota and Texas alone have enough wind to provide electricity for the entire country. The price of wind power has decreased 90% in the last 20 years, is currently very competitive with other types of energy and is becoming even cheaper.

Solar power is already used by 200,000 homes in the United States. We have installed geothermal generating capacity of about 2,700 megawatts — the equivalent of about 58 million barrels of oil  — that provides enough electricity for 3.7 million people. By 2010, biomass power (converting carbon from organic matter into energy) could provide an additional 3,000 megawatts of electric capacity in the U.S. — enough electricity for more than 13 million people. A recent study by the Union of Concerned Scientists confirms hat renewable energy can supply 20 percent of U.S. electricity by 2020.

  A 20% RPS has Environmental and Economic Benefits

Electricity generation from power plants accounts for over 40% of total CO₂ emissions, the principal global warming pollutant. Because an RPS of 20% by 2020 could eliminate the need for 272 of these dirty plants, it has the potential to stabilize U.S. CO₂ emissions from electricity generation at year 2000 levels. Eliminating all these power plants would also significantly reduce emissions of nitrogen oxides, sulfur dioxide, and mercury, which are linked to acid rain, smog, respiratory illness, and water contamination.

A recent study by the U.S. Department of Energy’s Energy Information Administration (EIA) shows that an RPS of 20% by 2020 would cost energy consumers almost nothing. When combined with energy efficiency improvements, costs to consumers would decline by hundreds of billions of dollars.

One system that converts solar energy into heat — and is used to heat the buildings of Ford, General Motors and Federal Express — is already saving about $400,000 per year in avoided fuel costs, and reducing annual carbon dioxide emissions by 10 million pounds.  

States with Renewables Standards: Local Successes, National Models

Twelve states have adopted Renewable Portfolio Standards - Arizona, Connecticut, Iowa, Maine, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Pennsylvania, Texas and Wisconsin. State RPS laws will provide for over 7,000 MW of new renewable power by 2012 – enough clean power to meet the electricity needs of 3.7 million homes. This increase is more than 50 percent over total U.S. renewable capacity (excluding hydroelectric) in 1997.     

In Texas, then-Governor George W. Bush signed into law an RPS that requires 2,000 megawatts of new renewable energy to be installed by 2009.  The goal of producing 400 megawatts of renewable energy by 2002 has already been met and doubled because of the very competitive cost of wind power.