Talking Points for CAFE Standards and Renewable Electricity Standard (RES)

By raising fuel efficiency standards to 35 miles per gallon and switching to solar, wind and other renewable fuels to provide 15% of our electricity, Congress will retain and create jobs, spark economic growth, save consumers money, cut pollution, succeed in making America more energy independent, and make real progress in reducing carbon emissions that are warming the Earth. Please sign a petition that will let your congressmen, congresswomen, and senators know how much you want the USA to embrace a more aggressive energy bill in 2007. Also, please join the Energy Bill 2007 group on Facebook.

Combined Bill Requirements

-The final bill MUST raise fuel economy standards to 35 miles per gallon by 2020 and require that 15 percent of our electricity be generated by renewable sources like wind, solar, and biomass by 2020. The two provisions represent achievable compromises carefully crafted by each chamber and should be adopted as is, without any further weakening. They are essential elements of any sound energy policy.

-This bill makes real progress on solving global warming. Combining the best elements of both bills would, by 2030, get us nearly a fifth of the way toward making the kind of long term reductions in global warming pollution that we need, according to the American Council for an Energy Efficient Economy (ACEEE).

-This bill could save consumers more than $25 billion at the pump and billions more on their home energy bills if it includes both the Renewable Electricity Standard from the House and fuel economy (CAFE) provision.

-This bill would flip the switch on a new clean energy economy—an energy economy that, according to studies by the Union of Concerned Scientists, will keep and create hundreds of thousands of new, good-paying American jobs.

-This bill represents a sea change in Congress’ actions on energy. Instead of making the richest companies in the world richer, this energy bill benefits consumers and working Americans.

CAFE Talking Points:

-The House should agree to include the Senate’s increase in fuel economy standards to 35 miles per gallon by 2020 in the final bill. This language is a carefully-crafted compromise that was supported by everyone from Trent Lott to Ted Kennedy.

-Far from destroying auto jobs, UCS estimates that the Senate provisions would create 22,300 jobs in the auto industry alone by 2020—and a total of 170,800 jobs by 2020.

-The Senate miles per gallon provision would also save consumers nearly $25 billion at the pump in 2020, according to UCS.

-The Hill-Terry bill being pushed by the auto industry is not a compromise—it’s too little, too late. It is a weak proposal that would leave us far too dependent on oil—we’d use 700,000 barrels more each day than under the Senate’s plan, according to UCS.

-Hill-Terry would also undermine the laws of more than a dozen states by threatening the Massachusetts v. EPA Supreme Court decision and the California Clean Car (Pavley) Standards. These standards were just upheld in court and unacceptable to prevent states from moving forward to tackle global warming.

RES Talking Points:

-The Renewable Electricity Standard passed by the House represents an achievable compromise that would require 15 percent of our electricity to come from renewable sources like wind, solar, and biomass by the year 2020. It also gives utilities the flexibility to meet up to 4 percent of the standard through energy efficiency.

-It will flip the switch on the new clean energy economy and create tens of thousands of new, good-paying jobs in things like wind and solar manufacturing and installation. That’s why it has the strong support of the United Steelworkers.

-It will lower the price of natural gas and save consumers billions on their energy bills. This will also benefit businesses and the industries that use natural gas.

-Renewable Electricity Standards work—as demonstrated by the two dozen states that have already put their own Renewable Electricity Standard into place.

-It does not preempt state measures and states would still be free to move ahead with stronger measures if they choose. In fact, many states have moved to establish standards of 30 percent or more—demonstrating that the 15 percent plan proposed in this bill is an achievable compromise that all states can meet.

-It is a flexible, achievable standard that even states in the Southeast can achieve. Contrary to the Southern Company’s assertions, the Bush administration’s own Department of Energy says that the Southeast has more than enough biomass resources to easily meet a 15 percent standard. Electric generation and biomass pellet production from waste leftover from the pulp and paper industry in Minnesota has created hundreds of new jobs, the South’s pulp and paper industry could do just the same.

The RES should remain truly Renewable—no nukes, so-called “clean coal,” waste incineration, or other extraneous fuels should be added.

Stand of Position

Unless the final bill incorporates the 35 mpg improvement passed by the Senate, Congress won’t be able to claim that it has done anything to help consumers at the gas pump or to reduce our dependence on foreign oil.

Renewable Energy Standard (RES)

The RES, missing from the Senate energy bill, builds upon similar programs enacted in 23 states. It is projected to not only multiply our renewable energy supplies but also provide major savings on electric bills, as reduced demand for natural gas drives down its price nationwide.

In a pair of bipartisan compromises, amendment supporters lowered their original target from 20 to 15 percent and allowed utilities to count efficiency improvements for up to 4 percent of that target. These changes provide additional flexibility while preserving the goal of the RES. Non-hydropower renewables currently account for just 2.6 percent of U.S. energy supplies.

Notes on the CAFE Standard

The “New Direction for Energy Independence, National Security, and Consumer Protection Act,” however, did not tackle our biggest energy import (oil) and one of consumers’ top concerns (gas prices), as leadership opted not to consider fuel economy. Congress hasn’t raised mileage standards since 1975, though in June the Senate voted to increase average vehicle efficiency from around 25 mpg today to 35 mpg in 2020.

Background of the Udall-Platts legislation

This afternoon Rep. Ed Markey (D-Mass.) and Rep. Todd Platts (R-Pa.) introduced legislation to improve gas mileage in cars and light trucks. The bill would boost fleet-wide fuel economy standards to at least 35 miles per gallon by 2018, with a targeted annual increase of four percent each year thereafter.

Who supports Udall-Platts national Renewable Electricity Standard (RES) amendment?

Nearly 200 organizations representing industry, agriculture, labor, and the non-profit sector have signed a letter in support of this legislation because of its positive effect in lowering energy and electricity prices nationwide, improving our nation’s energy security, and combating greenhouse gas pollution.

Will RES lead to higher energy costs for U.S. consumers?

Independent researchers have concluded that an RES will save consumers a great deal of money by lowering demand for natural gas, which is used for the lion’s share of new electricity generation, and thus lowering consumer gas and electricity prices.

Wood Mackenzie, a non-partisan energy research firm, estimates that a 15% RES would lead to a net savings of $100 billion for U.S. consumers
over the next 20 years due to the decreased demand for natural gas. The study found that wholesale power prices would decrease by 7% to 11% across the U.S. by 2026.

The Edison Electric Institute (EEI) has highlighted the increased electricity rates associated with rising fuel costs, a trend the RES can help counter. In June 2006, the Edison Foundation, funded by the EEI, released a report entitled, “Why are Electricity Prices Increasing? An Industry-Wide Perspective”, which found that “fuel and purchased power cost increases have been enormous and are the largest cause of recent electric cost increases.” The report further explains that 95% of electricity cost increases over the past 5 years are a result of increases in fuel prices. The Udall-Platts amendment would of course call for increased use of energy generation from renewable technologies like wind and solar power that are not vulnerable to fuel price spikes, and cannot be manipulated by foreign governments.

Will RES result in an unbalance whereby wealth transfers away from States without renewable resources to state with?

Studies show that the cost savings from a national RES would be enjoyed across the country, not just in certain areas.

The Energy Information Administration found that a national RES would provide a tremendous boost to the use of biomass, which would more than double in capacity and represent 65% of total non-hydro renewables by 2030. Many of the same Southeastern states whose utilities claim that they do not have sufficient renewables within their borders are already spending billions of dollars to import natural gas and coal. Building up their renewable energy supplies and, if needed, importing renewable electricity from other states will be far cheaper than importing natural gas and coal. In fact, studies show that natural gas prices would decrease for all U.S. consumers. Furthermore, the wide variety of renewables allowed under the Udall-Platts bill would ensure that all areas of the country benefit by being insulated from the price spikes for natural gas and other fuels that are causing electricity price increases today.

RES helps make America Less Reliant on Foreign Oil and Less Vulnerable to Supply Disruptions

Opponents have not mentioned the energy security issue. The Udall-Platts RES amendment would make our nation less vulnerable to supply disruptions from unstable regions of the world. Almost all new electricity generation in the last decade has been fueled by natural gas. This makes the United States more vulnerable because the biggest sources for future natural gas supplies are Iran, Russia, and Qatar, which together hold some 58% of the world’s natural gas reserves. Increasing electricity production from domestic resources like wind and solar power reduces our dependence on such countries and reduces the American dollars flowing to them. Greater reliance on renewable energy also helps protect consumers from prices set by potentially unpredictable nations.

Does the National RES conflict with State renewable standards?

The Udall-Platts Amendment is carefully crafted to ensure that it protects the ability of states to enforce existing requirements and, if they choose, put more stringent programs in place. What’s more, the economies of scale achieved through a long-term national commitment to renewable energy, and the creation of a national renewable energy market will substantially lower the prices of meeting state renewable requirements. The existing framework of more than 20 state renewable standards is a very important start, but we cannot as a nation realize the real promise of renewable energy to lower consumer prices, promote our national security, create jobs, and protect our environment without a national Renewable Electricity Standard.

Does RES help with Greenhouse Gas and Global Warming?

The Udall-Platts amendment offers a vitally important start on reducing harmful greenhouse gas pollution. The EIA estimates that a national RES of 15% by 2020 would prevent nearly 3 billion tons of carbon dioxide from being emitted by 2030, equivalent to taking tens of millions of cars off the road. While our nation grapples with the challenge of a broad approach to address global warming, a national RES could provide the critical first step in lowering harmful greenhouse gas emissions.

Rufutation Attacks

-Instead of continuing to leave us dangerously dependent on fossil fuels, this bill moves us toward a new energy future by taking advantage of clean renewable energy and energy efficiency—our cheapest and easiest energy resource.

-The Renewable Electricity Standard will create thousands of megawatts of new clean renewable electricity generation, decreasing the amount of natural gas we use—lowering prices for consumers on their home heating bills and also benefiting industrial users.

-By promoting energy efficiency measures, we can lower emissions and use less energy-saving governments, businesses, schools, and consumers money.

-Energy efficiency is an energy resource just like anything else and is much cheaper than even coal-fired power generation. We can use it to make sure we have enough energy for our needs and to keep the economy growing while we ramp up the amount of electricity we get from renewables.

-The important tax oil and gas provision in the House bill go a long way toward rolling back some of the worst provisions of the notorious 2005 energy bill. They will help slow runaway energy development on public lands and make sure the taxpayer is fairly compensated for what is taken.

MORE CONTENT

In just a matter of days the House of Representatives will begin debate on a comprehensive series of proposals to revamp national energy policy. It is essential that vehicle fuel economy (CAFE) be included in any package voted on by the House. But not just any proposal. Improved gas mileage standards must be as strong or stronger than those passed by the Senate. Thirty-five miles-per-gallon is the baseline, with no loopholes or caps on efficiency gains. Congress cannot claim to have passed an energy bill which does not include a boost in fuel economy.

Members of Congress need to be reminded that support for increased gas mileage standards is greater than it has ever been. High gas prices, our dangerous addiction to oil, and rising concern over global warming have all contributed to make vehicle fuel economy an urgent public policy issue.

Just two weeks ago a broad, bipartisan majority in the Senate voted to raise fleet-wide efficiency to 35 miles-per-gallon, consistent with available technological improvements, recommendations from security experts, and the gasoline savings goal President Bush put forward in his State of the Union speech. In the House of Representatives Ed Markey (D-Mass.) and Todd Platts (R-Pa.) have more than 140 cosponsors on their bill which achieves 35 miles-per-gallon by the year 2018.

Responsible and achievable fuel economy standards have already proved successful. From 1977 to 1987, established standards reduced our dependence on foreign oil by almost 50%, leaving rates of overall consumption at just 27% of previous levels. Regrettably, in the two decades since every effort to improve them has been blocked.

However, automakers have recently softened an edge of their absolute opposition, admitting that existing fuel savings technologies could get us to 35 mpg without sacrificing size or safety. The National Academy of Science reached this conclusion in a landmark report issued in 2002. It has taken a steady decline in sales to get the automakers to conclude that consumers are genuinely interested in fuel economy.

KEY POINTS

Raising the CAFE standard to 35 miles-per-gallon in 2018 is the right thing to do. It would demonstrate that the U.S. is willing to take the bold steps necessary to start ending the nation’s oil addiction.

The future of our country depends on adopting new fuel economy standards for autos and light trucks. Our foreign policy depends upon it. Our military depends upon it. Our economy depends upon it. The future of our planet depends upon it. We must move away from our dangerous dependence on oil, and that starts with the passage of CAFE.

CONCISE APPEAL

As Congress advances energy conference negotiations, we urge your support for maintaining the 35 mile-per-gallon by 2020 fuel economy increase recently approved by the U.S. Senate in H.R. 6, the Renewable Fuels, Consumer Protection, and Energy Efficiency Act. Increasing fuel efficiency is the most effective and efficient manner to decrease our reliance on oil, and the Senate bill would save 1.2 million barrels per day, more than twice the amount we import daily from Iraq.

Over the course of the Energy Bill 2007 campaign we have popped you loads of info and I just wanted to present it to you all in one place: http://smnr.us/35mpgby2020, http://smnr.us/net, http://smnr.us/thespookytruth, http://smnr.us/platts, http://smnr.us/udallnm, http://smnr.us/kirk, http://smnr.us/lobbyday, http://smnr.us/cartalk, http://smnr.us/udallco -- each one of these links to a press release, assets, photos, ads, PDFs, talking points, and a whole host of Energy Bill 2007 news and updates.

Please sign a petition that will let your congressmen, congresswomen, and senators know how much you want the USA to embrace a more aggressive energy bill in 2007. Also, please join the Energy Bill 2007 group on Facebook.


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