Cashing In on Clean Energy

America’s current energy system is dominated by fossil fuels, which pose serious threats to our health and environment and leave us vulnerable to price spikes and supply shortages. With the threat of global warming becoming increasingly urgent, we must make responsible energy choices today that ensure a safe, reliable power supply and a healthy environment for future generations.

Fortunately, there are practical and affordable ways to achieve this goal. Homegrown renewable energy resources—such as wind, solar, bioenergy, and geothermal—can help reduce our dependence on polluting fossil fuels. These clean energy sources can also help stabilize energy prices, stimulate the development of innovative new technology, and create high-quality jobs and other economic benefits.

Strong national policies can ensure these benefits are fully realized. The policy that has proven most effective and popular at the state level is the renewable electricity standard (also known as the renewable portfolio standard or RPS), which requires electricity providers to supply a minimum percentage of their power from clean energy sources. As of June 2007, renewable electricity standards have been adopted in 23 states and Washington, DC. At the national level, the U.S. Senate has passed a 10 percent by 2020 national renewable electricity standard three times since 2002—most recently in June 2005—only to be rejected by the House conferees each time.

Momentum continues to grow for a strong national standard. A 20 percent by 2020 standard was introduced in the House in February 2007, and a 15 percent by 2020 standard is under consideration in the Senate. Using a model from the Energy Information Administration (EIA), the Union of Concerned Scientists (UCS) examined the long-term effects that a national 20 percent by 2020 standard would have on the economy and the environment.

The UCS analysis was conducted at the national level and an additional breakout of state benefits was completed for 20 states.