Energy regulating bodies are often faced with tensions that need to be addressed and balanced, such as the tension between conserving and increasing energy supply. In the business sector, there is also that constant tension between short-term and long-term investments. To prevent these from going out of proportions, laws and regulations should be made in order to continue the drive for more green jobs and more importantly, to fight climate change, which poses huge risks to people and the environment. This article provides readers with information regarding the current renewable energy law, as well as laws that were created in the past.
Energy Policy Act of 1992
When this law was introduced, it became one of the drivers of the renewable energy industry, especially with the initiation of the Production Tax Credit or PTC. This subsidy of 1.5 cents per kWh is given to independent power producers in a period of 10 years. With the cost of electricity from coal as low as 1.5 cents per kWh, this is a very large incentive, and made investing in renewable energy very profitable. The PTC became a very big hit in renewable energy, especially for wind power companies, and created a big impact on both suppliers and project owners.
Energy Policy Act of 2005
Presumably, this law signaled the Congress realization that the prices of oil will continue to surge, and the best way to counter this problem is by focusing on measures that will provide cheaper alternative sources, specifically renewable energy. Moreover, the realization extends to the question on where to get energy sources in the future, as there seems to be no clear indication that oil can meet the demands of energy supply many, many years from now. It authorized $50 million in grants for certain renewable energy projects, particularly biomass. The PTC, which was introduced in 1992, became available for wind, landfill gas, biomass, geothermal, and solar power, and extended until 2007.
Areas Targeted in the Energy Policy Act of 2005
In addition to the laws stated above, this law also boosted the use of ethanol, with a given minimum requirement of 7.5 billion gallons by 2012. Companies that produce E10 or 10% ethanol are given a tax credit of 51 cents/gallon of gasoline. Clean coal projects are given incentives such as cost-sharing programs and 4-loan guarantees, plus a tax credit of 20% for project investments. Nuclear energy is also offered 1.8 cents per kWh in PTC for the first 8 years, as well as loans for the construction of energy technologies and nuclear plants.
American Renewable Energy Act
In the simplest terms, this law aims to clean the energy sources by the year 2025. In so doing, it would open roughly 350,000 new jobs. According to the Union of Concerned Scientists, this law would help generate clean energy by about 135% and will considerably lower utility bills, saving $2 billion from 2009-2030. In addition, it would also reduce global warming pollution caused by power plants by about 22%, which is equivalent to 724 million metric tons. President Obama himself has campaigned for the American Renewable Energy Act, because he knows just as well as other concerned citizens that this renewable energy law will certainly be for everyones best interests.
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