TAX CREDIT CITED IN CRS REPORT ON RENEWABLE ENERGY.

                      Updated January 22, 1991

SUMMARY

Renewable energy comes from solar, wind, and other sources. It supplies about 8% of national energy demand, and the Department of Energy (DOE) projects that advanced technologies capturing renewable energy may supply a much larger share in the long term. The Federal renewable energy program grew rapidly in the 1970s, primarily as an alternative to oil imports. It includes research and development (R&D) funding, tax credits and a regulatory framework that ensures utility purchases of electricity from independent renewable power producers. However, program support waned in the 1980s as a result of the Reagan Administration's "free market" energy policy and generally declining energy prices. In constant dollar terms, R&D funding declined 90%, from a peak of $857 million in FY1979 to a low of $84 million in FY1990.

Mounting concern about oil imports and the linkage of conventional energy use to environmental problems such as global warming, acid rain and urban smog increased support for renewable energy in the 101st Congress. In addition to DOE's early 1990 initiatives to increase commercial development and to reorganize programs, the 101st Congress enacted several laws supporting renewable energy. The FY1991 spending mark rose to nearly $160 million, a 40% real increase over the FY1990 level and the first real increase in 10 years. Other key policies enacted include an extension of the solar and geothermal tax credits, removal of size limits that had restricted commercial developments, and Clean Air Act provisions creating incentives for displacing fossil fuel use with renewable energy. Also, with oil imports supplying 50% of national oil use, the Persian Gulf Crisis sparked $17.4 million in increased spending on biofuels substitutes for petroleum use. These actions by DOE and the Congress indicate that the long decline in Federal support for renewable energy has ended and that a new commitment to its near-term and long-term potential may be emerging.

R&D spending issues arise from the fact that renewables experienced much deeper funding cuts during the 1980s than fossil or nuclear energy R&D programs. Also, technology development is increasingly viewed as a key means for gaining a competitive edge in growing export markets. Renewable energy supporters claim that the proposed R&D spending increases for FY1991 fall far short of what is warranted by the promise of renewables as a domestic, sustainable, non-polluting energy source, arguing for even larger increases to return this option to funding parity with fossil and nuclear energy technologies. Opponents of increased spending contend that renewable energy technologies have achieved commercial readiness and that the marketplace should dictate future developments.

Environmental benefit/cost issues arise from the claim that the energy market fails to incorporate pollution costs into energy prices. Some States have taken the initiative to establish environmental cost regulations, setting either a dollar value on displaced emissions or a cents/kilowatt-hour surcharge for polluting energy sources. Variations in State policies could raise the issue of Federal action to set more uniform national standards.

ISSUE DEFINITION

Major issues relate to the nation's commitment to renewable energy R&D spending and assessment of the value of renewable energy's potential to substitute for petroleum fuels and to reduce environmental problems such as global warming, acid rain and urban smog. There is some consensus that advanced renewable energy technologies could produce an important, if not major, part of U.S. long-term energy supply. Given environment, trade, and oil import problems, how should Congress respond to the twin pressures of recommended R&D spending increases and requirements for budget deficit reduction? Should there be a Federal role in analyzing and establishing the monetary value of environmental costs associated with energy use?

BACKGROUND AND ANALYSIS

Renewable Energy Defined

Renewable energy is derived in many ways. Some applications make use of "direct" solar energy received on the Earth each day as heat and light. Others tap indirect solar resources that have collected solar energy through natural processes such as wind, plant growth, seasonal river flow cycles, and warm surface waters in the ocean. These "indirect" solar resources can be further converted into thermal energy, electricity, or clean burning fuels.

Much of the confusion about renewable energy's potential, its present contribution, and even its Federal budget, is due to its definition. In the narrowest sense, the term is identified with direct solar applications. These include architectural changes, direct heating and cooling, swimming pool heaters, domestic hot water heaters, agricultural and industrial process heat systems, photovoltaic (solar cells), and high-temperature electric power generators. In the broadest sense it means both direct and indirect solar applications. The indirect applications include wind energy systems, hydropower plants, ocean energy conversion systems, and a wide variety of bioconversion processes, including direct wood burning and alcohol fuels derived from biomass. Although geothermal energy is produced from geological rather than solar sources, it is often included as a renewable energy resource. This brief includes geothermal energy as one renewable energy source.

(For further information on renewable energy, see CRS Issue Briefs 87140; Renewable Energy: Federal Programs , 74087, Alcohol Fuels; 80091, Wind Energy; 74058, Ocean-Generated Power; and 74056, Geothermal Energy.)

Contribution to National Energy Supply

Indirect solar sources supply about 6 Q (quadrillion Btus or quads) of the 80 Q of U.S. annual energy needs. This amounts to about 8% of national demand -- 5% from hydropower and about 3% from wood burning. The contribution from direct sources is less than 1%, but it is growing. A 1985 Department of Energy (DOE) report, Renewable Energy Research and Development Outlook, gauges the annual U.S. renewable energy resource base at 5 to 8 times the size of our recoverable domestic coal reserves. This is an estimate of the accessible resource base, which could be limited by competitive uses of land, water and fertile soils for agriculture, recreation or other activities.

There appears to be a consensus that renewable energy will play an important role in the long-term future of the Nation's domestic energy supply. A March 1990 DOE report on The Potential of Renewable Energy projects a contribution potential through the year 2030 that could virtually supply all increases in domestic demand above the present level. This study assumes that oil and natural gas prices will triple in real terms by the year 2030, and coal prices are expected to increase 50% during this period. Three cases are examined: business-as-usual, accelerated research, development and demonstration (RD&D) spending, and a 2 cent/kilowatt-hour environmental cost premium. It concludes that the extent of Federal support can have a great influence on the rate of increase of renewable energy's market share and on the success of domestic industry in U.S. and world markets in the next four decades. The study projects that if RD&D were to double or triple, the contribution of renewable energy to national needs in the year 2030 would increase from the 1988 level of 6.7 Q to as much as 57 Q. Additional estimates of contributions appear below.

RENEWABLE ENERGY PROJECTIONS

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The above figures for renewable energy do not allow for the constraints resulting from widespread use of wind, solar thermal or photovoltaic power sources, which draw energy from highly variable resources. If these constraints are considered, the projected contribution is cut in half. The problems engendered by relying on variable sources comprise a major, long-term technical barrier for these power generation technologies. The daily and seasonal variability of wind and solar resources affect the production of constant power. Thus, the potential contribution is limited to a small percentage of a utility's total capacity unless additional costs are incurred for backup power. Further, these technologies cannot, by themselves, produce baseload power. Energy storage and fuel cell technologies can help smooth the power output from variable wind and solar resources, but both can add greatly to the capital cost of the resultant system.

Other technical barriers must be overcome before the projected levels of energy production could be achieved. These vary with each technology, but include improved conversion efficiency, reliability, and equipment lifetimes.

Economic barriers also remain in the way of achieving the above projections of renewable energy production. The key obstacle is the high perceived risk associated with newly emerging technologies. The risk creates requirements for a higher rate of return by potential investors. Further, the high front-end costs associated with renewable energy technologies tends to increase costs in capital markets. Tax credits and regulatory cost-recovery mechanisms are two policy options designed to address this problem.

U.S. Presence in World Markets

Since the early 1980s, a world market for renewable energy technologies has emerged. In 1986, the annual world market for wind, photovoltaic, and solar thermal stood at about $1 billion for 400 megawatts (MW) of equipment sales. Projections show that the world market for these three technologies is likely to grow to about $2 billion for 600 MW of sales per year by 1991. U.S.-produced technologies, which dominated world markets for wind and photovoltaic 5 years ago, now account for less than one-third of these markets. Meanwhile, markets are growing in Europe and elsewhere, changing the character of the world market from one dominated by U.S. domestic demand to one driven by a diverse overseas market. In addition, the United States has become a net importer of wind and solar thermal systems. This switch in leadership tends to negate some of the energy security advantages of increasing domestic renewable energy use.

Federal Programs and Congressional Interest

History

The Arab oil embargo of 1973 sparked the establishment of a comprehensive Federal energy program to deal with the Nation's immediate and long-term energy needs. During the 1970s, the Federal renewable energy program grew rapidly to include not only basic and applied R&D, but also joint participation with the private sector in demonstration projects, commercialization, and information dissemination. In addition, the Federal Government adopted market incentives, such as the business and residential tax credits, and created a utility market for non-utility produced electric power through the Public Utility Regulatory Policies Act (P.L. 95-617).

Since 1972, Congress has consistently supported a broader, more aggressive renewable energy program than any Administration in office. Lacking a coherent, long-range policy from the Administration, Congress first took the initiative in 1974. Congress has led ever since through legislative initiatives and close reviews of annual budget submissions. In every year since 1974, Congress has added funds to the Administration's R&D budget request. This active involvement has created a higher priority for renewable energy R&D and a larger Federal role in commercial system development.

Spending Trends

From 1973 to 1990 the Federal Government spent about $4.6 billion ($5.6 billion in 1982 constant dollars) for renewable energy R&D, including geothermal technology. (See Appendix.) This represents roughly 12% of total Federal spending for energy supply R&D over this period. Renewable energy R&D funding grew from less than $1 million per year in the early 1970s to over $700 million in FY1980 and FY1981, then declined steadily to $110 million in FY1990. For FY1991, the Administration requested $133.9 million, the first real increase sought in 9 years. As Table 1 shows, the Congress enacted an even higher level of $159.7 million. The key increases are Biofuels, $17.4 million; Photovoltaics, $12.2 million; Solar Thermal, $4.5 million; and Wind Energy, $2.6 million.

Residential solar credits, and the residential and business credits for wind energy installations, expired on Dec. 31, 1985. The loss of the 40% Federal tax credit for residential solar installations caused the solar space and water heating market to decline sharply: many manufacturers closed down, and domestic sales fell from $900 million in 1985 to $300 million in 1986. Consequently, the industry is smaller. On the other hand, it is more centralized and apparently has fewer problems with "fast-buck" operators who tarnished the industry's image by selling faulty and overpriced equipment. The Omnibus Budget Reconciliation Act of 1990 (P.L. 101- 508) extended the existing business tax credit for renewable energy technologies (see table below) through Dec. 31, 1991. A bill (S. 141) has been introduced in the 101st Congress to extend the tax credits through 1996.

                     Existing Business Tax Credits

² U.S. Congress. Conference Committee. Making Appropriations for Energy and Water Development for FY1991 (H.R. 5019, H. Rept. 101- 889) p. 94-97.

Public Utility Regulatory Policies Act

The Public Utilities Regulatory Policies Act (P.L. 96-917) required electric utilities to purchase power produced by renewable power facilities. Under the Act, the Federal Energy Regulatory Commission (FERC) established rules which stipulate that electric utilities will purchase power from windfarms and other small power producers at a price (avoided cost) based on energy and capacity costs that the utility would otherwise incur by generating the power itself or purchasing it elsewhere. However, in order to receive avoided cost payments, each facility must file for, and obtain, qualifying status from FERC. The following FERC data show that the annual amount of filings grew steadily through FY1986 then dropped off dramatically as oil prices and, thus, avoided costs fell. A total equalling about 17,000 MW has been filed since 1980.

                   RENEWABLE POWER FACILITY FILINGS

Action in the 101st Congress

Congressional action includes four key achievements for renewable energy. First, the 101st Congress approved $160 million in FY1991 R&D appropriations. In 1982 constant dollar terms, this is $118 million, a 40% increase over the FY1990 level. Second, the Budget Reconciliation Act contains a provision that extends the solar and geothermal tax credits through 1991. Third, the Solar, Wind and Geothermal Power Production Incentives Act removes the size limitations that had restricted eligibility for avoided cost power purchase arrangements with electric utilities. Fourth, the Clean Air Act Amendments include a provision creating sulphur dioxide (SO2) emission offsets for the use of renewable energy and a provision creating monetary penalties for exceeding emission tonnage limits.

Four other laws passed by the 101st Congress also promote renewable energy. First, the Foreign Operations and Export Financing Act of 1989 (P.L. 101-167) directs multilateral banks, such as the World Bank, and the Agency for International Development (AID) to accelerate promotion of the use of renewable energy options to reduce greenhouse gas emissions. It also directs the Export-Import Bank to increase support for renewable energy exports. Second, the Foreign Operations and Export Financing Act of 1990 (P.L. 101-513) allocates $75 million for environment and energy activities in Eastern Europe, emphasizing policies encouraging energy efficiency and renewable energy resources. It also directs the Treasury Dept. to report on U.S. efforts to promote multilateral development banks' lending for renewable energy and energy conservation. Third, the Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 (P.L. 101-218), sets technical goals, establishes DOE joint demonstration projects and reauthorizes export promotion programs. Fourth, the Spark M. Matsunaga Hydrogen Research, Development and Demonstration Act (P.L. 101-566) reorganizes DOE's program and Section 103(c) directs DOE to give priority to production techniques that employ renewable energy resources.

Issues for Congressional Consideration

FY 1992 Budget

Should there be a new national commitment to increase support for renewable energy research and technology development? Can accelerated RD&D spending increase renewable energy's share of electric power production in the 1990s and beyond? Would it help U.S. firms recapture a larger share of the world market for renewable energy technologies? What is an appropriate level of spending for FY1991 and future years?

The 1987 GAO Energy R&D report found that reduced DOE and industry R&D spending has delayed U.S. renewable energy technology development. Meanwhile, foreign competitors have surpassed the U.S. in RD&D spending for several key technologies such as photovoltaics and wind energy. For example, the Government is spent $36 million on photovoltaics in FY1990, ranking it third behind West Germany ($65 million) and Japan ($55 million). Similarly, the U.S. spent $8.8 million on wind energy R&D in FY1990, ranking it sixth behind the Netherlands ($23.6 million), Italy ($18 million), West Germany ($16.5 million), United Kingdom ($12 million) and Sweden ($9.4 million).

The 101st Congress increased FY1991 R&D spending by 40% over the FY1990 level. However, in a January 1990 report, Recommendations for DOE's Renewable Energy R&D Budget, a coalition of renewable energy supporters called for an even greater increase in R,D&D spending for FY1991. The report recommends $270 million for FY1991, $312 million for FY1992, and $350 million for FY1993. It contends that higher spending levels are needed to avoid continued loss of world renewable energy equipment markets to foreign competitors and to avert the environmental threats posed by continued reliance on fossil and nuclear energy. The report stresses that new appropriations are not needed. Instead, it advises that energy supply R&D spending be reapportioned to bring renewable energy closer to the near parity that existed with fossil and nuclear programs in FY1980. A comparison of spending trends appears below.

ENERGY SUPPLY R&D SPENDING

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Opponents of increased RD&D spending contend that many renewable energy technologies have achieved commercial readiness and that the marketplace should dictate future developments. They argue that accelerated spending for demonstration projects would only enlarge the Federal budget deficit while distorting the operation of the free market for energy.

Reducing Environmental Problems

The major environmental problems that increased use of renewable energy could help alleviate include global warming, acid rain and urban smog.

Global Warming

There is a growing scientific consensus that increasing levels of carbon dioxide and certain other gases in the Earth's atmosphere are trapping heat, with the potential of causing unprecedented changes in the global climate over the next 50 to 100 years. U.S. fossil energy (coal, oil, natural gas) use currently produces about one-fourth of the world's carbon dioxide emissions. According to the Energy Information Agency, the Nation's carbon dioxide emissions will grow from 5.4 billion tons per year in 1986 to about 6.4 billion toms Per year in the year 2000. Where renewable energy sources displace fossil fuel use, CO2 emissions are reduced. Several CO2 policy actions under consideration by the Congress could have the effect of encouraging increased use of renewable energy. For example, a 1990 Congressional Budget Office study, Carbon Charges as a Response to Global Warming, concludes that a $100/ton carbon charge, or $27/ton CO2 charge, could stabilize CO2 emission by the year 2000. For a conventional coal-fired powerplant, this amounts to a 3.1 cents/kwh charge. Such a charge would increase the cost-competitiveness of renewable energy power facilities.

A June 1990 report by Public Citizen, The Power of the States, estimates that current renewable energy production, arising primarily from hydropower and wood burning, is displacing about 550 million tons of CO2 annually. DOE projects that, by the year 2000, the photovoltaic initiative would achieve annual emission reductions of 240 million tons (Mtons) CO2 and the hydropower initiative would cut CO2 emissions by 350 Mtons annually. Figures for the other renewable energy initiatives were not presented. Assuming that each 1 quadrillion Btu (British Thermal Unit) of national energy use emits about 76 million tons (Mtons) of CO2, the high case of DOE's report on The Potential of Renewable Energy suggests that renewables could displace as much as 800 Mtons CO2 by the year 2000 and 4.4 billion tons CO2 by the year 2030. The report considers accelerated RD&D spending and establishment of a fixed environmental credit, for example 2 cents/kilowatt-hour, as policy actions that could support this role for renewables.

Acid Rain and Urban Smog

In general, wherever renewable energy systems displace fossil fuel use, they will also reduce emissions of pollutants that contribute to acid rain and urban smog. These measures can reduce utility-generated emissions of acid rain precursors primarily by deferring the need to build new powerplants, but also by decreasing the use of existing powerplants, and deferring the purchase of emissions controls or cleaner, more costly fuels. The Clean Air Act Amendments of 1990 (P.L. 101-549, Section 404[f])) create a monetary penalty for exceeding sulfur dioxide (SO2) emission tonnage limits. This penalty acts as an "acid rain cost," that many expect will encourage utility use of renewable energy. The Amendments also create a conservation and renewable energy reserve of 300,000 allowances for SO2 emissions. An electric utility is allocated one allowance for each ton of SO2 emissions avoided through the use of qualified renewable energy. The Congress may wish to consider the following issues: Should utilities and small power Producers be given additional incentives for renewable energy production that diplaces fossil fuel use?

Internalizing Environmental Costs

Some claim that the energy market is now biased because the costs associated with pollution emitted from energy generation and use are not included in the price of energy. They contend that a monetary value can be assessed for environmental effects, derived either from the costs of damage or from the costs of controlling or mitigating pollution. Failure to establish environmental costs, they say, effectively sets these costs at zero, which is inconsistent with existing prevention and cleanup costs. Others assert that environmental cost factors have not been adequately analyzed and that adequate data have not been published at the local or utility level to permit inclusion of such factors in the analysis of relative costs and benefits of different energy sources. Nevertheless, the increasing concern about the environmental effects of energy use is prompting studies that analyze, and policies that regulate, the monetary value of environmental benefits arising from the use of renewable energy and energy efficiency technologies.

Federal and State policymakers are starting to assess and regulate environmental costs and benefits of energy use. The CBO study and Clean Air Act Amendments mentioned above provide examples of this activity at the Federal level. Additionally, the 1989 Foreign Operations Appropriations Act (P.L. 101-167) directs multilateral development banks and AID to incorporate environmental costs of all energy options into cost comparisons between renewable energy systems and conventional energy systems. Further, some global warming legislation of the 101st Congress (H.R. 1078, Section 224; S. 324, Section 311) specified that the environmental costs of energy use by electric utilities should be incorporated into total costs used to identify least-cost energy strategies for public utilities. Although this legislation was not enacted, it is likely to be reintroduced in the 102d Congress, probably as part of more general energy efficiency and renewable energy legislation.

Much of the policy innovation in setting environmental costs is taking place at the State level. For example, the Massachusetts Department of Public Utilities (D.P.U. 90-261 and 86-36-F) directs electric utility companies to establish methods for including the environmental impacts in analyzing the cost-effectiveness of energy resource options. Also, the New York Public Service Commission (Opinion no. 89-29) set a 1.4 cents/kwh environmental cost for coal- fired powerplants. This cost is derived from estimated impacts on air quality (0.9 cent), water discharges (0.1 cent) and land use (0.4 cent). A renewable energy system would be eligible for partial or full credit, depending on its land use impact. At a December 1989 hearing in preparation for its 1990 Electricity Report (ER-90), the California Energy Commission heard testimony from JBS Energy Company that the environmental costs of air pollution amount to about 2 to 3 cents/kwh.

Would significant variation in the State regulatory practice of setting environmental costs of energy use warrant congressional action to set more uniform national standards of analysis and cost assessment?

Improving Energy Security

Record high oil import levels, coupled with the Persian Gulf crisis, have rekindled Federal interest in using renewables to displace oil use, especially for transportation. Driven by lower prices, oil imports, as a percentage of total oil use, grew from 27% in 1985 to about 50% in 1990. The figure below shows the oil import trend. However, prices have skyrocketed since the Iraqi invasion of Kuwait.

Most petroleum is used for transportation, where the short-term options for renewables may be limited. Gasoline use can be reduced by increasing auto fuel efficiency and by switching to the alcohol fuels, ethanol and methanol. About 850 million gallons of ethanol are blended with gasoline annually, amounting to just under 1% of gasoline supply. Ethanol from corn has the advantage of producing 20% less CO2 emissions per unit of energy than gasoline (see CRS Report 89-164). However, gasohol (ethanol blend) use has leveled off as gasoline prices dropped (see CRS Issue Brief 74087). Abundant biomass materials (such as fast-growing trees and woody shrubs) appear to provide the largest potential for biomass-derived ethanol in the mid- to long-term. Recent experiments suggest that methanol may be a feasible alternative to gasoline, but biomass sources do not appear to be cost-competitive with natural gas sources of methanol. Methanol derived from biomass has the disadvantage of producing an equal amount of CO2 as gasoline.

Also, solar-powered vehicle experiments are underway, and could provide a long-term alternative to gasoline-fueled vehicles. Several races of vehicles powered by photovoltaic energy have been held in the United States, Europe and Australia. Some manufacturers of conventional autos and electric vehicles are experimenting with photovoltaic systems as a partial source of energy, especially for operating accessories.

U.S. OIL IMPORT TREND

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LEGISLATION

P.L. 101-167, H.R. 2743

Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990. Directs multilateral development banks and AID to accelerate promotion of the use of renewable energy and energy efficiency options to reduce greenhouse gas emissions. Also directs Export-Import Bank to increase support for renewable energy exports. Introduced Nov. 20, 1989; passed House and Senate. Signed into law Nov. 21, 1989.

P.L. 101-218, S. 488

Renewable Energy and Energy Efficiency Technology Competitiveness Act. Sets forth national goals and priorities for renewable energy and alternative energy resources programs. Introduced Mar. 1, 1989; reported from Senate Committee on Energy and Natural Resources (S. Rept. 101-107) Aug. 4. Passed Senate, amended, Sept. 22. Passed House, amended, in lieu of H.R. 1216, Nov. 17. Signed into law Dec. 11, 1989.

P.L. 101-508, B.R. 5835

Budget Reconciliation Act of 1990. Section 11406 extends through Dec. 31, 1991 the 10% business energy tax credit for solar and geothermal property. A similar credit for ocean thermal property was not extended. House reported (H.Rept. 101-881) on Oct. 15, 1990. Passed House Oct. 16. Passed Senate Oct. 19. Conference report (H.Rept. 101-964) on Oct. 27. President signed on Nov. 5.

P.L. 101-513, M.R. 5114

Foreign Operations, Export Financing and Related Programs Appropriations, FY1991. Allocates $75 million for environment and energy activities in Eastern Europe, emphasizing policies encouraging end-use energy efficiency, conservation and renewable energy resources. Also directs Treasury Dept. to report on U.S. efforts to promote Multilateral Development Banks' lending for energy conservation and renewable energy. Reported (H.Rept. 101-553) on June 21. Passed House, amended, June 27. Reported (S. Rept. 101-519) to Senate Oct. 10. Passed Senate, amended, Oct. 24. Conference reported (H. Rept. 101-968) Oct. 27. President signed Nov. 5.

P.L. 101-514, H.R. 5019

Energy and Water Appropriations Bill, 1991. Introduced June 13, 1990, with report (H. Rept. 101-536). Passed House, amended, on June 19. Senate Appropriations Committee reported (S.Rept. 101-378) July 19. Passed Senate, amended, Aug. 2, 1990. Conferees approved (H.Rept. 101-889) Oct. 16. President signed on Nov. 5.

P.L. 101-519, H.R. 5313

Military Construction Appropriations Act, FY1991. Reported (H. Rept. 101-608) on July 19, 1990. House language requires DOD to report on current efforts to use renewable energy. Report is to include plan for installing 100 MW of renewable energy-based power generation by the end of 1996. Passed House July 30. Reported (S. Rept. 101-410) to Senate on Aug. 1. Passed Senate, amended, Oct. 1. Conference reported (H. Rept. 101-888) on Oct. 16. President signed Nov. 5.

P.L. 101-549, S. 1630

Clean Air Act Amendments of 1990. Section 404(f) creates a conservation and renewable energy reserve of 300,000 allowances for SO2 emissions. An electric utility is allocated one allowance for each ton of SO2 emissions avoided through the use of qualified renewable energy. Section 411 creates a monetary penalty for exceeding emission tonnage limits. Reported (S.Rept. 101-228) Dec. 20, 1989. Passed Senate, amended, on Apr. 3, 1990. House bill introduced July 27, 1989; reported (H. Rept. 101-490, Part I) on May 17, 1990. Passed House, amended, on May 23. Incorporated in S. 1630 as an amendment. Conference report (H. Rept. 101-952) filed on Oct. 25. President signed Nov. 15.

P.L. 101-566, S.639

Spark M. Matsunaga Hydrogen Research, Development and Demonstration Act of 1990. Requires DOE to formulate and report a comprehensive 5-year R&D management plan, and establish program to implement plan, including demonstrations of key technologies. Authorizes appropriations for FY1992 through FY1994. Section 103(c) directs DOE to give priority to hydrogen production techniques that employ renewable energy resources. Introduced Mar. 16, 1989. Reported (S.Rept. 101-385) on July 23, 1990. Passed Senate, amended, Oct. 16. Passed House Oct. 23. President signed Nov. 15.

P.L. 101-575, B.R. 4808

Solar, Wind, and Geothermal Power Production Incentives Act of 1990. Amends the Public Utility Regulatory Policies Act of 1978 (PURPA) and the Federal Power Act to remove the size limitations placed upon solar, wind and geothermal facilities eligible for PURPA regulatory (avoided cost) benefits. Senate version reported (S.Rept. 101-470) Sept. 21. Passed Senate, amended, Sept. 26, 1990. House version reported (H. Rept. 101-885) Oct. 16. House bill passed House Oct. 23. Passed Senate, amended, on Oct. 27. President signed on Nov. 15.

FOR ADDITIONAL READING

American Solar Energy Society. Assessment of solar energy techniques. Boulder, CO, May 1989. 56 p.

Export Council for Renewable Energy. Energy lending at the World Bank and InterAmerican Development Bank. Washington, Solar Energy Industries Association, January 1990.

-- Renewable energy for the world. Washington, Council for Renewable Energy Education, Sept. 1990. 16 p.

Flavin, Chris and Piltz, Rick. Sustainable energy. Washington, Renew America, 1989. 48 p.

MacKenzie, James J. Breathing easier: taking action on climate change, air pollution and energy security. [Washington] World Resources Institute. 23 p.

Rader, Nancy. The power of the States: a 50-State survey of renewable energy. technologies. Washington, Public Citizen (Critical Mass Energy Project), June 1990. 101 p.

Renewable Energy Coalition. Recommendations for DOE's research and development budget for renewable energy technologies FY1991- FY1993. Washington, Public Citizen (Critical Mass Energy Project), Jan. 1990. 25 p.

U.S. Dept. of Energy. Office of Conservation and Renewable Energy. Programs in renewable energy: FY1990 (DOE/CH10093-74). Jan. 1990. 48 p.

-- Office of Policy Planning and Analysis. Solar Energy Research Institute. The Potential of Renewable Energy: An Interlaboratory White Paper (SER/TP-260-3674). March 1990. 200 p.

U.S. Library of Congress. Congressional Research Service. Environmental costs of energy use: a bibliography, by Fred Sissine. [Washington] Nov. 2, 1990. 2 p.

[Tables omitted]