"Our generation's Sputnik moment": President Obama calls for 80% "clean" electricity by 2035
In his State of the Union address, President Obama challenged Congress to pass legislation establishing a clean energy standard (CES) that would require that 80 percent of America’s electricity come from “clean” sources by 2035. President Obama signaled that a standard would recognize electricity derived from not only renewables but also nuclear, clean coal and natural gas. Calling the clean energy push “our generation’s Sputnik moment,” the President’s speech framed a CES in the larger context of improving U.S.’s competitiveness in the changing global economy. The focus on clean energy and not GHG emissions also reflects a dramatically altered political landscape than what President Obama faced over his first two years in office. With cap-and-trade legislation off the table, President Obama is reaching out to Republicans by expressing his support for clean coal and nuclear in any energy legislation.
In a conference call today, Secretary of Energy Steven Chu reiterated President Obama’s comments that the U.S. faces a “Sputnik moment” where it must make a concerted commitment in clean energy to compete with China, Europe and other countries. With regard to a CES, Secretary Chu acknowledged that the President’s proposal was “ambitious” but “not over-the-top.” Secretary Chu noted that the details of a CES proposal will be left to Congress and that any legislation will require bipartisan support.
President Obama’s State of the Union address, coupled with Secretary Chu’s press conference, could provide momentum to energy legislation. Despite environmental organizations prior opposition to nuclear, some mainstream environmental organizations like the Pew Center on Global Climate Change and the National Resource Defense Council reacted favorably to President Obama’s CES proposal. The renewable energy industry also praised the President’s comments and argued that a CES can help fuel job growth. Senator Lindsay Graham (R-SC) is planning on working with a bipartisan group of Senators on drafting a bipartisan energy bill that includes a CES. Senate Majority Leader Harry Reid (D-NV) is also indicating that energy policy will be a top legislative priority this year.
Yet prospects for passage of a CES still faces considerable challenges. Senator Richard Lugar (R-IN), a key swing vote on energy legislation, remains undecided as to whether to endorse a CES. He introduced legislation last year that included a similar “diverse energy standard,” but he noted that he is reassessing this standard in light of concerns expressed by utilities. Emboldened conservatives, particularly in the House, will likely be highly skeptical of any mandate even if it were to include nuclear, clean coal and natural gas. Notably, House Energy and Commerce Chairman Fred Upton (R-MI) released a statement after the President’s speech criticizing a call for increased federal mandates. A CES bill could also become a legislative vehicle for contentious debates on other issues like EPA’s GHG regulations and offshore drilling.
To pass a CES, President Obama will need to build and sustain a tenuous alliance of Democrats, moderate Republicans, environmentalists, and utilities, among other stakeholders. The success of the President’s push will depend on his ability to argue that clean energy is essential to “win the future,” as he stated last night, and keep America as an economic leader in innovation and competitiveness.
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