The Gulf oil spill may bring widespread growth of clean, photovoltaic energy to the U.S.

In the wake of the Deepwater Horizon oil spill disaster off the coast of Louisiana in April, and President Obama’s Oval Office address on June 15, interest in passing clean energy legislation in the Senate is surging. This could mean legislation that ends up doing a lot to encourage growth in the solar energy industry, particularly in photovoltaics.

Clean energy legislation (HR 2454 The American Clean Energy and Security Act of 2009) narrowly passed the House in 2009. Under that bill, utilities would be subject to a 20 percent renewable energy standard (RES) by 2020. Such a law would encourage significant growth in the photovoltaic market and also other forms of renewable energy. It would support jobs and economic development in the U.S. But the Senate faltered at passing similar clean energy legislation as they became embroiled in passing health care reform.

Now, as midterm elections loom, the Senate is considering numerous pieces of legislation to increase renewable energy in the U.S. It’s also an encouraging sign that Obama spent nearly one-third of his Oval Office address discussing clean energy while discussing the Deepwater disaster that continues to plague the Gulf of Mexico.

The oil spill in the gulf also has stoked public interest in clean energy and the reduction of fossil fuel use, according to two recent polls. A June 9 poll by the Benenson Strategy Group found that 65% of U.S. citizens support federal investment in clean energy. That’s up from 57% in May. The poll also found that a majority support (63% of respondents) an energy bill that would “limit pollution, invest in domestic energy sources and encourage companies to use and develop clean energy. It would do this in part by charging energy companies for carbon pollution.”

A Pew Center poll, released on June 14, found that 87% of respondents support clean energy that would require to utilities to produce electricity from solar, wind and other renewables. Most, 78%, favored “tougher efficiency standards for building and major appliances.” The poll also found that 56% of U.S. citizens think that protecting the environment is more important than keeping energy prices low.

Proposed Clean Energy Legislation

What form and whether the Senate will attempt to pass meaningful clean energy reform that promotes significant solar market growth remains to be seen. Currently, the most discussed piece of proposed clean energy legislation, by Senators John Kerry (D-MA) and Joe Lieberman (I-CT) would help fund growth of renewables throughout the country, but would primarily establish a cap-and-trade mechanism for polluters. Legislation proposed by Sen. Richard Lugar (R-IN) would not use cap-and-trade to help reduce carbon and other greenhouse gasses. Lugar’s proposal would use incentives to promote greater energy efficiency in cars, trucks and buildings. Sen. Jeff Bingaman (D-NM) introduced in 2009 the only legislation directly addressing an increase in solar and other renewables via a national RES.

The Lieberman and Kerry legislation, proposed May 12, is dubbed the American Power Act. It aims to reduce greenhouse gas emissions across the U.S. by 17% by 2020 and by over 80% by 2050, according to Sen. Kerry’s office. The bill would increase renewables like solar and wind, but without setting actual targets. A study of the bill by the Peterson Institute for International Economics, determined that under the legislation, “Renewable and nuclear energy would grow from 8% each of U.S. energy supply today to 16% and 14% respectively in 2030.”

During a June 23 interview, Sen. Kerry told NPR’s Steve Inskeep that polls show the majority of U.S. citizens support the legislation. He also noted that analysis by the EPA and other organizations show the legislation would result in a net reduction in home energy costs in most years, and that down the road, it would add $79 to $150 in energy costs for one year. Kerry contended that passing an energy bill with a carbon tax is the most important way to combat climate change.

The Climate Works Foundation, issued an analysis of the bill, showing that it would keep 440,000 more Americans employed between 2012 and 2020 and 540,000 more Americans employed between 2012 and 2030. At the same time it would reduce consumers’ electric bills by $35 a year through 2020.

Sen. Lugar’s bill, the Practical Energy & Climate Plan, focuses primarily on energy efficiency efforts related to vehicles and buildings. Under his proposal, supported by fellow Republican Senators Lindsey Graham (SC) and Lisa Murkowski (AK), CAFE fuel efficiency standards for cars would increase by 4% annually and medium and heavy-duty vehicles like trucks would see CAFE mileage standards increased every four years. Lugar’s proposal also calls for energy diversification, under which he includes renewable energy as well as advanced coal generation and coal-mine methane.

The Climate Foundation studied Lugar’s bill and found that it would reduce greenhouse gas emissions by 20% by 2030, whereas the proposal by Lieberman and Kerry would reduce greenhouse gas emissions by 45% by 2030. The foundation also concluded that Lugar’s proposal will have a “near-zero” impact on gross domestic product and jobs in the U.S. through 2030. However, “The Lieberman and Kerry bill will maintain an average annual growth rate in gross domestic product of 2.3% through 2020 and 2030,” the foundation stated.

The third proposal, The American Clean Energy Leadership Act, introduced in May 2009, by Bingaman, would create a national renewable energy standard. Under the proposal, 15% of all electricity generated in the U.S. would have to come from renewable resources like wind and solar by 2039. The bill would increase renewable generation on land under the Bureau of Land Management’s jurisdiction and create Renewable Energy Permit Coordination Offices in 12 western states to manage solar and wind on public lands. The bill would fund the offices with $10 million a year for 10 years. Bingaman’s proposal made it out of the Senate Energy and Natural Resources Committee in June 2009 but has not been voted on by the full Senate.

Federal clean-energy legislation, promoting solar and other renewables is possible in 2010. It is most likely if action happens in the Senate before senators take their vacation in July. Failing that, most states already have established RESs—as of this writing only 13 had not established an RES or renewable energy goal. Currently California, with a 33% RES by 2020 and Colorado, with a 30% RES by 2020 lead the way in promoting growth in solar, wind, and other renewables.