A federal renewable energy standard of 25 percent by 2025 combined with an energy efficiency standard of 10 percent by 2020 could save US electricity consumers $113 billion by 2030, the Union of Concerned Scientists (USC) said recently in a new analysis. The two standards also would boost renewable energy generation by 23 percent, the group said. UCS used energy forecasting models, cost and performance assumptions from the Energy Information Administration (EIA) in analyzing a climate change and energy bill that passed the House in June. The analysis included tougher renewable and energy efficiency standards that were contained in the House bill. Using the EIA energy forecasting model and its cost and performance assumptions, UCS analyzed costs and benefits of the House bill with a stronger (25 percent by 2025) national renewable electricity standard and a separate energy efficiency resource standard requiring utilities to reduce consumer and business electricity use by 10 percent by 2020. 

Compared with EIA’s August 2009 analysis of the current House bill, USC concludes that a strengthened bill would provide the following benefits by 2030:

• Reduce ratepayers' utility costs by a cumulative $113 billion. Households would save $51 billion, commercial businesses would save $42 billion, and industrial customers would save $20 billion compared with the current House bill. Increased renewable energy use would encourage competition and diversify the energy mix, leading to more stable energy prices and lower electricity and natural gas prices. Gains in efficiency would reduce energy use, which would save ratepayers even more.
• Reduce carbon allowance prices for polluters by more than 4 percent. Stronger standards for efficiency and renewable energy would help low-cost technologies overcome key market barriers so they can play a larger role in reducing emissions than would be possible with carbon allowances alone. Once deployed, efficiency and renewable energy would help lower carbon prices.
• Reduce gross domestic product by less than one-tenth of 1 percent. The EIA analysis of the current House bill showed that a national climate and energy policy would have a minimal effect on the overall US economy. UCS found that a stronger bill would have a comparable effect.
• Increase renewable electricity generation (excluding hydropower) by 23 percent.
• Increase efficiency and reduce total electricity sales by 6 percent.
• Avoid the need to build additional electricity capacity equivalent to nearly 50 new nuclear reactors.
  
  

The House-passed bill has a combined national renewable and efficiency standard of 20 percent by 2020. A Senate bill, S. 1462, carries a 15 percent by 2021 renewable and efficiency standard. That bill cleared the Senate Energy and Natural Resources Committee but has yet to come to a floor vote.