The Senate on Thursday narrowly approved as part of the omnibus energy bill a renewable portfolio standard (RPS) that mandates the increased use of renewable energy in the production of electricity, a move that could eventually reduce the amount of natural gas consumed by the generation sector and cause gas prices to taper off somewhat.

By a vote of 52 to 48, the Senate passed an amendment, sponsored by Sen. Jeff Bingaman (D-NM), that would require 10% of electricity to come from renewable energy sources by 2020. Bingaman is the ranking Democrat on the Senate Energy and Natural Resources Committee.

The White House signaled Tuesday that it would not support an RPS in the energy bill. Also, the House of Representatives’ energy measure that was approved in late April does not contain an RPS provision. As a result, there now is one more issue for the two houses to resolve in conference.

Citing estimates from the Energy Information Administration (EIA), Bingaman said his amendment would cause cumulative expenses for natural gas in electricity to drop by $22 billion over the next 20 years. “This will take some of the pressure off of the price of natural gas.”

But Sen. Lamar Alexander (R-TN) interpreted the EIA’s figures differently. He said that Bingaman’s amendment would result in an $18 billion increase in electricity rates for consumers.

The problem with the EIA projection is that it assumes that the price of natural gas will fall to $5/Mcf over the period, he noted. “I don’t think we can count on a decrease in natural gas [prices] to $5” to offset an $18 billion rise in electricity bills over the next two decades.

“Maybe you believe that the lower prices for natural gas will make up for that [$18 billion]…I wouldn’t count on it,” Alexander said on the Senate floor. Bingaman countered that an RPS would cause neither an increase in electricity nor gas prices in the years ahead.

Bingman’s amendment came under intense attack from Senate Republicans, who called it a “mandate” that would interfere with individual states’ RPS programs. “What we’re saying is that one shoe shouldn’t fit every state,” said Sen. Pete Domenici (R-NM), chairman of the Senate energy panel and manager of the energy bill on the Senate floor.

The RPS amendment defines renewable energy sources as solar, wind, geothermal energy, ocean energy and biomass. Domenici recommended that other energy sources, such as nuclear or carbon-free coal, be considered candidates for the RPS.

Sen. Larry Craig (R-ID) said renewable resources are an “important part of our energy mix,” but he added that he strongly opposed the RPS standard because it would result in higher electric bills. He favors the idea of states “doing it on their own,” rather than a federal mandate.

During the long debate, opposing senators tried to make their case by using the words “renewable energy sources” and “windmills” interchangeably. “I do not want to rely on windmills,” argued Alexander. He said he would prefer that Congress spend a “reasonable amount” on solar energy, carbon-free electricity and coal gasification instead.

“This is not an amendment just about windmills,” Bingaman shot back. The purpose of the measure is to get the cost of producing energy from renewables down to a “reasonable level.”

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