Statements on Introduced Bills and Joint Resolutions

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Mr. WHITEHOUSE. Mr. President, I rise today to introduce the Renewable Energy Access through Leasing Act of 2011 or the REAL Act of 2011. I'd like to thank Senator Lamar Alexander and Senator Mark Udall for joining in this bipartisan effort.

Many homeowners would like to install solar panels or other renewable energy systems, but face the daunting challenge of paying the upfront cost for the technology. To purchase and install a new solar energy system, for example, can cost between $20,000 and $30,000. This is a significant and often prohibitive cost, even when more than justified by long-term savings.

A promising option to promote residential use of renewable energy is leasing. Here is how it works: A company pays to purchase and install the system and the homeowner pays a fixed monthly fee to lease the renewable energy system from the company. It is easy for the homeowner, often requires no upfront cost, and can even save them money on electricity bills. Leasing has been successfully used for everything from satellite TV dishes to car. Why not solar panels too?

One of the problems has been that renewable energy system leasing does not have a well-established financial market. Investors are reluctant to pursue these opportunities, in large part because of the uncertain lifespan of the renewable energy systems. The REAL Act would address that problem by having the Department of Energy insure the value of the lease. This would help create a secondary market for renewable energy system leases to residential customers, freeing up additional capital to invest in these programs.

The benefits of renewable energy are manifold and well-documented. Renewable energy creates jobs. From the engineers who design the systems to the technicians who install them, this industry has the potential to support thousands of new jobs.

Renewable energy promotes energy independence. Oil still accounts for approximately 40 percent of our total energy needs, and seventy percent of this oil is imported from foreign countries, many of whom, to put it mildly, are not committed to our best interests. We are sending $1 billion per day overseas to fund this addiction.

Renewable energy reduces harmful pollution. Many of our current dirty sources of energy are significant contributors to air pollution, leading to increased cases of asthma, respiratory diseases, and birth defects. Moreover, these energy sources are significant contributors to global climate change, harming our communities through sea level rise and increased extreme weather. Rapidly rising greenhouse gas concentrations are also putting severe strain on our oceans through acidification and temperature change, creating conditions not seen for millions of years. In my home state of Rhode Island, the Narragansett Bay has witnessed a 4 degree increase in average annual temperature, causing what amounts to a full ecosystem shift.

It is hard to disagree that renewable energy offers solutions to many of the problems facing our country. But there is often disagreement about the best way forward to promote renewable energy. Some are concerned about the budget impact of promoting renewable energy, some are concerned about government mandates, and some are concerned about government subsidies. While we may disagree on other means to promote renewable energy, I am hoping that we can all agree on this bipartisan proposal.

The REAL Act would not add a dime to the budget deficit. The Congressional Budget Office scored similar legislation last Congress as having no budget impact. It achieves this goal because the insurance program is paid for entirely through premiums. The bill also protects the taxpayer in the case of a default because the government has the right to collect revenues directly from the renewable energy system.

The REAL Act is not a subsidy and requires no appropriation. It relies on the value of the renewable energy system itself to provide the basis for the insurance.

The REAL Act is also not a mandate. It has no requirement to use the leasing mechanism, but merely facilitates the expansion of renewable energy leasing to homeowners.

While this bill is only one piece of the puzzle to solving our overall energy problem, I hope that it is a piece we can all agree on. Providing additional options to lease renewable energy systems is a win for our homeowners, our economy, and our environment.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

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