Klobuchar, Johnson Introduce Bill to Promote Renewable Energy

Press Release

U.S. Senators Amy Klobuchar (D-MN) and Tim Johnson (D-SD) introduced legislation today to promote renewable energy production in the United States by providing a tax credit to offset the costs of integrating wind and solar resources into the nation's energy grid. The bill would establish a tax credit, known as the Renewable Integration Credit (RIC), and provide direct incentives to rural electric cooperatives and municipal utilities. U.S. Representative Erik Paulsen (R-MN) will be introducing companion legislation in the House of Representatives.

"The strength of our nation is tied to the strength of our energy economy," Klobuchar said. "Promoting renewable energy is critical to decreasing our dependence on foreign oil. Minnesota is already a leader in homegrown and renewable energy, and this legislation can help save consumers money, strengthen our energy economy, and secure our energy future."

"This credit encourages utilities to keep increasing the amount of power generated from renewable solar and wind sources," said Johnson. "The bill encourages producing the clean energy of the future at prices consumers can afford."

"Our nation is in need of a serious plan to lessen our addiction to foreign sources of energy. Staggering energy prices are hurting families and businesses in Minnesota and across the country," said Paulsen. "This legislation recognizes that sometimes the wind doesn't blow, and the sun doesn't shine; however, wind and solar energy must be built into a comprehensive energy plan that includes all sources like nuclear, oil, natural gas and clean coal. By providing this tax credit, we are ensuring that the additional costs of integrating wind and solar energy into our electric grid will not be passed along to the consumers. I look forward to working with my colleagues in the House and Senate to ensure this bill's success."

The Renewable Integration Credit would promote wind and solar energy production and improve the reliability and strength of the U.S. energy grid. The credit would be larger (up to 0.6 cents per kilowatt hour) for utilities that generate more of their energy from intermittent renewable sources, like wind and solar, and smaller for utilities that generate less of their energy from these intermittent sources. The credit would also phase out over time unless utilities continue to increase their renewable portfolio.

This credit is projected to positively impact consumers that receive power from companies that use solar or wind energy on the grid like Xcel Energy and Minnesota Power. Klobuchar and Johnson introduced a similar provision that would create a renewable electricity integration credit as part of the Securing America's Future with Energy and Sustainable Technologies (SAFEST) Act which promotes safe, reliable, and sustainable energy such as wind solar, biofuels, and energy efficiency measures.

The Renewable Electricity Integration Credit Act is supported by the U.S. Chamber of Commerce, National Association of Manufacturers, Edison Electric Institute, Natural Resources Defense Council, Blue Green Alliance, Building and Construction Trades Department of AFL-CIO, Third Way, and American Public Power Association.

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