Washington, DC-Nevada Senator Harry Reid made the following statement today at a hearing held by the Senate Committee on Energy and Natural Resources to look at solutions for installing renewable energy transmission lines in Nevada and across the West.  A strong renewable energy industry will create thousands of good-paying jobs, increase rural economic development opportunities, and help our environment.

"If 20% of the nation's power came from renewable energy by 2020, which happens to be the same standard in Nevada but for 2015, we would create at least 185,000 new jobs and actually save consumers $10.5 billion in lower electricity and natural gas bills," Reid said.  "The West will need 7,500 miles of new transmission lines over the next decade to significantly expand renewable energy production.  The Western Governors Association and the states of Nevada, Texas, Oregon, Colorado and California are beginning to consider how to connect renewable resources to transmission.  This is responsible action, but their efforts will not be sufficient without more constructive Federal involvement."

Reid's complete statement as prepared for delivery is below:

"I want to thank Chairman Bingaman, Senator Domenici, and the members of the Committee for scheduling this important and timely hearing. 

"Our nation has many grave challenges that have gone unaddressed for much too long.  Chief among them is global warming, which is closely connected to our growing energy and economic security problems.    

"Fortunately, the most abundant form of energy in the US and across the earth - renewable energy  - the wind, the sun, the heat of the earth, biomass, and water - is the solution that works best to meet all of these challenges. 

"It works best to grow our economy in a sustainable way, to create new jobs, and to leave a legacy for our children that we can be proud of and one we wouldn't mind having in our own backyards today.  That's a better legacy than leaving piles of dangerous waste, dirty air, threatened water supplies, or a dangerously warmer world for generations to come.  

"Unfortunately, the nation has been fixated on the easy answer of throwing billions and billions of tons of carbon waste into the atmosphere.  Fixated on short term profits and not investing enough in renewable energy.

"That's unfortunate, because from the moment the Senate ratified the United Nations Framework Convention on Climate Change in 1992 - industry should have been on notice that cost-effective, low-carbon solutions needed to be found and invested in right away. 

"But, most of the momentum in the utility industry to invest in renewable generation has come because of states passing renewable portfolio standards. 

"Right now, 25 states and Washington, D.C. have a Renewable Portfolio Standard - and many were created over the objections of local utilities.  These states understand the potential for new jobs and the long-term cost advantage of renewable over increasingly expensive fossil fuels.  

"And just think about this, if 20% of the nation's power came from renewable energy by 2020, which happens to be the same standard in Nevada but for 2015, we would create at least 185,000 new jobs and actually save consumers $10.5 billion in lower electricity and natural gas bills.

"Some leaders in the utility industry are slowly waking up to the value of investing in energy efficiency and renewables.  But some persist in thinking that we have the luxury of going backwards to the old, inefficient fossil fuel use of the past.

"We don't have that luxury and we don't need to go backward. 

"Rapid investments now in a combination of efficiency, renewable energy and a smarter, more flexible and reliable electricity grid can meet the power demands of the country for the foreseeable future, affordably and cost-effectively.

"Senators have heard me say this before, but it bears repeating.  A 100-mile-square area of Nevada or elsewhere in the desert Southwest could meet the entire nation's electricity demand with solar PV and the right transmission infrastructure.  The total solar thermal potential in the Southwest could generate 7 times the U.S.'s current electricity capacity. 

"Despite 25 States with an RPS, the Federal government has been very slow to embrace renewable energy, instead preferring the older, dirtier or more expensive sources.  Neither the Federal government, nor the utility industry have invested enough to integrate the growing renewable generation assets into the grid. 

"And, overall, the sluggish pace of transmission investment by utilities has left us with a brittle and insecure power grid.  Even the Department of Defense is concerned about grid security now. 

"Unfortunately, nationwide investment in transmission declined for over two decades - by 1998, companies spent less than half of what they did in 1975.  At the same time, electricity sales have nearly doubled, prices have risen, and consumer demand continues to grow.  Recently, utilities have begun to increase their transmission investment, but they're far behind the curve.

"A new and significant amount of investment must occur.  This will not be easy, given the incredible backlog.  It will not be cheap either, because instead of making gradual improvements over the years, the industry has waited until now.  The Brattle Group estimates the nation will need $900 billion for distribution and transmission by 2030.

"But, that investment must be smart.  And by smart, I don't mean simply linking existing and highly inefficient coal plants by Federal energy corridors. 

"That investment and those corridors must accommodate mainly new generation from renewables if we're serious about addressing global warming.     

"I have introduced legislation to tackle several of the obstacles to new investment in renewable electricity transmission.  It is not perfect, but I believe it is time for the Federal government to take a much more constructive role, particularly since industry has not yet risen to the challenge.

"My bill - S. 2076 - directs the President to identify and designate zones where renewable energy resources can generate at least 1,000 megawatts of electricity.  It would then provide new financing options for building transmission lines and connecting remote renewable energy zones to the grid. 

"After designation, the Federal power marketing agencies - like the Western Area Power Administration - would have a year to identify new transmission lines needed to access the renewable power in these zones.  If no private companies invest within the next two years, the Federal agencies would each have $10 billion in bonding authority to finance those power lines.

"These lines would carry mostly clean renewable energy, particularly if they cross Federal land.  We need new sources of energy that don't add more global warming pollution. 

"Renewable energy companies cannot always afford to pay up front for new transmission lines and the costs of connecting to them.  My bill would help change this. 

"Renewable project and transmission developers would pay back the Federally financed line costs over 50 years.  But, the bill also clarifies the FERC should let transmission utilities recover prudently incurred costs for interstate high-voltage lines, and allow for a systems charge on intrastate trunklines which declines as more renewable projects are added.  Existing power marketing agency customers would not be liable for the costs of renewable project interconnection.   

"Utility executives like to say that we can't afford to build transmission lines that carry only or mainly renewably generated electricity.  They like to say it just doesn't pencil out. 

"But, if they say that, I just don't think they've really tried very hard or very seriously to crunch the numbers.  This is particularly relevant when you look at the declining cost curves for renewable energy technologies and the rising costs of fossil fuels, even without a carbon constraint.  Cost is an issue, but it's not an excuse for inaction. 

"As Senators know, the utility industry is not noted for it's agility or flexibility.  That is a function of the service it provides - Americans want reliable and affordable electricity.

"But, to keep the lights on and meet the demand for clean power, America needs change.    

"My bill is a serious effort to find solutions to the challenges of our energy security and global warming problems.  The Federal government has to add its weight and support to help convince the pencil-pushers of the necessity and cost-effectiveness of investing in renewables.  The Federal government needs to be a better partner.    

"The West will need 7,500 miles of new transmission lines over the next decade to significantly expand renewable energy production.  The Western Governors Association and the states of Nevada, Texas, Oregon, Colorado and California are beginning to consider how to connect renewable resources to transmission.  This is responsible action, but their efforts will not be sufficient without more constructive Federal involvement.

"Efficiency, renewables and improvements to the grid can more than meet the country's growing electricity demand - but only if utilities don't sit on their hands and underinvest, allowing a train wreck to occur like we saw in the Northeast Blackout in 2003 and the Western energy crisis in 2000 and 2001.

"I would like to ask to include in the record the executive summary of a recent  Energy Foundation study.  The study uses Nevada as a case study and contains a solid roadmap for meeting growing demand without using old technologies.  It emphasizes the need for greater efficiency, but also the urgent need for new renewable transmission capacity.

"Again, thank you Chairman Bingaman and Senator Domenici for holding this important hearing.  I look forward to working with you to move S.2076, in part or in whole, and any other solutions that the Committee may develop to make the Federal government a better partner."

"I want to thank Chairman Bingaman, Senator Domenici, and the members of the Committee for scheduling this important and timely hearing. 

"Our nation has many grave challenges that have gone unaddressed for much too long.  Chief among them is global warming, which is closely connected to our growing energy and economic security problems.    

"Fortunately, the most abundant form of energy in the US and across the earth - renewable energy  - the wind, the sun, the heat of the earth, biomass, and water - is the solution that works best to meet all of these challenges. 

"It works best to grow our economy in a sustainable way, to create new jobs, and to leave a legacy for our children that we can be proud of and one we wouldn't mind having in our own backyards today.  That's a better legacy than leaving piles of dangerous waste, dirty air, threatened water supplies, or a dangerously warmer world for generations to come.  

"Unfortunately, the nation has been fixated on the easy answer of throwing billions and billions of tons of carbon waste into the atmosphere.  Fixated on short term profits and not investing enough in renewable energy.

"That's unfortunate, because from the moment the Senate ratified the United Nations Framework Convention on Climate Change in 1992 - industry should have been on notice that cost-effective, low-carbon solutions needed to be found and invested in right away. 

"But, most of the momentum in the utility industry to invest in renewable generation has come because of states passing renewable portfolio standards. 

"Right now, 25 states and Washington, D.C. have a Renewable Portfolio Standard - and many were created over the objections of local utilities.  These states understand the potential for new jobs and the long-term cost advantage of renewable over increasingly expensive fossil fuels.  

"And just think about this, if 20% of the nation's power came from renewable energy by 2020, which happens to be the same standard in Nevada but for 2015, we would create at least 185,000 new jobs and actually save consumers $10.5 billion in lower electricity and natural gas bills.

"Some leaders in the utility industry are slowly waking up to the value of investing in energy efficiency and renewables.  But some persist in thinking that we have the luxury of going backwards to the old, inefficient fossil fuel use of the past.

"We don't have that luxury and we don't need to go backward. 

"Rapid investments now in a combination of efficiency, renewable energy and a smarter, more flexible and reliable electricity grid can meet the power demands of the country for the foreseeable future, affordably and cost-effectively.

"Senators have heard me say this before, but it bears repeating.  A 100-mile-square area of Nevada or elsewhere in the desert Southwest could meet the entire nation's electricity demand with solar PV and the right transmission infrastructure.  The total solar thermal potential in the Southwest could generate 7 times the U.S.'s current electricity capacity. 

"Despite 25 States with an RPS, the Federal government has been very slow to embrace renewable energy, instead preferring the older, dirtier or more expensive sources.  Neither the Federal government, nor the utility industry have invested enough to integrate the growing renewable generation assets into the grid. 

"And, overall, the sluggish pace of transmission investment by utilities has left us with a brittle and insecure power grid.  Even the Department of Defense is concerned about grid security now. 

"Unfortunately, nationwide investment in transmission declined for over two decades - by 1998, companies spent less than half of what they did in 1975.  At the same time, electricity sales have nearly doubled, prices have risen, and consumer demand continues to grow.  Recently, utilities have begun to increase their transmission investment, but they're far behind the curve.

"A new and significant amount of investment must occur.  This will not be easy, given the incredible backlog.  It will not be cheap either, because instead of making gradual improvements over the years, the industry has waited until now.  The Brattle Group estimates the nation will need $900 billion for distribution and transmission by 2030.

"But, that investment must be smart.  And by smart, I don't mean simply linking existing and highly inefficient coal plants by Federal energy corridors. 

"That investment and those corridors must accommodate mainly new generation from renewables if we're serious about addressing global warming.     

"I have introduced legislation to tackle several of the obstacles to new investment in renewable electricity transmission.  It is not perfect, but I believe it is time for the Federal government to take a much more constructive role, particularly since industry has not yet risen to the challenge.

"My bill - S. 2076 - directs the President to identify and designate zones where renewable energy resources can generate at least 1,000 megawatts of electricity.  It would then provide new financing options for building transmission lines and connecting remote renewable energy zones to the grid. 

"After designation, the Federal power marketing agencies - like the Western Area Power Administration - would have a year to identify new transmission lines needed to access the renewable power in these zones.  If no private companies invest within the next two years, the Federal agencies would each have $10 billion in bonding authority to finance those power lines.

"These lines would carry mostly clean renewable energy, particularly if they cross Federal land.  We need new sources of energy that don't add more global warming pollution. 

"Renewable energy companies cannot always afford to pay up front for new transmission lines and the costs of connecting to them.  My bill would help change this. 

"Renewable project and transmission developers would pay back the Federally financed line costs over 50 years.  But, the bill also clarifies the FERC should let transmission utilities recover prudently incurred costs for interstate high-voltage lines, and allow for a systems charge on intrastate trunklines which declines as more renewable projects are added.  Existing power marketing agency customers would not be liable for the costs of renewable project interconnection.   

"Utility executives like to say that we can't afford to build transmission lines that carry only or mainly renewably generated electricity.  They like to say it just doesn't pencil out. 

"But, if they say that, I just don't think they've really tried very hard or very seriously to crunch the numbers.  This is particularly relevant when you look at the declining cost curves for renewable energy technologies and the rising costs of fossil fuels, even without a carbon constraint.  Cost is an issue, but it's not an excuse for inaction. 

"As Senators know, the utility industry is not noted for it's agility or flexibility.  That is a function of the service it provides - Americans want reliable and affordable electricity.

"But, to keep the lights on and meet the demand for clean power, America needs change.    

"My bill is a serious effort to find solutions to the challenges of our energy security and global warming problems.  The Federal government has to add its weight and support to help convince the pencil-pushers of the necessity and cost-effectiveness of investing in renewables.  The Federal government needs to be a better partner.    

"The West will need 7,500 miles of new transmission lines over the next decade to significantly expand renewable energy production.  The Western Governors Association and the states of Nevada, Texas, Oregon, Colorado and California are beginning to consider how to connect renewable resources to transmission.  This is responsible action, but their efforts will not be sufficient without more constructive Federal involvement.

"Efficiency, renewables and improvements to the grid can more than meet the country's growing electricity demand - but only if utilities don't sit on their hands and underinvest, allowing a train wreck to occur like we saw in the Northeast Blackout in 2003 and the Western energy crisis in 2000 and 2001.

"I would like to ask to include in the record the executive summary of a recent  Energy Foundation study.  The study uses Nevada as a case study and contains a solid roadmap for meeting growing demand without using old technologies.  It emphasizes the need for greater efficiency, but also the urgent need for new renewable transmission capacity.

"Again, thank you Chairman Bingaman and Senator Domenici for holding this important hearing.  I look forward to working with you to move S.2076, in part or in whole, and any other solutions that the Committee may develop to make the Federal government a better partner."