What Does Brown's Victory Mean For Green Energy?
The people of Massachusetts had their turn last night to send a message to the Obama Administration and to Washington insiders. The message was clear, angry and, in some ways, surprising. Since I do not live in Massachusetts (it is my neighbor to the North), I watched with interest. However, once it became clear that Scott Brown would win last night, I took a look at his position on Energy and Environment. His web site states the following....
"I support common-sense environment policy that will help to reduce pollution and preserve our precious open spaces. I realize that without action now, future generations will be left to clean up the mess we leave. In order to reduce our dependence on foreign oil, I support reasonable and appropriate development of alternative energy sources such as wind, solar, nuclear, geothermal and improved hydroelectric facilities. I oppose a national cap and trade program because of the higher costs that families and businesses would incur."
Without Mr. Brown's vote, the democrats cannot get the critical 60 votes to avoid a republican block of cap and trade in the Senate. Further, assuming that there is further eroding of the democratic majority in November, cap and trade is, at least dead for the next 10 years.
The question is for the Development industry and Green Energy industry, is this a bad thing? Perhaps not. Going back to the 2006 Energy Act (EPAct), which passed by Republicans, there is still a strong sense by Republicans of a need for renewable energy and pollution reduction. This should not change in future legislation. Instead of a sweeping cap and trade program (which smaller generators of clean energy may not have been able to participate in), there can be the ability to have programs that are targeted to increasing the installation of renewable energy through not only large scale wind and solar projects but smaller distributed generation projects.
Perhaps Mr. Brown and the republicans will look at requiring a national Renewable Portfolio Standard and a national net metering/feed-in tariff requirement that incentivizes developers to maximize their roofs and land area for renewable installations.
