Legislation would establish ambitious standard to rapidly reduce emissions and achieve up to 100% renewable energy generation by 2044
WASHINGTON, D.C. – Today, U.S. Senators Peter Welch (D-Vt.), Chris Van Hollen (D-Md.) and U.S. Representative Yvette Clarke (D-NY-09) introduced the bicameral American Renewable Energy Act (AREA), legislation to establish a 70% renewable energy resource standard by 2034 and up to 100% by 2044 to drastically reduce emissions, decrease pollution, and promote community resilience. In order to achieve this goal, AREA prioritizes the development and implementation of solar, wind, and geothermal energy, as well as marine energy, limited hydropower, and methane digesters for smaller farms and wastewater plants. The bill also seeks to ensure the equitable distribution of economic, health, and resiliency benefits and investments reaped from renewable energy deployment by establishing an enforcement mechanism that requires at least 50% of collected funds be spent on renewable energy, energy efficiency, and storage projects in impacted communities.
“Taking immediate, ambitious action to reduce emissions and build a clean energy future is essential to combating the climate crisis. Coupled with the historic investments in renewable energy in the Inflation Reduction Act, now is the time to enact a national renewable energy standard. Vermont has long led the nation in the clean energy transition, passing historic legislation just this summer that puts us on the path to achieve 100% renewable electricity by 2035,” said Senator Welch. “This bill will help the country follow in Vermont’s footsteps to speed the transition to renewables and build energy independence.”
“Following our passage of the Inflation Reduction Act, we’ve seen the power of investing in renewable energy in action—from creating new jobs to reducing emissions. This legislation will help us further accelerate our clean energy transition—as well as all the economic and health benefits that will bring,” said Senator Van Hollen.
“As the impacts of climate change continue to threaten our communities, we must invest in a cleaner future. If we continue to rely on fossil fuels, our children’s children will bear the brunt of our inability to act,” said Congresswoman Clarke. “Investing in a clean energy future begins with confronting the many injustices that continue to harm the United States’ most underserved and overlooked communities. My legislation would prioritize the implementation of clean energy technology and devices—reducing our emissions, improving air quality and health outcomes, and creating millions of renewable energy jobs.”
AREA would require retail electricity suppliers to achieve at least 20% renewable energy generation in 2025, increasing to 70% by 2034, and up to 100% by 2044. In order to strengthen energy resilience, the bill would also require retail electricity suppliers to meet an increasing share of their generation through distributed renewable energy resources, such as rooftop solar, starting with 15% in 2025 and increasing to 20% deployment requirement after five years.
Compliance with the bill would be facilitated by the creation of six regional credit trading markets to track retail electricity suppliers’ transition to renewable energy and ensure the benefits of renewable energy development are spread across the country.
The bill also furthers an equitable energy transition. Half of the revenues collected from noncompliance fees would be invested into building renewable resources in impacted communities, creating good paying, green jobs. The legislation would also require utilities to produce 20% of their energy generation from renewables in impacted communities, reducing the need for polluting fossil fuel power plants in historically marginalized areas.
The American Renewable Energy Act is endorsed by Anthropocene Alliance, Chesapeake Climate Action Network, EarthAction, Evergreen Action, Green Latinos, Indivisible, National Hispanic Medical Association, Public Citizen, Sierra Club, and Vote Solar.
“The American Renewable Energy Act will reduce fuel bills, protect American jobs, clean the air, and reduce the impacts of climate change. In the aftermath of a bitter election, passage of AREA will also help heal political wounds. We urge both houses of congress to support it,” said Harriet Festing, Executive Director and Co-Founder, Anthropocene Alliance.
“States across the country like Vermont, Maryland, and Virginia have been passing 100% clean electricity standards for years, and now it’s Congress’ turn. The last two years have been the two warmest years on record surpassing tipping points we thought were a decade away. We can no longer debate our response, it’s time for immediate bold action to reduce greenhouse gas emissions. Senator Welch and Representative Clarke are doing just that by introducing the American Renewable Energy Act (AREA). It builds on the historic clean energy investments in the Inflation Reduction Act by establishing an ambitious 70% renewable energy standard by 2034 and up to 100% by 2044. CCAN Action Fund enthusiastically supports AREA at a time when bold action couldn’t be more essential,” said Quentin Scott, Federal Policy Director, CCAN Action Fund.
“In 2025, there will be attempts to drag our nation backwards into burning more fossil fuels. All the more reason to build support now in the House and Senate for the American Renewable Energy Act (AREA) introduced by U.S. Senator Peter Welch and U.S. Representative Yvette Clarke. This legislation would establish a 70% renewable energy resource standard by 2034 and up to 100% by 2044. If enacted it will drastically reduce emissions, decrease pollution, and promote community resilience. Polls tell us the majority of Americans want our country to move toward renewable energy. Let us press those in office to follow the will of the people on this critical issue,” said Lois Barber, Founder and Director, EarthAction.
“The American Renewable Energy Act represents the bold action we need to clean up our power grid and fully confront the climate crisis,” said Charles Harper, Power Sector Senior Policy Lead, Evergreen Action. “By establishing an ambitious national renewable energy standard, this legislation would build on the success seen by the 29 states that have adopted a renewable portfolio standard at the state level. AREA would not only slash climate pollution and deadly air pollution, but also strengthen energy resilience and invest in frontline communities historically endangered by corporate polluters. It’s time to build on the progress we’ve made to grow a thriving, just clean energy economy—one that benefits everyone.”
“This bill is a critical step toward an equitable clean energy future. By setting bold, achievable standards for renewable energy, it prioritizes the communities most impacted by pollution, creating pathways for resilience, health, and prosperity. GreenLatinos is proud to support this ambitious legislation that aligns with our vision of climate justice and a healthy, sustainable future for all,” said Irene Burga, Climate Justice & Clean Air Director, GreenLatinos.
“The National Hispanic Medical Association (NHMA) is proud to support the reintroduction of the bicameral American Renewable Energy Act (AREA), a crucial step toward reducing emissions, advancing renewable energy, and ensuring health equity. By prioritizing investments in solar, wind, and other clean energy sources, AREA can help address the environmental challenges facing Latinos and other communities of color who are often most affected by pollution and climate-related health disparities,” said Indira Islas, Government Affairs & Policy Manager, NHMA. “This legislation’s focus on equitable distribution of economic and health benefits is vital for building resilient communities and creating sustainable, healthier futures for all.”
“Accelerating clean energy deployment not only is necessary to combat climate change, but a key to delivering lower cost, made-in-the-USA energy to working families. Lower capital and operational costs featured in most renewable energy systems leads to lower utility bills for American households,” said Tyson Slocum, Energy Program Director, Public Citizen.
“The American Renewable Energy Act will ensure that our country stays on track to tackle the climate crisis and mitigate the devastating effects of extreme weather. We know that relying on renewable energy will lower costs for hardworking families, reduce harmful and dangerous pollution, and create more high-quality jobs in the green economy,” said Patrick Drupp, Director of Climate Policy, Sierra Club. “Now is the time to take bold action as we retire dirty fossil fuels and embrace the benefits of renewable energy, and we are grateful for Senator Welch’s leadership as he champions this critical legislation to move our country towards a cleaner future. We look forward to continuing working with him to ensure this bill becomes law.”
“The American Renewable Energy Act is a crucial step forward in the clean energy transition, paving the way for a sustainable and resilient future,” said Nathan Phelps, Managing Director, Vote Solar. “By setting ambitious renewable energy standards and prioritizing equity, this legislation not only addresses environmental challenges but also keeps frontline communities at its core.”
Learn more about the American Renewable Energy Act.
Read the full text of the bill.
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