Press Release

Welch Introduces Bill to Support Renewable Energy Buildout at Federal Facilities 

Nov 15, 2024

WASHINGTON, D.C.U.S. Senator Peter Welch (D-Vt.), Chair of the Senate Agriculture Subcommittee on Rural Development and Energy, was joined by Senators Sheldon Whitehouse (D-R.I.), Chris Van Hollen (D-Md.), Jeanne Shaheen (D-N.H.), and Ben Cardin (D-Md.) in introducing the Renewable Energy Certainty Act, legislation to facilitate renewable energy buildout at federal facilities by extending the maximum length of Federal Power Purchase Agreements (PPA) to 30 years for renewable energy and cogeneration/combined heat and power facilities. By establishing a longer pay-back period, the bill will make clean energy investments more economically viable and help ensure that the federal government receives the best possible terms, saving taxpayers money. Renewable energy developers will also benefit from the much-needed stability of long-term PPAs.  

The legislation also directs the U.S. Secretary of Energy to establish a standardized energy purchase agreement to reduce barriers for federal agencies when acquiring energy from renewable sources or cogeneration facilities. 

“Power purchase agreements are a great way to accelerate renewable energy buildout at federal facilities while also encouraging innovation and job growth for private developers by leveraging federal purchasing power. However, current regulations often discourage renewable energy developers from partnering with the federal government because of short contract terms,” said Senator Welch. “Our legislation will extend the duration of federal PPAs to encourage public-private partnerships that boost our economy and support our clean energy goals.” 

“The federal government, the largest energy consumer in the country, has enormous power to turbocharge the clean energy transition,” said Senator Whitehouse.  “This legislation would encourage more federal agencies to make the switch to renewable energy and help keep the U.S. on track toward our climate goals.” 

“The rapid growth of renewable power is creating new jobs across the country, driving innovation, and key to confronting the climate crisis. By better positioning federal government facilities to run on renewables and cut costs, we are supporting American workers and taxpayers, reducing our reliance on foreign oil, and boosting our clean energy economy,” said Senator Van Hollen. 

“Investing in renewable energy is an investment in our future, and making solar and other renewable energy more economic and attainable for federal agencies is a win for the American people,” said Senator Shaheen. “I’m proud to join my colleagues to introduce this bill that would make it easier to invest in a clean, energy efficient economy right now while saving taxpayers money and providing certainty to developers.” 

“This bill is a win for taxpayers and a win for the clean energy transition. This legislation leverages the power and presence of the federal government to demonstrate leadership in renewable energy procurement. In Maryland and across the nation, we should be supporting commonsense policies that save money and green our economy,” said Senator Cardin

The Renewable Energy Certainty Act is endorsed by American Clean Power and the Solar Energy Industry Association. 

“The solar and storage industry commends Senator Welch for his leadership on this important legislation, which will reduce costs for federal agencies and save taxpayer dollars,” said Sean Gallagher, Senior Vice President of Policy, Solar Energy Industries Association (SEIA). “Allowing agencies to engage in longer-term renewable energy contracts empowers solar and storage providers to expand access to affordable, reliable power, helping to create jobs and supporting the nation’s energy economy.” 

“The Renewable Energy Certainty Act will strengthen the renewable energy sector by enabling federal agencies to secure contracts of up to 30 years, providing the long-term financial stability needed for continued innovation and growth. This legislation will lower the federal government’s energy costs, enhance our ability to meet the grid’s rising electricity demands, and help foster job creation in the growing renewable energy industry,” said JC Sandberg, Chief Advocacy Officer, American Clean Power Association

As the largest consumer of energy in the country, the federal government can spur and benefit from clean energy development by entering into PPAs with renewable energy providers. However, current regulations prevent most federal agencies from entering PPAs with contract terms longer than 10 years, which can stifle renewable energy buildout at federal facilities. The Renewable Energy Certainty Act will encourage clean energy development by extending contract terms to bolster renewable energy providers’ ability to offer federal agencies the best financial terms for PPAs while still prioritizing larger research and development investments. 

In 2022, renewables generated more than 20% of all electricity in the U.S. and surpassed coal generation for the first time in history. Since then, the United States has built and deployed renewable energy at record rates following the passage of the Inflation Reduction Act (IRA). While the renewable energy market in the U.S. is growing, the industry still faces many challenges, including the rising cost of capital. 

Learn more about the Renewable Energy Certainty Act

Read the full text of the bill. 

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