Much has been said about the energy bill (H.R. 3221) the House of Representatives passed on Friday Aug. 4 (here is a recap from The New York Times). The provision receiving the most attention is the renewable electricity standard which would require private utilities to generate 15 percent of their output using renewable resources by 2020. How exactly would this renewable electricity standard work?

• The Department of Energy (DoE) would retain the regulatory authority of promulgating rules related to the standard and making sure electricity suppliers comply.
• Beginning in 2010, private electricity providers (municipal providers are exempt) would have to provide DoE with documentation they are meeting the standard.
• The standard gradually increases every year, from 2.75 percent in 2010 to 15 percent in 2020.
• For providers unable to meet the standard, a credit system is included in the bill. Providers may buy and sell credits on a sort of renewable electricity credit marketplace regulated by DoE.
• The bill would mandate DoE promulgate regulations on measuring and verifying electricity savings under the program. The bill grants to DoE all the powers it would need to collect relevant information. Unfortunately, there is no explicit transparency provision that would allow the public access to this information.

The bill is a good start to what will hopefully be broad and comprehensive energy reform legislation taken up by the 110th Congress. Naturally, President Bush has vowed to veto the bill. In a statement, the White House Office of Management and Budget called this bill and another reducing tax breaks for big oil, "two bills that are not serious attempts to increase our energy security or address high energy costs." Of course, President Bush has a policy of only attaching his name to "serious" legislation, as is evidenced by this White House press release.