The Changing Climate in U.S. Renewable Energy Markets and Policy: A USEPA Perspective on Renewable Energy Market Transformation in the U.S.

At an Ecologic Transatlantic Breakfast on 20 April 2009, Matt Clouse spoke about the current climate for renewable electricity markets and policy supports in the U.S. in light of the recent change in administration. Mr. Clouse managed a voluntary carbon emissions reduction program for eight years and is now Director of Renewable Energy Policy and Programs at the U.S. Environmental Protection Agency (EPA). His presentation covered the background of renewable electricity in the U.S., including its potential, barriers, the government’s role, and the evolving policy support for renewable energy.

In his opening remarks, Matt Clouse highlighted the EPA’s recent endangerment finding, which is the first official US recognition that greenhouse gases (GHG) pose a threat to public health or welfare. The finding responded to a 2007 Supreme Court ruling that confirmed the EPA’s authority to regulate GHGs under the Clean Air Act. However, Mr. Clouse stressed that under the current circumstances, new legislation is preferable to regulatory action under the Clean Air Act. There are currently four renewable energy bills under review in Congress.

According to Mr. Clouse’s presentation, realisable renewable energy potential in the U.S. could reach as high as 20% by 2030, and possibly more when energy efficiency is taken into account. The challenges to reaching this potential include economic, regulatory, structural, behavioural, and availability barriers at both the federal and state levels. One of the biggest problems is the uncertainty regarding future  fiscal support through mechanisms such as the production tax credit. The uncertainty of reauthorisation can be directly linked to significant decreases in investments in projects and manufacturing capacity, and by some estimates, has even increased capital costs.

The discussions that followed highlighted lessons learnt in German in developing a renewable energy market. A decade ago, Germany faced many of the same challenges now present in the US market. Today, Germany experiences over-achievement of renewable targets  thanks to the feed-in-tariff approach. While the U.S. faces many other unique barriers to developing a renewable energy market, it was felt that developing the right promotional scheme remains a key element to the success of a future renewable energy policy.

Co-hosted by the American Embassy in Berlin and the Ecologic Institute.

Further links:

• CV Matt Clouse [pdf, English, 192 KB]
• Ecologic Institute launches Washington DC office
• Ecologic Project: What Price Energy Transformation?
• Ecologic Project: Public Acceptance of Renewable Energy
• Ecologic Lecture: Climate change USA? American Energy Policy under President Barack Obama
• RGIT Special Report: U.S. Climate and Energy Policy: An Overview, August 2008.
• Ecologic Lecture: European and American Approaches to Climate Change: Prospects for a Common Trans-Atlantic Agenda
• Ecologic Dinner Dialogue: Climate Change and the Concept of Environmental Security under the Obama administration – Sherri Goodman
• Ecologic Dinner Dialogue: Trends in climate and energy policy in the United States - David Campbell
• Ecologic Dinner Dialogue: The New Environmental Awareness in the United States: Successful Climate Protection at the Grassroots – John Morrill
• Ecologic Publication: Learning from Europe's Mistakes – Can the US catch up in climate protection?
• Ecologic Publication: Energy Security – Re-measuring the world