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Rep. Norman Introduces Bill Permitting Longer-Term Renewable Energy Contracts With the Federal Government

Washington, D.C., February 12, 2021 | Austin Livingston (803-833-0030)
On Thursday, Rep. Ralph Norman (R-SC) and Rep. Peter Welch (D-VT) introduced the Renewable Energy Certainty Act. This legislation will permit federal agencies to enter into longer-term contracts with renewable energy providers.
Under current regulations, most federal agencies cannot procure renewable energy contracts with terms longer than ten (10) years. Because renewable energy is a rapidly developing industry with thin margins and significant R&D investments, 10 years often may not afford many renewable energy providers with enough financial certainty to continue innovating while still providing the federal government with the best possible financial terms for its contracts.
Therefore, this bill would amend the National Energy Conservation Policy Act to lengthen the maximum term for renewable energy contracts up to 30 years. In addition, it will also require the Secretary of Energy to establish a standardized energy purchase agreement, which would set uniform commercial terms and conditions for federal agencies to use in their acquisition of renewable energy sources.
By making these changes, this legislation will help reduce the federal government's costs for renewable energy while meeting clean energy requirements. Additionally, it will help provide better financial stability to renewable energy providers so that they can continue to innovate while creating more jobs in this sector. This is a re-introduction of legislation introduced by Rep. Norman and Rep. Welch in the 115th Congress.
Rep. Norman issued the following statement:
"As a product of the private sector, I'm always looking for meaningful, pragmatic regulatory solutions. It's important for the federal government to pursue renewable energy contracts in a way that's not only financially responsible, but also helps these companies continue to innovate and provide more jobs in the private sector.

"I am proud to introduce legislation that would continue to push the American energy sector forward, while also proving to be a benefit to our economy and environment as a whole."

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