American Renewable Energy Act - Summer

Advisor: Andrea Schmitz 

The American Renewable Energy Act (H.R. 890) addresses the environmental and public health impacts of the United States’ electricity generation system by promoting a transition from fossil fuel dependence—particularly coal—to renewable energy sources. The bill proposes the establishment of a national renewable portfolio standard requiring utilities to generate a specified percentage of electricity from renewable sources, supported by a market-based system of renewable energy credits. This approach seeks to correct market failures that have historically favored fossil fuels by incentivizing investment in cleaner technologies and enabling cost-effective compliance across the electricity sector.

The report highlights the dual challenge of rising electricity demand and the environmental costs of current generation methods, emphasizing the need for systemic change in energy production. By leveraging market mechanisms, the Act aims to stimulate innovation and scale up renewable energy deployment, particularly wind power, which is identified as both economically competitive and environmentally beneficial. However, the transition presents challenges related to infrastructure, variability of renewable resources, and integration into existing energy systems. The report underscores the importance of performance indicators to measure environmental, economic, and industry outcomes. Overall, the Act is framed as a foundational policy intervention that aligns economic incentives with sustainability goals, while acknowledging the need for complementary policies and continued technological advancement.

Learn more about the MPA-ESP Workshop in Applied Earth Systems Management.