Republicans Weigh a Federal ‘Reverse Auction’ to Push Clean Energy

Thursday, April 7, 2011

Republicans Weigh a Federal ‘Reverse Auction’ to Push Clean Energy

On Monday the New York Times featured an article discussing U.S. Rep Kevin Nunes proposed legislation to increase domestic energy production.  Any savings would be put in to a trust where businesses could bid, via reverse auction, on funds for research and development of renewable energy sources.

From the article:  The provision sits deep in H.R. 909, a bill Rep. Devin Nunes (R-Calif.) proposed in early March. Overall, the bill focuses on ramping up oil and gas production, oil shale and nuclear energy; it also cancels U.S. EPA’s ability to regulate greenhouse gases.

Some of the royalties and fees from the oil and gas production go into a trust fund. The Department of Energy then solicits offers from renewable power generators and awards the funds to those that offer the lowest price.

It’s called a “reverse auction” for renewable energy, and it’s an idea Democrats have floated in past Congresses. Now it comes from a Republican majority that has questioned climate science and pressed for more fossil energy — and could easily have put the cash toward the deficit.

To read the full article click here.