ILLINOIS (WEHT) – U.S. Senate Majority Whip Dick Durbin introduced the Responsive Energy Demand Unlocks Clean Energy (REDUCE) Act on Thursday to allow consumers nationwide to sell their energy reductions into the wholesale market.
According to a news release, the bill would instruct the Federal Energy Regulatory Commission to initiate a rulemaking to eliminate sates’ ability to opt out of demand response, which is the sale of energy reductions back to the grid during times of peak demand. The release says eliminating the opt out means consumers and small businesses in every state to participate in demand response, lower their energy bills and potentially earn a profit.
“Allowing consumers to sell their energy reductions into the wholesale market is an important step toward decarbonizing our energy sector. On top of that, it puts money back in the pockets of Americans who are doing their part to reduce their energy usage,” said Durbin. “When it comes to taking climate action, we’re all in this together. That’s why the REDUCE Act is critical to ensuring that every state is on board to cut back on our nation’s reliance on fossil fuels and deliver savings to homeowners and businesses.”
Currently, Arkansas, Iowa, Indiana, Kentucky, Louisiana, Michigan, Minnesota, Missouri, Mississippi, North Carolina, North Dakota, South Dakota and Wisconsin opt out of demand response.