Energy Bill Raises Hopes

Cleantech investors hailed on Monday the passage of a long-awaited energy bill in the U.S. House of Representatives as a step toward a more cohesive national energy policy, even as they lamented what it left out.

Among the more striking provisions of the bill is a national renewable energy standard requiring utilities to generate 15 percent of their electricity from renewable energy sources by 2020. But the legislation, which passed in a 241-172 vote Saturday just before the summer recess, fell short of calling for an increase in fuel economy. Those and other results drew mixed reactions from venture capitalists and other investors who closely monitor the cleantech sector.

“There’s a real need for us to rethink how we use personal transportation,” said Peter Grubstein, managing member at NGEN Partners. “Changing the CAFÉ [Corporate Average Fuel Economy] standard would have been a push to both producers and consumers.” Mr. Grubstein also expressed disappointment the bill didn’t mandate a carbon cap-and-trade system. Read More.