A pared-back energy bill that Senate Majority Leader Harry Reid unveiled Tuesday doesn't include a national renewable energy standard sought by wind and solar power interests.

Such a standard would require utility companies to generate a certain percentage of electricity every year from renewable sources, such as wind or solar, by a set date.

The proposal has run into opposition from lawmakers in the Southeast as well as some small-business groups who fear it would increase utility costs.

Renewable energy supporters said they had the votes needed to pass the provision, but Reid decided to go with a "small, targeted package" that he believes has the best chance of overcoming Republican stalling tactics, according to a spokesman.

The decision comes the same day Terra-Gen Power broke ground on what's billed as the world's largest wind energy facility - the 1,550-megawatt Alta Wind Energy Center in the Mojave Desert.

Gregory Wetstone, vice president of government relations for Terra-Gen Power, said Tuesday the renewable energy industry "very much needs" the renewable energy standard to provide "long-term stability" to the industry.

"The reason this groundbreaking is occurring today is because California has a very aggressive renewable electric standard. If we want to see that growth across the country, we need a national standard," Wetstone said.

The House approved an energy bill in June 2009 that included a renewable energy standard of 20 percent by 2020. Rep. Mary Bono, R-Palm Springs, was one of eight Republicans to support it.

Denise Bode, chief executive officer of the American Wind Energy Association, said Tuesday the group has identified 60 senators who would vote to overcome a GOP filibuster on the standard, and the association will continue to lobby for a renewable energy standard in the final bill.

"The U.S. wind industry is in distress," she said. "An RES is a critical component to ensure the U.S. wind industry thrives."

Despite the California groundbreaking, Bode said wind power installations have dropped significantly over the last year.

Reid acknowledged the bill doesn't address every issue but said it would "lower energy costs for homeowners and create at least 150,000 jobs" through a $5 billion investment in Home Star, an energy efficiency program.

The bill would also provide incentives for vehicles that run on natural gas or electricity, he said.