A Compilation of Renewable Electric Activities in the States
Prepared for the NARUC Committee on Energy Resources and the Environment
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Volume 14, No. 2 Summer 2005 State Activities
Illinois
State Enacts Voluntary RPS Acting on a proposal from Gov. Rod Blagojevich, the ICC adopted a resolution establishing a Sustainable Energy Plan for the state, which includes portfolio standards for renewable energy and energy efficiency. The renewable portfolio standard (RPS) calls for 2% of bundled retail load to be obtained from renewable energy resources in 2007, increasing 1% annually until reaching 8% in 2013. Three-quarters of the renewable energy used to meet the RPS should come from wind power and one-quarter from other sources, such as solar and certain biomass resources. The state will not implement a renewable energy credit trading system. The energy efficiency portfolio standard calls for a 10% reduction in load growth in 2007-2008, 15% reduction in 2009-2011, 20% reduction in 2012-2014, and 25% reduction in 2015-2017. Both the renewable and energy efficiency standards are voluntary and subject to rate-impact tests. For the RPS, the maximum percentage increase in retail rates is capped at 0.5% in any one year and 2% on a cumulative basis. For the energy efficiency standard, the maximum percentage rate increase is 0.5% per year computed separately for each rate class for which demand response and energy efficiency programs are available, and based on the total annual bill for a typical customer within the class. ICC Resolution Adopting the Governor's Sustainable Energy Plan: http://eweb.icc.state.il.us/e-docket/reports/view_file.asp?intIdFile=148072&strC=bd ICC Staff Report on the Illinois Sustainable Energy Initiative: http://www.icc.illinois.gov/ec/docs/050713ecEnergyRpt.pdf (PDF 264 KB) ICC Contact: Harry Stoller, (217) 785-5278 Iowa State Agencies to Buy Renewable Energy Governor Tom Vilsack issued an executive order directing state agencies to obtain 10% of their electricity from renewable energy sources. According to the order, "agencies may generate their own alternative energy or may participate in their utility's green power purchase program, where available, to meet this requirement." The order also calls for the agencies to reduce their energy consumption by an average of 15% by 2010, relative to 2000 levels, and to procure alternative or hybrid-electric vehicles for 100% of their nonlaw-enforcement light-duty fleet by 2010. In addition, all state bulk purchases of diesel fuel must contain 5% renewable content by 2007, increasing to 20% by 2010. Iowa Executive Order 41: http://www.governor.state.ia.us/legal/41_45/EO_41.pdf (PDF 645 KB) Maine Solar Rebate Program Enacted Gov. John Baldacci signed into law a bill to provide rebates for qualifying solar thermal and photovoltaic (PV) systems installed at residences and businesses. PV systems are eligible for a rebate of $3 per watt on the first 2,000 watts of installed capacity and $1 per watt for the next 1,000 watts. Solar thermal systems, for water or space heating, qualify for a rebate of 25% of the system cost or $1,250, whichever is less. A total of $500,000 will be available each year for the solar rebate program and will be raised through a customer surcharge not to exceed 0.005¢/kWh on electric bills. In each fiscal year, 25% of the fund is to be allotted to PV system rebates and 75% allotted to solar thermal system rebates. The PUC has initiated a rulemaking to develop the rules for the rebate program, which will expire at the end of 2008. Maine Act to Encourage the Use of Solar Energy: http://mainegov-images.informe.org/msep/pdf/AnActtoEncouragetheUseofSolarEnergy.pdf (PDF 1.2 MB) Maine PUC Notice of Proposed Rulemaking for Solar Energy Rebate Program: http://www.state.me.us/mpuc/staying_informed/news/news_releases/prSolarRebate.htm PUC Contact: Denis Bergeron, (207) 287-1366 Massachusetts State Won't Meet RPS Requirement The Division of Energy Resources (DOER) issued a report documenting progress toward meeting the state's renewable portfolio standard. Beginning in 2003, all retail electric suppliers were required to obtain at least 1% of their total sales to customers from renewable energy sources, with the requirement increasing in 0.5% annual increments until reaching 4% in 2009. The report finds that although all suppliers complied with the law in 2003, there will not be enough renewable energy available to meet the entire requirement of 1.5% of total sales for 2004. Those suppliers that cannot meet the requirement must make alternative compliance payments (ACPs), which are expected to raise $15 million, and which will be invested in new renewable energy projects to increase available supplies. The ACP rate for 2004 is $51.41/MWh. The DOER forecasts that the shortfall will be temporary as the premium for renewable electricity fostered by the Massachusetts program and similar programs in other states stimulates investments in new renewable power sources. Massachusetts Division of Energy Resources RPS Web Page: http://www.mass.gov/doer/rps/index.htm DOER Contact: Chris Goetcheus, (617) 973-8767 Michigan PSC Approves Net Metering Program The PSC approved an amended consensus agreement that implements a voluntary statewide net metering program for a minimum of five years. Under the agreement, net-metered customers will be credited for net excess generation (NEG) at the utility's retail price of generation. Any credits will be carried over from month to month, limited to a 12 billing-month cycle. At the end of each cycle, cumulative NEG credits, if any, may be retained by the utility and the customer's credit reset to zero. The value of any generation credits retained by the utility will be used to offset net metering program costs. The PSC rejected a provision in the agreement that would have required that ownership of renewable energy certificates associated with a customer's generation be transferred to the utility. Eligible technologies include solar, wind, geothermal, biomass (including waste-to-energy and landfill gas), and hydroelectric (less than 30kW in size). Both residential and business customers are eligible for net metering, subject to an overall limit of 0.1% of the utility's peak demand in the previous year. Michigan PSC Order Approving Voluntary Statewide Net Metering Program: http://www.dleg.state.mi.us/mpsc/orders/electric/2005/u-14346_3-29-2005.pdf (PDF 710 KB) Michigan Renewables Energy Program Web Site: http://www.michigan.gov/mrep PSC Contact: Tom Stanton, (517) 241-6086 Montana RPS Bill Becomes Law Gov. Brian Schweitzer signed a bill requiring each public utility operating in the state to procure a minimum of 5% of its retail electricity sales from eligible renewable energy sources beginning in 2008, increasing to 10% in 2010, and 15% in 2015 and thereafter. At least 75 MW of capacity must come from community renewable energy projects. Utilities may use renewable energy credits for RPS compliance, but they may not resell renewable energy credits and count the sold credits toward meeting its RPS obligation, nor may they apply credits sold to customers through a voluntary green power program. Utilities are required to enter into power-purchase contracts for renewable energy with a minimum duration of 10 years. Also, utilities must pay a penalty of $10 per MWh of shortfall, if they fail to meet the RPS in any year and may not recover the penalty in electricity rates. Restructured utilities operating in the state are relieved from the RPS obligation if the cost of electricity from an eligible renewable resource—including the cost of ancillary services necessary to manage the transmission grid and firm the resource—is greater than the cost of power available from nonrenewable suppliers. Other utilities are relieved from the RPS obligation if the cost of the renewable resource exceeds the cost of power from other sources by more than 15%. Montana Bill Creating a Renewable Portfolio Standard (SB 415): http://data.opi.state.mt.us/bills/2005/billhtml/SB0415.htm Nevada Legislature Again Revises RPS Statute Gov. Kenny Guinn signed a bill that revises the state's RPS law by lowering the near-term portfolio requirement but raising the long-term requirement and allowing energy efficiency measures to meet up to one-quarter of the standard in any one year. The RPS is now set at 6% in 2005 and 2006, increasing by 3% every two years until reaching 20% in 2015 and thereafter. Not less than 5% of the requirement must be met from solar energy systems. To be eligible, energy efficiency measures must be installed at a retail customer's location and the cost must be directly reimbursed, in whole or in part, by the utility. Separately, the PUC opened a hearing into the failure of the state's two utilities, Nevada Power and Sierra Pacific Power, to meet the 5% minimum RPS requirement for 2004—Sierra Pacific met the nonsolar requirement but failed to meet the solar requirement. The state RPS law allows the PUC to exempt the utilities from compliance if renewable energy supply is insufficient to meet the standard. Both utilities were granted exemptions from meeting the target in 2003. The two utilities were ordered to develop a compliance plan that outlines achievable goals and milestones, addresses all identifiable barriers, and identifies possible solutions to barriers that may prevent compliance with the RPS. Nevada Bill Revising the State's Renewable Portfolio Standard (AB 3): http://leg.state.nv.us/22ndSpecial/bills/AB/AB3_EN.pdf (PDF 80 KB) Nevada PUC Docket Addressing Utility Compliance with the State's Renewable Portfolio Standard (Docket #05-4003): http://puc.state.nv.us/electric/dkt_05-4003/05-4003.htm PUC Contact: Anne-Marie Bellard, (775) 687-6035 New Jersey Statewide Green Power Program Okayed The BPU approved a new voluntary program that will give the state's retail electricity customers the option of signing up for "green power" on their utility bills. Under the statewide program, electric customers will be able to subscribe to the program and select from multiple green power products and marketers without having to switch their supplier. The New Jersey Green Power Choice Program will be the first statewide program of its kind where multiple utilities and green power marketers will join with the state to give consumers access to the regional market for renewable energy. Each customer who decides to participate in the voluntary program will pay an amount that is determined by their mix of "green power" selected from their power supplier. Green power sold in the program must be sourced from renewable energy that is not otherwise used to meet a statutory requirement, such as a renewable portfolio standard. The BPU's Office of Clean Energy will oversee and administer the program and ensure that relevant New Jersey consumer-protection rules and procedures are followed. The program will be available later this year after the utility companies make the necessary changes to their billing and information systems. New Jersey BPU Order Establishing a Statewide Green Power Choice Program: http://www.bpu.state.nj.us/wwwroot/cleanEnergy/EO05010001_20050413.pdf (PDF 13.6 MB) Solar RECs System Operational The nation's first tracking and trading system for solar renewable energy certificates (SRECs) is now operating in New Jersey. The system tracks and issues SRECs for solar electricity production from "behind-the-meter" distributed generation systems. Each SREC represents one MWh of solar production. Load-serving entities in New Jersey are required to procure a certain percentage of their electricity supply from solar photovoltaics and demonstrate their compliance through participation in the New Jersey SREC Program. New Jersey Solar Renewable Energy Certificates Web Site: http://www.njcep.com/srec/ BPU Contact: Mike Winka, (609) 777-3312 North Dakota New Laws Promote Wind Energy Gov. John Hoeven signed into law a comprehensive package of legislation designed to accelerate production of wind energy and biofuels, as well as enhance the transmission infrastructure necessary to get both renewable and conventional energy to market. New legislation creates an Office of Renewable Energy within the Division of Community Services at the North Dakota Commerce Department. The new office will assist in the development of renewable energy within the state and promote energy conservation in both the public and private sectors. The office will administer programs and advance information pertaining to state and federal incentives available for the full range of renewable energy sources. Among the new laws designed to promote wind energy development are:
North Dakota Governor's News Release:
Other ActivitiesPJM Interconnection—the regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 12 states and the District of Columbia—announced the launch of the Generation Attributes Tracking System or GATS. The GATS tracks generation attributes and the ownership of the attributes as they are traded or used to meet government standards, such as renewables portfolio standards or fuel-source disclosure reporting. The GATS design was developed through collaboration with state utility regulators, state environmental protection offices, state energy offices, consumer advocates, electric market participants, environmental advocates, and other stakeholders. The GATS system is owned and administered by PJM Environmental Information Services. PJM Generation Attributes Tracking System Web Page: http://www.pjm-eis.com/gats/about-gats.html
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