Tag Archives: states

What’s working and what’s not in state renewable portfolio standards

July 11, 2013 |

 

Combined renewable portfolio standards in the United StatesRenewable portfolio standards (RPS) are an important part of the U.S. renewable energy policy landscape.Twenty-nine states, from California to North Carolina, have enacted these policies to require utilities to provide at least some of their power from renewable sources. This year, at least fourteen of these states considered bills that would have watered down or repealed these policies. But these rollbacks proved to be unpopular, and on balance state legislatures have made RPS policies more ambitious in 2013.

Taken together, RPS policies will require nearly 10% of electricity sold in the U.S. to come from renewable sources by 2020. And with the help of federal tax credits, grants and loan guarantees, most RPS policies appear to have had limited impacts on electricity rates so far. But every state’s RPS is different, and the diversity of policy designs is a great opportunity to learn what is working well and what can be improved in these policies.

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Obama’s climate plan and what it means for states

June 28, 2013 |

 

This post originally appeared on The Huffington Post.

In his climate speech this week, President Obama gave the go ahead for the U.S. Environmental Protection Agency (EPA) to develop national greenhouse gas standards for both new and existing power plants — making carbon regulation under the Clean Air Act the primary action of his broader plan to reduce U.S. carbon emissions.

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Renewable portfolio standards – the high cost of insuring against high costs

December 17, 2012 |

 

State-level renewable portfolio standards (RPS) are a critical part of the U.S. renewable energy policy landscape. 29 states and Washington DC have enacted mandatory RPS policies. Taken together, they require that nearly 10% of U.S. electricity comes from RPS-eligible renewable energy sources by 2020.

But state policy makers have expressed concern about the potential cost of these policies. Over 20 states have included some form of cost limit in their policy. These cost limits are intended to protect electricity consumers from unacceptably high costs, and mitigating this risk can help increase political and public support for the policy. But depending on how they are designed and implemented, these cost limits can have unintended effects: They can increase the cost of deploying renewable energy, make RPS policies more complicated and less certain, and sometimes do not even limit costs as intended.

States have taken a wide range of approaches to limiting costs. Common approaches include:

  • Alternative compliance payments – ACPs let electricity suppliers meet their renewable energy requirements by making a payments rather than purchasing renewable energy credits or contracting with renewable energy projects. These payments are often used to fund complementary clean energy or energy efficiency programs. The ACP level is usually set by a regulator, and in practice, creates a maximum price for renewable energy credits.
  • Rate impact caps – Some states put a limit on how much renewable energy policy can increase electricity rates. These mechanisms vary significantly from state to state in terms of which renewable energy costs are included, how they are calculated, and the time period that they apply to.
  • Per-customer cost caps – A handful of states place a limit on the dollar amount any particular customer’s bill can increase because of the RPS.
  • Contract price caps – A couple of states have applied limits on the price that a renewable energy generator can contract to sell power to a utility.
  • Funding limits – Several states have created limits to the amount of funding that can be used to cover the costs of renewable energy.

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