This bill seeks to repeal a provision in the current law that allows for credit for electricity production from customer-sited sources that are net metered and for which renewable energy certificates (RECs) are not issued. The repeal would take effect 60 days after the passage of the act. The fiscal note attached to the bill indicates that there would be an indeterminable increase in state revenue, as electric distribution utilities and competitive energy suppliers might have to make alternative compliance payments if they cannot meet their renewable portfolio standards (RPS) obligations through the purchase and use of RECs.

The Department of Energy has noted that the repeal could lead to an indeterminable increase in expenditures for the state, counties, and local governments. In 2021, the Class I RPS obligation was 8.9%, with a credit of 0.0058%, and the Class II RPS obligation was 0.7%, with a credit of 0.4752%. If the obligations to cover the amount of the existing credits are met through alternative compliance payments, the cost of electricity statewide could increase by up to roughly $3,000,000. However, the actual impact is expected to be less due to the availability of RECs in the market. The bill would not affect county and local revenues, and any fiscal impact is assumed to occur after FY 2023.

Statutes affected:
Introduced: 362-F:6