This bill amends the minimum electric renewable portfolio standards by introducing several significant changes. It includes a new provision for wind energy, which is now part of the standards except for government procurements. The definition of solar energy is repealed and reenacted to clarify that it must produce electricity. The bill removes Class II requirements entirely and adjusts the Class I thermal requirement, decreasing it from 2.2% to 1.7% starting August 1, 2025. Classes III and IV will maintain their percentages from 2015 through 2025, while Class I will see an incremental increase until 2025. Additionally, the bill establishes a renewable energy fund to support various initiatives, which will be continually appropriated to the Department of Energy for oversight.

The bill also proposes changes to the Alternative Compliance Payment (ACP) structure for renewable energy credits (RECs), which is expected to decrease ACP revenue by approximately $1.2 million annually due to the reduction in the Class I thermal requirement. While the ACP rate is suggested to increase from $28.76 to $30.00, generating an additional $125,000 in revenue, the overall changes will still result in a net revenue decrease. The ACP revenue collected will be deposited into the Renewable Energy Fund (REF), and the anticipated reduction in revenue will affect the General Fund and REF-funded projects. In fiscal years 2026 and 2027, after covering administrative costs and allocating $1 million for incentive projects, all remaining REF funds will be transferred to the General Fund, impacting available funds for REF projects starting in FY 2028.

Statutes affected:
Introduced: 362-F:5
As Amended by the House: 362-F:4, 362-F:3, 362-F:2, 362-F:10, 362-F:6