This bill amends the existing electric renewable portfolio standards by introducing significant changes, including the inclusion of wind energy in the standards, with the exception of government procurements. It repeals and reenacts the definition of solar energy to clarify that it must produce electricity. The bill eliminates Class II from the minimum electric renewable portfolio requirements and reduces the thermal requirement for Class I from 2.2% to 1.7%, effective August 1, 2025. Additionally, it modifies the definitions of renewable energy sources, establishing new fixed rates for renewable energy certificates starting June 30, 2025, while also allowing the Department of Energy to adjust the incremental increase in Class I standards by up to one year.

The bill also proposes changes to the Alternative Compliance Payment (ACP) structure, which is expected to decrease ACP revenue by approximately $1.2 million annually due to the reduced Class I thermal requirement. While the ACP rate is suggested to increase from $28.76 to $30.00, the overall net effect will still result in a reduction of about $1,175,000 per year. All ACP collections will be deposited into the Renewable Energy Fund (REF), leading to a corresponding decrease in REF deposits and a projected loss to the General Fund in FY 2026 and FY 2027. The bill anticipates potential savings in electricity costs for the State and local governments, although the exact impact remains uncertain.

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