This bill amends the existing Renewable Portfolio Standard (RPS) regulations by introducing several significant changes aimed at streamlining renewable energy requirements. Key provisions include the inclusion of wind energy in the standards, excluding government procurement mandates, and the repeal of the Class II renewable energy requirement. The definition of solar energy is also repealed and reenacted to clarify that it must produce electricity to qualify. Additionally, the Class I thermal requirement is reduced from 2.2% to 1.7% starting August 1, 2025, while the Class I percentage of total megawatt-hours that electricity providers must obtain will increase annually until 2025, with Classes III and IV remaining unchanged. The bill establishes a renewable energy fund that will be continuously appropriated to the Department of Energy for renewable initiatives and outlines a new methodology for estimating yearly production for net metered customer-sited sources. It also an increase in the alternative compliance payment (ACP) rate from $28.76 to $30.00, which is expected to generate additional revenue, while the ACP rate for Class I is reduced from $63.29 to $40.00. Overall, these changes are projected to result in an estimated annual reduction in ACP revenue of approximately $1,200,000, impacting deposits into the Renewable Energy Fund and potentially leading to annual savings of about $12,000 for the State from lower electricity costs. However, the effects on county and local governments remain uncertain.

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