This bill amends the existing electric renewable portfolio standards by introducing several significant changes. It allows wind energy to be exempt from government procurement mandates and clarifies the definition of solar energy to specify that it must produce electricity to qualify. The minimum electric renewable portfolio standards are adjusted, with Class I increasing to 15% by 2025, while Class II is entirely removed. Additionally, the Class I thermal requirement is reduced from 2.2% to 1.7% starting August 1, 2025, and the bill ensures that Classes III and IV will maintain their percentages through 2025. The Renewable Energy Fund will see continuous appropriations to the Department of Energy for renewable initiatives, with references to Class II moneys removed.

The bill also modifies the Alternative Compliance Payment (ACP) structure for renewable energy credits (RECs), increasing the ACP rate from $28.76 to $30.00 while reducing the Class I ACP rate from $63.29 to $40.00. These changes are expected to result in a net decrease of approximately $1,175,000 in annual revenue for the General Fund and the Renewable Energy Fund, with an estimated loss of $1.2 million annually starting in FY 2026. Furthermore, in fiscal years 2026 and 2027, after covering administrative costs and allocating $1 million for incentive projects, all remaining Renewable Energy Fund resources will be transferred to the General Fund, leading to a similar loss in funding for REF projects. Starting in FY 2028, the reduction in REF revenue will directly impact the funding available for REF programs, while the state may see minimal savings from lower electricity costs.

Statutes affected:
Introduced: 362-F:5