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 percentages for Classes III and IV will remain unchanged through 2025. The bill also modifies the Renewable Energy Fund, ensuring appropriations to the Department of Energy for renewable initiatives and removing references to Class II funds.

Moreover, the bill proposes changes to the Alternative Compliance Payment (ACP) structure for renewable energy credits (RECs), increasing the ACP rate from $28.76 to $30.00, which is expected to generate an additional $125,000 in revenue. However, the overall changes are projected to result in a net decrease in revenue, with an estimated loss of $1.2 million annually from both the General Fund and the Renewable Energy Fund. 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, further impacting available funds for REF projects starting in FY 2028. The bill is set to take effect on July 1, 2027.

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