This bill amends the existing electric renewable portfolio standards by introducing several significant changes. It a provision that exempts wind energy from certain government procurement mandates and the definition of solar energy to clarify that it must produce electricity to qualify. The minimum electric renewable portfolio standards are adjusted, with Class I increasing to 15% by 2025 and a reduction of the Class I thermal requirement from 2.2% to 1.7% starting August 1, 2025. Additionally, the Class II category is entirely removed from the standards. The bill also establishes a renewable energy fund to support various initiatives and sets fixed rates for renewable energy classes beginning June 30, 2025, with an effective date for these changes set for July 1, 2027. Furthermore, the bill modifies the Renewable Portfolio Standard (RPS) regulations concerning the requirements for electricity providers to purchase renewable energy certificates (RECs) or make alternative compliance payments (ACPs). The of the reduced Class I thermal requirement is expected to decrease ACP revenue by approximately $1,300,000 annually, while the of an increased ACP rate from $28.76 to $30.00 is projected to generate an additional $125,000 in revenue, resulting in a net decrease of about $1,175,000 per year in ACP revenue. The overall changes are anticipated to lead to an estimated annual reduction in ACP revenue of approximately $1,200,000, which will decrease deposits into the Renewable Energy Fund (REF) by the same amount starting in fiscal years 2028 and 2029. The bill suggests that the State could see annual savings of about $12,000 from lower electricity costs, although the impact on county and local governments remains 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