The bill amends the Renewable Energy Act to clarify the calculation of renewable portfolio standards and the management of renewable energy certificates (RECs) by public utilities. It establishes that RECs are owned by the generator of renewable energy unless specific conditions apply, such as agreements with purchasers or if the generator is a qualifying facility under federal law. A significant insertion in the bill states that for qualifying facilities that are net metered, all energy generated will be considered purchased by the public utility, and energy consumed on-site will be included in the total retail sales for calculating the renewable portfolio standard.

Additionally, the bill outlines the trading and retirement of RECs, emphasizing that any contracts for renewable energy entered into after July 1, 2019, must include the conveyance of all associated RECs to the purchasing utility, which must then retire them or transfer them for voluntary retirement programs. The public utility is required to file an annual report detailing its management of RECs and how its claims of renewable energy generation relate to the certificates it has traded or sold. The provisions of this act will take effect on July 1, 2025.

Statutes affected:
introduced version: 62-16-5