The bill amends the Renewable Energy Act to clarify the calculation of renewable portfolio standards and the ownership and management of renewable energy certificates (RECs). It establishes that RECs are generally owned by the generator of renewable energy, with specific exceptions outlined. Notably, 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 mandates that any contract for renewable energy entered into by a public utility after July 1, 2019, must include the conveyance of all associated RECs to the purchasing utility, which must then retire these certificates on behalf of itself or its customers.

The bill also emphasizes the importance of tracking and reporting the use of RECs by public utilities. It requires utilities to file annual reports detailing their activities related to the trading, sale, or transfer of RECs and how these activities align with their claims of renewable energy generation. Furthermore, it stipulates that RECs used for compliance must be registered with a renewable energy generation information system to prevent double counting. The effective date for the provisions of this act is set for July 1, 2025.

Statutes affected:
introduced version: 62-16-5