Florida Study - Bipartisan Policy Center

The 20% RESThe proposed new PURPA Section 610-Federal Renewable Portfolio Standard made by theBingaman Proposal , or the 20% RES, would require that electric utilities obtain certainpercentages of their sales of electricity to consumers from new renewable energy, existingrenewable energy, or energy efficiency (Summary of Bingaman Discussion Draft, 2009). Thesepercentages are as shown in Table 1.Eligible sources include solar, wind, ocean or geothermal energy, biomass, landfill gas, orincremental hydropower. The proposed means of compliance are that the electric utility willsubmit renewable energy credits, federal energy efficiency credits, or alternative compliancepayments. Federal energy efficiency credits cannot be used to meet more than 25% of therequirement. The required percentages shown in Table 1 are adjusted by 25% energy efficiencycredits, with these adjusted values shown in the far right column. The alternative compliancepayments are at a rate of 3 cents per kWh.Table 1. Proposed Federal RPS Annual Renewable Energy Percentage RequirementUnder the New PURPA Section 610 by 20% RES (the 20% RES)Required AnnualYearRequired AnnualPercentage of SalesPercentage Adjusted forEnergy Efficiency Credits2011-2012 4.0 3.02013-2015 8.0 6.02016-2018 12.0 9.02019-2020 16.0 12.02021-2039 20.0 15.0The 25% RESThe second proposal is an energy savings act coupled with a renewable energy portfoliostandard, termed the “Save American Energy Act” (Save American Energy Act, 2009) and the“American Renewable Energy Act” (American Renewable Energy Act, 2009) respectively. This setof proposals was made Markey (the 25% RES) to amend PURPA. The “Save American EnergyAct” would require nationwide minimal levels of electricity and natural gas savings to be obtainedthrough utility efficiency programs, building energy codes, appliance standards, and relatedefficiency measures (Save American Energy Act, 2009). The performance standards as theyrelate to retail electricity distributors are shown in Table 2.The “American Renewable Energy Act” requires the following annual percentages ofrenewable energy displayed in Table 3. The percentage may be met by submitting the Federalrenewable energy credit or an alternative compliance payment. The payment is equal to thelesser of 200% of the Federal renewable electricity credit for the previous compliance year or 5cents adjusted by the Gross Domestic Product Implicit Price Deflator. The proposed Act treatswind, solar, geothermal, biomass or landfill gas, qualified hydropower, and marine or hydrokineticrenewable energy as qualified renewables.The Department of Energy, Energy Information Administration (EIA) conducted ananalysis of the 25% RES for a federal renewable energy portfolio (EIA, 2009). The percentagesprojected by EIA, given exclusion of small power retailers, hydro sales, municipal solid waste(MSW) sales, and energy efficiency credits, are shown in Table 4.Federal Renewable Energy Portfolio Standard Impacts on Florida ___ 3