Public Benefits Funds

State Policy Resources

Public Benefit Funds Resources

The State Clean Energy Funds Fact Sheet describes why states would implement PBFs, what different fund options exist, and which states currently have clean energy funds. Download a PDF version (4 pp, 116K, About PDF) to print and share.
EPA Clean Energy-Environment Guide to Action, Chapter 5, Section 5.2 (PDF) (11 pp, 538K, About PDF) outlines how PBFs work and describes different funding allocation methods, such as grants, rebates, and generation incentives.

Public benefit funds (PBFs) are a pool of resources typically created by levying a small fee or surcharge on customers' electricity rates, which can then be used by states to invest in clean energy supply.

In 2005, 15 state renewable energy programs provided more than $300 million in support of clean energy supply. PBFs provided much of this funding, and according to one estimate by the Union of Concerned Scientists, PBFs will generate more than $4 billion for clean energy by 2017. As of December 2006, 15 states and the District of Columbia had established clean energy funds.

PBF Benefits

Provide a cohesive strategy "under one roof": PBFs combine a range of clean energy support (programs and funding) in one organization, which allows for a cohesive strategy to address the range of clean energy market issues.
Tailored to a state's needs: Clean energy funds provide states flexibility in the types of incentives and programs that are offered.
Complement other policies: PBFs flexibility allows the funds to complement other state and federal policies, such as renewable portfolio standards, making those policies more effective.
Support long-term goals: Clean energy funds can be designed to fund options with long-term benefits, such as technology research, development, and demonstration programs. These longer timeframe (10 or more years) goals are generally not supported by other funding approaches.

State Examples

The New York State Energy Research and Development Authority (NYSERDA) administers the New York PBF program. The program has funded 2,700 projects under 40 programs, including renewables, combined heat and power (CHP), and clean distributed generation (DG). The DG/CHP Program has approved 83 systems for funding, representing 90 megawatts (MW) of peak demand reduction. The wholesale and end-use renewables programs have delivered 102 gigawatt-hours of clean generation, achieving a summer coincident peak demand reduction of about 7 MW from installation of small- and large-scale wind and photovoltaic systems.
The California Energy Commission (CEC) , in coordination with the California Public Utilities Commission (CPUC), manages clean energy funding in California. The California PBF, established in 1998, generates more than $135 million per year for clean energy and funds existing, new, and emerging clean resources, as well as consumer education.
The Massachusetts Renewable Energy Trust (MRET) is managed by the Massachusetts Technology Collaborative (MTC). A total of $150 million over a 5-year period is earmarked for renewable energy. MTC's approach is to first identify barriers to renewable energy growth in Massachusetts, then leverage additional funds from other sources, including private companies and nonprofits. MTC's goals include maximizing public benefit by creating new high-tech jobs and producing clean energy.

Resources

State Clean Energy Funds Fact Sheet, also available in PDF (4 pp, 116K, About PDF), describes why states would implement these funds, what different fund options exist, and what states currently have clean energy funds.
EPA Clean Energy-Environment Guide to Action, Chapter 5, Section 5.2 (PDF) (11 pp, 538K, About PDF) outlines how these funds work and describes different funding allocation methods, such as grants, rebates, and generation incentives.
EPA's State Clean Energy Program Activities outlines state and local government programs and policies geared toward integrating energy efficiency, renewable energy, and clean DG for businesses and residents.
Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency.
The Clean Energy States Alliance (CESA) is a nonprofit organization that provides information and technical services to state clean energy funds and works with them to build and expand clean energy markets in the United States.

If you would like additional assistance, please contact Katrina Pielli (pielli.katrina@epa.gov).

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