As of the end of 2003, fifteen States had programs to increase renewable energy use. Of the seventeen programs (two States have two programs), nine were renewable portfolio standards (RPS), four renewable energy mandates, and four renewable energy goals.
RPS provisions generally require that a specified share of electricity generation or sales come from qualifying renewable technologies.
Mandates require the construction of set amounts of new renewable capacity using specified technologies.
Goal-based programs are voluntary, and generally can be met with a mix of renewable technologies.
“State Renewable Energy Requirements and Goals: Status Through 2003,” a recent paper from the Energy Information Administration (EIA) summarizes State renewable energy requirements and goals.The paper identifies key characteristics of the programs -- including their requirements, the target time frames for compliance, acceptable and excluded energy sources, alternatives to new capacity, and potential sanctions -- and the amounts of renewable capacity constructed to comply with these programs through the end of 2003.
State Renewable Energy
Requirements by Program Type
State RPS
Mandate
Goal
Arizona +
California +
Connecticut +
Hawaii
+
Illinois
+
Iowa
+
Maine +
Massachusetts +
Minnesota +
+
Nevada +
New Jersey +
New Mexico +
Pennsylvania +
Texas
+
Wisconsin +
+
Source: Energy Information Administration. Renewable Portfolio Standards
Most State RPS programs began when electric utilities were being deregulated. Required compliance begins after 2000 in most programs, with New Mexico's 2006 initial compliance year being the latest.
All but Maine require an increasing renewable percentage over time until a target level is reached. Most of the programs include output from existing capacity, generation supplied from other States, credit trading, and conventional hydroelectric power.
Key differences among the States include their definition of qualifying renewables, allowable alternatives to renewable capacity, approaches to cost recovery, opt-out provisions, and enforcement mechanisms.Most of the State RPS programs allow alternatives to the construction of new renewable capacity, including fuel cells or non-electric technologies such as solar heating and air conditioning.
Some States favor certain renewable energy technologies by offering more than one credit per kilowatthour. The States use several approaches for funding their RPS programs, including passing the higher costs directly to all utility ratepayers, applying a charge on selected categories of sales, or encouraging consumers voluntarily to pay a premium for renewable power.
Most States may reduce their RPS requirements if costs are excessive or for specified non-cost reasons. Some RPS States have provisions that allow compliance to be delayed under certain conditions.
State RPS programs are relatively new, and by the end of 2003 had stimulated only 321 megawatts of new renewable energy capacity or 14 percent of total new renewable energy capacity developed under all State programs.~~ ~ ~~
Mandates
While RPS programs may include a broad range of alternatives, renewable energy mandates narrowly specify the new capacity required.Iowa’s 1983 mandate ordered its three investor-owned utilities to develop 105 megawatts of new renewable energy capacity. No deadline was set, but by 1999, 260 megawatts (nameplate capacity) of wind and other capacity was installed.
Minnesota’s 1994 mandate required Xcel Energy to acquire 425 megawatts of wind capacity by the end of 2002, plus 125 megawatts of biomass capacity. The mandate was later expanded to include 400 additional megawatts of wind capacity by 2006 and another 300 megawatts of wind capacity by 2010.
The 1999 renewable energy mandate in Texas requires the installation of 2,000 megawatts of new generating capacity by 2009. It has resulted in more new renewable energy generating capacity than any other State requirement to date, with 1,140 megawatts of new wind capacity installed by the end of 2003, plus small amounts of landfill gas and other capacity.
In 1998, Wisconsin required four utilities to install 50 megawatts of new renewable energy capacity by the end of 2000. The mandate was met with nearly 57 megawatts of new capacity, including three wind projects.
Mandates account for the vast majority of new renewable energy capacity under State programs.
To date, State renewable energy mandates have led to the development of 2,004 megawatts of renewable capacity, equal to 86 percent of all new renewable energy capacity from these State programs. The Texas mandate alone accounted for nearly 51 percent of total new renewable energy capacity under all State programs.
~~ ~ ~~
Voluntary Goals, Objectives, and Settlements
Four States -- Hawaii, Illinois, Minnesota, and Pennsylvania -- have instituted programs that encourage, but do not require, new renewable energy capacity.
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File last modified: September 27, 2004