A Renewable Portfolio Standard (RPS), also known as a Renewable Energy Standard (RES) or a Renewable Energy Portfolio Standard (REPS), is a regulatory policy that requires utilities and energy providers to obtain a certain percentage of their electricity generation from renewable energy sources, mostly wind and solar.   Renewable portfolio standards are a particularly pernicious subsidy as they completely override any semblance of market competition in favor of mandates.

As IER has explained, forcing renewable energy on the grid through RPS is a mistake that raises electricity prices for consumers because:

  • The intermittent nature of renewables requires back-up capacity,
  • Renewables require substantial additional transmission capacity because they take up a great deal of physical space, are geographically dispersed and are frequently located away from population center
  • There are costs associated with baseload generation that is prematurely retired, imposing costs on ratepayers and owners of     capital, when renewable capacity is built during times of adequate supply of generating capacity
  • Some regions have severe limitations in terms of the availability of certain renewable resources. For example, not all areas have consistent sunlight for solar energy generation or strong and consistent winds for wind energy. This can make it difficult for some regions to achieve the required levels of renewable energy generation without relying heavily on imported renewable energy credits.

Renewable portfolio standards have increased electricity prices and inefficiently lowered the carbon intensity of the states that have enacted them. According to a study from the University of Chicago, the cost of reducing carbon dioxide emissions in those states is very expensive, on the order of hundreds of dollars per metric ton of carbon dioxide reduced. By increasing the share of renewable generation, the states with an RPS policy saved 95 to 175 million tons of carbon dioxide emissions seven years after the start of the programs. But the researchers found that the cost of abating carbon dioxide emissions through an RPS policy is over $130 per metric ton of carbon dioxide and as much as $460 per metric ton of carbon dioxide.  These costs are several times higher than any reasonable estimate of the social cost of carbon.

In states like California that have aggressively pursued the compulsory decarbonization of the power grid, these policies are leading to significant operational and planning challenges, resulting in increased costs at every stage. The dependable and cost-effective capacity for power generation is being compromised, while being replaced by unpredictable and costly resources.  State-level RPSs are playing a major role in this.  States with aggressive RPS targets will continue to see rising prices, and, if reforms are not pursued, they will continue to run the risk of creating reliability problems.

Overview of State Renewable Portfolio Standards

Arizona

  • Title: Renewable Energy Standard.
  • Established: 2006.
  • Requirement: 15% by 2025.
  • Details: Distributed Generation: 30% of annual requirement in 2012 and thereafter. The state has several credit multipliers for different technologies.
  • Enabling Statute, Code or Order: Ariz. Admin. Code §14-2-1801 et seq.

California

Colorado

  • Title: Renewable Energy Standard.
  • Established: 2004.
  • Requirement: 30% by 2020 (IOUs); 10% or 20% for municipalities and electric cooperatives depending on size; 100% clean energy by 2050 for utilities serving 500,000 or more customers.
  • Details: For distributed generation, 3% of IOU retail sales by 2020, 1% of cooperative retail sales by 2020 (for those providing service to 10,000 or more meters) or 0.75% of cooperative retail sales by 2020 (for those providing service to less than 10,000 meters). The state has several credit multipliers for different technologies. Additionally, in 2019, Colorado enacted legislation requiring utilities serving 500,000 or more customers to supply 100% of retail sales with clean energy sources by 2050 so long as meeting such requirements is technically and economically feasible and in the public interest.
  • Enabling Statute, Code or Order: Colo. Rev. Stat. §40-2-124; Senate Bill 252 (2013); Senate Bill 263 (2019).

Connecticut

  • Title: Renewables Portfolio Standard.
  • Established: 1998.
  • Requirement: 44% by 2030.
  • Details: Class I renewable energy sources (including distributed generation): 20% by 2020. Class I or II (biomass, waste-to-energy and certain hydropower projects): 3% by 2010. Class III (combined heat and power, waste heat recovery and conservation): 4% by 2010.
  • Enabling Statute, Code or Order: Conn. Gen. Stat. §16-245a et seq.; Conn. Gen. Stat. §16-1; Senate Bill 9 (2018).

Delaware

  • Title: Renewable Energy Portfolio Standard.
  • Established: 2005.
  • Requirement: In 2021 the state extended its RPS to include long-term targets of 28% by 2030 and 40% by 2035. The changes retained the state’s previous target for 2025 of 25%.
  • Details: Photovoltaics: 3.5% in 2025, 5% in 2030 and 10% in 2035.
  • Enabling Statute, Code or Order: Del. Code Ann. 26 §351 et seq.; Senate Bill 33 (2021).

Hawaii

Illinois

  • Title: Renewable Portfolio Standard.
  • Established: 2001 (voluntary target); 2007 (standard).
  • Requirement: 25% by 2025-2026.
  • Details: Distributed Generation: 1% of annual requirement beginning in 2015 for IOUs. Wind: 75% of annual requirement for IOUs, 60% of annual requirement for alternative retail electric suppliers. Photovoltaics: 6% of annual requirement beginning in 2015-2016.
  • Enabling Statute, Code or Order: Ill. Rev. Stat. ch. 20 §688 (2001); Ill. Rev. Stat. ch. 20 §3855/1-75 (2007); Senate Bill 2814 (2016).

Indiana

  • Title: Clean Energy Portfolio Goal.
  • Established: 2011.
  • Requirement: 10% by 2025.
  • Details: 30% of the goal may be met with clean coal technology, nuclear energy, combined heat and power systems, natural gas that displaces electricity from coal and other alternative fuels.
  • Enabling Statute, Code or Order: Ind. Code §8-1-37.

Iowa

  • Title: Alternative Energy Law.
  • Established: 1983.
  • Requirement: 105 MW of generating capacity for IOUs.
  • Enabling Statute, Code or Order: Iowa Code §476.41 et seq.

Kansas

Maine

  • Title: Renewables Portfolio Standard.
  • Established: 1999.
  • Requirement: 80% by 2030; statewide target of 100% renewables by 2050.
  • Details: Maine updated its RPS requirements in 2019 to include an additional 40% requirement for certain renewable sources (Class IA) in addition to a 10% requirement by 2022 and each year thereafter for Class I (new) sources and 30% requirement for Class II resources. The state also has separate goals for wind energy: 2,000 MW of installed capacity by 2015; 3,000 MW of installed capacity by 2020, including offshore and coastal; and 8,000 MW of installed capacity by 2030, including 5,000 MW from offshore and coastal. The state has a credit multiplier for community-based renewable energy.
  • Enabling Statute, Code or Order: Me. Rev. Stat. Ann. 35-A §3210 et seq.; Me. Rev. Stat. Ann. 35-A §3401 et seq.(wind energy); Senate File 457 (2019).

Maryland

  • Title: Renewable Energy Portfolio Standard.
  • Established: 2004.
  • Requirement: 30.5% in 2020; 50% in 2030.
  • Details: In 2019, Maryland enacted legislation increasing its near-term RPS targets and carveouts for solar and offshore wind. It also extended its RPS targets out to 2030. The bill increased the solar carveout from 2.5% to 6% in 2020, with an increasing annual percentage carveout up to 14.5% in 2030. It also increased offshore wind from a 2.5% maximum in 2017 to a 10% maximum in 2025, including an increasing megawatt requirement for Round 2 offshore wind projects in later compliance years.
  • Enabling Statute, Code or Order: Md. Public Utilities Code Ann. §7-701 et seq.; Senate Bill 516 (2019).

Massachusetts

  • Title: Renewable Portfolio Standard.
  • Established: 1997.
  • Requirement: Class I: 35% by 2030 and an additional 1% each year after. Class II: 6.7% by 2020.
  • Details: Photovoltaic: 1,600 MW required by 2020. Class I resources are new sources. Class II (resources in operation by 1997) requirement includes 2.69% renewable energy and 3.5% waste-to-energy.
  • Enabling Statute, Code or Order: Mass. Gen. Laws Ann. ch. 25A §11F; House Bill 4857 (2018).

Michigan

  • Title: Renewable Energy Standard.
  • Established: 2008; 2016.
  • Requirement: 15% by 2021 (standard), 35% by 2025 (goal, including energy efficiency and demand reduction).
  • Details: The state has several credit multipliers for different technologies.
  • Enabling Statute, Code or Order: Mich. Comp. Laws §460.1001 et seq.; Senate Bill 438 (2016).

Minnesota

  • Title: Renewables Energy Standard.
  • Established: 2007.
  • Requirement: 26.5% by 2025 (IOUs), 25% by 2025 (other utilities).
  • Details: Xcel Energy has a separate requirement of 31.5% by 2020; 25% must be from wind or solar. Solar: 1.5% by 2020 (other IOUs); Statewide goal of 10% by 2030.
  • Enabling Statute, Code or Order: Minn. Stat. §216B.1691.

Missouri

  • Title: Renewable Electricity Standard.
  • Established: 2007.
  • Requirement: 15% by 2021 (IOUs).
  • Details: Solar-Electric: 2% carve-out.
  • Enabling Statute, Code or Order: Mo. Rev. Stat. §393.1020 et seq.

Montana

Nevada

  • Title: Energy Portfolio Standard.
  • Established: 1997.
  • Requirement: 50% by 2030; non-binding 100% carbon-free by 2050.
  • Details: In 2019 Nevada increased its RPS from 25% by 2025 to 50% by 2030 and removed its solar carve-out (6% for 2016-2025). The state has a credit multiplier for photovoltaics and on peak energy savings.
  • Enabling Statute, Code or Order: Nev. Rev. Stat. §704.7801 et seq.; Senate Bill 358 (2019).

New Hampshire

  • Title: Electric Renewable Portfolio Standard.
  • Established: 2007.
  • Requirement: 25.2% by 2025.
  • Details: Solar: 0.7% new solar in 2020 and after. Requires at least 15% of requirement to be met with new renewables.
  • Enabling Statute, Code or Order: N.H. Rev. Stat. Ann. §362-F.

New Jersey

  • Title: Renewables Portfolio Standard.
  • Established: 1991.
  • Requirement: 50% by 2030.
  • Details: 50% Class I renewables by 2030. 2.5% Class II renewables each year. 5.1% solar-electric by 2021, then gradually reduced to 1.1% by 2031. Offshore wind: 3,500 MW.
  • Enabling Statute, Code or Order: N.J. Rev. Stat. §48:3-49 et seq.; Assembly Bill 3723 (2018).

New Mexico

  • Title: Renewables Portfolio Standard.
  • Established: 2002.
  • Requirement: 40% by 2025; 80% renewables by 2040; 100% of electricity supplied by zero-carbon resources by 2045.
  • Details: Solar: 20% by 2020 (IOUs). Wind: 30% by 2020 (IOUs). Other renewables including geothermal, biomass and certain hydro facilities: 5% by 2020 (IOUs). Distributed Generation: 3% by 2020 (IOUs). The state has a credit multiplier for solar energy that was operational before 2012.
  • Enabling Statute, Code or Order: N.M. Stat. Ann. §62-15-1 et seq.; N.M. Stat. Ann. §62-16-1 et seq.; Senate Bill 489 (2019).

New York

  • Title: Renewable Portfolio Standard; Reforming the Energy Vision (REV).
  • Established: 2004.
  • Requirement: 70% renewables by 2030; 100% zero-emissions electricity requirement by 2040.
  • Details: In 2019, New York increased its RPS from 50% to 70% by 2030. Offshore wind: goal of 2,400 MW by 2030.
  • Enabling Statute, Code or Order: NY PSC Order Case 03-E-0188; 2015 New York State Energy Plan; Senate Bill 6599 (2019).

North Carolina

  • Title: Renewable Energy and Energy Efficiency Portfolio Standard.
  • Established: 2007.
  • Requirement: 12.5% by 2021 (IOUs); 10% by 2018 (munis and coops).
  • Details: Solar: 0.2% by 2018. Swine Waste: 0.2% by 2018. Poultry Waste: 900,000 MWh by 2015. The state offers credit multipliers for biomass facilities located in cleanfields renewable energy demonstration parks.
  • Enabling Statute, Code or Order: N.C. Gen. Stat. §62-133.8.

North Dakota

Ohio

  • Title: Alternative Energy Resource Standard.
  • Established: 2008.
  • Requirement: 8.5% by 2026.
  • Details: In 2019, Ohio reduced its RPS requirement and eliminated its solar-carveout. The state reduced its RPS from 12.5% to 8.5% by 2026, including reductions in annual incremental targets. Ohio previously enacted a two-year freeze (Senate Bill 310 (2014)) on the state’s RPS standard while a panel studied the costs and benefits of the requirement. The freeze was not extended in 2016.
  • Enabling Statute, Code or Order: Ohio Rev. Code Ann. §4928.64 et seq.; House Bill 6 (2019).

Oklahoma

Oregon

  • Title: Renewable Portfolio Standard.
  • Established: 2007.
  • Requirement: In July 2021, Oregon passed legislation to complement its RPS. The state’s “Clean Energy Targets” legislation requires retail electricity providers to reduce emissions by the following levels below baseline: 80% by 2030; 90% by 2035; and 100% by 2040 (see below for further explanation
  • Details: The distinction between the new Clean Energy Targets and Oregon’s RPS is important, but the two pieces of legislation work in tandem to affect the same result. Oregon’s RPS requires electricity providers to generate electricity from qualifying sources, such as wind, solar or hydroelectric power. Whereas the Clean Energy Targets requires electricity providers to eliminate greenhouse gas emissions, without a focus on the source of the energy. While renewable energy generation is expected to be the primary contributor to meeting the state’s Clean Energy Targets, the legislation also focuses on energy efficiency, demand responses resources, transmission, community-based renewable energy, and emissions reporting.

The state’s RPS requirements include the following carve-outs: Photovoltaics: 20 MW by 2020 (IOUs). The state has a credit multiplier for photovoltaics installed before 2016. The state’s two investor-owned utilities must phase out coal generation by 2035. By 2025 at least 8% of aggregate electrical capacity must come from small-scale community renewable energy projects with a capacity of 20 megawatts (MW) or less.

  •       Enabling Statute, Code or Order: Or. Rev. Stat. §469a; Senate Bill 1547 (2016).

Pennsylvania

  • Title: Alternative Energy Portfolio Standard.
  • Established: 2004.
  • Requirement: 18% by 2020-2021.
  • Details: Tier I: 8% by 2020-2021 (includes photovoltaic). Tier II (includes waste coal, distributed generation, large-scale hydropower and municipal solid waste, among other technologies): 10% by 2020-2021. Photovoltaic: 0.5% by 2020-2021.
  • Enabling Statute, Code or Order: Pa. Cons. Stat. tit. 66 §2814.

Rhode Island

  • Title: Renewable Energy Standard.
  • Established: 2004.
  • Requirement: 14.5% by 2019, with increases of 1.5% each year until 38.5% by 2035.
  • Details: The state has a separate long-term contracting standard for renewable energy, which requires electric distribution companies to establish long-term contracts with new renewable energy facilities.
  • Enabling Statute, Code or Order: R.I. Gen. Laws §39-26-1 et seq.; R.I. Gen. Laws §39-26.1 et seq. (contracting standard); House Bill 7413a (2016).

South Carolina

  • Title: Voluntary Renewables Portfolio Standard.
  • Established: 2014.
  • Requirement: 2% by 2021.
  • Details: Systems less than 1 MW: 1% of aggregate generation capacity, including at least 0.25% of total generation from systems less than 20kW. 1 – 10 MW facilities: 1% of aggregate generation capacity.
  • Enabling Statute, Code or Order: House Bill 1189.

South Dakota

  • Title: Renewable, Recycled and Conserved Energy Objective.
  • Established: 2008.
  • Requirement: 10% by 2015.
  • Enabling Statute, Code or Order: S.D. Codified Laws Ann. §49-34A-94; S.D. Codified Laws Ann. §49-34A-101 et seq.

Texas

  • Title: Renewable Generation Requirement.
  • Established: 1999.
  • Requirement: 5,880 MW by 2015. 10,000 MW by 2025 (goal; achieved).
  • Details: Non-wind: 500 MW (goal).
  • Enabling Statute, Code or Order: Tex. Utilities Code Ann. §39.904.

Utah

Vermont

  • Title: Renewable Energy Standard.
  • Established: 2005 (voluntary target); 2015 (standard).
  • Requirement: 55% by 2017; 75% by 2032.
  • Details: Distributed Generation: 10% by 2032. Energy Transformation: 12% by 2032 (includes weatherization, thermal energy efficiency and heat pumps).
  • Enabling Statute, Code or Order: Vt. Stat. Ann. tit. 30 §8001 et seq.; Standard: House Bill 40.

Virginia

  • Title: Renewable Portfolio Standard
  • Established: 2020.
  • Requirement: 100% renewables by 2045 for Phase II utilities and 2050 for Phase I utilities.
  • Details: In 2020, the state enacted a mandatory 100% renewables target for Phase I and Phase II utilities. The state had previously implemented a voluntary renewables goal of 15% by 2025. Under the new requirements, Phase I utilities are required to achieve a renewables target of 14% by 2025, 30% by 2030, 65% by 2040, and 100% by 2050. Phase II utilities have an accelerated renewables requirement of 26% by 2025, 41% by 2030, and 100% by 2045. The law further requires utilities to procure a certain amount of generation from solar and onshore wind sources that are located within the state by a specific date.
  • Enabling Statute, Code or Order: Va. Code §56-585.2; Senate Bill 851 (2020).

Washington

  • Title: Renewable Energy Standard.
  • Established: 2006.
  • Requirement: 15% renewable by 2020; 100% greenhouse gas neutral by 2030; 100% renewable or zero-emitting by 2045.
  • Details: Standard is applicable to all utilities that serve more than 25,000 customers. Requirement also includes all cost-effective conservation. The state has a credit multiplier for distributed generation.
  • Enabling Statute, Code or Order: Wash. Rev. Code §19.285; Wash. Admin. Code §480-109; Wash Admin. Code §194-37; Senate Bill 5116 (2019).

West Virginia

  • Title: Alternative and Renewable Energy Portfolio Standard- REPEALED.
  • Established: 2009; Repealed 2015.
  • Requirement: 10% from 2015-2019, 15% from 2020-2024, 25% by 2025.
  • Details: Goal is applicable to IOUs that serve more than 30,000 residential customers. Goal includes alternative energy sources, including coal technology, coal bed methane, natural gas, combined cycle technologies, waste coal and pumped storage hydroelectric projects.
  • Enabling Statute, Code or Order: W. Va. Code §24-2F; Repeal: House Bill 2001.

Wisconsin

  • Title: Renewable Portfolio Standard.
  • Established: 1998.
  • Requirement: 10% by 2015.
  • Details: Standard varies by utility. 2011-2014: utilities may not decrease its renewable energy percentage below 2010 percentages. 2015: utilities must increase renewable energy percentages by at least 6% above their 2001-2003 average. Utilities may not decrease their renewable energy percentage after 2015.
  • Enabling Statute, Code or Order: Wisc. Stat. §196.378.

Washington, D.C.

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