The Renewable Portfolio Standards Sustainable Energy Act
Summary: The Renewable Portfolio Standards Sustainable Energy Act adopts minimum standards for the production and usage of renewable energy.
SECTION 1. SHORT TITLE
This Act shall be called the “Renewable Portfolio Standards Sustainable Energy Act.”
SECTION 2. RENEWABLE PORTFOLIO STANDARDS
(A) DEFINITIONS—In this section:
1. “Biomass” means organic matter that is available on a renewable basis. “Biomass” includes:
a. Organic material from a plant that is planted exclusively for the purpose of electricity production, provided: such plant is produced on land that was in crop production on the date this title is enacted; such plant is produced on land that is protected by the federal Conservation Reserve Program (CRP); and that crop production on CRP lands does not prevent achievement of the water quality protection, soil erosion prevention, or wildlife habitat enhancement purposes for which the land was primarily set aside;
b. Any solid, nonhazardous cellulosic waste material that is segregated from other waste materials, and which is derived from waste pallets, crates and dunnage, or landscape or right-of-way tree trimmings, but not including municipal solid waste or post-consumer wastepaper;
c. Any solid, nonhazardous cellulosic waste material that is segregated from other waste materials, and which is derived from agriculture sources, including orchard tree crops, vineyards, grains, legumes, sugar and other crop by-products or residues;
d. landfill methane; and
e. animal wastes.
“Biomass” does not include: forestry resources; agricultural resource waste material necessary for maintaining soil fertility or for preventing erosion; unsegregated solid waste; or paper that is commonly recycled.
2. “Commission” means the [Public Service Commission].
3. “Provider of electric service” and “provider” mean any person or entity that is in the business of selling electricity to retail customers in this state, regardless of whether the person or entity is otherwise subject to regulation by the commission. “Provider” does not include the state or a subdivision of the state, a rural electric cooperative, or a cooperative association, nonprofit corporation or association, or a provider of electric service which is declared to be a public utility and which provides service only to its members.
4. “Renewable energy” means biomass, geothermal energy, solar energy, wind, and low impact, small hydroelectric, and micro hydro projects that produce less than 20 megawatts of electricity. “Renewable energy” does not include coal, natural gas, oil, propane, or any other fossil fuel, or nuclear energy.
5. “Renewable energy system” means a solar energy system that reduces the consumption of electricity in a facility or energy system, or a system that uses renewable energy to generate electricity and transmits or distributes the electricity that it generates from renewable energy via:
a. A power line dedicated to the transmission or distribution of electricity generated from renewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service; or
b. A power line shared with not more than one facility or energy system generating electricity from nonrenewable energy and which is connected to a facility or system owned, operated or controlled by a provider of electric service.
6. “Retail customer” means a customer that purchases electricity at retail. “Retail customer” includes the state and its subdivisions.
(B) ESTABLISHMENT OF PORTFOLIO STANDARD
1. For each provider of electric service, the Commission shall establish a portfolio standard for renewable energy that shall require each provider to generate or acquire electricity from renewable energy systems in an amount that is:
a. For calendar years 2009 and 2010, not less than five percent of the total amount of electricity sold by the provider to its retail customers in this state during those calendar years.
b. For calendar years 2011 and 2012, not less than seven percent of the total amount of electricity sold by the provider to its retail customers in this state during those calendar years.
c. For calendar years 2013 and 2014, not less than nine percent of the total amount of electricity sold by the provider to its retail customers in this state during those calendar years.
d. For calendar years 2015 and 2016, not less than 11 percent of the total amount of electricity sold by the provider to its retail customers in this state during those calendar years.
e. For calendar years 2017 and 2018, not less than 13 percent of the total amount of electricity sold by the provider to its retail customers in this state during those calendar years.
f. For calendar year 2019 and for each calendar year thereafter, not less than 15 percent of the total amount of electricity sold by the provider to its retail customers in this state during that calendar year.
2. If, for the benefit of one or more of its retail customers in this state, the provider has subsidized, in whole or in part, the acquisition or installation of a solar energy system which qualifies as a renewable energy system and which reduces the consumption of electricity, the total reduction in the consumption of electricity during each calendar year that results from the solar thermal energy system shall be deemed to be electricity that the provider generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard.
3. The Commission may adopt regulations that establish a system of renewable energy credits, that is, a trading mechanism that may be used by a provider to comply with its portfolio standard.
4. The Commission shall establish a renewable energy fund for the purpose of promoting renewable energy systems in the state. Any provider may comply with the requirements of this Act by paying two cents into the fund for every kilowatt-hour it sells to retail customers in the state.
5. Each provider of electric service shall submit to the Commission an annual report that provides information that relates to the actions taken by the provider to comply with its portfolio standard.
(C) ENFORCEMENT
1. The Commission shall adopt regulations to carry out and enforce the provisions of this Act. The regulations adopted by the Commission may include any enforcement mechanisms which are necessary and reasonable to ensure that each provider of electric service complies with its portfolio standard. Such enforcement mechanisms may include, without limitation, the imposition of administrative fines.
2. In the aggregate, the administrative fines imposed against a provider for all violations of its portfolio standard for a single calendar year must not exceed the amount which is necessary and reasonable to ensure that the provider complies with its portfolio standard, as determined by the Commission.
SECTION 3. SEVERABILITY
The provisions of this Act shall be severable, and if any phrase, clause, sentence, or provision is declared to be invalid or is preempted by federal law or regulation, the validity of the remainder of this Act shall not be affected.
SECTION 4. EFFECTIVE DATE.
This Act shall take effect on July 1, 2007.