Renewable Tariffs and Standard Offer Contracts in the USA

Renewable Tariffs and Standard Offer Contracts in the USA

Since the fall of 2007 numerous states have introduced bills into their state legislatures that, if enacted, would create Renewable Energy Sources Acts like those in Europe.

In addition, a bill as been introduced at the federal level in the House.

A number of states have have introduced programs patterned after Renewable Feed Laws in Europe. However, there are significant differences between true Renewable Tariffs and many of the Production-Based Incentive programs in the USA. For a brief discussion see Performance-Based Incentives or Renewable Tariffs for Photovoltaics in the USA.



USA

Arkansas

HB 1851 was introduced by Representatives Webb, L. Smith, Cash, Carroll in mid March, 2009.

For more details contact Bill Ball of the Arkansas Renewable Energy Association.

California

In light of the states aggressive carbon dioxide reduction targets (AB 32) and the state's lagging development of renewables, there's a growing sense that the state may have to switch course.

For an engaging account of how California became a renewable energy power house in the early and mid 1980s see Dynamos and Virgins.

In 2002 the Sierra Club (USA) endorsed the use of Electricity Feed Laws as a policy mechanism for spurring greater renewable energy development in the USA.

In January 2005 California introduced a timid renewable tariff for solar PV under the unwieldy title of "Performance-Based Incentive". The tariffs are an alternative to the main solar Buy-Down program. Here are some key elements.

  • $0.50/kWh for 3 yrs Only (Monetarily Equivalent to Buy-Down Program)
  • ~$400,000 Project Cap
  • ~$10 million Program Cap
  • $1,000,000 Project Cap for Systems Installed by Corporate or Government
  • Relies on "Early Adopters"
  • Meter Read by Utility or Web Monitoring

Colorado

Florida

Hawaii

On October 20, 2008 the Governor of Hawaii, Linda Lingle, the Department of Business Economic Development and Tourism, the Division of Consumer Advocacy of the Department of Consumer Affairs, and the Hawaiian Electric Company (HECO) signed an agreement to implement a feed-in tariff policy in 2009.

The agreement, say the signatories, is to move the island state away from dependence on imported oil, and toward indigenous renewable resources of which the islands have abundance.

The state and HECO agreed to accelerate the development of renewable resources on all the islands in the Hawaiian chain.

The agreement specifically binds HECO to implement a series of feed-in tariffs to "dramatically accelerate the addition of renewable energy from new sources". The parties further agreed that the feed-in tariff "should be designed to cover the renewable energy producer's costs of energy production plus some reasonable profit."

The agreement commits Hawaii to complete regulatory review by March, 2009 and to implement the resulting feed-in tariffs by July.

If implemented as conceived, Hawaii will have moved further and faster on feed-in tariffs than any other state.

Illinois

Indiana

Louisiana

Maine

Maryland

Michigan

Minnesota

New York State

Nevada

  • New Economic Opportunities Could Come to Nevada Soon--CARSON CITY, NV—The Senate Committee on Commerce, Labor and Energy held a hearing on Senate Bill 184 (SB184) on Monday, March 7. The bill will create a Renewable Energy Systems Development Program—a first of its kind policy in Nevada. It will require the Public Utility Commission of Nevada to develop a program where any person or business with a renewable energy generation system will be paid a fair "rate" to generate and "feed" their energy into the electric grid. Programs of this kind are commonly known as a feed-in tariff (FIT) where the term "tariff" is not a tax, but a "rate" paid. . .
  • Power by the people by Deidre Pike--Schools with solar panels could make money to fund student activities. Universities could get paid for renewable energy production. Businesses and factories might turn industrial waste into power. A plan headed to the Nevada Legislature creates a structure to pay institutions, companies and individuals for generating electricity. Advocates say the plan could create potentially a couple of thousand jobs and lure companies—folks who manufacture, say, solar panels—to the Silver State. . .
  • Nevada Senator Requests Draft Feed-in Tariff Bill--Senator Mike Schneider,chair of the Senate Committee on Energy, Infrastructure and Transportation, has requested the drafting of a bill authorizing the Public Utility Commission of Nevada to establish a feed-in tariff program for renewable energy of all types . . .
  • Public Utilities Commission of Nevada Opens Feed-in Tariff Docket: 09-11004 was opened November 4, 2009--No documents were posted as of December 10, 2009.

Oregon

  • Oregon’s New Solar Law Not a Good FIT by Jennifer Gleason--Contrary to what some commentators are saying, Oregon did not just adopt a feed-in tariff (FIT). ELAW has been working diligently to ensure that Oregon adopts a FIT because FITs have been proven to be the most effective and efficient means of moving renewables onto the grid. Sadly, Oregon’s program falls far short of the mark. . .
  • Oregon's Failing Grade-Should it be Changed?--Proponents of Oregon's recently implemented "feed-in tariff" for microgenerators have questioned the failing grade given it by the World Future Council (WFC) in its recent report. . .
  • Oregon Passes Revised "Feed-in Tariff" Bill--As in the Oregon's previous bill, Oregon 3690 calls for only a small pilot program for solar PV of 25 MW. Tariffs are based on the "value" of the electricity. . .
  • Oregon's solar future could hinge on copying Germany By Amy Hsuan, The Oregonian--New solar factories rise atop snow-covered hills. High-tech businesses snag workers for miles around. On rooftops and farmland, solar panels fire electricity into the utility grid. . .
  • Heyday for solar? New law could spur solar boom here, but many greenies wary by Steve Law, Portland Tribune--A new solar energy law could quadruple the solar power produced in Oregon, but many renewable-energy advocates say the law is flawed and may be counterproductive. . .
  • Oregon Passes Weak Solar PV "Tariff"--To the great disappointment of feed-in tariff advocates in Oregon, the state legislature passed a weak bill for a "pilot" program for solar PV on June 22, 2009. . .

Rhode Island

Tennessee

There are no true renewable tariffs in Tennessee.

Vermont

Texas

  • San Antonio Muni To Launch Limited Solar FIT--Another utility has announced that it will voluntarily launch a limited solar PV feed-in tariff. The municipal utility serving San Antinio, Texas, CPS Energy, will introduce the program in January of the new year. . .

Washington State

Wisconsin

WE Energies,Madison Gas & Electric, and now Wisconsin Public Service and Wisconsin Power & Light have small renewable tariff programs. While limited they are another example illustrating that the concept is not foreign to North America.

-End-

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