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Renewable Tariffs and Standard Offer Contracts in the USA
May 27, 2009
Since the fall of 2007 several states have introduced bills into their state legislatures that, if enacted, would create Renewable Energy Sources Acts like those in Europe. Links to those proposals can be found below.
In addition, a bill as been introduced at the federal level in the House. This bill a possible companion bill in the Senate will be introduced again in 2009.
A number of states have have introduced programs patterned after Renewable Tariffs 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.
- State Clean Energy Policies Analysis (SCEPA) Project: An Analysis of Renewable Energy Feed-in Tariffs in the United States by Karlynn Cory, Toby Couture, National Renewable Energy Laboratory, May, 2009
- Presentation by Karlynn Cory, NREL, on Feed-in Tariffs in the USA: ASES' Solar 2009, Buffalo, NY
- Electricity Feed Laws: Fast Track to Renewable Energy Growth? by Paul Gipe, Solar Today, May-June 2009
- Feed-in Tariff Policy: Design, Implementation, and RPS Policy Interactions by Karlynn Cory, Toby Couture, and Claire Kreycik, National Renewable Energy Laboratory, March, 2009
- Wind of Change: Enabling Power to the People by Carolyn Jack, Geniocity
- Should We Follow Germany's Lead On Renewables? by Bradford Plummer, The New Republic, on feed-in tariffs
- Clean Break: A new strategy could offer the best, and quickest, solution to global warming by Bradford Plummer, Audubon Magazine special feature on feed-in tariffs for the USA
- Critical Evaluation of the U.S. Renewable Energy Policy by Christian Paulus--We conclude that the German EEG policy does not promote many of the undesirable behaviors, which can occur as a result of the U.S. Policy directions. We recommend introducing feed – in tariffs into the U.S. energy legislation to further increase adoption of renewable energies. . .
- Feed-in Tariffs in America: Driving the Economy with Renewable Energy Policy that Works by John Farrell, ILSR
- Why Isn't the U.S. Embracing Feed-in Tariffs? by Dan Haugen
- FiTs in the USA by Craig Morris--Future U.S. policy may have begun on March 1 in Gainesville, Florida
– population 250,000. The local municipal utility company adopted feed-in rates based on the European model. . .
- States & Provinces Considering Feed-in Tariffs: 2009
- The Rooftop Revolution: A little-known policy is turning sleepy central Florida into a green energy hub. Could it do the same for America at large? By Mariah Blake, Washington Monthly
- Power Magazine: Feed-in tariff coming to America?
- National Audubon and Environmental Entrepreneurs Support Feed-in Tariffs
- Paul Gipe Presentation to Midwest Ag-Energy Summit December 15, 2008
- Paul Gipe Presentation to National Caucus of Environmental Legislators December 12, 2008
- Center for American Progress on Feed-in Tariffs
- Paul Gipe Presentation to Midwest Ag-Energy Web Conf, October 28, 2008
- Paul Gipe Presentation to WFC Feed-in Tariff Workshop San Diego, October 12, 2008 (9 mb)
- Allianced for Renewable Energy Launched: North American coalition promotes Renewable Energy Payments (REPs)
—the “World’s Most Effective Renewable Energy Policy”
- The Cost of Lost Opportunities: The Bailout, the War, and Renewable Energy
- Despite its damp climate, Germany has become the global leader in wind and solar power through a pioneering law. Now, Congress is weighing a similar bill. (Christian Science Monitor, August 20, 2008)
- Gore Calls for 100% Renewable Electricity in the US within 10 years
- Post Carbon Institute: Response to Gore's Call for 100% Renewable Power by 2018
- A Challenge Worthy of North America by Paul Gipe, WWEA Conference, opening plenary session, Kingston, Ontario, June 24, 2008
- Getting FIT by Welch (Home Power Magazine, June-July, 2008)
- Feed-in Tariffs and Renewable Energy in the USA-–a Policy Update by Wilson Rickerson, Florian Bennhold, and James Bradbury (May 2008)
- Representative Inslee Introduces US Feed-in Tariff Bill (Renewable Energy Jobs and Security Act, H.R. 6401)
- Renewable Energy in the U.S.: Sneaking in the Backdoor or Walking Through the Front? by Michael Hoexter, Ph.D. (A thoughtful but hard-hitting piece on how to more honestly and forthrightly support renewable energy development.)
- North American Renewable Tariffs Challenges & Opportunities, WWEA Feed-in Tariff Workshop, June 23, 2008, Kingston, Ontario
- WWEA Feed-in Tariff Workshop Opening Session Summary, June 23, 2008, Kingston, Ontario
- Feed-in Tariff Workshop Introduction by Paul Gipe, WWEA Conference, Kingston, Ontario
- McKibben Calls for National Feed-in Tariffs (Getting Connected: Why sharing electrons, local produce and Radiohead makes for better communities by Bill McKibben)
- The Missing Piece in Climate Policy: Renewable Heat and Cooling in Germany and the U.S. (2008) (Note pages 47-52 on the use of the "Bonus Model" or feed-in tariffs)
- U.S. State Solar Debate: Will SRECs Create Unhealthy Market Concentration? by Stephen Lacey, Renewable Energy World
- Advanced Renewable Tariffs: New Policy Option for North America, ASES Solar 2008, San Diego
- Status of the Feed-in Tariff Movement in the USA: Forum May 7, 10.30 am at the American Solar Energy Society's Solar 2008, San Diego, California
- The German FIT for Renewable Energy -- A Bargain! by Marcus Maedl, Applied Technologies
- Feed-In Tariffs: A Redistribution of Power? by former CEC Commissioner John Geesman
- Congressman Jay Inslee unveils plan to give guarantees to clean-energy generators (Legislation would be first in Congress to bring successful German program to the U.S.)
- Building a FIT Renewable Energy Market in the U.S. by Stephen Lacey, RenewableEnergyWorld.com
- Podcast Interview with Congressman Jay Inslee (D-Wash) on his Renewable Energy Buyback Act by Stephen Lacey, RenewableEnergyWorld.com
- The Renewable Electron Economy XIV: Renewable Energy Finance and Feed In Tariffs by Michael Hoexter
- The Feed-In Tariff Channel--Audio and video interviews with policy leaders by Marc Strassman (Note: a video player will install on your browser)
- FIT for the Future: Feed-In Tariffs (FITs) and their application in the United States--a Workshop
- Feed-in Tariffs: Solar FiT for the USA by Edgar A. Gunther
- Policy Food Fight: Feed-In Tariffs vs. Tax Credits by Jennifer Kho
- Does Goldman Sachs Endorse Feed-in Tariffs?
- The Case for Feed-in Tariffs in the United States by Jeffrey Michel (3 mb pdf)
- Renewable Tariffs at Progressive Blog Daily Kos
- All Renewables and Renewables for All: Renewable Tariffs for North America
- Feed-In Tariffs & Long Beach: The English Take on Solar Power 2007 by Miguel Mendonca, World Future Council
- Solar Without Limits: Breaking Free from Net Metering
- Presentation on Feed-in Tariffs and Ontario's SOC Program by Paul Gipe at ASES 2007 in Cleveland (3 mb)
- The Irony of U.S. and UK Renewable Policies by Craig Morris
- Energy from Hot Air: Taking a close look at the U.S. & European renewable energy legacies by Craig Morris
- Gore Calls for Renewable Energy Tariffs in Congressional Testimony
- The Debate over Fixed Price Incentives for Renewable Electricity in Europe and the United States
- Policies to Promote Non-hydro Renewable Energy in the United States and Selected Countries, US DOE, 2005--A Review
- Sierra Club (USA) 2006 Energy Resources Policy: Endorses Advanced Renewable Tariffs
- Sierra Club (USA)Endorses Electricity Feed Law (2002)
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.
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. During 2008 there was a flurry of activity on feed-in tariffs at three different agencies (the California Energy Commission, the Public Utility Commission, and the California Air Resources Board) as well as in the legislature.
For an engaging account of how California became a renewable energy power house in the early and mid 1980s see Dynamos and Virgins.
- California's Attorney General Says Feed-in Tariffs Legal in USA--In a significant filing June 25, 2009 California's Attorney General (AG) argued that feed-in tariffs as proposed in California are not only permitted under federal law but that they should be used to encourage rapid growth of renewable energy.
- California Feed-In Tariff Design and Policy Options: Final Consultant Report, publication # CEC-300-2008-009-F, posted May 4, 2009
- CSI Report April 9 - Can the California Solar Initiative Net Metering Program Meet its Objectives?--The conclusion: No. California will not meet its 3,000 MW target. . .
- California PUC to Hold Workshop on Feed-in Tariffs--The California Public Utility Commission (PUC) will hold a workshop on "Renewable Feed-in Tariffs" on February 10, 2009 in San Francisco. . .
- CEC Recommends Cost-Based Feed-in Tariff
- Santa Monica To Study Feed Law
- Filing Comments on CEC Feed-in Tariff Final Report
- CEC Presentation Summary and Final Recommendations on Feed-in Tariffs for California
- Paul Gipe Comments on CEC Feed-in Tariff Final Report
- California Renewable Energy Sources Act Proposed Tariffs
- Continent's Largest Municipal Utility Proposes Solar Feed-in Tariff
- Palm Desert officials leave on solar trip to Spain: Ferguson and Conlon want to bring feed-in tariff to California (Desert Sun)
- California Air Resources Board Suggests Feed-in Tariff
- Los Angeles Solar Plan Press Release
- Los Angeles Solar Plan (1,300 MW of solar PV)
- Paul Gipe Comments on CEC Feed-in Tariffs Proposal
- Sierra Club California Comments on CEC Feed-in Tariff Proposal
- Filing Comments on CEC Feed-in Tariff Proposals: Take Action Now.
- Documents on CEC's Staff Workshop: Renewable Energy "Feed-In" Tariffs, October 1, 2008
- California Feed-in Tariff Design and Policy Options Report Publication No. CEC-300-2008-009-D
- California's Lieutenant Governor Calls for Feed-in Tariffs
- California Ratepayer Advocates Suggest Feed-in Tariffs
- CEC June 30 Staff Workshop: Renewable Energy "Feed-In" Tariffs--An excellent series of documents on feed law design, including the report below.
- Exploring Feed-In Tariffs for California: Feed-In Tariff Design and Implementation Issues and Options, publication # CEC-300-2008-003-D, posted June 20, 2008. (PDF file, 77 pgs, 464 kb)
- The California Feed-in Tariff Act of 2008
- California Feed-in Tariff Bills 2008
- CEC 2007 IEPR Excerpts where feed-in tariffs are discussed
- California Energy Commission To Recommend Renewable Energy Feed-in Tariffs (2007)
- Terry Tamminen on Feed-in Tariffs in California (audio interview)
- California Energy Commission Weighs Feed-in Tariff (2006)
- Solar for Energy Hogs: The California Example by Steven Letendre, Prometheus Institute
- Performance-Based Incentives or Renewable Tariffs for Photovoltaics in the USA (2006)
- Sierra Club (USA) Endorses Electricity Feed Law
- General Description of Standard Offer Contracts in California during the 1980s (doc)
- Standard Offer Contract No. 1 (pdf)
- Standard Offer Contract No. 3 (pdf)
- Standard Offer Contract No. 4 (pdf)
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
March 23, 2009
On March 14, 2008, the Florida Solar Energy Industries Association (FlaSEIA) endorsed a legislative policy effort to adopt a Production Based Incentive (PBI) mechanism to encourage the wide spread deployment of solar and renewable energy in Florida. The FlaSEIA Board of Directors unanimously concluded that the most cost-effective legislative policy tool to deliver the rapid deployment of solar energy, while ensuring a healthy and sustainable industry in Florida, are energy feed-in payments or Production Based incentives (PBI).
Since FlaSEIA's decision endorsing Florida feed-in tariffs, several other organizations have followed suit.
But it's Gainesville Regional Utilities that will make history with its solar tariffs. The muni is moving ahead rapidly and is launching its policy March 1st, 2009.
Hawaii Moves Toward Feed-in Tariffs by Mid-Summer 2009
April 21, 2009
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.
- Indiana Representative Pierce Introduces Feed Law Bill--Representative Matt Pierce (D-Bloomington) has introduced HB 1622, the Advanced Renewable Energy Tariffs Act, into the Indiana General Assembly. The bill received first reading January 16, 2009 and was referred to the Committee on Commerce, Energy, Technology and Utilities. Representative Pierce is Vice Chair of the committee. . .
Two of Oregon's Wind Working Group meetings, one in the fall of 2004, and one in spring 2006, have included discussions of Advanced Renewable Tariffs. However, Oregon adopted a Renewable Portfolio Standard and abandoned any movement toward renewable tariffs.
Washington State is considering several bills calling for feed-in tariffs.
- Washington State Introduces Feed Law Bill
--Washington State legislators have upped the ante on the West Coast's march toward renewable energy feed laws with the introduction of HB 1086, which calls for a full system of feed-in tariffs. . .
In March 2005, the Washington State Senate passed a bill creating a renewable energy tariff for solar photovoltaics (PV). Then in May the legislation passed the Assembly, a first in North America.
- Includes Solar PV, Small Wind, & Biogas
- Contract Length: 9 years
- Solar PV Built In-State
- $0.54/kWh + $0.05/kWh
= $0.059/kWh
- Max $2,000 per Customer per Year
- Max 25 kW (net-metered)
- Wind
- $0.12/kWh + $0.05/kWh = $0.17/kWh
- Limit on Total Program Size
- Based on “Early Adopters”
- Assumes
- Renewable Costs will Fall Dramatically
- Costs of Conventional Sources will Rise
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.
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