Renewable Portfolio Standard
A Renewable Portfolio Standard (RPS) is a law that requires retail electricity suppliers to generate a minimum percentage of their electricity using eligible renewable energy sources.
Twenty-nine (29) States and the District of Columbia have mandatory RPS laws. Seven (7) States have non-binding goals.
No two RPS laws are the same. A typical law includes a percentage to be met and a date to meet it by. Example. California requires municipal and investor owned utilities to generate 33% of their energy from renewable sources by 2020. RPS mandates are often backed by penalties for non-compliance and statutorily limit the impact on the consumer’s rate (most below 10%, 13 States below 5%).
Generating electricity from renewable sources like Renewable Natural Gas helps states meet their RPS policy goals of ensuring stable, diversified energy portfolios that are not overly dependent on fossil fuels.