Renewable Portfolio Standard

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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%). 

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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. 

Other Major Policies & Legislation