Renewable Portfolio Standards

State Policy Resources

Renewable Portfolio Standards Documents

The Renewable Portfolio Standards (RPS) Fact Sheet describes the benefits of RPS for states, how RPS encourage CHP projects, and examples of state RPS requirements. Download a PDF version (4 pp, 148K, About PDF) to print and share.
Energy Portfolio Standards (EPS) and the Promotion of Combined Heat and Power (PDF) (10 pp, 400K, About PDF) outlines the elements of successful EPS and RPS policies and how these policies can promote distributed generation, energy efficiency, and CHP. The white paper provides examples of state EPS programs that include CHP and offers an overview of the benefits and characteristics of CHP.
EPA Clean Energy-Environment Guide to Action, Chapter 5, Section 5.1 (PDF) (18 pp, 880K, About PDF) offers detailed information on implementing RPS as part of a state clean energy policy.

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Renewable portfolio standards (RPS) establish requirements for electric utilities and other retail electric providers to serve a specified minimum percentage (or absolute amount) of customer load with eligible sources of renewable electricity. Twenty states plus the District of Columbia have adopted RPS requirements.

RPS requirements can be used in both regulated and unregulated state electricity markets and can help states achieve their renewable policy objectives. Through January 2008, RPS requirements or goals have been established in 29 states plus the District of Columbia. Eight states—Colorado, Connecticut, Hawaii, Nevada, North Carolina, North Dakota, Pennsylvania, and Washington—include CHP and/or waste heat recovery as an eligible resource, and Arizona explicitly includes renewably fueled CHP systems. Due to the increased efficiencies of CHP systems, Connecticut and Pennsylvania have included an additional tier or class in their RPS rules specifically for CHP, while Arizona included renewably fueled CHP systems into their RPS law.

RPS Benefits

RPS requirements produce a number of benefits, such as reducing emissions of air pollutants and greenhouse gases, increasing diversity and security of energy supply, and reducing price volatility in energy markets. RPS requirements also promote economic development and create new jobs related to manufacturing, installing, and servicing RPS-eligible equipment and facilities.

Specific State Examples

California RPS - Established in September 2002, California's RPS requires retail sellers of electricity to purchase 20 percent renewable electricity by 2017. At a minimum, retailers must increase their use of renewable electricity by 1 percent each year.
Connecticut RPS - The Connecticut RPS was originally promulgated in 1998 and started in 2004, establishing requirements for two classes of resources. In June 2005, Connecticut passed "An Act Concerning Energy Independence," establishing a new RPS Class III that must be fulfilled with CHP, demand response¹, and electricity savings from conservation and load management programs. The new standard will require electric suppliers and distribution companies to obtain 1 percent of their generation from Class III resources beginning in 2007, and increase by 1 percent per year until leveling out at 4 percent in 2010 and thereafter.
Massachusetts RPS - Beginning in 2003, the Massachusetts Department of Energy Resources (DOER) required retail electric suppliers to use 1 percent renewable energy in their overall supply. By 2009, retail electric suppliers must reach 4 percent renewables, after which the RPS requirements will increase 1 percent each year until the DOER determines that additional requirements are no longer necessary.
Texas RPS - Adopted in 1999, the Texas RPS requires that 2,000 megawatts (MW) of new capacity be installed by 2009. As of February 2005, 1,187 MW of renewable energy capacity had been installed in the state. In August 2005, Texas passed Senate Bill (PDF), (6 pp, 47K, About PDF) requiring the state's generating capacity from renewable energy sources to reach 5,880 MW by 2015 and 10,000 by 2025.

Additional Resources

RPS Fact Sheet, also available in PDF (4 pp, 148K, About PDF), describes the benefits of RPS for states, how RPS encourage CHP projects, and some of the different state requirements for those that have implemented them.
Energy Portfolio Standards (EPS) and the Promotion of Combined Heat and Power (PDF) (10 pp, 400K, About PDF) outlines the elements of successful EPS and RPS policies and how these policies can promote distributed generation, energy efficiency, and CHP.
EPA Clean Energy-Environment Guide to Action, Chapter 5, Section 5.1 (PDF) (18 pp, 880K, About PDF) offers additional detailed information on implementing RPS as part of a state clean energy policy.
EPA's State Clean Energy Program Activities outlines state and local government programs and policies geared toward integrating energy efficiency, renewable energy, and clean distributed generation for businesses and residents.
Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency.

If you would like additional assistance, please contact Katrina Pielli (pielli.katrina@epa.gov).

Notes:
¹ Demand Response (DR) resources must be registered with ISO-New England. DR resources must be on the load side, not supply side (no diesel generators).

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