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Energy and Environment Guide to Action - Chapter 5: Renewable Portfolio Standards

A renewable portfolio standard (RPS) requires electric utilities and other retail electric providers to supply a specified minimum percentage (or absolute amount) of customer demand with eligible sources of renewable electricity. Many states have adopted RPS requirements because they are an administratively efficient, cost-effective, market-based approach to achieving renewable electricity policy objectives. RPS requirements can be used in both regulated and restructured electricity markets. States have tailored their RPS requirements to satisfy particular state policy objectives, electricity market characteristics, and renewable resource potential. Consequently, there is wide variation in RPS rules from state to state regarding the minimum requirement of renewable energy, implementation timing, eligible technologies and resources, and other policy design details. 

Learn more about state renewable portfolio standards in Chapter 5. See the rest of the Energy and Environment Guide to Action.

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