# Summary
The American Renewable Energy Act of 2024 establishes a federal requirement that large electricity suppliers gradually increase the share of renewable energy they sell to customers. Starting in 2025 at 20 percent, the requirement rises annually to reach 70 percent by 2034, with percentages potentially increasing further through 2044. Suppliers can meet these targets by obtaining renewable electricity credits, which represent one megawatt hour of clean energy from wind, solar, geothermal, biogas, hydropower, or marine sources.
The bill affects all electricity suppliers selling at least one million megawatt hours annually to consumers. To promote equity and environmental justice, at least 15 percent of required credits must come from distributed generation and renewable projects in disadvantaged communities through 2028, increasing to 20 percent thereafter. Suppliers can alternatively pay $50 per megawatt hour (adjusted annually for inflation) into state renewable energy funds, which states must use to support clean energy projects with at least 50 percent of funds benefiting disadvantaged communities. The Federal Energy Regulatory Commission must establish regulations by January 1, 2026, and will enforce compliance through civil penalties for suppliers that fail to meet requirements.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.