To amend title VI of the Public Utility Regulatory Policies Act of 1978 to establish a Federal renewable electricity standard for retail electricity suppliers, and for other purposes.
About This Bill
Committee
Latest Action · November 20, 2024
Read twice and referred to the Committee on Energy and Natural Resources.
The American Renewable Energy Act of 2024 establishes a federal renewable electricity standard requiring large electricity suppliers to gradually increase the share of renewable energy they provide to customers. Starting in 2025, suppliers selling at least one million megawatt hours annually must meet escalating renewable energy targets, beginning at 20 percent and rising to 70 percent by 2034, with requirements potentially continuing beyond that date. The bill affects major electric utilities and creates a trading system for renewable electricity credits, allowing companies to buy and sell credits to meet their obligations or pay an alternative compliance fee of $50 per megawatt hour (adjusted for inflation).
To advance environmental justice, the legislation requires that at least 15 percent of renewable energy credits from 2025 through 2028 (increasing to 20 percent from 2029 through 2034) come from distributed generation and projects built in economically disadvantaged communities. States receiving alternative compliance payments must use those funds for renewable energy deployment, electricity storage, or energy efficiency, with half the funding benefiting impacted communities. The Federal Energy Regulatory Commission must issue implementing regulations by January 1, 2026, and will oversee credit issuance, trading, and enforcement, including penalties for non-compliance.
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