‹ Analysis & Projections

Annual Energy Outlook 2014

Release Dates: April 7 - 30, 2014   |  Next Early Release Date: December 2014   |  See schedule

Legislation and regulations

Table 3. Renewable portfolio standards in the 30 states and District of Columbia with current mandates
State Target Qualifying renewables Qualifying other (thermal, efficiency, nonrenewable distributed generation, etc.)
Compliance mechanisms
AZ 15% by 2025 Solar, wind, biomass, hydropower, landfill gas (LFG), anaerobic digestion built after January 1, 1997 Direct use of solar heat, ground-source heat pumps, and renewable-fueled combined heat and power (CHP), cogeneration, and
fuel cells
Credit trading is allowed, with some bundling restrictions. Includes distributed generation requirement, starting at 5% of target in 2007, growing to 30% in 2012 and beyond.
CA 33% by 2020 Solar, wind, biomass, geothermal, LFG and municipal solid waste (MSW), small hydro, biodiesel, anaerobic digestion, and marine Energy storage Credit trading is allowed, with some restrictions. Renewable energy credit prices are capped at $50 per megawatthour.
CO 30% by 2020 for investor-owned utilities; 33% by 2025 for electric cooperatives and municipal utilities serving more than 40,000 customers Solar, wind, biomass, hydro, biomass, geothermal electric, and anaerobic digestion Recycled energy Credit trading is allowed. The distributed renewables requirement (30% of target) applies to investor-owned utilities. Generation from in-state and solar projects is eligible to earn credit multipliers, as is generation associated with certain projects that have specific ownership or transmission ties with small utilities, entities, or individuals.
CT 27% by 2020 (23% renewables, 4% efficiency and CHP) Solar, wind, hydro (with exceptions), LFG/MSW, anaerobic energy, marine CHP/cogeneration Credit trading is allowed. Obligated providers may comply via an alternative compliance payment of $55 per megawatthour. The target is made up of four source tiers with tier-specific targets.
DE 25% by 2026 Solar, wind, biomass, hydro, geothermal, LFG, anaerobic digestion, marine Fuel cells, distributed generation Credit trading is allowed. Credit multipliers are awarded for several compliance specifications, including generation from in-state distributed solar and renewable-fueled fuel cells and offshore wind. Target increases for some suppliers can be subject to a cost threshold.
DC 20% by 2020 Solar, wind, biomass, hydro, geothermal, LFG/MSW, marine Cofiring
Credit trading is allowed. Target includes a solar-specific set-aside, equivalent to 2.5% of sales by 2023. Obligated providers may also comply via a tier-specific alternative compliance payment.
HI 40% by 2030 Solar, wind, biomass, hydro, geothermal, LFG/MSW, anaerobic digestion, marine, certain biofuels Direct use of solar, ground-source heat pumps, ice storage, CHP/cogeneration, efficiency programs, fuel cells using renewable fuels, hydrogen Credits cannot be traded. Eligibility of several of the "qualifying other" displacement technologies is restricted after 2015. Utility companies can calculate compliance over all utility affiliates.
IL 25% by 2026
Solar, wind, biomass, hydro, anaerobic digestion, biodiesel None
Credit trading is allowed. Target includes specific requirements for wind, solar, and distributed generation. The procurement process is subject to a cost cap
IA 105 megawatts of eligible renewable resources Wind, solar, some types of biomass and waste, small hydropower None Iowa's investor-owned utilities currently are in full compliance with this standard, achieved primarily through wind capacity.
KS 20% of each demand capacity by 2020 Solar, wind, hydro, biomass, LFG, renewable-fueled fuel cells Direct use of solar heat
Credit trading is allowed. Eligible in-state capacity counts for 1.1 times its actual capacity.
ME 40% total by 2017, 10% by 2017 from new resources entering service in 2005 and beyond Solar, LFG, wind, biomass, hydro, geothermal, MSW, marine Fuel cells, CHP/cogeneration Credit trading is allowed. The Maine Public Utilities Commission sets an annually adjusted alternative compliance payment. Community-based generation projects are eligible to earn credit multipliers.
MD 20% by 2022 Solar, wind, biomass, geothermal, LFG/MSW, anaerobic digestion, marine Solar water heat, ground-source
heat pumps
Credit trading allowed. The target includes a solar specific set-aside. Utilities may pay an alternative compliance payment in lieu of procuring eligible sources, with a tier-specific compliance schedule.
MA 22.1% by 2020 (and an additional 1% per year thereafter)
Solar, wind, hydro, some biomass technologies, LFG/MSW, geothermal electric, anaerobic digestion, marine, renewable-fueled fuel cells None
Credit trading is allowed. The target for new resources includes a solar-specific goal to achieve 400 megawatts of in-state solar capacity, which is translated into an annual target for obligated providers. Obligated providers may comply via an alternative compliance payment (ACP), which varies in level by the requirement class, although the ACP is designed to be higher than the cost of other compliance options.
MI 10% by 2015, with specific new capacity goals for utilities that serve more than 1 million customers Solar, wind, hydro, biomass, LFG/MSW, geothermal electric, anaerobic digestion, marine CHP/cogeneration, coal with carbon capture and sequestration, and energy efficiency measures for up to 10 percent of a utility's sales obligation Credit trading is allowed. Solar power receives a credit multiplier, while other generation and equipment features—such as peak generation, storage, and use of equipment manufactured in-state—can earn fractional bonus credits.
MN 30% by 2020 (Xcel Energy) or 25% by 2025 (other utilities)
Solar, wind, hydro, biomass, LFG/MSW, anaerobic digestion
Hydrogen (generated from renewable sources), cofiring Credit trading is allowed. Xcel's target must achieve 25 percent of sales specifically from wind and solar (with a 1-percent maximum for solar). State regulators can penalize noncompliance at the estimated cost of compliance.
MO 15% by 2021
Solar, wind, hydro, biomass, LFG/MSW, anaerobic digestion, ethanol, renewable-fueled fuel cells
None Credit trading is allowed. Non-compliance payments are set at double the market rate for renewable energy credits. Solar must account for 20% of the annual target.
MT 15% by 2015
Solar, wind, hydro, geothermal, biomass, LFG Compressed air storage Credit trading is allowed, with a price cap of $10 per megawatthour. There are specific targets for community-based projects.
NV 25% by 2025
Solar, wind, hydro, geothermal, biomass, LFG/MSW Waste tires, direct use of solar and geothermal heat, efficiency measures (which can account for one-quarter of the target in any given year) Credit trading is allowed. Photovoltaics receives a credit premium, with an additional premium for customer-sited systems.
NH 24.8% by 2025
Solar, wind, small hydro, marine, LFG
Fuel cells, CHP, microturbines, direct use of solar heat, ground-source heat pumps Credit trading is allowed, and utilities may pay into a fund in lieu of holding credits. The target comprises four separate compliance classes, broken out by technology.
NJ 20.38% by 2021, with an additional 4.1% solar by 2027
Solar, wind, hydro, geothermal, LFG/MSW, marine None Credit trading is allowed, with an alternative compliance payment set by state regulators. Solar and offshore wind are subject to separate requirements and have separate enforcement provisions.
NM 20% by 2020 for investor-owned utilities, 10% by 2020 for cooperatives Solar, wind, hydro, geothermal, LFG Zero-emission technology, not including nuclear Credit trading is allowed. The program cannot increase consumer costs beyond a threshold amount, increasing to 3 percent of annual costs by 2015. Technology minimums are established for wind, solar, and certain other resources.
NY 29% by 2015 Solar, wind, hydro, geothermal, biomass, LFG, marine Direct use of solar heat, fuel cells Credit trading is not allowed. Compliance is achieved through purchases by state authorities, funded by a surcharge on investor-owned utilities. Government-owned utilities may have their own, similar programs.
NC 12.5% by 2021 for investor-owned utilities; 10% by 2018 for municipal and cooperative utilities Solar, wind, small hydro, biomass, geothermal, LFG, marine
Direct use of solar heat, CHP, hydrogen, demand reduction
Credit trading is allowed. Impacts on customer costs are capped at specified levels. There are specific targets for solar and certain animal waste projects.
OH 12.5% by 2024 Solar, wind, hydro, biomass, geothermal, LFG/MSW
Energy storage, separate 12.5% target for "advanced energy technologies," including coal mine methane, advanced nuclear, and efficiency Credit trading is allowed. Alternative compliance payments are set by law and adjusted annually. There is a separate target for solar energy.
OR 5% by 2025 for utilities with less than 1.5% of total sales; 10% by 2025 for utilities with less than 3% of total sales; 25% by 2025 for all others Solar, wind, hydro, biomass, geothermal, LFG/MSW, marine
Hydrogen Credit trading is allowed, with an alternative compliance payment and a limit on expenditures of 4% of annual revenue. Solar receives a credit multiplier.
PA 18% by 2020
Solar, wind, hydro, biomass, LFG/MSW Certain advanced coal technologies, certain energy efficiency technologies, fuel cells, direct use of solar heat, ground-source heat pumps Credit trading is allowed, with an alternative compliance payment. There are separate targets for solar and two different combinations of renewable, fossil, and efficiency technologies.
RI 16% by 2019 Solar, wind, hydro, biomass, geothermal, LFG, marine None Credit trading is allowed, with an alternative compliance payment. There is a separate target for 90 megawatts of new renewable capacity.
TX 5,880 megawatts by 2018 Solar, wind, hydro, biomass, geothermal, LFG, marine Direct use of solar heat, ground-source heat pumps Credit trading is allowed, with capacity targets converted to generation equivalents. State regulators may cap credit prices. 500 megawatts must be from resources other than wind.
WA 15% by 2020 Solar, wind, hydro, biomass, geothermal, LFG, marine Combined heat and power Credit trading is allowed, with an administrative penalty for noncompliance.
WV 25% by 2025 Solar, wind, hydro, biomass, geothermal, small hydro Several coal and natural gas generation sources Credit trading is allowed, with noncompliance assessments to be determined by state regulators. Renewable generation may receive credit multipliers, with additional credit earned for locating on abandoned strip mines.
WI 10% by 2015
Solar, wind, hydro, biomass, geothermal, LFG/MSW, small hydro, marine Pyrolysis [47], synthetic gas, direct use of solar or biomass heat, ground-source heat pumps Credit trading is allowed.