Bill > HB1542

This bill amends the state's Renewable Portfolio Standard (RPS) law by setting the Alternative Compliance Payment (ACP) rates for all renewable energy classes (Class I, II, III, and IV) to $0, effective January 1, 2027. Currently, these ACP rates range from $26.50 to $55, and they represent payments electric service providers must make when they cannot procure sufficient Renewable Energy Certificates (RECs). By reducing these rates to $0, the bill effectively eliminates penalties for non-compliance with renewable energy standards and is expected to collapse the REC market. The legislation would also eliminate the Renewable Energy Fund (REF), which currently receives approximately $6.7 million annually from these compliance payments and supports various renewable energy programs. The bill's impact includes potentially reducing electricity costs for ratepayers, but it would also mean the cessation of existing renewable energy grant programs, rebate initiatives, and low-moderate income solar projects, unless alternative funding is secured through future legislative appropriations. The bill is set to take effect on July 1, 2027, and could result in the elimination of nine full-time positions currently funded by the REF.