| State: |
District of Columbia |
| Incentive Type: |
Renewables Portfolio Standard |
| Eligible Renewable/Other Technologies: |
Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Municipal Solid Waste, Solar Space Cooling, Cofiring, Tidal Energy, Wave Energy, Ocean Thermal |
| Applicable Sectors: |
Investor-Owned Utility, Retail Supplier |
| Standard: | 20% by 2020 |
| Technology Minimum: | Solar: 0.4% by 2020 |
| Credit Trading: | Yes |
| Web Site: |
http://www.dcpsc.org/customerchoice/whatis/electric/elec_restruc....
|
In January 2005, the District of Columbia Council enacted a renewable portfolio standard (RPS) that applies to all retail electricity sales in the District. In October 2008 the RPS was amended by the
Clean and Affordable Energy Act (CAEA) of 2008. Significantly, this legislation increased the percentage and number of benchmarks that utilities must meet, included solar water heating as an eligible technology, increased the alternative compliance payment and amended reporting requirements. District utilities must meet the RPS by obtaining renewable energy credits (RECs) that equal the percentage requirement for electricity sold or by paying specified compliance fees. DC's RPS involves a two-tiered system. “Tier 1” renewable resources include solar (electric or thermal), wind, biomass, landfill gas, wastewater-treatment gas, geothermal, ocean (mechanical and thermal) and fuel cells fueled by "Tier 1" resources. Solar thermal installations must generally use Solar Rating and Certification Corporation (SRCC) certified components in order to qualify as an eligible resource. “Tier 2” renewable resources include hydropower (other than pumped-storage generation) and municipal solid waste.
Specific minimum percentages of retail electricity sales must come from eligible renewables according to the following schedule:
| Year | Tier I | Tier II | Solar |
|---|
| 2007 | 1.5% | 2.5% | 0.005% |
| 2008 | 2.0% | 2.5% | 0.011% |
| 2009 | 2.5% | 2.5% | 0.019% |
| 2010 | 3.0% | 2.5% | 0.028% |
| 2011 | 4.0% | 2.5% | 0.04% |
| 2012 | 5.0% | 2.5% | 0.07% |
| 2013 | 6.5% | 2.5% | 0.10% |
| 2014 | 8.0% | 2.5% | 0.13% |
| 2015 | 9.5% | 2.5% | 0.17% |
| 2016 | 11.5% | 2.0% | 0.21% |
| 2017 | 13.5% | 1.5% | 0.25% |
| 2018 | 15.5% | 1.0% | 0.30% |
| 2019 | 17.5% | 0.5% | 0.35% |
| 2020 | 20.0% | 0.0% | 0.40% |
Electricity suppliers must buy solar from local sources (within DC), or if the electricity supplier exhausts all opportunity to meet this requirement the supplier can look for REC's from jurisdictions outside DC. Based on the compliance report templates issued by the PSC, it appears that the solar requirement is contained within the Tier I requirement, meaning that a solar REC used to comply with the solar requirement may also be used to meet the Tier I requirement. Energy from Tier 1 resources is eligible for inclusion in meeting the RPS regardless of when the generating system or facility was activated. Tier 1 energy may be applied to the percentage requirements of the standard for either Tier 1 or Tier 2 renewable resources.
Certain renewable resources receive preferential treatment. Before January 1, 2007, electricity suppliers received 120% credit toward meeting the RPS for energy generated by wind or solar. Between January 1, 2007 and December 31, 2009, electricity suppliers will receive 110% credit for energy generated by wind or solar. Before January 1, 2010, electricity suppliers will receive 110% credit for energy generated by landfill methane or wastewater-treatment methane. Suppliers that fail to comply with the requirements must pay $0.05 per kilowatt-hour (kWh) of shortfall from required Tier 1 resources, $0.01 for each kWh of shortfall from Tier 2 resources and, from 2009 to 2018, $0.50 for each kWh of shortfall from required solar resources. Alternative compliance fees are deposited into the D.C. Renewable Energy Development Fund and may be used to provide support to renewable energy projects.
In December 2005 the DC Public Service Commission (PSC) adopted interim regulations governing the implementation of the RPS, including the application and transfer of RECs.* The PSC issued final regulations in January 2008 which require that each electricity supplier submit an annual compliance report detailing the quantities and types of renewable energy purchased and any compliance fees owed. Under these regulations, renewable energy generators must be certified as eligible by the PSC, but system owners may complete an expedited certification process if the generator has been previously certified by PJM Interconnection. RECs retain a three-year trading lifetime from their generation date before they must be retired. Further proposed rule changes were issued by the PSC in April 2009 to address the legislative changes made by the CAEA of 2008 with final revised rules adopted in September 2009. The RPS program website contains a detailed summary of legislative and regulatory actions since the inception of the program.
* Electricity suppliers were permitted by statute to begin receiving and accumulating RECs on January 1, 2006. RECs must be purchased from the PJM Interconnection region, Adjacent PJM States or an Adjacent Control Area that feeds into the PJM Interconnection region.
