District of Columbia

Incentives/Policies for Renewables & Efficiency

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Renewables Portfolio Standard

Last DSIRE Review: 10/23/2009

Incentive Type:	Renewables Portfolio Standard
State:	District of Columbia
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.shtm#Link24
Authority 1:	D.C. Code § 34-1431 et seq.
Date Enacted:	04/12/2005 (subsequently amended)
Date Effective:	04/12/2005
Authority 2:	DC PSC Order No. 14697
Date Enacted:	01/10/2008
Authority 3:	DC PSC Order No. 15561
Date Enacted:	09/28/2009
Date Effective:	10/02/2009

Summary:

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%	0.25%
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.

Electricity 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.

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.

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.

Contact:

	Grace Hu DC Public Service Commission 1333 H St. NW, Suite 200 Washington, DC 20005 Phone: (202) 626-5148 Fax: (202) 393-6769 E-Mail: GHu@psc.dc.gov Web Site: http://www.dcpsc.org

	Emil King District Department of the Environment Energy Division 2000 14th Street, NW, 300 East Washington, DC 20009 Phone: (202) 673-6700 Fax: (202) 673-6725 Web Site: http://ddoe.dc.gov/ddoe

Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.