On March 1st, 2016, D.C. Councilmember Cheh introduced the Renewable Portfolio Standard Expansion Amendment Act of 2016 (B21-0650) for legislative consideration before the Council of the District of Columbia. On this date, the Renewable Portfolio Standard (RPS) bill was referred to the Committee on Transportation and the Environment, where it remains under review to date. As introduced by Councilmember Cheh, this bill would serve to accomplish four goals:
- Expand the list of Tier 1 renewable energy sources by incorporating (1) waste heat from combined and sanitary sewage systems and (2) effluence from wastewater treatment;
- Increase the RPS and solar carve-out requirements to 50 percent and 5 percent by the year 2032, respectively;
- Increase alternative compliance payments (financial penalties) for electricity suppliers who fail to comply with RPS requirements; and
- Establish a Department of Energy and the Environment program to help low-income homeowners install solar systems on their homes.
Should the bill be enacted, the combination of increasing the overall RPS and solar carve-out requirements and raising the alternative compliance payments (ACPs) will increase market demand for D.C. solar renewable energy credits (SRECs). Increased demand for SRECs will provide price support for SREC values in the District and will encourage additional growth and adoption of solar in the nation’s capital.
For more information on the District of Columbia SREC market, please visit our D.C. market page.
SRECTrade will continue to provide updates on the status of the D.C. RPS bill as it progresses with the Council.