The American Power Act has been proposed by Senators Kerry and Lieberman in an effort to reform the energy economy. The bill proposes to put power generation back into U.S. control, clean up the carbon footprint and increase the use of clean technologies. You can learn more on Kerry’s website.
Questions arise around the impact such a bill might have on the SREC markets that currently exist. Our read of the proposed legislation is that it does not impact renewable portfolio standards and would not preclude any established state RPS. The proposed law does preempt state and regional carbon reduction laws (currently RGGI and AB32), but the renewable portfolio standards would not fall under the definition of that section.
Section 1601 of the bill is essentially a placeholder for federal portfolio standard legislation, which is contained in another senate bill that passed out of the Committee on Energy and Natural Resources some time ago. That bill specifically allows any state RPS that is stricter than the federal program to continue, so none of the markets where we currently operate would be impacted. The climate bill the House passed does contain a federal RPS and it has similar language protecting state programs.
The bottom line is that passage of the climate bill is still uncertain, but even if it does pass SREC markets will remain alive and well. If the overall climate bill doesn’t pass, the energy bill with the federal portfolio standard may be a compromise everyone can agree on, which would be good for SREC and REC markets throughout the country.
The bill can be read here: http://kerry.senate.gov/americanpoweract/pdf/APAbill.pdf