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Legislation Document
SPONSOR:
Rep. Michael Smith & Sen. Buckson
Reps. Collins, Dukes, Gray, Hensley, Hilovsky, Jones Giltner, Morris, Postles, D. Short, Shupe, Spiegelman, Vanderwende, Yearick; Sens. Hocker, Lawson, Pettyjohn, Richardson, Wilson
HOUSE OF REPRESENTATIVES
153rd GENERAL ASSEMBLY
HOUSE BILL NO. 80
AN ACT TO AMEND TITLE 26 OF THE DELAWARE CODE RELATING TO RENEWABLE ENERGY PORTFOLIO STANDARDS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 354, Title 26 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 354. Renewable energy portfolio standards, eligible energy resources and industrial exemption.
(a) The total retail sales of each Retail Electricity Product delivered to Delaware end-use customers by a commission-regulated utility or municipal electric company during any given compliance year shall include a minimum percentage of electrical energy sales with eligible energy resources and solar photovoltaics as follows:
SCHEDULE I
Compliance Year
Minimum Cumulative Percentage
Minimum Cumulative Percentage (beginning June 1st)
from Eligible Energy Resources
from Solar Photovoltaics*
2018
17.50%
1.75%
2019
19.00%
2.00%
2020
20.00%
2.25%
2021
21.00%
2.50%
2022
22.00%
2.75%
2023
23.00%
3.00%
2024
24.00%
3.25%
2025
25.00%
10%
3.50%
2026
25.50%
10%
3.75%
3.50%
2027
26.00%
10%
4.00%
3.50%
2028
26.50%
10%
4.25%
3.50%
2029
27.00%
10%
4.50%
3.50%
2030
28.00%
10%
5.00%
3.50%
2031
30.00%
10%
5.80%
3.50%
2032
32.00%
10%
6.60%
3.50%
2033
34.00%
10%
7.40%
3.50%
2034
37.00%
10%
8.40%
3.50%
2035
40.00%
10%
10.00%
3.50%
2036
11%
3.75%
2037
12%
4.00%
2038
13%
4.25%
2039
14%
4.50%
2040
15%
5.00%
* Minimum Percentage from Eligible Energy Resources Includes the Minimum Percentage from Solar Photovoltaics.
SYNOPSIS
The Renewable Portfolio Standard (RPS) is the percentage of electricity that utilities must source from renewables. This is presently set at 25% and will increase annually, culminating at 40% in 2035.
Delaware does not currently have enough renewable energy to meet the present mandate, let alone future RPS requirements. Renewable energy is also in short supply on the regional power grid. If it is available, consumers are paying additional distribution charges to transmit it to Delaware. If renewable energy is not obtainable, Delaware utilities are paying penalties to the state for failing to achieve the RPS mandate. In each of the last two years, Delmarva Power has spent about $13 million annually in such state mandated compliance fees. All these cost multipliers are being passed along to consumers, making power more expensive for Delaware ratepayers.
This bill recognizes the current flawed public energy policy that has resulted in renewable energy demand significantly outpacing supply. This legislation seeks to provide relief to Delawareans by rolling back the Renewable Portfolio Standard to 10% and maintaining the RPS requirement for the next 10 years, providing sufficient time for renewable generation capacity to meet demand. After the 10-year period expires, the RPS percentage will resume scheduled annual increases.