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Cnresioa Reeac Serc


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                                                                                                 September 20, 2019

A   Brief History of U.S. Electricity Portfolio Standard Proposals


Electricity portfolio standards are designed to change the
set of energy sources used to generate electricity, usually by
establishing requirements on utilities to procure a
percentage of electricity from specified eligible sources.
Since the 105th Congress, over 70 proposals for a national
portfolio standard have been introduced, but none has
become  law. This analysis provides historical context on
federal portfolio standard proposals.

Previous Federal Proposals
CRS  searched Congress.gov to assemble a comprehensive
list of all federal portfolio standard proposals. A full
description of the search methodology and the list of
previous legislation is available in CRS Report R45913,
Electricity Portfolio Standards: Background, Design
Elements, and Policy Considerations.

CRS  identified 73 proposals, with the earliest identified bill
introduced in 1997 in the 105th Congress. Some proposals
were standalone; in other words, a national portfolio
standard was the only provision in the bill. Other proposals
included a portfolio standard alongside other provisions.

As Figure 1 shows, the number of introduced bills was
highest in the 1 10th Congress. The 115th Congress saw the
fewest number of introduced bills of any Congress in which
a portfolio standard was proposed. Of the bills included in
this analysis, 14 (19%) had some action other than
introduction and referral to committee. Seven of these were
voted favorably in at least one chamber, but in all cases as
part of a more comprehensive energy or environmental bill.
For example, H.R. 4 in the 107th Congress, the Energy
Policy Act of 2002, passed both chambers, though it did not
become  law. H.R. 2454 in the 1 11t Congress, the American
Clean Energy and Security Act of 2009, passed the House.

Source Eligibility
A chief distinction among portfolio standard proposals is
which electricity generation sources may be used to fulfill
the requirement (i.e., source eligibility). A portfolio
standard might establish a requirement to procure electricity
from renewable sources such as wind, solar, biomass, or
geothermal energy. Many  stakeholders refer to these as
renewable portfolio standards (RPS).

A portfolio standard might alternatively establish
requirements to procure electricity from a broader set of
sources like nuclear, efficient natural gas-fired, or fossil
fuel-fired power plants equipped with carbon capture and
sequestration (CCS) technology in addition to renewable
sources. Many  stakeholders refer to this type of policy as a
clean energy standard (CES).




                                           https://crsrepo


   Portfolio standard proposals differ in their treatment of
   hydropower, possibly reflecting the different levels of
   support hydropower has among different stakeholders.
   Some proposals include hydropower in their definition of
   renewable sources, albeit often with restrictions based on
   size or age, while other proposals exclude hydropower in
   favor of non-hydro renewables. Many of the proposals
   identified by CRS (41) took an intermediate approach,
   exempting hydropower  from the compliance requirement.
   Sources that are exempted from a portfolio standard
   requirement could receive indirect financial incentives. The
   level of support for exempted sources would likely be less
   than the support for eligible sources, but more than the
   support for ineligible sources. Some proposals also
   exempted other sources in addition to hydropower such as
   municipal solid waste (23 proposals) and new nuclear
   power plants (5 proposals).

   Figure 1 categorizes bills according to the types of sources
   that would be eligible. All bills included some non-hydro
   renewables, though there were differences about eligibility
   for some types of sources, especially biomass. The
   introduced bills that only included non-hydro renewables
   are represented by blue bars in the figure. The majority of
   bills included some hydropower for eligibility in addition to
   non-hydro renewables, though some of these had age or
   size restrictions (orange bars). The figure does not
   distinguish bills that exempted hydropower or any other
   source from the compliance requirement. The third category
   of bills in this analysis included non-hydro renewables,
   hydropower, and additional non-renewable sources like
   nuclear or CCS (gray bars) as eligible sources. No
   proposals included only non-renewable sources.

   Figure I. Federal Portfolio Standard Proposals,  by
   Source  Eligibility

     Number of Introduced Bills      Some Non-Renewable
     16                              Sources
     14                              Some Hydra
     12                            n  on-Hydr oRenewables
     10
     8
     6
     4
     2
     0
         105 10, 10)7 108 10)9 110l Ill 112 113 114 115 116
                             Congress

   Source: CRS analysis, Congress.gov.
   Notes: Bills are categorized according to the set of eligible sources
   under the proposed portfolio standard. Differences in other design
   aspects, such as exemptions for certain sources from compliance

rts.congress.gov