Best Practices for Effective Renewable Energy Credit Programs A Report to the Great Lakes Renewable Energy Association
CESA for the Great Lakes Renewable Energy Association
Pursuant to a contract with the Great Lakes Renewable Energy Association, the Clean Energy States Alliance (CESA) provides the following report to identify key best practices to facilitate use of renewable energy credits (RECs) in state RPS programs.
CESA was asked to research and analyze current state RPS policies and REC trading programs, including energy efficiency standards and “white tag” policies. The scope of the research included assessment of accepted methods of defining, monitoring, measuring, and verifying RECs used by states across the country. The specific issues that CESA was asked to examine:
- The degree to which RECs are allowed under existing state RPS programs
- Definitions of renewable energy attributes that should be included in RECs to meet RPS obligations
- The major elements of existing REC trading systems
- How RECs from voluntary green power programs are treated in mandatory RPS programs
Based on this research, CESA was asked to develop “best practice” recommendations and key components to facilitate trading of RECs.
This report provides CESA’s recommendations on “best practices” for REC trading, based on the experience and program elements of existing state RPS laws.