Modifies provisions relating to the renewable energy standard
The bill impacts existing state laws regarding energy generation by mandating that utilities incorporate renewable energy into their portfolio. By setting these targets, SB374 is expected to drive significant investment in renewable energy infrastructure within the state. Additionally, the bill introduces specific provisions for renewable energy certificates (RECs), which serve as a compliance mechanism for utilities to demonstrate adherence to the standards, thus facilitating the trading of energy credits that can further incentivize the renewable energy market.
Senate Bill 374 seeks to modify the provisions surrounding Missouri's renewable energy standard, specifically focusing on electric utilities. The bill requires that all electric utilities generate or purchase a specified percentage of their electricity from renewable sources over the coming years. It establishes a gradual increase in the portfolio requirement, starting with 2% and reaching up to 15% by 2021. This is aimed at increasing the overall reliance on renewable energy, such as solar and wind, which is part of a broader initiative to combat climate change and reduce environmental impacts.
The sentiment around SB374 appears to be largely supportive among environmental advocates and renewable energy proponents, who view the bill as a necessary step toward achieving energy sustainability. However, some concerns have been raised by utility companies regarding the potential financial implications, particularly how compliance costs could affect their rates and operations. The debate features discussions about balancing environmental responsibilities while ensuring stability in energy prices for consumers.
Notable points of contention include the precise percentage allocations mandated for renewable energy inclusion, as some industry representatives argue that the targets may be overly ambitious or financially burdensome. Additionally, the penalties for non-compliance which involve significant financial repercussions for utilities have sparked concern among stakeholders. The ongoing conversation emphasizes the tension between promoting renewable energy and maintaining the economic viability of electric utilities.