This summary provides an overview of S. 2146, the Clean Energy Standard Act of 2012 (CESA), introduced by Senator Bingaman and 8 cosponsors on March 1, 2012. The CESA establishes a standard for clean energy generation in the U.S. through 2035.
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- What is the Clean Energy Standard Act?
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Beginning in 2015, each utility covered under the bill must obtain a certain amount of electricity from “clean” sources. That obligation increases each year, so that in 2035 covered utilities must supply 84% of their total annual sales of electricity from clean sources.
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Covered utilities can generate electricity from clean sources to meet the electric demands of their consumers, or they can purchase tradable credits from other clean sources.
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Covered utilities that do not generate electricity from clean sources or purchase credits from other clean sources may also comply by paying a fee, known as an alternative compliance payment. That payment starts at 3 cents/kWh in 2015, and annually increases by 5% plus the rate of inflation. Use of revenues collected through this fee is discussed under question 7. (Read more >>>)
