The RPS mechanism generally places an obligation on electricity supply companies to produce a specified fraction of their electricity from renewable energy sources. Certified renewable energy generators earn certificates for every unit of electricity they produce and can sell these along with their electricity to supply companies. Supply companies then pass the certificates to some form of regulatory body to demonstrate their compliance with their regulatory obligations. Because it is a market mandate, the RPS relies almost entirely on the private market for its implementation. Unlike feed in tariffs which guarantee purchase of all renewable energy regardless of cost, RPS programs tend to allow more price competition between different types of renewable energy, but can be limited in competition through eligibility and multipliers for RPS programs. Those supporting the adoption of RPS mechanisms claim that market implementation will result in competition, efficiency and innovation that will deliver renewable energy at the lowest possible cost, allowing renewable energy to compete with cheaper fossil fuel energy sources.<ref>[http://www.awea.org/policy/rpsbrief.html "The Renewables Portfolio Standard: How It Works and Why It's Needed"] Wind Energy Association, accessed June 2010.</ref>
According to the U.S. [[Department of Energy]], as of May 2009 there are 24 states plus the District of Columbia that have RPS policies in place. Five other states - North Dakota, South Dakota, Utah, Virginia, and Vermont - have nonbinding goals for adoption of renewable energy instead of an RPS. Regulations vary from state to state, and there is no federal policy. Together these thirty states account for more than 42 percent of the electricity sales in the United States.<ref>[http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm "States with Renewable Portfolio Standards"] US DOE, accessed June 2010.</ref> Since 2009, the US Congress has been considering federal level RPS requirements. The [[American Clean Energy Leadership AcJobs and American Power Act]] reported out of committee in July 2010 by the Senate Committee on Energy & Natural Resources includes a Renewable Electricity Standard that calls for 3% of U.S. electrical generation to come from non-hydro renewables by 2011–2013.<ref>Scott Sklar, [http://www.renewableenergyworld.com/rea/news/article/2009/07/house-and-senate-move-to-address-climate-and-energy-mixed-bag-for-clean-energy?cmpid=WNL-Wednesday-July8-2009 "House and Senate Move to Address Climate and Energy: Mixed Bag for Clean Energy"] Renewable Energy World, July 7, 2009.</ref>
==Legislation==
==List of US states with RPS==
According to the U.S. [[Department of Energy]], as of May 2009 there are 24 states plus the District of Columbia that have RPS policies in place. Five other states - North Dakota, South Dakota, Utah, Virginia, and Vermont - have nonbinding goals for adoption of renewable energy instead of an RPS. Regulations vary from state to state, and there is no federal policy.<ref>[http://apps1.eere.energy.gov/states/maps/renewable_portfolio_states.cfm "States with Renewable Portfolio Standards"] US DOE, accessed June 2010.</ref>
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