What is the Renewable Portfolio Standard (RPS)?
Senate Bill 1078, signed into law in 2002, created a Renewable Portfolio Standard (RPS) for the state of California, calling for the state to double its renewable supply capacity from 10 to 20 percent between 2003 and 2017. California utilities were required to increase their renewable energy supply by 1 percent annually over a 14 year period. The CPUC moved the date for compliance from 2017 to 2010. This was reaffirmed by new state legislation that also allowed the utilities to avoid meeting the deadline for extenuating circumstances. An RPS ensures that a minimum amount of renewable energy is included in the supply portfolio of electricity resources serving a country, state or other jurisdiction. An overall renewable energy target is set by government policy makers, but the market then determines which fuels and specific projects will be built to meet the target. The RPS is a flexible, market-based public policy that has been the most effective in developing lowest cost new renewable
