Energy and Economic Impacts of Implementing Both a 25-Percent Renewable Portfolio Standard and a 25-Percent Renewable Fuel Standard by 2025

This report responds to a request by Senator James Inhofe for analysis of a “25-by-25” proposal that combines a requirement that a 25-percent share of electricity sales be produced from renewable sources by 2025 with a requirement that a 25-percent share of liquid motor transportation fuel sales also be derived from renewable sources by 2025. The electricity requirement is implemented as a renewable portfolio standard (RPS), while the motor fuel standard is implemented as a renewable fuel standard (RFS). The RPS establishes a market for renewable energy credits, which will be created by the generation of electricity from qualified renewable generators (e.g., wind, geothermal, biomass, and solar). Electricity retailers must hold RPS credits in proportion to the amount of electricity they sell. Electricity providers can generate their own renewable electricity or trade renewable electricity credits to assure compliance. Similarly, the RFS establishes a market for renewable fuel credits, based on the amount of ethanol or other biofuels and biodiesels sold for motor transportation. Transportation fuel providers must hold RFS credits in proportion to the amount of motor transportation fuels they sell. This study compares a Policy Case incorporating the 25-by-25 proposal to an updated version of the Reference Case from the Energy Information Administration’s (EIA’s) Annual Energy Outlook 2007 (AEO2007). Revisions to the Reference Case for this analysis included: expiration of existing ethanol tax credits and tariffs as currently scheduled by law; updates to supply curves for domestic biomass and corn resources; inclusion of offshore wind technology; and updates of the potential for ethanol imports from Brazil.

• Record URL:
  • http://www.eia.doe.gov/oiaf/servicerpt/eeim/pdf/sroiaf(2007)05.pdf
• 
• Corporate Authors:

  Energy Information Administration

  Department of Energy, 1000 Independence Avenue, SW
  Washington, DC  United States  20585
• Publication Date: 2007-8

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; Tables;
• Pagination: 86p

Subject/Index Terms

• TRT Terms: Biodiesel fuels; Biomass fuels; Economic impacts; Electricity; Energy; Environmental protection; Ethanol; Forecasting; Geothermal power plants; Motor fuels; Renewable energy sources; Solar energy; Solar power generation; Standards; Wind power generation
• Uncontrolled Terms: Credit trading
• Subject Areas: Economics; Energy; Environment; Highways; Society; I10: Economics and Administration; I15: Environment;

Filing Info

• Accession Number: 01076989
• Record Type: Publication
• Report/Paper Numbers: SR/OIAF/2007-05
• Files: TRIS
• Created Date: Sep 28 2007 8:01AM