According to an article in renewablesbiz, the California Public Utility Commission (CPUC) has agreed on something called tradable renewable energy credits (TRECs) that allows renewable energy generated outside the state to count toward Renewable Portfolio Standard (RPS) objectives. Something like 35 US states have RPSs, so this could become a precedent for other states.
Apparently California is behind in its aggressive goal of 20% renewables by 2010 (33% by 2020). According to the latest RPS report, in 2009, 357 MW of new renewable capacity reached commercial operation, 254 MW of which was in-state. The new renewable capacity included biomass, biogas, geothermal, solar PV, small hydro, and wind.
California will allow TRECs from the Western Interconnection transmission system to be used by utilities for up to 25 percent of their RPS objectives. According to the CPUC’s plan, utilities can purchase TRECs from an out-of-state generator with renewable energy sources, even without purchasing the associated power. But the TRECs must be associated with the delivery of some amount of power to California if it is going to contribute to the RPS objectives. The power can even be generated at a different time and location than the power associated with the TRECs.
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