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119-hr-10489119th CongressWALLET

American Renewable Energy Act of 2026

Sponsored By: Representative Clarke, Yvette D. [D-NY-9]

Introduced

Summary

Federal Renewable Electricity Standard (FRES) would set a national credit system and markets to push more wind, solar, geothermal, biogas, qualified hydropower, and marine energy onto the grid. It creates tradable Federal Renewable Electricity Credits and requires large retail suppliers to meet rising renewable shares while prioritizing benefits for impacted communities.

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  • Retail electricity suppliers: Suppliers that sold at least 1,000,000 MWh would need to surrender FRECs equal to rising targets, starting at 20.0% in 2027 and reaching 70.0% in 2036. The Commission would set post‑2036 targets, generally increasing about 3 percentage points a year subject to feasibility.
  • Impacted communities and distributed generation: The program requires carve-outs so 15% of credits (2027–2030) and 20% (2031–2036) come from distributed generation and the same shares from projects in impacted communities. States must direct at least 50% of alternative compliance payment funds to benefit impacted communities.
  • States, Tribes, and markets: Credits equal 1 FREC per MWh, are uniquely numbered, tradable, and bankable for up to two years. States and Tribes retain authority to adopt stricter rules. Retailers may use an alternative compliance payment of $50 (indexed) apportioned to States for renewables, storage, or efficiency with required annual reporting.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

New federal renewable electricity rule

If enacted, this would create a federal renewable electricity credit program (one credit per MWh) administered by FERC. Big electricity sellers (those that sold at least 1,000,000 MWh last year) would need to meet rising yearly targets from 20.0% in 2027 to 70.0% in 2036, with FERC setting later years by Dec 31, 2036. At least 15% of credits must be from small (≤1 MW) projects and 15% from projects in impacted communities for 2027–2030, rising to 20% each for 2031–2036. The bill would create regional trading markets, let credits be banked for two years, set an alternative compliance payment ($50/MWh, inflation adjusted), and include penalties and reporting rules. Households would likely see some higher utility costs from compliance, while prioritized spending and carve-outs would target benefits to impacted and low-income communities.

States can set renewable purchase rates

If enacted, this would let States set the price a utility pays for renewable electricity when a generator chooses to join a State-approved production incentive program. A facility must opt into the State program to get the State-set rate. The change would help renewable generators who want stable, state-set payments and could change contracts or costs for utilities and their customers.

Sponsors & CoSponsors

Sponsor

Clarke, Yvette D. [D-NY-9]

NY • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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