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Alternative Energy Portfolio Standard in Pennsylvania

What is AEPS?

The Inflation Reduction Act (IRA) and other new federal programs for renewable energy and energy storage have boosted economic activity and identified targeted investment zones, which include much of Pennsylvania. As investors seek to maximize their investment, these opportunities can and will be lost to neighboring states with more competitive renewable energy goals unless Pennsylvania updates its Alternative Energy Portfolio Standard (AEPS) and strengthens its credit market established by AEPS.
The current AEPS was signed into law in November 2004 and requires Pennsylvania utilities to obtain 18% retail electricity from alternative resources by May 2021 from tier 1 and tier 2. These goals have been met. Tier 1 consists of renewable energy sources, while tier 2 consists of alternative energy sources. Currently, tier 1 is 7.5% and includes solar photovoltaics and solar thermal, wind, low-impact hydropower, geothermal, biomass, and fuel cells. Tier 1 also includes a 0.5% solar carve-out for utility-scale solar, customer (on-site), and in-state solar photovoltaics (PV). Tier 2 comprises the other 10%, consisting of large-scale hydropower, waste coal, energy efficiency, municipal solid waste, byproducts of wood processing, etc. We ask that an updated AEPS increases tier 1 renewables goals from 8% to at least 30% by 2030.
We must diversify the Commonwealth’s energy portfolio now to increase grid accessibility as energy demand grows and to be better prepared in the future. An updated AEPS provides economic benefits by encouraging private investment and creating local jobs through the entire renewable energy supply chain, including installers, contractors, investors, and site preparation. AEPS also increases the amount of clean, pollution-free energy coming onto the grid, diversifying the Commonwealth’s energy portfolio and thus increasing grid efficiency and reliability. This would allow us to defend our children's health through cleaner air and water, as renewables do not emit pollutants into the atmosphere or contribute to a warming climate, which has additional health impacts such as increased cases of Lyme disease, asthma attacks, other respiratory issues, instances of cancer, and more.
Join us in calling on Governor Shapiro and the Pennsylvania Legislature to defend our kids by prioritizing positive solutions to cut pollution. We urge these decision-makers to update the AEPS in Pennsylvania today!

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